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Journal of Recent Activities in Architectural Sciences
Volume 3 Issue 3
Dynamics of Residential Electricity Consumption in Nigeria
1
Dr Obinna J.Ubani,
2
Dr. Lucy N. Ugwu
1
Lecturer,
2
Ph.D. Scholor,
Department of Urban & Regional Planning, University of Nigeria,
Enugu Campus, Enugu, Nigeria
Email:
1
obinna.ubani@unn.edu.ng
Abstract
The continuous residential electricity supply problems in Nigeria are attributable to the
inability of energy planners to accurately forecast the effect of the various socio-economic
and physical factors that influence residential electricity consumption across the country. The
major problem with the existing forecasts of electricity consumption is often assumed to be
associated with poor identification of these socio-economic and physical factors upon which
they are based. The goal of this study is to empirically determine the various factors that
affect the residential electricity consumption rate in Nigeria. The study covers an annual time
series data from 1985 to 2016. Data for the study was collected through secondary sources.
Multiple Linear Regression was used to test the research hypothesis. The result suggests that
residential electricity consumption was significantly related to the eight of the nine socio-
economic and physical factors of this consumption rate studied at 0.01 level (R
2
= 0.92).
These are per capita income, degree of urbanization, population density, Number of
households per capita, Price of Kerosene, number of households with electricity,
Temperature, and employment rate. These eight variables are significantly in determining the
residential electricity consumption in Nigeria. Policies based on the outcome of this study
will produce positive and sound policy actions.
.
Keywords: Electricity, Consumption, Residential
INTRODUCTION
The energy sector, apart from serving as
the pillar of wealth creation in Nigeria, is
also the nucleus of operation and
consequently the engine of growth for all
sectors of the economy between 1970-
2011, residential electricity consumption
of electricity in the country increased from
752 million kWh to 8576.3 million kWh
(1). Given the current trends in population
growth, industrialization, urbanization,
modernization and income growth,
residential electricity consumption is
expected to increase substantially in the
coming decades as well. All these require
matching supply of infrastructure and
public service to ensure sustainability.
There has been continuous increase in the
budget allocation given to the Nigeria
electricity industry (2), and the
government has imported many power
transformers, circuit breakers and high
tension cables. All these have not
adequately improved the electricity crisis
experienced across the country.
The continuous electricity supply
problems in most residential areas of the
country can be attributable to the inability
of energy planners to accurately
understand as well as forecast properly the
socio-economic and physical determinants
of electricity consumption in Nigeria.(3).
The need for more accurate estimates of
key residential electricity consumption
parameters are explained by the reason
that a more robust estimates of residential
electricity consumption parameters is
essential for more informed and successful
electricity policy decision making and
implementation in Nigeria.
Various studies had commonly considered
variables like household disposable