IMPACT OF ELECTRICITY ON PERFORMNACE OF SMES IN NIGERIA (A CASE STUDY OF SELECTED SMES IN ETI-OSA LGA)


IMPACT OF ELECTRICITY ON PERFORMANCE OF SMES IN NIGERIA (A CASE STUDY OF SELECTED SMES IN ETI-OSA LGA)

ABSTRACT:

This study was centered on the impact of electricity on the performance of SMEs in Nigeria. The main objective of this study is to examine the impact of electricity on the performance of SMEs in Nigeria. The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the chi-square statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 150SME owners.

The study findings revealed that there is a significant relationship between electricity and the performance of SMEs in Nigeria. Based on the findings from the study, government should do more in the provision of constant power in other to enhance the performance of SMEs.

TABLE OF CONTENTS

Title Page    -    -    -    -    -    -    -    -    -    i

Approval Page    -    -    -    -    -    -    -    -    ii

Declaration    -    -    -    -    -    -    -    -    iii

Dedication    -    -    -    -    -    -    -    -    -    iv

Acknowledgement    -    -    -    -    -    -    -    v

Abstract    -    -    -    -    -    -    -    -    -    vi

Table of Contents    -    -    -    -    -    -    -    vii

CHAPTER ONE – INTRODUCTION

1.1    Background of the Study    -    -    -    -    -   

1.2    Statement of General Problem    -    -    -    -   

1.3    Objective of the Study    -    -    -    -    -    -   

1.4    Research Questions    -    -    -    -    -    -   

1.5    Hypothesis   -      -      -      -      -      -      -        -        -        

1.6    Significance of the Study    -    -    -    -    -   

1.7    Scope of the Study    -    -    -    -    -    -   

1.8    Definition of Terms    -    -    -    -    -    -   

CHAPTER TWO – REVIEW OF RELATED LITERATURE

2.0    Introduction    -    -    -    -    -    -       -   

2.1    Overview of SMEs    -    -    -    -   

2.3    Empirical studies    -    -    -    -    -       -    -    -   

2.4    Theoretical framework-         -     -      -      -      -   -

CHAPTER THREE – RESEARCH METHODOLOGY

3.1    Introduction    -    -    -    -    -    -    -    -    -

3.2    Research Design    -    -    -    -    -    -    -    -

3.3    Area of the Study    -    -    -    -    -    -    -    -

3.4    Population of Study    -    -    -    -    -    -    -    -

3.5    Sample size and Sampling Techniques    -    -    -    -    -

3.6    Instrument for Data Collection    -    -    -    -    -    -

3.7    Validity of the Instrument    -    -    -    -    -    -    -

3.8    Reliability of the Instrument    -    -    -    -    -    -

3.9    Method of Data Collection    -    -    -    -    -    -    -

3.10    Method of Data Analysis    -    -    -    -    -    -    -

CHAPTER FOUR – DATA PRESENTATION AND ANALYSIS

4.0    Introduction    -    -    -    -    -    -    -    -    -

4.1    Data Presentation and Analysis    -    -    -    -    -    -

4.2    Characteristics of the Respondents    -    -    -    -    -

4.3    Data Analysis    -    -    -    -    -    -    -    -    -

4.4    Testing Hypothesis    -    -    -    -    -    -    -    -

4.5    Summary of Findings    -    -    -    -    -    -    -    -

4.6    Discussion of Findings    -    -    -    -    -    -    -

CHAPTER FIVE – SUMMARY, CONCLUSION AND RECOMMENDATION

5.0    Introduction    -    -    -    -    -    -    -    -    -

5.1    Summary    -    -    -    -    -    -    -    -    -    -

5.2    Conclusion    -    -    -    -    -    -    -    -    -    -

5.3    Recommendations    -    -    -    -    -    -    -    -

    References -    -    -    -    -    -    -    -    -    -

Appendix    -    -    -    -    -    -    -    -    -    -

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

Access to electricity and its accompanied high tariffs poses a greater challenge to SMEs growth and performance in lower incomecountries like Nigeria, as compared with those in higher income countries.This assertion is confirmed in a research by Scott et al (2014) which reveals that, the proportion of SMEs in high-incomecountries citing electricity as a major constraint is half of their counterparts in the Sub-Saharan Africanand Asia countries. Cost and time spent on acquiring electricity were also higher in the Less Developed Countriescompared with that of High-Income Countries. However, this study is examining the effect of electricity on the performance of SMEs in Nigeria.

The effect of electricity power outage on SMEs in Nigeria posited that, the current electricitycrises in the country were costing the SMEs over US $686.4 million of annual sales. The SMEs continued to record a huge loss day by day as a result of poor electricity supply.  These have been partly blamed on market and state failures, which have led to the poor electricity supply.

In the interim, a lot has equally been said with regards to the appalling state of Nigeria's epileptic power sector according to Akuru and Okoro (2009). Energy consumers do not get electricity supplied to them because the local utility companies do not get power transmitted to them from the electric grid. The managers of electric transmesion are quick to accuse the generating stations of insufficient generating MW capacity. And as if trading of blame has become routine with each of these sectors, the generating stations either claim they do not get enough gas to power their plants or they turn around and claim that the transmesion companies themselves cannot boast of a strong transmesion backbone to transmit what is being generated.

Indeed, modern energy services can impact on the development of SMEs to a great extent. Issues that can affect the development of SMEs such as gross undercapitalization, decrepit infrastructural services, high start-up costs, corruption, and government indifference have been identified by Oboh (2002). A particular finding revealed the high cost of providing back-up energy (partly infrastructural) for SMEs which sometimes is as critical as three times the cost of publicly supplied electricity as discussed elsewhere (Adenikinju, 2003; Essien, 2001).

In Nigeria and perhaps generally, SMEs classification have been done on the basis of capital investment and employed labour force while other criteria could be the annual turnover or gross output as mentioned by Anyanwu (2001). Until very recently, energy was rarely cited as one of the problems militating against the performance of SMEs in Nigeria and elsewhere.

Several policies has been formulated by government at all levels (Federal, States and local government) in Nigeria to enhance growth and development of the SMEs as they contribute significantly to the GDP of the nation. This policies and objectives can only be realized when there is adequate power supply to the small business. Currently in Nigeria, managers of small business spend huge sums in procuring generating sets, fuel and the maintenance of the generators to operate their business successfully. This has however skyrocketed the operational cost and reduced their performance.

1.2    STATEMENT OF THE PROBLEM

The numerical value of Nigeria's GDP as at 2004 (and by all standards, now, because there have been no noticeable improvements) is a consequence of its poor electricity structure and this has affected the performance of SMEs, which is considered as a yardstick for economic independence of nations. However, a number of options that can be used to checkmate this unfortunate development exist. For instance, if the Nigerian government should consider the criticality of SMEs and fast-track programmes on the expansion and optimal operation of the current energy mix; within a very short time frame, these could be measured as an effort towards relief. SMEs villages/clusters can be built to promote industrial activities on the basis that such basic infrastructure like electricity, which is needed for spin-off as well as for sustainable operation, is collectively and affordably provided by the relevant host authorities to investors and operators. Standalone renewable energy (RE) systems are increasingly getting better than generating sets which still requires expensive and pollution-prone fossil fuels for their operation. Hence, efforts are needed by relevant authorities, tasked with the promotion of SMEs in Nigeria, to facilitate the provision and subsidized costs of procuring these renewable energy systems - some of which are readily available for small-scale use.

1.3    OBJECTIVES OF THE STUDY

The following are the objectives of this study:

1.    To examine the impact of electricity on the performance of SMEs in Nigeria.

2.    To identify the effectiveness of the electricity generating and distributing companies in Nigeria.

3.    To examine other factors affecting the performance of SMEs in Nigeria.

1.4    RESEARCH QUESTIONS

1.    What is the impact of electricity on the performance of SMEs in Nigeria?

2.    What is the effectiveness of the electricity generating and distributing companies in Nigeria?

3.    What are the other factors affecting the performance of SMEs in Nigeria?

1.5    HYPOTHESIS

HO: There is no significant relationship between electricity and performance of SMEs in Nigeria.

HA: There is significant relationship between electricity and performance of SMEs in Nigeria.

1.6    SIGNIFICANCE OF THE STUDY

The following are the significance of this study:

1.    The outcome of this study will educate the general public on the importance of electricity to the performance of SMEs in Nigeria.

2.    It is also anticipated that the federal government will tap into the vital information provided by this research in the overall economic development to set up working mechanisms for the promotion of SMEs.

3.    Another important thinking is the fact that it will add to the limited but growing catalogue of research on electricity economics in Nigeria.

4.    Small businesses can also benefit, to some extent, from the information presented in this study which serves as a guide to alternative viable sources of power generation and even job creation.

1.7    SCOPE/LIMITATIONS OF THE STUDY

This study will cover the effect of electricity on the performance of SMEs in Nigeria. It will also cover the effectiveness of the electricity generating and distributing companies in Nigeria.

LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

REFERENCES

Adenikinju, A.F (2003). Electric infrastructure failures in Nigeria: a survey-based analysis on the costs and adjustment responses, in Energy Policy, Vol. 31, Issue 14. November 2003, pp. 1519-1530.

Akuru, U.B. and Okoro, O.I. (2009). Sustainable application of solar energy as SMEs in a developing nation, African Journal of Physics Vol. 2, pp. 184209, ISSN: 1948-0229 CD ROM: 1948-0245 ONLINE: 1948-0237

Anyanwu, C.M. (2001). Financing and promoting small-scale enterprises: concepts, issues and prospects, Being the Publication of the launching ceremony of the Small and Medium Industries Equity Investment Scheme at Nicon Hilton Hotel, Abuja on 21st August, 2001. Volume 25, No. 3; July/September 2001.

Essien, O.E, (2001). The role of Development Finance Institutions (DFIs) in financing of Small Scale enterprises (SSIs), Being the Publication of the launching ceremony of the Small and Medium Industries Equity Investment Scheme at Nicon Hilton Hotel, Abuja on 21st August, 2001. Volume 25, No. 3; July/September 2001.

Oboh, G.A.T. (2002), Bank Participation in the Promotion of Small and Medium-Scale Enterprises, Being a paper presented at the 6th Fellows and Associates Forum of CIBN on 13th April, 2002.  

Scott, A., Darko, E., Lemma, A. and Juan-Pablo, R. (2014) How Does Electricity Insecurity Affect Businesses in Lowand Middle Income Countries? Shaping Policy for Development

.

IMPACT OF ELECTRICITY ON PERFORMNACE OF SMES IN NIGERIA (A CASE STUDY OF SELECTED SMES IN ETI-OSA LGA)



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.NET
Researchwap.net is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.net guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.net is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.net" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.