BUSINESS AND FINANCE JOURNAL

PRIVATISATION OF POWER HOLDING COMPANY OF NIGERIA (PHCN) AND ITS IMPLICATIONS ON SMES PERFORMANCE: EVIDENCE ON PROFITABILITY, EMPLOYMENT GENERATION AND EXPANSION IN NASARAWA STATE

Sa’Aondo, Simon Aondona
February 25, 2026

Abstract

This study examines the Privatisation of Power Holding Company of Nigeria (PHCN) and its implications for SMEs performance: evidence on profitability, employment generation and expansion in Nasarawa state. The study adopted mixed research method and used both quantitative and qualitative approaches. Questionnaire forms and interview guides were used as data collection instruments employed for the study. The questionnaire forms were administered to 315 SMEs registered with the Nasarawa State Government in the 13 local government areas of the state. However, only 300 were analysed. Descriptive statistics and multiple regression analysis were employed to assess the relationship between changes in electricity supply following privatization and indicators of firm performance, including profitability, employment generation, and business expansion. The findings indicated that PHCN electricity supply remains low and has negative impact on the productivity, profitability, expansion and job creation capacity of SMEs in Nasarawa State. With this, SMEs in Nasarawa State have resorted in the use of alternative power source such as generators and solar panels. The study therefore concluded that electricity supply has not improved significantly, and this has negatively impacted the performance of SMEs in Nasarawa State. The study therefore recommended that government should introduce a workable subsidy policy or grants that will mitigate the effect of power outages.

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BUSINESS AND FINANCE JOURNAL

Published in BUSINESS AND FINANCE JOURNAL

ISSN: 988-47876

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