Adequate power supply is an unavoidable prerequisite to any nation’s development. Electricity generation, transmission and distribution are capital-intensive activities. It is a widely held view that the availability of financial resources is the most critical to the performance of small-scale businesses. However, some studies have shown that many small-scale businesses fail because of non-financial reasons such as infrastructural deficiencies. For instance, one of the infrastructural facilities affecting the performance of the small and medium scale industries (SMIs) in Nigeria is power supply. Inadequate provision of power supply constitutes one of the greatest constraints in SMIs’ development. The supply of adequate and stable electricity to consumers is the backbone of socio-economic development of any nation.
Energy for Power Supply
Energy plays a vital role in the economic growth, progress, development, poverty eradication and security of any nation. Uninterrupted power supply is an important issue for all countries today. Future economic growth crucially depends on the long-term availability of energy from sources that are affordable, accessible, and environmentally friendly.
Energy is an important factor in all the sectors of any country’s economy. It supports the provision of basic needs such as cooked food, lighting, the use of appliances, and transport as well as other social amenities. Furthermore, energy also fuels productive activities like agriculture, commerce, manufacturing, industry, and mining. Conversely, a lack of access to energy contributes to poverty and can contribute to economic decline. Energy and poverty reduction are closely connected with each other and with the socioeconomic development. This essentially involves productivity, income growth, education, and health.
The energy crisis in Nigeria has been enormous. It has largely contributed to the rate of poverty by paralyzing industrial and commercial activities. The Council for Renewable Energy of Nigeria (2009) estimates that power outages brought about a loss of 126 billion naira (US$ 984.38 million) annually. In addition to the huge income loss, it has also resulted in health hazards due to the exposure to noise and carbon emissions caused by constant use of diesel generators in different households and business enterprises. Unemployment and high cost of living which leads to a deterioration of living conditions are also part of the consequences.
In the prevailing circumstances in Nigeria where funds availability is progressively dwindling, creative and innovative solutions are necessary to address the power supply problem. Hopefully, companies such as LuxxorPower would be game changers in the electricity industry.