Effect of generator usage on small scale businesses in Nigeria

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Effect of generator usage on small scale businesses in Nigeria

Energy has a major impact on socio-economic development by playing a key role in economic, social and political advancement of any Nation. Inadequate supply of energy limits advancement in all spheres thereby causing depreciation in the quality of life among citizens. Small scale businesses in Nigeria also have their fair share of the effects of inadequate energy supply in Nigeria. The aim of this study is to analyze the awareness, economic and environmental effects and attitudes of generator usage by small scale businesses and to bring about awareness on the alternatives and benefits of national grid system. This study analyses how small scale businesses in Nigeria manages to keep business alive by using alternative energy supply such as diesel-fuel generator. This challenge facing small scale business sector is due to the inadequate power supply. The effect of generator usage on their businesses and the environment was analyzed in this study. To successful achieve the aim of the study, a hundred small scale business owners in Akure, Ondo State and Benin City, Edo State, both in Nigeria were interviewed face-to-face. The results shows that, 77% of business owners didn’t see generator usage as environ-mental friendly and 71% also did not see it as yielding profit to their businesses. Considering their annual turnover, 74% of small scale businesses were willing to pay more for constant electricity supply that is environmental friendly. In addition, businesses with lesser income spend 46% of their annual income on fuelling and maintenance of their generator. The age range that are into small scale businesses were between 20 – 24 years with highest rate of 32%. This shows that more youth are willing to start creative and innovative enterprise to reduce the unemployment rate in the country if there is stable energy supply. This study also suggested some solutions to improve Nigeria’s power supply and help businesses to grow. It is expected that this study will help policy makers, stake holders, investors and business owners to understand the effect of generator usage as an alternative power supply on the economy and the environment.


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