Electricity Consumption and Industrial Growth in Some Selected African Countries
Chapter One
Aim and Objectives of the Study
The main Aim of the study is to examine the electricity consumption and industrial growth in some selected African countries. Hence the following are specific objectives
- To study the trend analysis of energy consumption in some selected African countries
- To examine the relationship between energy (Electricity) consumption and industrial growth.
- To make policy recommendations based on the analysis from the study.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Conceptual Framework & Review
The conceptual framework of the study will extensively review concept identified in the study, energy consumption, electricity, coal, crude oil and industrial growth will be review broadly in this section.
Energy Consumption in some selected African countries
Energy is ability of matter to perform work as the outcome of its motion or its position in relation to forces acting on it (Onakoya, Onakoya, Jimi – Salami and Odedairo, 2013). We use energy for the whole thing we do, from creating a jump to sending astronauts into space. The same concept according to Tejada-Bailly (1981) can be expressed as the amount of heat that must be transferred, exchanged or used up to effect a process or deliver a good to a particular point in the economic system. Energy exists in various forms, including atomic, electrical, chemical, mechanical, nuclear, radiant and thermal. Although energy can be transferred from one form to another but it cannot be created or destroyed. Energy can be extracted from a variety of resources that can be categorized as primary and secondary; commercial and noncommercial; conventional and nonconventional; renewable and non-renewable and traditional and non-traditional (Aminu and Aminu, 2015).
Energy is widely regarded as a driving force behind any economic activity and indeed industrial production. Therefore, high grade energy resources will increase the influence of technology and create tremendous industrial growth (Onakoya et al., 2013). The significance of energy lies in other aspect of development – increase in foreign earnings when energy products are exported, transfer of technology in the process of exploration, production and marketing; increase in employment in energy industries; improvement of workers welfare through increase in worker’s salary and wages, improvement in infrastructure and socio-economic activities in the process of energy resource exploitation (Onakoya et al., 2013).
Nigeria had been a lucky nation to have huge energy resources, which possibly give the country an ample opportunity to transform her economy and the lives of her citizens. Nigeria sits astride of over 35 billion barrels of oil, 187 trillion cubic feet of gas, 4 billion metric tons of coal and lignite, as well as enormous reserves of tar sands, hydropower and solar radiation, amongst others (Adenikinju, 2008; Odularu and Okonkwo, 2009). Today, Nigeria is seen as one of the highest developing nations in Africa with highly endowed natural resources with potential energy resources. However, increasing access to energy in some selected African countries has proved to be not only a nonstop challenge but also a persistent issue with the international community. The significance that the country has placed on crude oil is relatively very high. The over reliance of crude oil in some selected African countries is a major encounter because it has failed to spread its energy consumption and ensure a fitting energy mix. The consumption of oil is highly essential because there is no alternative to it presently (Odularu and Okonkwo, 2009). Fossil fuels like coal are insignificantly extracted in the country. The coal located in eastern Nigeria is subbituminous which means that it burns slowly and gives out a lot of heat. Subsequently, it is also low in Sulphur and ash content. Coal has been the oldest commercial fuel used in some selected African countries in since it was discovered in 1916.
Since the discovering of oil in some selected African countries, coal has been relegated to less importance and became highly dormant. With a reserve of over 2 billion metric tonnes, Nigeria produces about 200000 to 600000 tonnes yearly. Per capita power consumption in some selected African countries is estimated at 82KW which gross inadequate where as other African counterparts like South Africa has a per capita consumption of 3793KW.
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
The research design used for this study was the descriptive research design. Since data characteristics were described using frequencies and percentages, and no manipulations of data or variables were necessary, the researcher chose this research design. The researcher discarded other alternatives such as the causal and explanatory research designs, because accurate findings and data analysis may not be achieved.
Area of Study
The study focused on the energy consumption and industrial growth in some selected African countries and the Head Quarters of Federal Ministry of Power, Works and Housing, were used as the case study in this study.
Population of the Study
The staff in various departments of the Power, Federal Ministry of Power, Works and Housing formed the population of the study.
CHAPTER FOUR
RESULTS AND DISCUSSION
Results
In the course of the research, one hundred (100) questionnaires each containing nineteen (19) items was administered to various respondents, who were staff in Federal Ministry of Power, Works and Housing, and all the questionnaires were duly completed, thus giving a perfect collection rate of 100%.
The results are hereby presented as follows:
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
Conclusion
It is concluded that the relationship between energy consumption and industrial growth is important for all developing economies like Nigeria, most of which have experienced increasing level of government spending and have achieved low level of economic development overtime. Since independence, the revenues accruing to the Nigeria Government has been on the increase annually in power sector. The study further concluded that; Issues pertaining to energy consumption and economic development should be given adequate attention especially in the budget schemes and because of this, substantial amount should be allocated to the power sector in order to resolve its challenges and keep the sector in good shape for it to make meaningful impact in industrial growth.
This study concluded that Energy consumption has significant relationship with industrial growth in some selected African countries based on our study
Recommendations
Based on the findings enumerated above, this study therefore, recommends that energy conservation policies should be effectively implemented without having any negative effect on industrial growth in some selected African countries and energy growth policy should be adopted in such a way that, growth in the energy sector stimulates industrial growth and thus expands employment opportunities in the country.
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