Effects of Power Outages on Household Incomes in Selected Sub-Saharan African Countries

Abstract

Sub-Saharan Africa is home to over 600 million people facing frequent, unplanned as well as unannounced power outages. Though the investigation of the effects of power outages is growing, less attention has been paid to households. This study examined the effects of power outages on household incomes in three selected sub-Saharan African countries namely Nigeria, Ethiopia, and Niger using a weighted least square. The study found that monthly hours of a power outage is negatively associated with the two categories of non-farm income identified in this study namely non-farm industry income and non-farm services income across the three countries. Besides, the study also found a negative association between monthly hours of power outage and total household income. In view of this, it is recommended that the government of Nigeria should explore the integration of renewable energy sources as a potential solution to alleviate electricity shortages in Nigeria. Also, the Ethiopian Electric Power Company should enhance service delivery and expedite infrastructure rehabilitation for a reliable electricity supply in Ethiopia. Finally the government of Niger should promote energy independence and diversification strategies for a reliable electricity supply in Niger.