CHAPTER ONE

1.1 Background to the Study

The nation Nigeria is blessed with numerous natural energy resources that include winds, hydro,

natural gas biomass and solar etc. (Iwayemi, 2008 & Omuwha, 2019). Notwithstanding these

natural blessing, the country still lack the needed electricity supply, therefore this affects the

economy of the country due to shortage of power supply (Agbo, 2017).

The insufficient energy supply causes the economy huge amounts of staring capital and created

rampart provision of alternative use of different types of energy (Lee & Anas, 2012; Adenikinju

2015). In addition citizens usually spend vital times in unusual queues in order to purchase

petroleum product in government controlled prices primarily because scarcity of petroleum or fuel

is a known characteristic of the Nigerian energy market. Scarcity of fuel supply in nation generate

double power crisis to the country, Nigeria (Iwayemi, 2008). The act of investing in alternative

electricity backup facilities is prevalent and inflicts important cost on the economy. Businesses

like barbing, hairdressing and tailoring among others bear the brunt more in the country’s energy

deficiency as they invested major part of their starting capital on supporting electricity providing

facilities (Lee & Anas, 2011).

Scholars like Adeyemu (2017), Foster and Steinbuks,( 2016); connected every of Nigeria’s

financial troubles and also lack of industrialization to poor achievement of the power sector.

Although electricity supply failure are not specific to only African countries like Nigeria, judging

from the blackout that transpired in California and in some other areas in the Eastern United

1
States of America. However, it is in the ambits of government to provide reliable and adequate

electricity supply and the right and desire of consumers to have reliable electricity. The task of

keeping the light on is exceptionally unachievable particularly in third world countries like

Nigeria (DOE, 2013).

Researchers like Uchendu. (1993) and Ukpong (2003) investigated the financial cost of electricity

failure and inadequate provision of energy on small and medium scale enterprises in Nigeria and

their survival strategies in Africa. The study anchored on small and medium scale enterprises and

highlighted important inputs that can enhance and foster the country’s economic system by

paving way for employment opportunities and money making strategies for the populace (Oseni

& Polit, 2013).

Businesses such as tailoring, hairdressing and shoemaking stimulate the economy by enabling

citizens to live fairly and healthy. This in turn encourages industrialization and development. In

addition, majority of the people in Nigeria engage in small and medium scale businesses

especially families that have plenty dependents who need daily income to put food on the table

for all members of the family. This clearly informs researchers that these classes of businesses are

numerous and are predominant in Nigeria (Ajayi, 2015).

Yenagoa city suffers from poor power supply just like most other cities in the country, therefore,

this study look forward to identify problems associated with small and medium scale enterprises

like welding, shoe making and barbing due to lack of power supply in Yenagoa city and make

recommendations that can improve electricity generation and supply in the country (Adenikunju,

2015).

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1.2 Statement of the problem

Seen from the background of this study, epileptic electricity supply is perhaps the greatest hassle

confronting the enterprise sector. A Nigerian firm witnesses electricity failure and voltage

fluctuation approximately fourteen times within the week, which lasts for about two hours,

without earlier warning. This imposes massive cost at the firm, springing up from idle workers,

damaged materials, misplaced output, damaged gadgets and restart and value. The general effect

is to increase commercial enterprise uncertainty and decrease returns on investment. For the

aggregate economic system, this has severely undermined Nigeria's growth capacity and the

attractiveness of the economic system to external investors.

The main problem of this study is the nature and poor access to electricity supply by power

holding company of Nigeria (PHCN) to small and medium scale businesses operation in Yenagoa

city. These firms could not make reasonable profits because of the excessive amount spent on

alternative source of electricity.

The global financial institution anticipated the monetary loss of the country from power holding

company of Nigeria (PHCN's) inefficiency via factor substituting, personal provision of

electricity, preference of commercial enterprise and output reduction. The maximum common

responses among Nigerian firms had been through personal provision of generator. They factor

generator cost into the general funding of firms in the country. Incidentally, small and medium

scale businesses are worse affected (Adenikinju, 2015).

Small and medium scale enterprises spend as much as 25% of the preliminary funding on self-

provision of generator. This influences the profitability of investment, increases price of

production,

3
and general performance of small medium scale enterprises. Power holding company of Nigeria

is capable of supplying electricity at much lower cost than personal provision, but many small

and medium scale businesses depend heavily on generator for their operations. ( Udeaja, 2016).

This study is therefore aimed at finding out how electricity supply in Yenagoa city affects the

performance of SME’s.

1.3 Research Questions

Given the above background and statement of problem, the study answered the following

research questions:

1. What is the nature of electricity supply in Yenagoa city?

2. How is electricity supply connected with the performance of small and medium

scale enterprises in Yenagoa city?

3. Which alternative source of electricity supply is used by SMEs besides PHCN in

Yenagoa city?

1.4 Research Hypothesis

Ho: I. There is no significant connection between electricity supply and the performance of small

and medium scale enterprises.

Ho: 2. Alternative source of electricity supply do not have any significant effect on the cost of

executing small and medium scale business.

1.5 Objectives of the Study

The general objective of the study is to examine the impact of electricity supply on small and

medium scale enterprises in Yenagoa city. The specific objectives are to:

1. investigate the nature of electricity supply in Yenagoa city.

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2. examine the connection between electricity supply and the performance of small and

medium scale enterprises in Yenagoa city

3. determine the alternative source of electricity used by small and medium scale owners in

Yenagoa city.

1.6 Significance of the study

The state of poor electricity supply in Nigeria and its demeaning effect has become a source of

worry to every Nigerian particularly SMEs owners. Consequently, any empirical study that is

conducted to investigate electricity supply and performance of small and medium scale

enterprises in an economic developing nation is invaluable. This is due to the fact that such a

study will maximally benefit all facets of society.

Electricity supply has an indispensable input to the overall growth and activities of SMEs in

addition to this it is worthy of note that adequate electricity supply is a key to any nation’s

sustainable economic development. Therefore, this study was conducted to ascertain electricity

supply and performance of small and medium scale enterprises towards proffering plausible

solution in improving electricity generation and supply for effective and efficient performance of

SMEs.

Again the findings of this study would be of great importance to the public, government, its

agencies, policy makers and research bodies. By understanding some of the reasons SMEs do not

make reasonable profits, enacting and implementing laws that will improve electricity generation

and supply in other to create enabling environment for SMEs to thrive. It will also be of benefit

to the Bayelsa state ministry of Trade, Industry and Investment. Also it fills the gap created in

related literatures in that to the researcher’s knowledge no work has been done about this topic in

the study area at the time this study was conducted.

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1.7 Scope of the study

This research work is restricted to small and medium scale enterprises in selected communities in

Yenagoa city. The study focuses on electricity supply and (SMES) activities which are barbing,

welding, hairdressing, shoemaking and tailoring.

1.8 Operational Definition of concepts

The key words or concepts of the study are clarified to foster proper understanding of their usage

due to the specific demand of this research work. They included the following:

Electricity supply: for the purpose of this study, electricity supply refers to the actual power

source, from the national grid (PHCN) to the various businesses and homes for consumption.

Performance: performance refers to the amount of useful work accomplished, estimated in

terms of time needed and resources used. For the purpose of this study, it refers to the necessary

work achieved by SMEs in other words it is defined as the various activities engaged by SMEs

towards achieving set goals.

Small and medium scale enterprises: it refers to profit oriented businesses owned and managed

by a single person with no or few paid employees, which is relatively very small in structure. The

researcher operationalizes this definition to refer to both small and medium scale businesses.

Megawatt: It is used to measure the output of power plant or the amount of electricity required

and electricity voltage available to use in a given environment.

6
 CHAPTER TWO

LITERATURE REVIEW

2.1 History of Electricity Supply in Nigeria

The generation of electricity started in 1896 in Nigeria, but the premier electricity utility company

was created in 1929 also known as Nigeria Electricity supply company. A state owned monopoly

National Electric power Authority established in 2002 to generate, transmit and distribute

electricity in the country.

It served as two faced integrated utility company and comprises 6200 MW generation capacity

from hydro and 4 thermal power plants. These limited MW has resulted to an unreliable and

unstable supply of electricity situation in the country, where SMEs and private consumers are

proposed to epileptic electricity supply, frequent electricity cuts and repeated electricity outages

and a sector classified as poor maintenance of electricity infrastructure, no revenue, outdated

electricity plants and corrupt managements.(Ochayi, 2015).

A reform of the electricity sector started with the announcement of the national electricity power

policy with the aim of creating an efficient electricity market in Nigeria.it had the sole aim of

moving the management and transferring of the assets and equipment (infrastructure) of the

electricity industry to private sector in order to create the necessary element needed to form a

sustainable electricity market.

Electric power sector Reform (EPSR) law was made, Nigeria Electricity Regulation commission

(NERC) also established an autonomous body to regulate electricity industry in Nigeria. The

Power Holding Company of Nigeria (PHCN) was established as a temporary corporation that

consists of 6 generation companies, 18successor companies, and 11 distribution companies

established by NEPA.

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The privatization of the distribution company was finalized in 2014. However, in 2010, the

Nigerian Bulk Electricity Trading plc. (NBET) was created to pave way as the starting point of

electric power from generation companies. In 2013 the privatization of all distribution of ten (10)

companies and generation was completed by the federal government and they are responsible for

the ownership of the transmission company.(Okafor 2017).

2.1.2 Electricity Supply Situation in Nigeria

The poor nature of power supply, and the depressing overall achievement was properly cited by

(Adenikinju, 2015). The willingness of Nigeria to be industrialized has suffered through

inadequate and poor energy supply (Philips, Jumah and Olugbenga 2018). Basically this is

because of insufficient generation, transmission and distribution infrastructure. Though numerous

sources are being exhausted to extend the company’s basic facility electricity supply branded by

excessive voltage deviation periodic outages and manifested dependence on personal alternative

electricity (Adenikinju 2018).

The country’s economic system is regarded as generator reliance economy due to citizen’s

businesses over dependent of alternative energy source like generator (Ekpo 2016). Continual

energy crisis has hindered the process of industrialization in the country because production

activities are blocked and excessive price of operation of goods is created. It has thwarted the

development and the growth of the economic system (Udah, 2010).

Consequently, power outages have turned out to be the usual practice in the nation. Many

production companies faced 516 power failure and it increased by 16% within 2014 (Oluronshola

2014). Witnessed an increase of 34% growth and escalated between 2012 to 2018. Because of

poor electricity supply difficulties in 2010 policies were made by government o0f the day to

8
reform the power sector by making it a private monopoly especially the generation phase (FGN,

2014). The policy made had not in any way improved the quality of power supply in the country.

The after effect is the known electricity failure that enabled power supply to be rampart and

inadequate in the study area.

Adequate energy supply is now a critical public policy problem because of the considerable

charges manufactured through power users due to inefficient and epileptic electricity supply.

Private business owners now see the need to make electricity supply availability a priority in their

policies (DOE, 2018). Citizens who need reliable electricity prefers uninterrupted power that will

not damage equipment and gadget as well as other types of electricity disturbances that may affect

instrument used at home and those used in their businesses both in small and medium scale

activities. Epileptic electricity supply cause severe demanding situations both in the

socioeconomic and the political system. Most of these threats happened in the absence of

humanitarian activities, difficulties in the governing process and poor production of goods

amongst many issues (Oseni and Pollit 2013).

Epileptic supply of electricity in Africa and Nigeria is the leading cause of industrial woes as well

as lack of productivity, development of businesses and competition (Reneika & Svenson 2012)

ADB (2016). IN 2019 firms in the Nigeria experienced power failure of about 7 to 4 hours, 18,

times three within a month resulting to about 172 hours on average in a particular month (Oseni &

pollit, 2018).

Small and medium scale businesses owners reacted to poor power supply in numerous patterns

that consist of the location of businesses, reduction of profit, factor substitution and provision of

personal has been the most widely adopted approach (Abu- ELias, 2011; Adenikinju, 2015 ).

Business investments in financial institution increase finances to provide personal energy during

9
power outage Reneika & Svenson (2012) discovered that epileptic electricity supply seriously

undermine investment in firms and other activities of production in Nigeria. There is the belief of

businesses that personally provide power at an amount of 15 to 31 times greater than government

provision of power World Bank (2014). However, poor electricity provision causes considerable

cost to business. Changes of that nature consist of spoilage of equipment, damages of material and

lose of human productive capacity hours, production interruption and sales abandonment,

reducing income and management attention etc. owners of both medium and small scale

enterprises spend plenty of money on alternative power supply facilities in order to have a

backup generator in their houses. Many firms are propelled to have standby plant. But privately

owned and generated electricity is typically more expensive than government or grid provided

power supply. This cost differential prevents privately owned and generated electricity to serve as

a permanent solution to poor power supply.

The problem caused by electricity outages is excessive on medium and small businesses. These

businesses spend approximately 28% of their preliminary funds on backup electricity generating

plants (Lee & Anas ,2011). The major industrial arrangement too suffers extremely from power

supply inefficiency that is perplexing the nation. Yunusa, (2012) stated that, cost for providing

electricity in the industrial production process is ridiculous and he pinpointed that about 38%.

22% was also proposed by Iwayemi (2014) as funds channeled to alternative source of electricity

provision. As a matter of fact financial institutions in Nigeria make sure a business or firm has

power generating facility or plant before they are considered for any type of loan (Ajayi, 2015).

Nigeria’s unstable business environment is bedeviled by unreliable and epileptic electricity supply

as rightly described by the World Bank (2014) production companies within Nigeria consider lack

of infrastructure primarily electricity supply as the major problem troubling the economic system.

10
2.1.3 The nature of electricity supply and the impact on small and medium scale enterprises

performance in Nigeria

Industrialization is the combinations of planned and sustainable application that is suitable for

management expertise, technological advancement and infrastructural development as well as

critical assets, which influenced substantial developmental interest in previous economic system.

It also acts as a booster that speeds up the movement of progress in diversification of economic

system and transformation. This helps a nation to make proper use of its God given resources and

assist in reduction of relying on foreign finished goods for economic growth and development

(Adeyemi, 2017 & Okafor,2017).

Nigeria has adopted numerous policies, motivations and strategies to enhance industrialization. It

is in acceptance of the significance and usefulness of industrialization to the socioeconomic

growth and development of the country since the regaining of independence. Programs like

indigenization policy and structural adjustment program (SAP) in the later parts of 1980s, others

like Bank of industry in year 2000 and small and medium equity investment programs was setup

to lessen loan constraints confronted by investors. Most of the policies consist of the import

substitution. The government of Nigeria in 2019, created the national integrated industrial

development (NIID) blue print 9 (Adegbamingbe, 2014), African Review of Business and

Technology (2016). Regardless of these regulations and motivations, useable data shows that

industrial and business section still have slow increase. Nigeria in the first quarter of 2015 review

by production association shows an image of crisis in the industrial sector. Their data indicated

10% of production firms only operate at 38.9% of implanted capacity. The data also indicated

61% of firms operating managed to gain their variable cost while those who closed down were

30% from the data revealed most of the business in the country suffered an average of 15.4 hours

11
of electricity outages within the day compared 84% total cost of manufacturing. (Okafor 2017;

Adegbamigbe 2014 & Udeajah 2016).

Electricity generation and supply in the country is faced with countless restraints and problems as

illustrated with signs of potential blackouts and constant signs of persistent noise from personal

provision of power. As pinpointed by Ekpo (2016), the country is labeled as a nation that relies

solely on generator and its negative impact of goods manufacturing cost. Nigeria’s power market

is overwhelmed by manipulative state created monopoly that is not capable of supplying minimal

approved global standard of power services which is available, reliable and reachable in previous

era.

Data showing the utilization of installed electricity potential and the level of firms production

clearly indicated electricity deficiency and the nature of the menace faced in the 1970s, about

1,089,78 megawatts was 35,58% while 33.43% was genuinely utilized in 1980s. Between 1990 to

2003, minimum installed energy provision capacity was approximately 6000M. While the rate of

utilization was below 41% in 2015 capacity of installed electricity was approximately 7,012 MW,

but real usage rate was 36.5% (Okafor, 2017).

The poor volatile utilization capacity seen in the minimum utilization capacity which is less than

41% for about three decades indicates the massive lacuna between actual operational and installed

capacity. This huge gap vividly shows the extent of failure in the technical inefficiency of the

electricity sector. The nation’s chronic power crisis have debilitated the industrialization process,

leading to pausing and excessive cost of operation and drastically subverted government efforts to

gain reliable socioeconomic growth and development (Adegbamigbe, 2014).

12
2.1.4 Role of SMEs in Nigeria

Small and medium scale enterprises (SMEs) are the boosters of economies in developing

countries like Nigeria. Developing countries stand on the shoulders of small and medium scale

businesses, because SMEs are characterized by innovations, dynamism and efficiency and their

size foster easy and quick decision process. (Yunusa, W. 2012)

The importance of SMEs to any economy is clear and useful, they comprises

1. creation of jobs with low capital cost

2. Building of many skilled and semi-skilled workers as a curtain-raiser for future industrial

expansion.

3. Contribution to the economy in terms of output of goods and services.

4. Provide an excellent breeding ground for managerial and entrepreneurial talent, lack of the

enabling environment hampers economic development and decreases chances of

development.

5. Create technological knowledge and opportunities for developing and adapting

appropriate innovations.

6. Improve connection of forward and backward linkages between geographically, socially

and economically diverse sectors of the economy.

7. Provide a means for reducing disparities of income.

Small and medium scale enterprises (SMEs), are accepted as the engine room that creates

development in any economy because they comprises the bulk of business activities in developing

economies like Nigeria

13
The lack of enabling environment and finance for SMEs has been an issue debated by the

government, financial institutions and industry leaders at large. Many SMEs have challenges

getting the needed finances to improve and grow their businesses.

These and many more compelled the Central Bank of Nigeria (CBN) in 2013, to launched the

SMEs Development Fund with a share capital of #220, billion. It was established in recognition of

the important role and contributions played by small and medium scale businesses to improve the

economy and to bridge the existing financial vacuum. The major aim of the fund is to channel low

interest to SMEs sub-sector of the Nigeria economy through participating financial institutions.

(Akpokerere, O.& Ighoroje, E. 2013)

Banks and other institutions also, have been filling the gap in the market through provision of

short-term loans to SMEs in Nigeria. Nigerian government has established numerous programmes

targeted at improving SMEs e.g. N-power, Market Women Money and SMEDAN

Etc. All these efforts are brought together bridging the gap and improving SMEs in Nigeria.

2.1.5 The Position of Electricity on SMEs Activities

The primary use of electricity amongst small and medium scale businesses is for communication

and lightening reason (Mayer-Tasch, 2018). Specifically small and medium scale enterprises that

are for production purpose have other important uses of electricity such as storage, production,

and powering of machines in work place. In welding and straining small and medium scale

business electricity is used to power equipment to help in the production of iron gates, anti-

burglary gadgets, scaffolding devices, and party canopies, and sealing of sachet water. Companies

that process food has numerous types of machine that needs energy or electricity to make use of

them. Tailors have industrial machines that need electricity to power in order to easily design

14
their dresses for customer consumption. The major function of electricity within industrial and

manufacturing SMEs is to power equipment which is typically crucial in the production of goods.

There is a mutual connection between commercial enterprise and electricity. Supply of

electricity has a strong or important effect on socioeconomic activities (Velasquez and picher,

2015). In the manufacturing sub-system approximately 15% of energy is provided manually by

consumers according to (Energy commission, 2015).

Ado & Josiah (2015) investigated power supply and its effect on small and medium scale

enterprises. They find out that there is a serious effect on small and medium scale business by the

massive cost imposed by electricity failure and its epileptic nature on their activities. The study

further recommended the importance of policy that should be centered on rejuvenating the

Nigeria power sector in order to enhance the nation’s development both social and economic.

Onokoya et al (2018) analyzing how the socioeconomic growth and development within 1976 and

2009 and connected it to electricity consumption indicates that the overall power consumption has

a mutual link between growth and progress except for consumption of coal. They further

indicated that drilling of petroleum product; power and the total energy usage have a progressive

relationship in Nigeria’s economic growth.

Akpokerekere and Ighorojre (2018) investigated impact of expenditure on socioeconomic growth

and used a disaggregated approach within 1977 to 2016. They find out that power total capital

expenditure, government expenditure on education and total recurrent expenditure have a

disadvantage effect on socioeconomic growth. In (2012) Uzochukwu and Nwogwugwu

investigated spending of federal government on the power sub- sector. Their research indicated

that regardless the numerous policies by previous governments and the injection of huge amount

of fund in the power sector, nothing tangible were achieved both aims and objectives of the

15
policies and reforms introduced were far from realization. Jesuovieet et al (2015) in their work

investigated the massive funds injected into the electricity sector to know if it has yielded the

needed result by increasing electricity generation and supply. But they find out that recurrent

expenditure has a progressive effect on power generation from one side and on the other face the

reverse was the case between power generation and recurrent expenditure in the energy sub-

sector. Their study also indicated that (GDP) Gross Domestic Product has a positive relationship

with the amount of megawatts used by the sub-sector and in turn has a negative impact on growth

of the economy and the industrial process.

The effect of electricity supply on industrial development and the impact of power supply on

socioeconomic development were investigated by Nwankwo and Njogo (2018). Their work

suggested that industrial production, power generation, Gross Fixed Capital Formation. The

connection between unemployment rate and power consumption was investigated by George and

Oseni (2012). The ordinary least square progression method was used to determine impact of high

rate of employment, power supply and output of electricity consumption in Nigeria. The study

covered a period of 1970 to 2005 however, the work find out that electricity supplied to

residential homes were more than energy supplied to industries and businesses. Therefore, they

concluded that the primary reason of lack of employment in the country may be linked to

insufficient and poor supply of electricity in the industrial sub-sector. From the researches

mentioned above it is crystal clear that numerous studies had been carried out in respect of power

supply and the connection to economic development of Nigeria. Although there is no latest study

carried out about power supply and socioeconomic development in Yenagoa city. In opposition to

this assertion this work endeavors to contribute to already existing literature in the subject at

hand.

16
2.1.6 Relationship between Electricity Supply and economic Development

Ologundudu (2015) like most scholars and researchers have carried out numerous studies to

examine the link between financial increase and economic development through power supply.

He examined the long run connection and the causal relationship between economic development,

power supply and industrialization in Nigeria. The work found out a single or one way

relationship that does not have a feedback effect between power supply and labor. In same vein

Lionel (2018) investigated the link between economic development and power generation and

supply. The finding indicates that power generation and supply is slowed by Gross Domestic

Product (GDP), capital and technology is the most important variables that manipulate economic

development in the nation.

Regardless of massive money injected to the energy sub-sector by the government of Nigeria in

the past two decades Okafor ( 2014) argued that Nigeria is a country that has a population of

approximately 150 million people could not generate electricity of more than 2900 MW when the

country needs more than 11000MW to stimulate the economic system for better. Numerous

reasons for insufficient electricity generation and supply were identified by Okafor. He submitted

that the ugly scenario has created a situation of unfavorable growth and development in Nigeria’s

manufacturing sub-system. Since many companies invests huge amount of their capital to power

personal electricity plant or generator. Okafor (2014) in his study argued that regardless of

massive budget funded by previous government. A nation that is more than hundred and fifty

million was only capable of generating power below 2900 megawatts compared to eleven million

megawatts needed to stimulate the economic system in Nigeria.

2.1.7 Capacity of electricity generation in Nigeria

17
The administration of president Olusegun Obansanjo extended the already existing megawatts of

4000 through the nineteen supplying line. The administration added 400 megawatts. (FMINOR

2002). As at 2016, total installed megawatts was about 8000. But it was only 4000 that is able to

put to use while 1500 megawatts only was to generate power. The amount of KWh in Nigeria is

125 which is the lowest in the world. The destruction of Egbein gas pipeline is one example of

what reduced the generation capacity.

Important effort by the Nigerian government to increase the megawatts to more than 6000 of

usable energy capacity at the end of 2009 which includes the level of distribution of

infrastructure, and transmission processes. However, considerable increase was recorded at the

end of August 2009, because usable capacity was reached approximately 4300 megawatts. The

government through the sub-sector planned to provide at least 10000 megawatts in the end of

2011. The potential electricity generation and the connected basic facilities via an aggregate that

includes reworking of the old plants that is still useful for power generation and distribution. The

Alaoji phase one 420 megawatts plant was to be opened in the first half of 2010 through the NIPP

program along with other new electricity power stations, and important basic transportation

infrastructures (ADBG 2009).

The expectation of the country to increase electricity megawatts was defeated in 2014 as all the

set targets to increase the existing 4612 megawatts to 7033 megawatts by April of 2011, th

percentages expected was 52.but it was like a day dream when the megawatts decrease with 763

against the promise of increase in December 2011and the annual increase of 66 percent that may

amount to 660 megawatts. Therefore, about 3849.7 generating capacity was recorded in March27

2013. (Oluwashakin & Aloyemi (2013) cited Ogunnnaike, 2013). According to Ogunnaike (2013)

the increase achieved so far cannot poor cities like Lagos alone because the amount of electricity

18
is insufficient not to think of powering a populated nation like Nigeria. The nation recorded a loss

of 2000 megawatts from the national grid and this loss has caused more harm to the power sub-

sector than good. (Ochayi, 2015).

Comparing the capacity of electricity installed in Nigeria to other countries like South Africa

which is less populated. Oluwashakin and Aleyomi (2014) submitted that inadequacy,

unreliability and epilepsy should be used to describe Nigeria power sub-sector. A country with the

population of about 160 million people is using approximately 8000 megawatts of which only

4000 megawatts is operational. While South Africa has a population of about 49 million people

generating about 35000 megawatts for its citizen. It is crystal clear that the amount of electricity

generated in Nigeria is far below expectation not to talk about the operable megawatts in use

which is only 4000. This is an irony; the total amount of electricity generation in Africa is the

lowest in the world. Nigeria generation capacity is the lowest in Africa while South Africa is the

is the highest electricity consumer in the African continent (UNDP; 2014). The 488 KWh\capital

which is the highest in Africa is slightly the amount of electricity consumption of Bradford a city

in England with the population of 300000 populations in comparison to the highest in Africa

(DFID 2009).

Currently the country has approximately 12433 megawatts that are installed but lack of

maintenance, policy flaws, corruption and gas & water difficulties are some of the major

problems hindering the reliability of the sub-sector. The capacity of usable megawatts is a

minimum of 3789 megawatts. Greater part of the energy plants are fueled with natural gas.

Production of gas is inadequate because most of the gas pipe lines are destroyed by hoodlums and

militants. Corruption has prevented easy transmission of gas molecules because there is a system

collapse and man-made outages in the electricity sub-sector. The capacity of transmission is

19
approximately 5900 megawatts however, the capacity of transmission is higher than the

operational capacity and this may cause hindrances to transmission because operational capacity

is increasing. Thus, distribution companies encounter serious losses of about 45.8 percent of

power primarily due to collection, technical and financial matters.

Finally, in early part of December 2017 electricity generation was around 5149 megawatts

according to the views of Okafor (2017), getting closer to mid-December in same year the

generation capacity diminished to 5068 megawatts however, it later rise to 5102 megawatts in the

following few days of December 2017 (this day Sunday December 17 2017).

2.1.8 Electricity Supply and Its Implications in The Country’s Development.

Power is the yardstick to measure any developmental process in countries like Nigeria is the

world’s 17th most populated country and the most populated nation in Africa. The democratic

process is still new compared to developed democracies like United States of America though the

2011 and 2015 election was adjudged to be the free and fair and the country was made a member

of the security council between 2014- 2015 term.

The nation depends on its natural resources since the oil boom in 1970s for growth and

development but there is no plan or political will to transmute this wealth to other important

production activities, this compelled some analysts and scholars to assert that the country is more

or less a sole economy however, there are slow changes in the diversification process especially

in the production and construction industries. The domestic market, it’s human and the natural

resources are considered to be potentially important in t6he world (DFID 2016).

Nigeria experienced an increase in the economy within the last ten years more than 4% in every

year. Changing in the Gross domestic product (GDP) progressed to$348.400 billion in 2013

20
placed Nigeria the strongest economy in Africa within 2014. The economy of Nigeria was seen as

the leading economy among the third world countries in the world. Considering the importing

power it was one of the most important that worth $500 billion. It replaced South Africa in 2015

to claim the position of the world’s economy. The huge amount of oil reserve played a

considerable function by creating influence in the world through economic and political

participation. The nation is known as continental power of Africa due to its rising purchasing

power according to the World Bank.

Therefore, cogitating about the pride of place and the capacity of the nation Nigeria others

presumed that Nigerians ought to relish a reliable and adequate power supply, better living

standard that includes clean water, accessible roads, live enhancing homes and good health care

system. But reverse is the case, majority of Nigerians are living hand to mouth with epileptic

power supply, poor health systems and skewed educational curriculum amongst others.

(International Energy Agency, 2015) highlighted one of the major area affected the country’s

economy is the energy sub-sector, which prevented investments in both small and medium scale

businesses and other construction firms despite Nigeria was the biggest economy in Africa. Its

population is more than 95 million people living darkness (without electricity).

Reliable supply of electricity have the power to reduce poverty and create employment, it can also

improve productivity. Adequate supply of electricity equally have the sesame to free citizen from

the constrain of private generation of electricity that is very expensive more than that of grid or

from Power Holding Company of Nigeria (PHCN). Accessibility of electricity of electricity have

the magic to increase chances of creating income and improve the lives of the less-privilege by

compelling some of them to acquire the needed education to make meaningful impact in both

their private and societal lives. This can lead to a sustainable way of living (Practical Action

21
Consulting, 2015). Consequences from inadequate electricity supply and economic activities in

Nigeria were highlighted by FMINOR (2002).

“Consumers were negatively charged during bill collections, most times below the amount of”

electricity generated. Strategic losses within the power sub-sector oftentimes are below 40%. This

scenario usually has a debilitating impact on the economy of the country. Since the industrialist

reverts to other backup electricity supply to power their businesses, the after effect is excessive

investment in the available type of electricity. The expensive capital involved is passed down to

the customers. Unemployment can be traced to some of the companies that closed down just

because they couldn’t afford the alternative expensive electricity types. Therefore, lack of job is a

characteristic of insufficient electricity supply in Nigeria (FMINOR 2012). With the amount of

funds injected to the budget allocation from the central government the situation of power supply

is reproduced in Buhari’s inaugural statement in 2015 may 29th. That; the failure of our economic

system cannot be attributed to other things than the decades of poor electricity situation he

submitted it is a national disgrace to be using 4000 megawatts of electricity that is generated by a

hundred and eight million people. The amount distributed is even less than the assumed 400

megawatts. The nation is still struggling with element or structures that are in place since 1999

after investing about 20 billion dollars in order to expand the facilities but the result is darkness,

resignation, misery and frustration among Nigerians. The country will not allow it to continue.”

Furthermore, lack of adequate electricity supply critically have an effect on the activities that

bothers socioeconomic development it may paved way for infrastructural decay, industrial closure

and collapse of social amenities that were in place like health centers, drinkable water,

recreational centers etc. (DFID Program Report 2009) Suggests that one of the major problems

inflicting the economy is the bad effect of insufficient electricity supply troubling the standard of

22
living thus there is a need to enhance the economy for the teaming population of the country. For

the country to have reliable and adequate power supply it will cost the nation about $49 billion to

provide power to all the habitants because those using alternative electricity supply were about

60% which is presumed to be the lowest in the world (DFID 2009).

The statement of DFID was support by the World Bank that the major hindrance to business in

Nigeria is the level of their power generation and supply (World Bank 2009). However, more than

58% of the population provides electricity for their own private business through generators

which are approximately 90% of business in Nigeria (Financial time 2009). In similar vein one

Philip Asiodu chief submitted in (Alike, 2017) that GDP has an instantaneous link with overall

electricity use.

One serious effect of poor electricity supply in the economy has to do with the situation where

small and medium scale enterprises fail to use other electricity types for their businesses, this lead

to closure of the said business while other overall impact is unemployment. Those that where

managing with the businesses lost their jobs and join the pool of others that are seeking to get one.

Most of the companies that couldn’t join others to use the expensive alternative electricity

(generators) leave the industrial cities like Kano, Lagos and Portharcourt and relocated to nearby

countries like Ghana in order to have reliable and adequate power supply for the progress of their

businesses. FMINOR (2002).

UNDP 2014 Report asserts that the yearning for electricity is getting very higher more than the

electricity sector can supply. Approximately 14 million families in the country do not have access

to electricity supply from the national grid that many of the villages still relying on fire wood for

their energy sources for both heating and cooking. Without adequate supply of electricity no

social services that can function properly such as health care, shelter, clean water etc.it will be

23
very hard to have social amenities produced in any part of the world if there is no adequate supply

of energy.

The work also states that rural people’s appetite for energy compelling them to cut down trees and

burning of farm lands which leads to deforestation, and air pollution. Many people thought this

kind of problem is a primitive problem thus; it contributes to serious environmental issues like

climate change. Though, they are proclamations that are made to tackle an issue that bothers the

environment. The most important thing is the implementations of all the policies by governmental

bodies in order to have a cleaner and sustainable environment for both present and future

generations.

The major lacuna of electricity in the country prevents the development of other sectors leading to

lack of job creation industries and instills poverty. However, approximately 44% of the

population has minimal level of power supply, maybe within 28% to 30% of electricity they need.

The electricity sub-sector is harassed by unusual failures compelling about 85% of businesses and

substantial amounts of people in their homes and firms to provide personal electricity generating

plants with massive amount of money for the country and for them. The overall potential putting

into personal generation of electricity in the country is anticipated for approximately 2400

megawatts converting to monetary damages of #1, 336, 000,000 as at April 5 2017 was lost by the

energy sub-sector in the country. While in April 11th of same year the losses was about #

1,268000000 because of lack of water control and lack of gas supply around many electricity

plants within Nigeria (This day the Sunday Newspaper 16 2017 ).

The workers in the electricity sector are having problems of coping with the faulty system and the

poor situation created by lack of funding which have an effect on the sub-sector. The Central

Bank of Nigeria (CBN) intervened by investing #214 billion in order to do away with the

24
accumulated amount of gas and other debts after having the evidence of problems bedeviling the

sub-sector. (This Day Newspaper March 22, 2017). Putting together the country’s electricity sub-

sector wasted about #940 million within December 15th 2017 (This Day the Sunday 17th

December 2017). Statistics shows that about 189 hours electricity failure within a month occurs.

However, this glaringly revealed the faulty and shameful power generation and supply situation

in Nigeria. Firms and businesses experience complete one week loss of goods because of

electricity blackouts (Biu 2016). The aftermath effect of electricity blackouts in the country

propels companies to rely upon generators that sucks them of their money and equally pollute the

natural environment with dangerous carbon monoxide that are emitted from the alternative

electricity facilities used by companies

2.2 Theoretical framework

This research work employs the structural functional theory as a tool of analysis to explain

electricity supply and performance of small and medium scale enterprises. Functionalism has its

origin in the works of Emile Durkheim and many others.

Functionalism is the first classical theory in sociology. This theory is distinct in the work of

Auguste Comte (1798-1857) who is the founding father of Sociology and the English man

Herbert Spencer (1820-1903). The discipline was formally developed by Emile Durkheim (1858-

1917) and later purified by Talcott parsons (1902 -1978) ( Haralambos & Holborn 2002).

Functionalists likened human society to a biological organism, with different parts or structures,

of which all parts perform a different function together for the betterment and smooth functioning

of entire society.

25
Functionalism naturally tried to illustrate social structures as united means to satisfy individual biological

needs. It further concentrated on how social structures satisfy social needs primarily social stability

(Shanka Rao 2014).

The natural and the most important focus of the functionalists is that every human society has

inexhaustible elementary needs, theses needs can be termed functional prerequisite that must be

met in order for society to survive, different parts of a society also make contribution towards

meeting the needs.

Functiona1ism propose that society is greater than the sum of its parts; however each part works

for the progress and stability of the whole. In functionalism every parts of the society primarily

consists of social structures, each arranged to satisfy diverse needs. Functionalism, posits that a

structure only exists due to the important function it performs in the society. If the structure fails

to perform its function that structure will die away and the whole system will be affected

(Haralambos and Holborn 2002).

Electricity performs an important function in every society just as functionalists lay emphasis that

there are important needs to perform for society to function properly in order for lives in the

social system to survive and develop. This has to do with the function electricity can provide for

businesses like barbing, hairdressing and welding to thrive in the society. Electricity and SMEs

are interconnected, interrelated and interdependent. These businesses rely on electricity to meet

its needs, if the supply of electricity is constant small and medium scale enterprises will improve

and expand as well as improve the economic standard of citizens.

Epileptic electricity supply is a cankerworm that is drilling the economic life of SMEs. Citizens

that ordinarily may have invested in small and medium scale enterprises shy away due to the poor

nature of the electricity sector. This in turn compels citizens to deviate from the norms and values

26
of society because a structure in the society could not meet its function thus; there is lack of

consensus according to the functionalists. This theory explains the relationship between different

parts of the system and how the whole system is affected if some parts refuse to take

responsibility. These parts are usually working together in an orderly manner, without great

conflict. Since SMEs need reliable Power supply for business activities to grow the system must

adjust its parts to move towards a new equilibrium by providing adequate power supply for SMEs

and other electricity users to attract development in Yenagoa.

2.3 Gap in Literature

The literatures reviewed in this study are centered on numerous scholars’ perspectives on

electricity supply and economic increase of SMEs. As earlier stated, provision sufficient and

quality supply of electricity is considered as the major path to economic growth and development

in any part of the globe. But in developing countries like Nigeria chances of having sufficient

supply of electricity is impossible.

Scholars pinpointed instances when governments both past and present invested huge amount of

money in the power sector without any reasonable improvement. Researchers also agreed that the

megawatts Power Holding Company of Nigeria (PHCN) is using for the large population of

Nigeria is insufficient compared to what other less-populated countries like South Africa and Iran

etc. But they did not consider the aspect of the legislation that gives power to only the federal

government to generate electricity in the exclusive list

Under the structural functional approach which impressively stated the relationship between parts

(electricity supply and performance of small and medium scale businesses) for smooth

functioning of the entire system (economic development).

27
The above literature, have been reviewed that there is an agreement among scholars, that there is

a strong link between supply of electricity and performance of small and medium scale

businesses. However, other studies looked at power supply and economic development. Thus, the

gap to be filled here is to look at the legislations that are hindering state and local governments to

generate and supply electricity to the ordinary citizens and their small and medium scale

businesses in wherever they are in the country. In order to bridge the gap of the electricity crisis

which have bedeviled little firms and the entire socioeconomic progress of the country.

28
 CHAPTER THREE

METHODOLOGY

This part of the study concentrated on methods employed in the collection and analysis of data.

It highlighted the research design, study locale, population of the Study, sample size, sampling

technique, methods of data collection, validity and reliability of research instrument, ethical

considerations and method of data analysis.

3.1 Study Area

The study interrogated the nature of electricity supply, relationship between supply of electricity

and performance of hairdressers, shoemakers, welders, tailors and barbers, also the alternative

electricity source used by business owners in some selected communities in Yenagoa. Yenagoa

city is the capital of Bayelsa State and the headquarters of Yenagoa Local Government Area.

Yenagoa L.G.A has an area of 706km2 and a population of 352,285 at the 2006 national census

(NIPOST, 2010).

The Ijaw form the majority of the state. English is the official language. However, Epie-Atissa

language is the major Language spoken in Yenagoa (NIPOST, 2010). Christianity is the major

religion practiced by the people, coupled with other minor traditional religions. The major

occupation of the people is fishing, farming, palm wine tapping and palm fruit harvesting.

However' selling of land is the current pre-occupation of people particularly of the Epie-Atissa

origin. As a Delta area, it manifests an intricate network of creeks, streams, rivers, ox-bow lakes

etc.

There is significant influx of people from diverse areas particularly from the rural regions in

search for greener pastures. Hence, Yenagoa population is estimated at about 352, 285 according

to 2006 census.

29
3.2 Study Design

This research employed the survey design. A survey is one in which an investigator created

interest to witness what is happening to variables or respondents that are sampled without any

effort to control or influence them (Asika, 2012). It is one in which a group of people or items is a

representative of the entire group (Nworgu, 1991 cited in Kingsley, 2019).

However, the study employed the cross-sectional survey design. It is one in which variables are

observe without influencing them. In order to look at numerous and prevailing characteristics in

the study, questionnaires were administered in the study population at one point in time to elicit

information from respondents.

3.3 Study population

This study focused on the population of small and medium scale enterprises in Yenagoa city.

There are 2,800 registered SMEs in Yenagoa. ( Ministry of Trade, Industry and Investment

Bayelsa State 2021). Yenagoa town is made up of several communities including Igbogene,

Yenigwe, Akenfa, Agudama, Akempai, Edepie, Etegwe, Okutukutu, Biogbolo, Yenizue-gene,

Kpansia, Yenizue-Epie, Okaka, Ekeki, Amarata, Onopa, Ovom, and Swalli. Since the researcher

was unable to cover all the (SMEs) in the above listed communities of Yenagoa a sample was

drawn.

3.4 Sample Size

According to the Bayelsa State Ministry of Trade industry and Investment the estimated

registered SMEs in Yenagoa is 2800 however, registration is still ongoing as at the time the

researcher visited the ministry to get the data.

30
The researcher used Taro Yamene formula to determine a sample size of 350 small scale business

owners. Below shows how the researcher arrived at the sample size.

N/ (1+ N (e) 2)

(n)= portends the sample size

(N)= portends the population under study

(e)= portends the margin error (it could be 0.10, 0.05 or 0.01)

(n)= 2800/ (1 +2800 (0.05) 2)

n= 2800/1 + 2800 (1 + 2800 (0.0025)

n= 2800/ (1+7)

n= 2800/8

n= 350

3.5 Sampling Techniques

To arrive at the 350 respondents the researcher employed purposive sampling technique to select

5 SMEs from each of the 10 communities that was randomly selected, because it is cost and time-

effective. These SMEs includes Barbing, hair dressing, tailoring, shoe making and welding. 7

respondents were selected from each of the 5 SMEs in the 10 communities making a sample size

of 350 respondents.

3.6 Method of Data Collection

The instrument used for collection of data in the study was the questionnaire. The questionnaire

was adopted because of the advantage of reaching out to a large segment or proportion of the

population of study.

31
The Questionnaire

A structured questionnaire was used to chat information from the 350 respondents selected in

the study. The questionnaire consisted of two parts, section A which comprises demographic data

of respondents and section B which consists of questions relevant to the study, it contains closed

ended questions. In administering the questionnaire, the researcher used trained personnels to

assist him administer the questionnaire and retrieve them from respondents after answering.

Primary and secondary means of data collection was adopted. The secondary means comprises

Internet, Journals, Text books and newspapers. While, the primary source consists of the use of

one time face to face distribution of the questionnaire guide etc.

3.7 Validity and Reliability of the Instrument

Validity refers to the stage and process of how an instrument is arranged to judge the function of

that instrument ( Asika 2012). The content validity method was adopted to validate the

instrument for data collection. Kothari (2014) maintained that content validity refers to how

accurately an assessment or measurement device establishes sufficient coverage of the

phenomena under study. Examination of Content validity was investigated by employing a panel

of judges including the project supervisor to scrutinize the research instrument (questionnaire) on

how well the research instrument met the standards. The necessary corrections were incorporated

into the research instrument and approved as adequate before final distribution to respondents.

The examination of reliability was carried out through measuring of each item to know how solid

they are in the process of allotting scores when tested at various times or in different patterns

(Tabach nick & Fidell, 2007). The reliability of the instrument was determined by subjecting the

research instruments to the test-retest method. Test-retest is a measure of reliability obtained by

32
administering the same test instrument twice over the time to a group of individuals (Martyn &

Lyndsay, 2009). Therefore, the test retest reliability approach was utilized where the research was

administered as a pilot study to twenty respondents outside of the study sample and repeated

again after two weeks. The scores obtained from both exercises were compared to evaluate if the

results showed consistency over time and the reliability coefficient ascertained.

3.8 Ethical Considerations

Like many academic works, an ethical consideration was pertinent in this research work. In order

to establish ethical consideration, the research work was reviewed by the faculty of Social

Sciences Post Graduate Board and presentation at the Faculty to ensure that the appropriate

ethical standards were maintained in the study.

In collaboration with the above, the researcher promised the respondents to be rest assured that

their identity will be unknown for any information provided, justifying that the study is solely for

academic purposes. In the field, the researcher orally discussed with respondents on the nature

and purpose of the research to obtain their consent and response. Respondents were not coerced,

nor were they given any incentives to participate in the study. Respondents participated freely and

terminate of their participation at will. Respondents were told that the findings from the study

would be made available for review to discuss any concern as well as potential benefits accruable

from the research.

33
3.9 Method of Data Analysis

This study used quantitative method of data analysis; chi-square was used as the statistical tool to

analyze and test hypotheses drawn. It was employed to test each of the hypothesis formulated to

enable the researcher draw logical conclusion.

Chi-square (x2) statistical tool was adopted to measure the differences existing between the

expected and observed frequencies in order to ascertain the level of dependency and significance

in testing drawn hypotheses. The formula for Chi-square (x2) is given below.

X2 =∑ (O-E) 2

Where

∑ = Summation

O = Observed frequency

E = Expected frequency

The formula below is used to compute the degree of freedom;

(DF) …Degree of freedom

(r) … Number of rows

(c) … Number of columns

34
3.10 Limitation of the Study

Study of this nature is not easy to achieve or accomplish. And, as result, financial constraints,

time restriction, and other factors limited the study. Primarily the COVID-19 global pandemic

experienced during the period of the study restricted access to some of the participants. The usual

lack of concern of most participants in research was another limiting factor, because most of the

SMEs owners consulted were either unwilling to participate or were too busy to respond. This

was also noticed amongst their workers who were not motivated but reluctantly participated. Lack

of enthusiasm and poor educational background on the part of respondents affected the study.

However, the findings of the study were not affected by the limitations pinpointed above. Also,

the use of only Yenagoa city in Bayelsa State makes it difficult to generalize the findings outside

the state .During the period of the study restricted access to some of the participants. The usual

lack of concern of most participants in research was another limiting factor, because most of the

SMEs

35
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation

This chapter of the study consists of two sections. Section A comprises of data presentation, and

analysis, while section B is concern with discussion of findings from data derived from the field

work. It contains the demographic data of the respondents, and testing of the hypotheses.

Data were analyzed using frequency table and simple percentages. Pie and bar chart were used in

the socio-demographic characteristics while chi-square was used to test hypotheses.

Three hundred and fifty (350) questionnaires were administered to the sampled population. The

instrument contained part A and B. Part A is the bio- data, part B is made up of the research

questions. Out of the three hundred and fifty (350) questionnaires, three hundred and twelve (312)

were retrieved. This represents 89.1% response; this high rate of response can be attributed to

cooperation of respondents and trained assistants who helped in the distribution and retrieval +of

set of questionnaire.

SECTION A

4.1.1 Socio-Demographic Characteristics of the Respondents

This section analyzes the Socio-demographic characteristics of the respondents.

36
 Frequency Valid Cumulative
Percent Percent Percent
Valid Male 167 53.5 53.5 53.5
GENDER Female 145 46.5 46.5 100.0
Total 312 100.0 100.0

Valid 18-27 79 25.3 25.3 25.3

28-37 88 28.2 28.2 53.5
AGE 38-47 95 30.4 30.4 84.0
48-57 50 16.0 16.0 100.0
Total 312 100.0 100.0

Valid Single 76 24.4 24.4 24.4

MARITAL Married 132 42.3 42.3 66.7
STATUS Divorced 46 14.7 14.7 81.4
Separated 27 8.7 8.7 90.1
Widowed 31 9.9 9.9 100.0
Total 312 100.0 100.0

Tailoring 63 20.1 20.1 20.1

Valid Shoemaking 59 18.9 18.9 9.5
OCCUPATION Welding 66 21.2 21.2 40.1
Hairdressing 62 19.9 19.9 77.6
Barbing 62 19.9 19.9 100.0
Total 312 100.0 100.0

Valid Christianity 201 64.4 64.4 64.4

Islam 8 2.6 2.6 67.0
RELIGION African Traditional 53 17.0 17.0 84.0
Religion
Others 50 16.0 16.0 100.0
Total 312 100.0 100.0

Valid No formal education 33 10.6 10.6 10.6

ACADEMIC Secondary 166 53.2 53.2 63.8
QUALIFICATION Primary 81 26.0 26.0 89.7
Tertiary 31 9.9 9.9 99.7
Others 1 0.3 0.3 100.0
Total 312 100.0 100.0

37
Table 4.1.2 below shows the gender of the respondents. Respondents comprises of 167 (53.50%)

males and 145 (46.5%) females. The bar chart below represents the gender characteristics of the

respondents.

The age distribution of respondents in the table comprises of 79 (25.3%) between the ages 18-27,

88 (28-2%) between the ages 28-37 years, 95 (30.4%) between the ages 38-47, 50 (16.0%)

between the ages 48-57. The pie chart below presents the age distribution of respondents. It also

shows that age 28-37 years had the highest percentage 95 (30.4%).

The marital status of respondents comprises of 76 (24.4%) Single, 132 (42.3%) Married, 46

(14.7%) Divorced, 27 (8.7%) Separated and 31 (9.9%) Widowed. The pie chart below presents

the marital status of the respondents. It indicates that married respondents had the highest

percentage of 132 (42.3%)

Table 4.1.2 shows the occupation of respondents. The occupations of the respondents comprises

of 63 (20.1%) tailoring, 59 (18.9%) shoemaking, 66 (21.2%) welding, 62(19.9%) hairdressing and

62 (19.9%) barbing.

The religion belief of respondents consists of 201 (64.4%) Christians, 8 (2.6%) Muslims, 53

(17%) Traditionalists and 50(16.0%) others. The pie chart below represents the religion of

respondents. It shows that Christianity had the highest percentage (64.4%) followed by African

Traditional Religion (ATR) (17.0%)

Table 4.2.1 also shows the level of education of the respondents. The table shows that 33

respondents representing (10.6%) have no formal education, 166 representing 53.2% have

secondary school education, and 81 representing 26.0% acquired primary school education, 31

respondents representing 9.9% have tertiary education and 3 (03%) others.

38
4.2 Data Analysis

Research Question 1: What is the nature of electricity supply in Yenagoa city?

Table 4.2.1 Showing if they have electricity supply

Valid Cumulative
Frequency Percent Percent Percent
Valid Yes 284 91.0 91.0 91.0
No 28 9.0 9.0 100.0
Total 312 100.0 100.0
Source; Field work 2021
The table 4.2.1 above shows that (284) respondents 91.0% have electricity connection in their

various business environments, while (28) respondents 9.9% do not have electricity connection.

The responses above, shows that majority of the respondents are connected to the national grid.

Table 4.2.2 Showing the Causes of Poor Electricity Supply

Valid Cumulative
Frequency Percent Percent Percent
Valid Corruption 113 36.2 36.2 36.2
Bad leadership 101 32.4 32.4 68.6
Inadequate 98 31.4 31.4 100.0
Megawatts
Total 312 100.0 100.0
Source; Field work 2021

Table 4.2.2 represents he causes of poor power supply. The table shows that 36.2% of the

respondents agreed that corruption is the cause of poor electricity supply. 32.4% chose bad

leadership as the cause of poor electricity supply, and 31.4% agreed that inadequate provision of

megawatts is the cause of poor electricity supply. From the responses, it shows that the causes are

multifaceted. However corruption has the highest percentage of the causes of poor electricity

supply.

39
 Table 4.2.3 Showing the Rating of Electricity Supply

Valid Cumulative

Frequency Percent Percent Percent

Very 0 0.0 0.0 0.0

high

Moderate 17 5.4 5.4 5.4

Low 68 21.8 21.8 27.2

Very low 227 72.8 72.8 100.0

Total 312 100.0 100.0

Source; Field work 2021

Table 4.2.3 represents the level of electricity supply. It shows that 5.4% of the respondents agreed

that electricity supply is moderate. 21.8% concurred that the supply of electricity is low, and

72.8% responded that it is very low. Deducing from the above, electricity supply in Yenagoa is

very low with 72.8% of respondents concurring to it.

40
Research Question 2: What is the connection between electricity supply and performance of

small and medium scale enterprises in Yenagoa city?

Table 4.2.4 Showing Respondents Businesses

Valid Cumulative

Frequency Percent Percent Percent

Valid Barbing 67 21.5 21.5 21.5

Hairdressing 59 18.9 18.9 40.4

Shoemaking 54 17.3 17.3 57.7

Tailoring 65 20.8 20.8 78.5

Welding 67 21.5 21.5 100.0

Total 312 100.0 100.0

Source; Field work 2021

Table 4.2.4 comprises of the businesses of respondents. It consists of 21.5% barbers, 18.9% hair

dressers, 17.3% shoe makers, 20.8% as tailors and 21.5% as welders. The table shows proper

representation of all small and medium scale businesses with tailoring and welding having the

highest percentage of respondents with 21.5% respectively

Table 4.2.5 Showing the Effect of Power Supply on Business

Valid Cumulative
Frequency Percent Percent Percent
Valid Yes 269 86.2 86.2 86.2
No 43 13.8 13.8 100.0
Total 312 100.0 100.0

41
 Source; Field work 2021

Table 4.2.5 represents respondents’ views on whether poor power supply affects their businesses.

It indicates that 86.2% answered yes that poor power supply affect their businesses, 13.8% of the

respondents do not agree that poor power supply affects their businesses. From the responses it

shows that greater percentage of the respondents concurred that poor power supply affects

performance of their businesses.

Table 4.2.6 Showing the Severity of the effect of electricity supply on

businesses
Valid Cumulative
Frequency Percent Percent Percent
Valid Very serious 204 65.4 65.4 65.4
Serious 65 20.8 20.8 86.2
Not serious 43 13.8 13.8 100.0
Total 312 100.0 100.0
Source; Field work 2021

Table 4.2.6 represents severity of effect of power supply on businesses. The table shows that

65.4% of the respondents agreed that the effect of poor power supply on business is very serious.

20.8% agreed that the severity was serious, while 13.8% says the effect of poor electricity supply

on businesses is not serious. From the responses above it shows that greater percentage of the

respondents affirmed that the effect was very serious.

42
Research Question 3: What Sources of Alternative Electricity Supply Besides PHCN do

you have?

Table 4.2.7 Showing the Alternative electricity type used by Businesses

Valid

Frequency Percent Percent Cumulative Percent

Valid Yes 304 97.4 97.4 97.4

No 8 2.6 2.6 100.0

Total 312 100.0 100.0

Source; Field work 2021

Table 4.2.7 represents respondents that are using generator as source of alternative electricity

supply. The table shows that 97.4% of the respondents affirmed that they are using generator as

the source of alternative electricity supply. While 2.6% of the respondents say no that they are not

using generator as the alternative electricity. The responses in the table indicate that majority of

the respondents use generator as the alternative source of electricity supply.

Table 4.2.8 Level of profit for using generator

Valid Cumulative

Frequency Percent Percent Percent

Valid Very 18 5.8 5.8 5.8

high

High 23 7.4 7.4 13.1

Moderate 60 19.2 19.2 32.4

43
 Low 107 34.3 34.3 66.7

Very low 104 33.3 33.3 100.0

Total 312 100.0 100.0

Source; Field work 2021

Table 4.2.8 represents level of profit for using generator. The table shows that 5.8% of the

respondents say level of profit is very high for using generator. 7.4% agreed that level of profit is

high for using generator. However, 19.2% of the respondents says using generator the profit is

moderate. 34.3% of the respondents agreed that using generator profit is low. While 33.4% of the

respondents affirmed that using generator the profit is very low. From the responses, it shows that

greater percentage of the respondents agreed that level of profit is low for using generator for

their businesses.

Table 4.2.9 Showing respondents preferred electricity supply for

their businesses

Valid Cumulative
Frequency Percent Percent Percent
Valid PHCN 206 66.0 66.0 66.0

Generator 47 15.1 15.1 81.1

Solar 59 18.9 18.9 100.0
Total 312 100.0 100.0
Source; Field work 2021
Table 4.2.9 represents the preferred electricity type used by business owners. It indicates that
66.0% prefers Power Holding Company of Nigeria (PHCN). 15.1% of the respondents prefer

44
generator, while 18.9% prefers solar as the source of alternative electricity. The responses shows
that greater part of the respondents prefer (PHCN) to every other alternative electricity types.
Table 4.2.10 Showing the Reasons for choosing any of the types
Valid Cumulative
Frequency Percent Percent Percent
Valid Reliability 109 34.9 34.9 34.9
More profit 147 47.1 47.1 82.1
No-noise 56 17.9 17.9 100.0
Total 312 100.0 100.0
Source; Field work 2021
Table 4.2.10 represents reasons for choosing preferred type of electricity by business owner. The
table above shows that 34.9% respondents agreed that it is because of reliability. 47.1% concurred
to more profits in their businesses. While 17.9% favored no-noise as their reason for choosing
their preferred types.
Table 4.2.11 Showing electricity supply and improvement of productivity
Frequency percent Valid percent Cumulative Percent
Disagree 0 0.0 0.0 0.0
Valid Agreed 291 93.3 93.3 93.3
Undecided 21 6.7 6.7 100.0
Total 312 100.0 100.0
Source; Field work 2021

Table 4.2.11 represents electricity supply and improvement of productivity. The table shows that

93.3% of the respondents agreed that constant electricity supply improves productivity, while

6.7% are undecided. From the responses above it shows that greater percentage of the respondents

agreed that constant electricity supply will improve productivity.

45
Table 4.2.12 Showing the use of Generator as the alternative source of power supply

Valid

Frequency Percent Percent Cumulative Percent

Valid Yes 304 97.4 97.4 97.4

No 8 2.6 2.6 100.0

Total 312 100.0 100.0

Source; Field work 2021

Table 4.2.12 represents respondents that are using generator as source of alternative electricity

supply. The table shows that 97.4% of the respondents affirmed that they are using generator as

the source of alternative electricity supply. While 2.6% of the respondents say no that they are not

using generator as the alternative electricity. The responses in the table indicate that majority of

the respondents use generator as the alternative source of electricity supply.

46
4.3 Hypotheses

Ho: I. There is no significant relationship between power supply and the performance of

small and medium scale enterprises.

Table 4.3.1 Test of Hypothesis One

Agreed Undecided Total

Does poor power Yes Count 269 0 269

supply affect your Expected 250.9 18.1 269.0

business? Count

No Count 22 21 43

Expected 40.1 2.9 43.0

Count

Total Count 291 21 312

Expected 291.0 21.0 312.0

Count

Source; Field work 2021

Table 4.3.2 Chi-Square Tests One

Asymptotic

Significance Exact Sig. (2- Exact Sig. (1-

Value Df (2-sided) sided) sided)

Pearson Chi-Square 140.853a 1 .000

47
 Continuity 133.181 1 .000

Correction

Likelihood Ratio 94.303 1 .000

Fisher's Exact Test .000 .000

N of Valid Cases 312

a. 1cells (25.0%) have expected count less than 5. The minimum expected count is 2.89.

b. Computed only for a 2x2 table

Source; Field work 2021

The Pearson chi-square statistics is X2 =140.853 and the degree of freedom =1and the P-value

=.000. Therefore, the null hypothesis is rejected. In other words the alternative hypothesis is

accepted that there is a significant relationship between power supply and performance of small

and medium scale businesses in Yenagoa city. This means that the performance of small and

medium scale enterprises depends on the rate of electricity supply in Yenagoa city.

Ho:2 Alternative source of electricity supply do not have any significant effect on the cost

executing small and medium scale business.

Table 4.3.3 Test of Hypothesis Two

Level of profit for using generator

High Moderate Low Very low 4 Total

Do you use Yes Count 18 23 52 107 104 304

generator as Expected Count 17.5 22.4 58.5 104.3 101.3 304.0

48
alternative type No Count 0 0 8 0 0 8

of power Expected Count .5 .6 1.5 2.7 2.7 8.0

supply?

Total Count 18 23 60 107 104 312

Expected Count 18.0 23.0 60.0 107.0 104.0 312.0

Source; field work 2021

Table 4.3.4 Chi-Square Tests Two

a. 5 cells (50.0%) have expected count less than 5. The minimum expected count is .46.

b. Based on 10000 sampled tables with starting seed 2000000.

Source; Field work 2021

The Pearson chi-square statistics is X2 =34.484 and the degree of freedom =4 and the P-value

=.000. Therefore, the null hypothesis is rejected. In other words the alternative hypothesis is

accepted that there is a significant impact on the cost of executing small and medium scale

business Yenagoa city. This means that the use of generator as an alternative supply of electricity

have a negative impact on small and medium scale business in Yenagoa city.

49
4.4 Discussion of Findings

This section discusses the findings from the results of the fieldwork regarding the specific

objectives and research questions stated in chapter one. Again it attempted to compare and

contrast the results of this study with previous related findings revealed in chapter two.

4.4.1 Socio-demographic Characteristics of Respondents

Findings from this survey showed that;

There were more male respondents than females, this is because of the incomplete questionnaires

as well as the nature of the SMEs. Most of the respondents fall between the ages of 38 – 47 years.

They were the major correspondents as it relate mostly to their age bracket. Regarding marital

status, majority of the respondents were married ( 42.3%). The sample population was made up of

more of businessmen and women, followed by civil \public servants, students and others. The

religious characteristics of the sample population comprised of mostly Christians. Seconded by

traditionalists, others, and Muslim. Regarding the academic qualification of respondents, majority

of them have secondary education followed by primary, no-education and tertiary education.

4.4.2 The Nature of Electricity Supply in Yenagoa

The study revealed that majority of the respondents has electricity in their various business

environments. However, the study shows that the rate of electricity supply is very low with the

highest percentage of respondents subscribing to it. This very low rate of electricity supply is as a

result of some factors such as corruption, bad leadership and inadequate megawatts. The survey

revealed that corruption had the highest percentage of respondents. These responses from

respondents agreed with most scholars views. According to Aloyemi and Oluwashakin (2014) the

installed energy capacity in the nation which is eight thousand megawatts and four thousand

megawatts for population of one hundred and sixty million citizens is inadequate, especially when

50
compared to South Africa that generates roughly thirty five thousand megawatts for a population

of forty nine million people. Therefore, Nigeria power generation capacity is far lower and is

affecting barbing, hairdressing, welding and tailoring in the study area.

Another major response from the respondents as a factor of poor electricity supply is corruption.

The findings affirmed the views of Adewumi and Eboh (2014), they asserted that corruption

contributed immensely to the poor power supply that rocked the country’s firms and the entire

economic development. Consumers are overcharged by paying electricity bills they never used.

Eboh on his part confirmed that the federal government and their corrupt leaders via the power

holding company of Nigeria , (PHCN) shares to Nigerians about #4.3 trillion yearly through

excessive electricity bills which is not equal with the amount of electricity supplied to consumers.

The findings also agreed with Koledoye, J umah and Philips (2012) that corruption in the power

sector during the Obansajo’s government, amounted to sixteen billion naira scam. According to

the authors, up till date nobody has been probed, offenders are not prosecuted and no effort had

been made to recover the loots.

The findings equally agreed with a situation of alleged #5.2 billion frauds involving top

management staff of rural electrification agency (REA), the officials of ministry of power and

few national assembly members. The corrupt practice led to the stoppage of (REA) IN 2009 three

years after it was established.

Bad leadership is one of the identified cause of poor electricity supply. The assertion of SKC’’

Ogbonnia( 2018) is in consonance with the findings that political leaders refused to devise means

to stop the age long problem of inadequate supply of electricity to citizens and businesses in order

to improve the larger economic and social wellbeing of the people. Ogbonnia pinpointed that

citizen and businesses have resorted to the use of generators as alternative means of powering

51
their instruments and gadgets to make ends meet. They spend massive income to keep their

businesses moving. Many past leaders made reforms that appeared to solve the lingering power

crisis but they lack the political will to properly implement their reforms for the benefit of the

masses. On respondent’s reaction to the rating of electricity supply in the study area, majority

them confirmed that the supply is very low This scenario tallied with the view of PLO Lumumba

(2019) that the power generated in Africa is not more than power generated by a candle stick. The

illustration reveals the nature of the electricity in Africa and Nigeria in particular. It also captured

the saying that without reliable supply of power no nation can talk about industrialization and

development.

From the analysis and discussions above it is crystal clear that the causes of poor supply of

electricity are multifaceted and it needs diverse solutions.

4.4.3 Connection Between Electricity Supply and Performance of Small and medium scale

enterprises in Yenagoa

This study revealed that there is high connection between electricity supply and performance of

SMEs in Yenagoa city. The study investigated five various small and medium scale enterprises

including barbing, hairdressing, shoemaking, tailoring and welding with welding and barbing

having the highest percentage of respondents. Examining whether poor electricity supply affect

their businesses, the study revealed that poor electricity supply has a greater negative impact on

their businesses by reducing productivity and efficiency.

This view agreed with Onakoya et. al. (2015) that total electricity consumption has a strong

relationship with economic growth. Josiah (2015) asserted that the extremity of electricity

blackouts and the expenditure enforced affects businesses that may boost the economy in the

region. Njogo & Nwankwo (2013) agrees with the results of this research. Their study indicated

52
that electricity gross domestic product and population have positive relationship with electricity.

The study by George and Oseni (2012) also agreed with the findings of the study that electricity

and unemployment rate are related and in turn affects the overall socioeconomic development of

the study area.

4.4.4 Sources of Alternative Supply of SMEs besides PHCN in Yenagoa

The study revealed that SMEs have alternative electricity supply besides PHCN. This includes

generator and solar with generator having the highest percentage of respondents as the source of

alternative electricity supply beside PHCN. Moreover, the study revealed that PHCN is more

preferred by SME’s owners to other source of alternative (AES). This is because adequate

electricity supply by PHCN is more reliable, enhances profit maximization and is noiseless (no

noise pollution). The study also revealed that majority of respondents affirmed that the use of

PHCN electricity type facilitate productivity, profit maximization and is cost effective as against

the use of generator.

The responses on the alternative electricity type used by businesses shows that majority of the

respondents use generator which agrees with the views of World Bank (2009) that the quality

services is the greatest barrier to economy boosting firms like welding, hairdressing and tailoring

in Nigeria. And that ninety percent of businesses in Nigeria have personal generators that provide

more than sixty percent of the population of their electricity needs.

Moreover, Chief Philip A. commented that Gross Domestic Product (GDP) and usage of

electricity have a sincere connection (Alike, 2017). The findings also pointed out a closer

implicat0ion of electricity supply and SMEs which agreed with the view that SMEs that cannot

provide other type of electricity shut down their businesses. It paved way to forced lack of

53
employment and job loss etc. The relationship that exists between the variables cannot be

separated.

The severity of the effect on business by respondents agreed with (FMINOR, 2002) that, the

expensive running of other electricity types like diesel and petroleum generators that are provided

personally with expensive price propel firms and industries that will aide small and medium scale

enterprises to transfer their companies to nearby countries like Ghana where power supply is

reliable and cheap as well as attracting profits to their businesses.

The study from the responses identified Power Holding Company (PHCN) of Nigeria as the

preferred electricity type used. These responses agreed with the views of Mayer (2013). That if

the power sector of Nigeria is properly handled and organized, it will be very cheap and reliable

for the citizens and businesses. Jobs will be created if the power sector is meant to better the

welfare of the masses. This in turn could create innovation and investment but reverse is the case

. Unlike generators which is the major alternative electricity type used by business owners,

PHCN is reliable and small and medium scale or business will make tangible profits and create

room for expansion and job creation. It also differs from generator in polluting the environment

with both noise and smokes. These views are in tandem with the findings of Nwanko and Njogo

(2013).

Respondents also agreed that solar is reliable and do not have noise like the use of generator, and

it’s very cheap to install solar panel for business purposes. This assertion agreed with the report

that solar arrays are now the least costly option to build and install.

On the responses on electricity supply and improvement of productivity, our findings agreed with

views of scholars like Etosa (2007), in his study that there are strong strings between power

54
supply and poverty and that majority of Nigerians do not have access to electricity. Nmimo

(2007) also affirmed that lack of access to electricity inflate production cost and make

competition in the global market difficult for third world countries. The views of the scholars

concluded that reliable supply of electricity will improve productivity while inadequate supply of

energy will hamper productivity and in turn lead to poverty, lack of jobs and affect

socioeconomic life of the citizens. This view is in line with Ndebbio (2006) that electricity drives

industrialization process. He also proposed that a major indicator of a country been industrialized

or not is measured by the amount of megawatt capacity consumed by its people

55
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary

The severity of poor power supply has contributed immensely to Nigeria’s lack of industrialization

and development. Small scale businesses are at the weakest stages, they could not make any

meaningful profit because huge amount of money is spent to generate electricity personally by

business owners.

Since government refused to provide reliable and adequate energy for the citizens, the after effect

is poverty, lack of job, stunted development, inflation, lack of pipe borne water, unemployment

and other social vices that manifest out of the aforementioned effects of poor power supply.

Nigeria is a country blessed with diverse energy resources as mentioned in the introductory part of

the study, but these resources are not utilized for the betterment of the citizens, rather few corrupt

leaders and politicians monopolize them for their personal interest.

The alternative energy source used by small and medium firms is in most cases owned by the

monopolists who do not want government provision of electricity from the national grid to work

properly. If the power supply from the national grid is adequate and reliable, no business owner

will want to waste their money to buy generator and fuel to power his or her business because

there is no profit in doing that. This has given concern to every sane mind.

56
The study investigated the nature of power supply, the connection between electricity supply and

the achievement of medium and small enterprises and also determined the alternative electricity

type used by business owners in Yenagoa city.

Moreover, structural functional theory was used to explain the phenomena under study (electricity

supply, performance of medium and small scale businesses). Functionalists posit that society is

made up parts or structures, which are interrelated, interconnected and interdependent. If any part

could not perform its functions properly, it will affect the other parts as well as the whole system.

Electricity performs a vital role in every socioeconomic system and without adequate and

sufficient supply of electricity, small and medium scale businesses like tailoring, hairdressing,

welding, shoemaking and barbing cannot survive in any country in the word. Therefore, the

industrial development of Nigeria is dependent on the amount of electricity used by citizens and

in their businesses.

The study adopted the survey design. Both probability and non-probability sampling methods were

used for data collection; sample size of three hundred and twelve respondents (312) which were

selected randomly from ten (10) communities in Yenagoa city was used,. The instrument used

was the questionnaire. Many hindrances were experienced during the field work; notable among

them is the ongoing Covid-19 pandemic and shortage of finance.

The findings revealed that out of the three hundred and fifty (350) questionnaires distributed, three

hundred and twelve (312) was retrieved or returned, which represents 89.1% response rate.

57
On the nature of power supply, the findings shows that distribution of electricity in Yenagoa is

absolutely poor and epileptic. Out of three hundred and twelve respondents (227) representing

72.8% agreed that power supply is very low, 22.8% affirmed that power supply is low while,

45% agreed that power supply is moderate.

The findings for causes of power supply shows that corruption, bad leadership and inadequate

megawatts are some of the major causes of poor power supply in the study area. Responses for

corruption were 36.2%, bad leadership 32.4% while inadequate megawatts settled at 31.4%.

The responses below show the relationship between power supply and small and medium scale

businesses. Majority of the respondents agreed that poor power supply affect their businesses.

(269) responses represent 86.2% out of the three hundred and twelve (312) respondents said yes.

While (43) responses represent 13.8% said no.

The responses equally show the severity of the consequence of supply of electricity on medium

and little scale businesses, 65.4% affirmed that poor power supply affect their businesses very

seriously. 20.8% also agreed that the effect is serious while 13.8% agreed that the severity was

not serious.

Finally the study revealed the alternative electricity type used by small and medium scale business

apart from electricity supply from the national grid. The study shows that generator is the leading

alternative electricity type mostly used by business owners. The study also shows the preferred

electricity type used by business owners 66.0% agreed that PHCN is the leading preferred type

58
used, 15.1% affirmed that generator is preferable while 18.9% favored solar as the preferred

electricity type used. The study in another question revealed that 93.3% of the respondents

supported reliability of power supply as the reason for improved productivity while 6.7% of the

respondents are undecided.

Reasons for choosing any of the electricity types was also investigated and the study reveals that

responses that supported reliability were 34.9%, those who agreed on profit as the reason for

choosing were 47.4% and those who supported no-noise were 7.9% respectively.

The study also tested two hypotheses to know the connection between supply of electricity and the

achievement of medium and little scale enterprises and to know if alternative electricity supply

has an impact upon cost of executing little and medium scale enterprises in Yenagoa. The study

revealed that there is a significant relationship between power supply and performance of small

and medium scale businesses in Yenagoa. The test of hypothesis 2 also shows that alternative

electricity supply has an impact upon cost for executing little and medium scale businesses in

Yenagoa

59
5.2 Conclusion

Attempt has been made in this study to investigate electricity supply and performance of small

medium and little scale businesses in Yenagoa city.

The findings reveal that the consequence of power supply on medium and little scale enterprises is

very topical in the study area. It has damaged socioeconomic activities, creating poor standard of

living, unemployment, reduction of profits in businesses, causing underdevelopment and impedes

industrialization. This shows that these SMEs depends entirely on electricity supply to function

properly in the study area. Therefore, causes of poor power supply are multifaceted and needs

multidimensional approach.

Finally, the study opines that positive attitude towards creation of strong institutions, laws,

effective governance and the willingness to leave a better legacy by leaders, political actors,

policy makers and businessmen at all levels of governance could go a longer way to improve

electricity supply and reduce problems faced by small and medium scale businesses in Yenagoa

city.

5.3 Recommendations

Deducing from the field work and the conclusion drawn from the study, the following

recommendations were made to help improve the level of electricity supply in the study area in

particular and Nigeria in general.

60
(1) Power generation and supply should be removed from the exclusive and concurrent lists

to the residual list. The federal government of Nigeria cannot solve the problem of

electricity in all the states and local government areas in the country because the central

government in Abuja is too far from the people and they may not be aware of the

electricity deficiencies of the respective states. This can be possible through legislation.

(2) State government should be allowed to generate power and distribute to their citizens

because the state government is closer to the people than the central government. Bayelsa

state government knows more about the problem of electricity in Yenagoa and its

environs than the political leaders in Abuja (central government) who find it difficult to

solve the problem of electricity in nearby Gwagalada not to talk of solving electricity

problem of Amassoma town which is in the far South region of Nigeria.

(3) Political leaders should introduce hygiene in their politics and the governance processes

by minimizing corruption in the power sector. Funds made available to improve electricity

supply should be used judiciously. Erring officials in the power sector should face the law

to serve as a deterrent to others.

(4) Government should increase the amount of megawatts in the country to make more

electricity available and reliable for the consumption of the citizens and their businesses to

thrive.

(5) Natural energy resources like natural gas and oil should be exploited and controlled by

Nigeria. Indigenous companies should personally exploit these resources for the country

61
to have full access of the resources. For power to be adequate and reliable, the resources

that are used to generate energy ought to be nationalized and owned fully by the host

nation for easier generation and supply of electricity. Other countries that have sufficient

electricity supply controls and own the companies that exploit the natural energy

resources within their country but reverse is the case here in Nigeria

62
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 APPENDIX 1
Questionnaire
Department Of Sociology
Faculty of Social Sciences
Niger Delta University
Wilberforce Island Amassoma
Dear sir/madam,
I am a postgraduate student of the above named Institution and department. This questionnaire is
strictly for academic purpose and it is directed towards obtaining information on the topic
"Electricity supply and performance of small and medium scale Entreprises in Yenagoa city".
More assuredly, any information given by you will be strictly treated confidentially.
Please, read each statement/ questions carefully before responding by ticking (V) in the box that
corresponds with your responds to each questions.

Yours, Sincerely

ENIEKEBI EZEKIEL T.
(Researcher)

SECTION A
Socio-Demographic Profile of responds
1. Gender: male ( ) Female ( )

2. Age: 18-27 ( ) 28-37 ( ) 38-47 ( ) 48-57 ( )

3. Marital status: Single ( )Married ( )Divorced ( )Separated

( )Widowed ( )
4. Occupation: Tailoring ( )Shoemaking ( ) Welding ( ) Hairdressing ( ) Barbing ( )

5. Religion: Christianity( ) Islam ( ) African traditional religion n ATR ( ) others

6. Academic qualification: NO formal education ( ) Primary ( ) Secondary ( ) Tertiary ( )

Others

NATURE OF ELECTRICITY SUPPLY

7. Do you have electricity connection? Yes ( ) No ( )

8. Which do you think is the cause of poor electricity supply?

Corruption ( ) Bad leadership ( ) Inadequate megawatts

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9. How do you rate power supply in Yenagoa? Very high ( ) moderate ( ) low ( )
very low ( )

SECTION B

ELECTRICITY SUPPLY AND PERFOMANCES

10. Which is your business? Barbing ( ) hairdressing ( ) Welding ( )

Tailoring ( ) Shoe-making ( )

11. Do you think epileptic electricity supply affect your business? Yes
( ) No ( )

12. If yes, how severe is it? Very serious ( ) serious ( ) Not serious ( )

13. Constant power supply improves productivity? agree ( ) disagree ( )

undecided ( )

14. Which one of the following electricity supply do you prefer for your business?
PHCN ( ) generator ( ) solar ( )

15. Why do you choose the answer above? Cost effective ( ) increase profit ( )
less noise ( )

16. Do you use generator as an alternative power supply? Yes ( ) No ( )

17. If yes how does it affect your business in terms of profit making? Very high ( )
high ( ) moderate ( ) low ( ) very low ( )

APPENDIX II

Sample size determination

N/ (1+ N (e) 2)

(n)= portends the sample size

(N)= portends the population under study

(e)= portends the margin error (it could be 0.10, 0.05 or 0.01)

(n)= 2800/ (1 +2800 (0.05) 2)

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n= 2800/1 + 2800 (1 + 2800 (0.0025)

n= 2800/ (1+7)

n= 2800/8

n= 350

Formula for the test of Hypothesis

X2 =∑ (O-E) 2

Where

∑ = Summation

O = Observed frequency

E = Expected frequency

The formula below is used to compute the degree of freedom;

(DF) …Degree of freedom

(r) … Number of rows

(c) … Number of columns

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