ISSN: 2756-6676
Model: Open Access/Peer Reviewed
DOI: 10.31248/RJBEM
Start Year: 2017
Email: rjbem@integrityresjournals.org
https://doi.org/10.31248/RJBEM2023.090 | Article Number: 5BCD052B1 | Vol.6 (1) - February 2023
Received Date: 26 January 2023 | Accepted Date: 24 February 2023 | Published Date: 28 February 2023
Author: Umar Gunu Suleiman
Keywords: sustainable development, Nigeria., small and medium enterprises., renewable energy
The effect of renewable energy (RE) development on the sustainable development of SMEs' potential in Nigeria was empirically done to unlock the possibility of deciphering the perennial energy problem in Nigeria. The development of renewable energy (RE) resources and utilization can greatly benefit Small and Medium Enterprises (SMEs) in Nigeria by providing a reliable, sustainable and cost-effective power supply. This is especially important, as many sectors of Nigeria's economy, including SMEs, are highly dependent on the poor power supply that is currently available. Thus, this study specifically examines the effect of RE resources availability, generation, system efficiency and effectiveness, and utilization on SMEs’ sustainable development potential in Nigeria. A survey research design was adopted and a population of 73,081 SMEs across Nigeria was utilized with a sample of 398 SMEs selected using multi-stage sampling techniques. A validated questionnaire was administered to the owners/managers of the selected SMEs, information obtained from the questionnaire was collated, scrutinized, and analyzed using Structural Equation Model (SEM) with the aid of SMART PLS 4 software through the structural model. The findings revealed that RE resources availability, generation, system efficiency and effectiveness, and utilization potentials of SMEs have a positive and significant effect on the potential development of SMEs in Nigeria. The study concluded that RE resources availability, generation, system efficiency and effectiveness, and utilization have significant influence on SMEs’ sustainable development potential in Nigeria. Thus, government, private sectors, and international development partners should focus on providing more resources, knowledge, and support to enable SMEs to access, generate and effectively use renewable energy resources more efficiently.
Acciona (2020) Sustainable development: What is sustainable development and how to achieve it? Acciona Social Networks. Link |
||||
Ado, A. & Josia, M. M. (2015). Impact of deficient electricity supply on the operations of small scale businesses in North East Nigeria. International Journal of Business and Economic Development, 3(1), 20-30. | ||||
Ajayi, O.O. (2010). The potential for wind energy in Nigeria. Wind Engineering, 34(3), 303-312. Crossref |
||||
Aliyu, A., Ramli, A., Saleh, M. (2013). Nigeria electricity crisis: Power generation capacity expansion and environmental ramifications. Energy, 61(8), 354-367. Crossref |
||||
Ayodele, A. S. (2004). Improving and Sustaining power. Electricity supply for socio-economic development in Nigerian, NISER, Ibadan. | ||||
Babatunde, O. M., Denwigwe, I. H., Adedoja, O. S., Babatunde, D. E., & Gbadamosi, S. L. (2019). Harnessing renewable energy for sustainable agricultural applications. International Journal of Energy Economics and Policy, 9(5), 308-315. Crossref |
||||
Benedek, J., Tihamér-Tibor Sebestyén, Sebestyén, T. T., Blanka Bartok, & Bartok, B. (2018). Evaluation of renewable energy sources in peripheral areas and renewable energy-based rural development. Renewable & Sustainable Energy Reviews, 90, 516-535. Crossref |
||||
Charles, A. (2014). How is 100% renewable energy possible for Nigeria? Global Energy Network Institute (GENI). Link |
||||
Chel, A., & Kaushik, G. (2011). Renewable energy for sustainable agriculture. Agronomy for Sustainable Development, 31(1), 91-118. Crossref |
||||
Chilakpu, K. O., Egwuonwu, C. C., & Asoegwu S. N., (2018). Renewable Energy as an alternative power source in the sustainability of Agriculture and Food production in Nigeria. International Journal of Scientific and Research Publications, 8(6), 333-339. Crossref |
||||
Daramola, D. (2012). Renewable Energy Market Analysis in Nigeria. Laurea, Leppävaara: Laurea University of Applied Sciences. Link |
||||
Ellabban, O., Abu-Rub, H., & Blaabjerg, F. (2014). Renewable energy resources: Current status, prospects and their enabling technology. Renewable and Sustainable Energy Reviews, 39, 748-764. Crossref |
||||
Etuk, R. U., Etuk, G. R., & Michael, B. (2014). Small and medium scale enterprises (SMEs) and nigeria's economic development. Mediterranean Journal of Social Sciences, 5(7), 656-662. Crossref |
||||
Gado, N. D., & Obumneke, E. (2015). The impact of electricity on the growth of small and medium enterprises (SMEs) in Nigeria. Abuja Journal of Business and Management, 1(1), 110-123. | ||||
Gavrov, S., & Klyukanov, I. (2015). Modernization, sociological theories of. International Encyclopedia of the Social & Behavioral Sciences, 15, 707-713. Crossref |
||||
Gbandi, E. C., & Amissah, G. (2014). Financing options for small and medium enterprises (SMEs) in Nigeria. European Scientific Journal, 10(1), 327-340. | ||||
Hair, J. F., Sarstedt, M., Matthews, L., & Ringle, C. M. (2016). Identifying and treating unobserved heterogeneity with FIMIX-PLS: Part I - method. European Business Review, 28(1), 63- 76. Crossref |
||||
Highnet, (2020). Definition of small and medium scale enterprises (SME). Highnet Resources. Link |
||||
Ibe, E., & Ndubuisi, O. D. Energy efficiency in Small and Medium Scale Enterprises (SMEs) and Economic Growth in Nigeria. Journal of Economic and Sustainable Growth 3. Link |
||||
International Institute for Sustainable Development (IISD) (2020). Sustainable development. International Institute for Sustainable Development. Link |
||||
National Bureau of Statistics (NBS) (2022). National Survey of Micro Small & Medium Enterprises (MSMEs) 2017. National Bureau of Statistics. Link |
||||
Oduyoye, O. O., Adebola, S. A., & Binuyo, A. O. (2013). Empirical study of infrastructure support and small business growth in Ogun state, Nigeria. Journal of Research and Development, 1(1), 14-22. Crossref |
||||
Olatunji, O. D. (2019). Electricity insecurity and the performance of small-scale businesses in Akoko Area of Ondo State, Nigeria. International Journal of Business and Social Science, 10(7), 157-167. Crossref |
||||
Onakoya, A. B., Onakoya, A. O., Jimi-Salami, O. A., & Odedairo, B. O. (2013). Energy consumption and Nigerian economic growth: An empirical analysis. European Scientific Journal, 9(4), 25-40. | ||||
Osunyomi, B. D. (2013). Potentials of renewable energy for the sustainable expansion of Nigeria's agricultural sector and economic growth. Helmut Schmidt University, University of the Federal Armed Forces, Hamburg. Unpublished. | ||||
Oyeyinka, B. O. (2020). SME: Issues, challenges and prospects. Working document presented at the Financial System Strategy (FSS) 2020 International Conference. | ||||
PWC (2016). PwC's annual power and utilities roundtable: The challenges with transforming the Nigerian power landscape (Report). PWC. 2016. | ||||
REMP (2005). Renewable Energy Master Plan, Final report. | ||||
Renewable Global Status Report (2010). Renewables 2010 global status report. Renewable Energy Policy Network for the 21st Century. | ||||
Sabo, A., & Lekan, O. K. (2019). Electricity supply and performance of Small and Medium Enterprises (SMEs) in Nigeria: Assessing selected firms in North-Western States. World Journal of Innovative Research, 6(4), 91-99. Crossref |
||||
Surya, B., Suriani, S., Menne, F., Abubakar, H., Idris, M., Rasyidi, E. S., & Remmang, H. (2021). Community empowerment and utilization of renewable energy: Entrepreneurial perspective for community resilience based on sustainable management of slum settlements in Makassar City, Indonesia. Sustainability, 13(6), Article number 3178. Crossref |
||||
Tijjani, N., Alhassan, B., Saddik, A. I., Muhammad I, Lawal A. M., and Maje S. A., (2013). Renewable energy and sustainable food security in Nigeria. Journal of Energy Technologies and Policy, 3(4), 1-6, | ||||
Udochukwu B. A., & Ogbonoya I. O. (2014). Renewable energy investment in Nigeria: A review of the Renewable Energy Master Plan. Journal of Energy in Southern Africa, 25(3), 67-73. Crossref |
||||
Uzoma, C. C., Nnaji, C. E., Ibeto, C. N.; Okpara, C. G., Nwoke, O. O., Obi, I. O., Unachukwu, G. O., & Oparaku, O. U. (2011). Renewable energy penetration in Nigeria: A study of the South-East Zone. Continental Journal of Environmental Sciences, 5(1), 1-5. | ||||
Vincent-Akpu, I. (2012). Renewable energy potentials in Nigeria. Energy Future: the role of impact assessment. 32nd Annual Meeting of the International Association for Impact Assessment. Porto-Portugal: Centro de Congresso da Alfândega. | ||||
Yu-Xia, T. U., Kubatko, O., Vladyslav P., Sotnyk, I. M., & Tetiana K. (2022). Determinants of renewable energy development: Evidence from the EU Countries. Energies, 15(19), 7093-7093. Crossref |
||||
Zarma, I. H. (2006). Hydropower resources in Nigeria. ECN-2006. Link |