Energy availability and Small and Medium Enterprises: A study of Obio/Akpor Local Government Area of Rivers State

Abstract

This study explores how energy availability influences the performance of Small and Medium Enterprises (SMEs) in Obio/Akpor Local Government Area, Rivers State, Nigeria. A total of 347 questionnaires were distributed across five wards, which are Alakahia, Choba, Rumuosi, Ozuoba, and Rumuokoro—and all were completed and validated, giving a 100% response rate. The analysis employed descriptive statistics, correlation, and regression techniques to assess the effects of energy factors on SME performance. The findings show that energy availability and accessibility, energy costs, and reliability of supply together account for 50% of the variation in SME performance (R² = 0.500). Among these, energy cost had the strongest positive impact (β = 0.298), followed by energy availability and accessibility (β = 0.262). The ANOVA results confirmed the robustness of the model, with an F-statistic of 105.405 and a p-value of 0.000, indicating that the independent variables jointly have a significant effect on SME performance. These results highlight the vital role of affordable, reliable, and accessible energy in improving productivity, minimizing disruptions, and enhancing profitability among SMEs. The study recommends stronger collaboration between
policymakers, energy providers, and SME operators to strengthen energy infrastructure, lower energy costs, and guarantee reliable energy access to support sustainable SME growth in Obio/Akpor.