Impact of Electricity Supply on the Performance of Small and Medium-Scale Enterprises (SMEs) in Nigeria: A Case Study

Abstract

Despite the fact that past empirical studies have reported that numerous factors affect the performance of SMEs in Nigeria, yet power supply, which is the strategic driver of economic activities and its spillover effects on the performance of SMEs in Nigeria has not been fully investigated in the country. Against this backdrop, this study examined the impact of electricity on the performance of SMEs in Ado-Odo, Ota LGA, Ogun State. Consequently, the questionnaires were administered to the respondents using the method of purposive sampling. The data was analyzed using Statistical Package for Social Science (SPSS), variance analysis (ANOVA) and Correlations and Ordinary Least Squares (OLS) techniques. A total of 120 questionnaires were distributed, of which 90 were compiled and analyzed. The findings showed that there is significant impact of electricity supply on the performance of SMEs in Ado-Odo Ota Area, in Ogun State. Also, alternative power sources have significant impact on performance of SME in Ado-Odo Ota Area, in Ogun State. Therefore, by and large, from the findings of this study, the paper made the following recommendation for the policymakers and business owners in Ado-Odo, Ota Area of Ogun State in particular, and Nigeria by extension that sufficient supply of electricity should be placed in a place that maximizes the efficiency of small and medium-sized businesses. In the same vein, SMEs owners should strive to use alternative sources of power to boost the performance of SMEs, and meet their market objectives.