Examining the Effect of Energy Choices on the Market Performance of Small and Medium-Scale Enterprises in Rivers State
Abstract
This study examined the influence of energy choices on the market performance of Small and Medium-Scale Enterprises in Rivers State. Market performance indicators investigated were profitability and sales growth. A population of 2,449 SMEs was used as the study population, from which 400 respondents were selected using Cochran’s sampling formula. The study employed a survey research design, while data were gathered using a structured self-designed questionnaire on a four-point Likert rating scale. Mean and standard deviation were used to analyse the research questions, while multiple regression, executed using SPSS (v.26), was used to test the hypotheses. The regression output revealed that fossil fuel Generators, Solar energy choices, and energy cost had a positive and statistically significant effect on profitability and sales growth, while Grid power, on the other hand, had a positive but insignificant relationship with the performance measures under investigation. The study concludes that energy choices materially influence the market performance of SMEs in Rivers State, especially in terms of profitability and sales growth. The study therefore recommends, among others, that the Rivers State Ministry of Power should prioritize grid expansion and modernization to reduce incessant power failures and P-ISSN 2695-186X improve energy stability, while the Rivers State Government should incentivize solar power adoption to enhance operational efficiency of SMEs in the state.
Keywords
ProfitabilityEnergy choicesElectricity supplyEnergy stabilityEnergy cost
References
Adebayo, T., & Olatunji, S. (2016). The influence of access to solar energy on the growth of small businesses in Lagos State. Nigerian Journal of Energy Economics, 5(1), 22–38. Adenikinju, A. (2005). Analysis of the cost of infrastructure failures in a developing economy: The case of the electricity sector in Nigeria. African Economic Research Consortium Research Paper. Adesanya, A. A., Sidortsov, R. V., & Schelly, C. (2020). Act locally, transition globally: Grassroots resilience, local politics, and five municipal mini-grid transitions in Nigeria. Energy Research & Social Science, 62, 101376. https://doi.org/10.1016/j.erss.2019.101376 African Development Bank. (2022). Nigeria economic outlook 2022: Supporting climate resilience and a just energy transition. https://www.afdb.org Agoma, A., & Ogunbiyi, S. (2025). Energy availability and small and medium enterprises: A study of Obio/Akpor Local Government Area of Rivers State. International Journal of Intellectual Discourse, 8(3). https://ijidjournal.org/index.php/ijid/article/view/964 Akinyele, O. (2010). The impact of solar energy adoption on small-scale business performance in Lagos State, Nigeria. Journal of Renewable Energy Studies, 5(2), 45–61. Bello, R., & Popoola, O. (2025). Potential of integrated energy solutions in Nigeria: Opportunities and challenges for sustainable development—multi-facet assessment model. Discover Sustainability. Boma-Orawari, L. E., & Opuala-Charles, S. (2025). Renewable energy technology adoption and performance of SMEs in the information technology industry in Rivers State. DiamondBridge Economics and Business Journal, 5(2). Carabajal, A. T., Orsot, A., Moudio, M. P. E., Haggai, T., Okonkwo, C. J., Jarrard III, G. T., & Selby, N. S. (2024). Social and economic impact analysis of solar mini-grids in rural Africa: A cohort study from Kenya and Nigeria. Environmental Research: Infrastructure and Sustainability, 4(2), 025005. Carifio, J., & Perla, R. (2008). Resolving the 50-year debate around using and misusing Likert scales. Medical Education, 42(12), 1150–1152. https://doi.org/10.1111/j.1365- 2923.2008.03172.x Chukwu, I., & Ibrahim, A. (2021). Renewable electricity adoption and operational performance of SMEs in Abuja. Journal of Sustainable Business Development, 10(3), 44–63. Chukwu, I., & Ibrahim, A. (2022). The relationship between cost savings from solar energy and SME business resilience in Lagos State. African Journal of Small Business and Energy, 11(2), 15–34. Davis, F. D. (1986). A technology acceptance model for empirically testing new end-user information systems: Theory and results (Doctoral dissertation, Massachusetts Institute of Technology). Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. Dwivedi, Y. K., Rana, N. P., Jeyaraj, A., Clement, M., & Williams, M. D. (2019). Re-examining the Unified Theory of Acceptance and Use of Technology : Towards a revised theoretical model. Information Systems Frontiers, 21(3), 719–734. Ebhota, W. S., & Tabakov, P. Y. (2020). Barriers to the adoption of renewable energy technologies in Nigeria’s SMEs. International Journal of Energy Economics and Policy, 10(2), 18–25. https://doi.org/10.32479/ijeep.8767 P-ISSN 2695-186X Edquist, C. (1997). Systems of innovation: Technologies, institutions and organizations. Pinter. Ejiogu, E., & Ugwu, C. (2014). Renewable energy utilization and enterprise competitiveness in South-East Nigeria. African Journal of Sustainable Energy, 3(1), 22–39. Ekholm, T., Krey, V., Pachauri, S., & Riahi, K. (2010). Determinants of household energy consumption in India. Energy Policy, 38(10), 5696–5707. Eze, F., & Adeyemi, L. (2021). Solar electricity duration and operational hours of SMEs in Abuja. Nigerian Journal of Entrepreneurship and Energy, 10(1), 29–48. Eze, F., & Okafor, K. (2017). Impact of extended solar electricity supply on revenue generation of microenterprises in Enugu State. African Journal of Sustainable Energy, 6(3), 41–58. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage. Ibrahim, A., & Chukwuma, E. (2017). Solar energy accessibility and competitiveness of SMEs in Northern Nigeria. African Journal of Sustainable Energy, 6(3), 41–58. Ibrahim, A., & Nwachukwu, P. (2016). Effect of solar electricity duration on small business output in Northern Nigeria. Nigerian Journal of Energy Studies, 5(1), 22–39. International Renewable Energy Agency. (2019). Renewable energy: A gender perspective. https://www.irena.org International Energy Agency. (2022). Africa energy outlook 2022. https://www.iea.org International Renewable Energy Agency. (2023). Renewable power generation costs in 2023. https://www.irena.org Leach, G. (1992). The energy transition. Energy Policy, 20(2), 116–123. https://doi.org/10.1016/0301-4215(92)90105-B Mtebe, J. S., & Raisamo, R. (2014). Investigating behavioral intention to adopt mobile learning in East Africa. International Journal of Education and Development Using ICT, 10(3), 4–20. Musa, J., & Ibrahim, M. (2023). Solar electricity adoption and SME revenue generation in Kano State. Nigerian Journal of Energy and Business Studies, 12(1), 15–34. Musa, J., & Oladipo, R. (2023). Duration of solar electricity supply and revenue generation among SMEs in Kano State. Journal of Energy and Enterprise Studies, 12(1), 20–38. Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Harvard University Press. Nigerian Electricity Regulatory Commission. (2024). 2023 annual report & accounts. https://www.nerc.gov.ng Nwokolo, N. M., & Onwuka, E. M. (2018). Assessing the influence of power supply on the performance of small and medium scale enterprises in Port Harcourt, Rivers State. Journal of Business and Management, 20(4), 57–66. Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). McGraw-Hill. Ogunleye, B., & Bello, M. (2019). Solar energy access and revenue generation of SMEs in Ogun State. International Journal of Renewable Energy Research, 8(1), 67–84. Ogunleye, B., & Okafor, K. (2020). Solar-generated electricity and SME expansion in Northern Nigeria. Journal of Sustainable Business and Energy, 9(2), 44–61. Okafor, K., & Adeyemi, L. (2018). Access to solar power and business sustainability among microenterprises in Anambra State. Journal of Small Business and Entrepreneurship Development, 7(2), 55–73. Okafor, K., & Bello, M. (2023). Cost savings from solar electricity and SME growth in Enugu State. Nigerian Journal of Renewable Energy and Business, 12(2), 33–52. P-ISSN 2695-186X Okafor, K., & Eze, F. (2019). Solar electrification and small business growth in rural Anambra State. Nigerian Journal of Renewable Energy Research, 7(1), 33–51. Okoli, U. V., & Ezedebego, I. R. (2025). Small and medium scale enterprises and economic growth in Nigeria. International Journal of Research and Innovation in Applied Science, 10(4), 596–610. https://scholar.google.com/scholar Okonkwo, C., & Chukwuma, E. (2018). The role of electricity generation in SME operational hours and revenue in Lagos State. Journal of Entrepreneurship and Energy Studies, 6(4), 33–50. Okoro, E. A., & Nwankwo, B. C. (2019). Power supply and its effect on small and medium enterprises in Nigeria: A case study of Rivers State. International Journal of Business Management & Research, 9(3), 11–22. Okoro, J., & Musa, J. (2018). Duration of solar electricity and SME expansion in Ogun State. International Journal of Small Business and Energy, 7(2), 55–73. Okoye, C. O., & Oranekwu-Okoye, B. C. (2018). Economic feasibility of solar water heating systems in Nigeria. Renewable and Sustainable Energy Reviews, 81, 2154–2163. https://doi.org/10.1016/j.rser.2017.06.027 Oladipo, A. O., Nwokocha, A. F., & Nkamnebe, O. E. (2023). Do small and medium enterprises spur economic growth? Evidence from Nigeria (1999–2020). International Journal of Research and Innovation in Social Science, 7(9), 801–811. https://econpapers.repec.org/article/bcpjournl/ Olanrewaju, K. R., & Afolabi, B. (2021). Determinants of the use of solar energy as an alternative by SMEs in Lagos State, Nigeria. Discover Sustainability, 1, 20. Olatomiwa, L., Mekhilef, S., Ismail, M. S., & Moghavvemi, M. (2015). Energy management strategies in hybrid renewable energy systems: A review. Renewable and Sustainable Energy Reviews, 52, 398–411. https://doi.org/10.1016/j.rser.2015.07.110 Olatunji, T., & Adedoyin, A. (2019). Power supply and the performances of SMEs in Rivers State, Nigeria. International Journal of Business Ecosystem & Strategy, 1(1), 55–62. Oseni, M. O. (2016). Power outages and the costs of unsupplied electricity in Nigeria. Energy Policy, 88, 292–300. Oseni, M. O. (2016). Short- and long-run effects of power outages on households in Nigeria. Energy Policy, 95, 72–82. Owusu, J. J., Okoroigwe, E. C., Mgbemene, C. A., Takyi, G. I., & Ekechukwu, O. V. (2025). Technical stakeholders’ perspective of solar photovoltaic system failure in Sub-Saharan Africa: The case of Ghana. Sustinere: Journal of Environment and Sustainability, 9(1), 24– 40. https://doi.org/10.225151/sustinere.jes.vail.431 Owusu-Sekyere, E., Cissé, F. N., & Achandi, E. L. (2024). Impact of solar energy subscription on MSMEs market performance in Nigeria. Energy Policy, 188, 114063. Pelz, S., Chinichian, N., Neyrand, C., & Blechinger, P. (2023). Electricity supply quality and use among rural and peri-urban households and small firms in Nigeria. Scientific Data, 10, 273. https://doi.org/10.1038/s41597-023-02185-0 Small and Medium Enterprises Development Agency of Nigeria , & National Bureau of Statistics . (2021). SMEDAN and National Bureau of Statistics collaborative survey: Selected findings, 2021. SMEDAN & NBS. Small and Medium Enterprises Development Agency of Nigeria . (2013). SMEDAN and National Bureau of Statistics collaborative survey: Selected findings. SMEDAN. P-ISSN 2695-186X Smith, A., Voß, J. P., & Grin, J. (2010). Innovation studies and sustainability transitions: The allure of the multi-level perspective and its challenges. Research Policy, 39(4), 435–448. https://doi.org/10.1016/j.respol.2010.01.023 World Bank. (2013). The impact of electricity on small and medium enterprises in Nigeria. https://www.worldbank.org/en/country/nigeria/publication/impact-of-electricity-on-smes World Bank. (2020). Doing business 2020: Comparing business regulation in 190 economies. https://www.worldbank.org Wright, P. M., McMahan, G. C., & McWilliams, A. (2001). Human resources and sustained competitive advantage: A resource-based perspective. International Journal of Human Resource Management, 12(2), 259–276. https://doi.org/10.1080/09585190122319 Zhang, H. L., Baeyens, J., Degrève, J., & Cacères, G. (2013). Concentrated solar power plants: Review and design methodology. Renewable and Sustainable Energy Reviews, 22, 466– 481. https://doi.org/10.1016/j.rser.2013.01.032
More Articles from IIARD INTERNATIONAL JOURNAL OF ECONOMICS AND BUSINESS MANAGEMENT
E-Commerce Platform Utilization for Opportunity Recognition Among Business Education Postgraduate Students in Rivers State Universities
Author: Elechi, Ezinne, Wogboroma, Nyemaekile Ph.D, Godpower, Yiraodi Joel Ph.D
Developing Logistics Services for Cross-Border B2c E-Commerce in Vietnam
Author: Nguyen Thi Huyen Trang
Effect of Monetary and Fiscal Policy Measures on Economic Growth in Nigeria
Author: Jaja, Philomina Ejiroghene, Prof. C. G. Nwikina, Prof. C. R. Amadi, Prof. S. N. Amadi
The Role of Strategic Leadership in Mitigating Organizational Knowledge Loss During Digital Migration
Author: Ejalonibu Ojo Sakirulai
Effect of Socio-Economic Characteristics on the Poverty Status of Rural People in Plateau State, Nigeria
Author: Mankwat Gizo, Paul Dung Gadi, Ladi Mankwat Gizo