IIARD International Institute of Academic Research and Development

JOURNAL OF PUBLIC ADMINISTRATION AND SOCIAL WELFARE RESEARCH (JPASWR )

E-ISSN 2504-3597
P-ISSN 2695-2440
VOL. 9 NO. 4 2024
DOI: 10.56201/jpaswr.v9.no4.2024.pg84.98

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Alternative Source of Power Supply: Implications on Cost of Production in Nigeria

Chukwuma Victoria Azuka

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Abstract

The increasing inadequacy of Nigeria’s electricity supply has significantly hindered industrial growth and economic development, driving macro and micro businesses to seek alternative sources of power. This study examines the implications of utilizing alternative power sources on the cost of production in Nigeria. Alternative energy sources, such as solar and biomass, present opportunities for more reliable power, yet their adoption remains slow due to high capital costs, technical challenges, and limited infrastructural support. This study investigates how these alternative power options can mitigate the challenges associated with the unreliable national grid while affecting the cost structures of production in businesses. The study aims to consider the financial and operational consequences of transitioning to alternative power source by focusing on cost, the reliability of supply, and sustainability. The study will adopt energy economics theory and the qualitative method of literature review. This study concludes that although alternative power sources require significant financial investment, they offer long-term benefits in reducing fuel dependency, enhancing production efficiency, and contributing to environmental sustainability. For businesses, the transition to alternative power sources is more than an economic imperative; it is increasingly becoming a competitive advantage.

keywords:

Power supply, Production, Alternative source, solar, cost

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