ENERGY INFRASTRUCTURE AND GROWTH OF DOMESTIC INVESTMENT IN NIGERIA: AN ARDL APPROACH

Abstract

Energy infrastructures play a crucial role in growth of domestic investment of any economy. Conventionally, most firms depend on public source of energy for production. Sequel to this, this paper examines the effect of energy infrastructure on domestic investment in Nigeria. Time series data obtained from CBN Statistical Bulletin and World Development Indicator were employed using Autoregressive Distributed Lag (ARDL) Model. Empirical findings show that energy infrastructure has a positive effect on domestic investment but non-significant. The policy .implications of this finding is that government should adopt more stringent supervision and policy to regulate execution of energy infrastructure project; and more funds needed to emancipate energy infrastructure in order to obtain desired level of domestic investment in Nigeria.