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Electricity utilisation and firm efficiency in Nigeria: evidence from data envelopment analysis

Electricity utilisation and firm efficiency in Nigeria: evidence from data envelopment analysis Electricity consumption is a major factor that influence economic activities of firms. Epileptic electricity supply can reduce the ease of doing business for firms by raising production costs if they switch to alternative electricity supply. This study utilised Nigeria Enterprise Survey (2014) data and data envelopment analysis to find out if utilisation of electricity supply makes firms in Nigeria more efficient compared to when they utilise alternative electricity. It was found that electricity utilisation does not encourage firms in Nigeria to increase their efficiency levels under CRS due to the fact that there exist epileptic/erratic national grid electricity supply accompanied with low voltage whenever the supply is available. The study recommends that Nigerian government and its various agencies in power/electricity sector should strive more to provide constant electricity supply to the people and the firms, to encourage more economic productions that would spur economic growth and development of the country. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Critical Infrastructures Inderscience Publishers

Electricity utilisation and firm efficiency in Nigeria: evidence from data envelopment analysis

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Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd
ISSN
1475-3219
eISSN
1741-8038
DOI
10.1504/ijcis.2022.125812
Publisher site
See Article on Publisher Site

Abstract

Electricity consumption is a major factor that influence economic activities of firms. Epileptic electricity supply can reduce the ease of doing business for firms by raising production costs if they switch to alternative electricity supply. This study utilised Nigeria Enterprise Survey (2014) data and data envelopment analysis to find out if utilisation of electricity supply makes firms in Nigeria more efficient compared to when they utilise alternative electricity. It was found that electricity utilisation does not encourage firms in Nigeria to increase their efficiency levels under CRS due to the fact that there exist epileptic/erratic national grid electricity supply accompanied with low voltage whenever the supply is available. The study recommends that Nigerian government and its various agencies in power/electricity sector should strive more to provide constant electricity supply to the people and the firms, to encourage more economic productions that would spur economic growth and development of the country.

Journal

International Journal of Critical InfrastructuresInderscience Publishers

Published: Jan 1, 2022

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