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Power Supply And The Performance Of Small And Medium Scale Industries In Nigeria From (1986 – 2010)
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CHAPTER ONE
INTRODUCTION
1.1 Background of the study The economy is a
complex dynamic factor, requiring greater attention in terms of its
analysis and efficient management for productivity, stability growth and
increased standard of living of people operating Nigeria.
Since 17th
century efforts was made to promoting economic growth and have focused
on the small and medium scale industries (SMIS) as the keys and the
development of an economy and manufacturing sector in general. The role
of small and medium scale industries in the overall growth and
development of an economy‟s manufacturing sector in particular and the
economy in general cannot be over emphasized. Small and medium scale
industries are indeed high potentials for development in term of
employment generation and wealth creation in any economy. Empirical
studies have shown that the small and medium scale industries (SMIS)
have in many state has enhanced greater employment opportunities per
unit of capital in vested and aided the development of local technology.
This explains the deep interest which developing nation has shown in
the promotion of small and medium scale industries since the 1970s.
Moreover, the potentials of small and medium scale industries in
contributing substantially to the economic growth and development of
Nigeria has been hampered by various constraints, inducing long term
capital inadequate financing unavailability of information for potential
investors, poor management practices and low entrepreneurial skill,
over bearing regulatory and operational environmental, unfavorable
tariff policy and infrastructural deficiencies such as inadequate power
supply. These constraints also limit the performance of small and medium
scale industries in Nigeria.
Although, it is a widely held view that
the availability of credit as the most critical to the performance of
small and medium scale industries (SMIS), but some studies have shown
that a large number of small and medium scale industries fail because of
non financial reasons such as infrastructural deficiencies (Liedhorm et
al 1994). One of the infrastructual facility affecting the performance
of the SMIS in Nigeria is power supply (electricity). Due to inadequate
provision of power supply constitutes one of the greatest constraints in
SMIS development. The current situation whereby each investor is too
provide electricity is, to say the least, tasking to the SMIS investors
who generally lacks adequate capital for the business and the result of
this is low return on investment due to high operations cost. Therefore,
adequate power supply is necessary to ensure cost effectives in
vestments in small and medium scale industries (Charles Soludo, 2005).
It is however, noteworthy, there is need to objectivity access the
Nigeria and impact of power supply on the performance of the SMIS
sub-sector of the Nigeria manufacturing sector.
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ABSRACT - [ Total Page(s): 1 ]This research work centers on the power supply and the performance of small and medium scale industries in Nigeria from 1986 – 2010. carrying out this study, secondary data were collected and empirical analysis was made to achieve these objectives, multiple regression were used in anglicizing the data. In investigating this problem, the researcher introduces 2 hypotheses that power supply changes has no significant in Nigerian econometric mode were used for evaluation and testing of the h ... Continue reading---
