THE IMPACT OF IRREGULAR ELECTRICITY SUPPLY ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN MAKURDI METROPOLIS: THE IMPLICATIONS OF ALTERNATIVE ENERGY SOURCE

This study investigates the impact of irregular electricity power supply on the performance of Small and Medium Enterprises (SMEs) in Makurdi Metropolis, with specific emphasis on the implications of reliance on alternative energy sources. Using a survey design method, data were collected from 300 registered SMEs in Makurdi including barber shop/hair dressing salon, computer business centres, tailoring/fashion and designing, welder/fabrication, and hotels/restaurants. Quantitative data were analysed through descriptive statistics and chi-square to examine the influence of irregular electricity supply and alternative power usage on enterprise performance indicators. This include profitability, operational cost, employment capacity, and business expansion. The findings reveal that irregular electricity supply significantly undermines SMEs performance in Makurdi Metropolis. Results indicate that frequent power outages increase operational costs, reduce profit margins, constrain employment capacity, and impede business expansion. Although SMEs resort to alternative energy sources such as diesel generators, inverters, and solar systems to mitigate power instability, the high costs of acquisition, maintenance, and fuel consumption exacerbate financial strain and do not adequately compensate for grid unreliability. The study further reveal that there is negative relationship between irregular power electricity and SMEs performance who adopt alternative energy fair significantly. The study concludes that current energy supply challenges pose a substantial barrier to SMEs to compete for sustainability in Makurdi Metropolis. The study recommended that there should be prompt upgrade and maintenance of electricity infrastructure. The relevant agencies in power distribution and government authorities should prioritise the modernisation and maintenance of transmission and distribution networks in Makurdi Metropolis to reduce power outages and to strengthen the existing infrastructure which will improve electricity reliability and lessen the operational burden on SMEs.