An analysis of the effect of power supply on manufacturing output in Nigeria (1970–2013)

Manufacturing sector of any economy plays a major role of sustaining such economy's industrialization process. Considering this crucial role, the study was undertaken to examine the impact of power supply on manufacturing output in Nigeria between 1970 and 2013 using the OLS multiple regression and other econometric tests like ADF, Johansen Cointegration and the Vector Autoregression estimates. The result of the study shows that power supply in Nigeria during the period of analysis impacted negatively on manufacturing output. Other variables like capacity utilization and exchange rate also impacted negatively. In view of the findings, the study recommends for efficient and sustained power supply and independent power projects as proposed by some states of the federation.