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The Role of Public Sector Enterprise on Economic Development: A Case Study Of The Nigerian Power Sector (1981-2015).

Kenny S, Victoria (2019): The Role of Public Sector Enterprise on Economic Development: A Case Study Of The Nigerian Power Sector (1981-2015).

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Abstract

Nigeria today is trapped in a crises of deteriorating economic conditions measured in terms of widespread unemployment, abject poverty, exploitation and backwardness among others. The establishment of public enterprises is to address these problems, therefore this study critically examines the role of public sector enterprise on economic development using a case study of the Nigerian power sector covering periods between 1981-2015. This study employed the Johansen Cointegration test to establish a long run relationship between the variables while the Dynamic Ordinary Least Square (DOLS) estimation technique was used to examine a long run impact between the dependent and explanatory variables. Key findings revealed that an increase in electricity consumption induces improvement in per capita income, whereas, an increase in the rate of electricity transmission and distribution loss induces decline in per capita income in the long run. This study concludes that electricity management would substantially influence economic development process in Nigeria. Therefore, there is need to re-evaluate the current privatization exercise of the electricity sub-sector and improve the generating and transmission capacity of the sector in Nigeria.

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