BACKGROUND OF THE STUDY
One of the key developments which has immensely impacted on the economic growth pattern in the world in the new “millennium has been the strides in the domain of the Information Technology sector. Information technology has drastically changed the business landscape. The success of Nigeria as a nation depends on its ability to reach and exceed its economic and social potential. The world’s economies are in transition” (Egbo & Okoyeuzu, 2013). The economy is increasingly becoming a digital economy. The Internet is the driving force for the growth of e-commerce.
It is evident that so much of our daily lives will be conducted through the Internet and the digital economy. Essential services and companies are increasingly making their way to the Internet. Emerging economies have a lot of opportunities in the rapidly changing global digital economy. Although a range of e-commerce activities are gaining traction in Nigeria, many Nigerian communities still rely on cash for transactions. Growth has been sluggish due to a variety of factors, including low Internet penetration and inadequate communication infrastructure (Egbo & Okoyeuzu, 2013).
In order to be more successful and productive in the future. Infrastructure is often the responsibility of the government due to its expensive cost and long gestation period. The most severe infrastructure problem confronting Nigeria’s business sector is the lack of electricity. A reliable electricity supply is an essential need for a country’s economic growth. Technology transfer is critical to the integration process of the global economy. Technology transfer helps solidify political coalitions, in addition to financial and other concrete advantages. De (1999).
The lack of necessary infrastructure for the effective deployment and adoption of electronic payments and commerce puts Nigeria’s desire to become a digital economy in jeopardy. For the development of economic growth and cashless trade transactions, there is a critical requirement for essential infrastructure. This is because e-banking has lowered the cost of manufacturing and transactional risks in advanced nations. The Central Bank of Nigeria (CBN) has announced a new policy on cash withdrawal restrictions in order to accelerate the transition from cash to a cashless economy, which may have a significant impact on banking operations, according to Eze et al (2010) as cited in (Egbo & Okoyeuzu, 2013).
The socio-economic and technical growth of such a cashless economy is heavily reliant on electricity infrastructure. In Nigeria, the demand for power outnumbers the supply. The nation is suffering from severe energy shortages, which are obstructing its growth and posing a major challenge to policymakers in both the commercial and governmental sectors.
STATEMENT OF THE PROBLEM
Despite how crucial it is in Nigeria today, infrastructure for electricity has been overlooked for many years by the government. Although the citizens have been clamoring for a change, the government has only made little improvements in some states and none at all in other states.
Infrastructure determines a system’s ability to adapt to changing conditions in order to be efficient and productive. Infrastructure for electricity is a powerful force that propels industrialization. Nigeria’s electric power supply has become critical to the country’s progress. Unfortunately, one of the country’s most serious infrastructure issues is an electricity crisis marked by frequent power outages and load shedding.
This study seeks to evaluate electricity infrastructure as an impediment to a digital economy and economic growth of Lagos state.
OBJECTIVE OF THE STUDY
The primary aim of this study is to evaluate electricity infrastructure as to how it impedes the digital economy and economic growth of Lagos state. Thus, the following objectives;
1. To determine whether a relationship exists between electricity infrastructure and a digital economy.
2. To determine whether a relationship exists between electricity infrastructure and economic growth in Lagos state.
3. To evaluate whether a lack of electricity infrastructure impedes the digital economy and economic growth of Lagos state.
The following questions guide this study;
1. What is the relationship between electricity infrastructure and a digital economy?
2. What is the relationship between electricity infrastructure and economic growth in Lagos state?
3. Does a lack of electricity infrastructure impede the digital economy and economic growth of Lagos state?
SIGNIFICANCE OF THE STUDY
This study will be significant as it will bring to the fore an awareness on electricity infrastructure and how it might be an impediment to a digital economy and the economic growth of Lagos state. This study will be helpful to the government in assisting them discover the importance of setting up electricity infrastructures as it relates to the economic growth of Lagos state. This study will also be helpful to other researchers who wish to delve deeper on this subject matter or take the study on from a different perspective.
SCOPE OF THE STUDY
This study will only cover an evaluation of electricity infrastructure as to how it impedes the digital economy and economic growth of Lagos state. Therefore, all other states will not be looked at.
LIMITATION OF THE STUDY
During the course of this study, the researcher was faced with limited time to broaden the scope of this research.
DEFINITION OF TERMS
1. ELECTRICITY: A form of energy resulting from the existence of charged particles (such as electrons or protons), either statically as an accumulation of charge or dynamically as a current.
2. ECONOMIC GROWTH: An increase in the amount of goods and services produced per head of the population over a period of time.
3. DIGITAL ECONOMY: Digital economy refers to an economy that is based on digital computing technologies, although it is often regarded as conducting business through markets based on the internet and the World Wide Web.
4. INFRASTRUCTURE: Infrastructure is the general term for the basic physical systems of a business, region, or nation