EFFECT OF ELECTRICITY DISTRIBUTION ON SMALL AND MEDIUM ENTERPRISES (SMES) PERFORMANCE IN SOUTHERN - TARABA STATE

Abstract

This study examined the effect of Electricity Distribution on small and medium enterprises’ (SMEs) performance in Southern - Taraba state. The specific objectives of this study are to: evaluate the effect of stability in power supply on SMEs Performance and assess the cost-effect of power supply on SMEs Performance in the study area. The data used for the study were primary data obtained through open-ended questionnaires. A total of 114 copies of questionnaires were administered to 114 managers of registered SMEs in Southern Zone: IBI, Wukari, Donga, Takum and Ussa through simple random sampling technique. Where only 105 questionnaires representing 92.12% were returned in useable form for this study.  It applied descriptive statistics and ordinary least squares methods. The study revealed that stability in power supply and cost of power supply proved positive and significant effect on SMEs Performance in the study area.  It concluded that electricity distribution to SMEs has positive effects on SMEs performance in Southern - Taraba state. Therefore, it recommended that government should provide constant and steady electricity supply and minimise the cost of energy rate for SMES in order to improve profitability of SMEs in Nigeria.