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Power Supply And The Performance Of Small And Medium Scale Industries In Nigeria From (1986 – 2010)
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1.2 Statement of Research Problem
Small
and medium scales industries in both developed and underdeveloped
nations plays an important role in the process of economic development
and industries. In spits of the relevance of the small and medium scale
industries to Nigeria economy and industrial development, on that sector
faces a lot of problems. Although there are various factors affecting
the performance of small and medium scale industries sub sector ranging
from inadequate capital to unfavorable tariff policy, however, the poor
state of power supply in Nigeria is one of the significant factors
militating against the performance of small and medium scale industries.
The equality and quantity of a country‟s power supply determines its
ability to create competitive industries. Since the performance of SMIS
in any state is greatly influenced by the electricity supply. Given the
pathetic state of power supply in Nigeria it is no wonder that the
contribution of the development the state, manufacturing sector and the
economy in general is very negligible or unsupported by the government.
An
overview of the performance of the small and medium scale industries in
Nigeria shows that past policies made limited impact on the sector for
example, it is estimated that SMIS account for about 80 percent of the
total industries employment in Nigeria, but only contribute 15-20
percent of total manufacturing output. Power supply has remained
unreliable and power out-age load shedding and rationing have become
very frequent. Power supply had been erratic and unreliable that many
businesses have resorted to purchasing private generators at prohibi
-ost. The substantial investment in private generating plants is
estimated to be of capacity of over 250mm, which is almost half of power
holding company of Nigeria (PHCN) available capacity. 1.3 Research
Questions The study would therefore provide answers to the following
fundamental questions.
(1) How does power supply affect the performance of small and medium scale industries in Nigeria?
(2) Are there linkage between power supply and the performance of small and medium scale industries in Nigeria?
(3) What contributes to failure of power supply and manufacturing sector?
1.4
Objective Of The Study The objectives of this research study are to
provide a clear picture on the activities of effects of power on the
performance of small and medium scale industries. The specific
objectives of the study are:
(i) To examine the impact of power supply on the performance of small and medium scale industries in Nigeria
(ii) Solutions polices options and recommendation
(iii) To identify the problems of that might be against the effectiveness of small and medium scale industries in Nigeria.
1.5
Hypotheses The broad objective of this study is to assess the
performance of power supply to small and medium scale industries in the
state. The specification objectives of the study are as follows:
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(1)
(Ho; No significant dependence) the performance of small and medium
scale industries is not dependant on the quality and availability of
adequate power supply in Nigeria.
(2) (H1; Have significant dependence) the performance of small and medium scale industries is dependent on the quality and
1.6
Justification of Study This study is significant of selected growths.
It will add to the available literature on the study area. Power supply
is a problem to the state government and its citizens. From experiences
our various industries, there is no doubt that the small and medium
scale industries over the year have been at the receiving end of the
economic environment in the state. Infact, the contributions of the
sector has been declining over the years. Hence, this study will create
awareness to the government to see the extent to which neglect of
infrastructural facilities such as electricity is hampering the
performance of SMIS in meeting their potentials of the providing
employment per unit investment capital, facilitating the development of
indigenous entrepreneurships, enhancing local resources utilization and
value added expanding non oil exports at competitive prices, improving
balance of payment position and bring about disagreed overall growth and
development of the state economy. The lack of power supply in the state
serves as external dis-economics for SMIS adversely affecting their
performance, productivity and profitability.
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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---
