Pages: (43-56 )
Abstract
The problem of low welfare levels in Nigeria and its effects on consumption decisions of Nigerians should demand even more attention now especially with the COVID-19 pandemicthat has drastically worsened the welfare levels of individuals and households in the country. This study examined the effect of household welfare on electricity consumption in Nigeria. Data was obtained from the United States Energy Information Administration (2020) and World Development Indicators (2020) for the period 1981 to 2018. The Autoregressive Distributed Lag Model was employed. The result showed that household consumption expenditure had a positive significant effect on electricity consumption in the current year both in the short run and long run. This revealed a positive elasticity. Thus, household consumption expenditure is a significant determinant of electricity consumption. Efforts towards improving electricity consumption levels should include increasing infrastructures in the rural areas; and economic policies must be such that improve household welfare. The production of exportable goods is also pertinent.
Keywords: Electricity consumption expenditure, welfare, Cointegration, Nigeria,