Abstract

The broad objective of the study is to determine empirically the impact of power generation capacity on economic growth in Nigeria between 1980 and 2015.The specific objective is to investigate if there is any significant relationship between power generation capacity and domestic growth in Nigeria within the study period. The method of data collection used in this project work is secondary data and the method of analysis used is ordinary least squares (OLS) In the model specified, real gross domestic product is a function of power generation, technology, and gross capital formation. The study used co-integration test, error correction mechanism for estimation of the specified model. The results of the estimation shows that there is long run positive relationship between PGW , GCF and TECH relationship with RGDP in the long run. The study therefore recommend that government must ensure transparency in the overall implementation of power sector policy and its attendance reform agenda in order to enhance growth of the economy in power generation capacity. Government should also increase its expenditure in the aspect of technology so as to foster economic growth.