Private Sector power supply and development of Small and Medium-sized Enterprises (SMEs) in the South East region of Nigeria

Abstract

Availability of dependable energy drives economic development, while sustainable economic development depends on a robust private sector. The south-east region of Nigeria, comprising Abia, Anambra, Ebonyi, Enugu, and Imo states, is well known for its technological and industrial capabilities, especially in the private sector. Considering the giant strides achieved in the Southeast in the manufacture of household goods, clothing, footwear, and other appliances, it becomes clear that the sector requires a stable energy supply to sustain the Southeast private sector’s industrial explosion. This study is anchored on the Basic Human Needs theory of conflict. The study relied on ex post facto research design. The documentary method of data collection is employed, relying on secondary data from books, journals, and official documents. Content analysis is relied upon in the study. Findings are: Private enterprises in Aba and Onitsha remain at an infant stage; private enterprises in the South East are forced to continue adjusting to a harsh business environment while struggling to survive, thereby slowing growth rates. The study, therefore, recommends: first, channels of energy supply in Nigeria should be decentralized, with the control and administration of power generation companies (GENCOs), transmission companies (TCN), and distribution companies (DISCOs) made to operate independently for optimal performance in their different regions; second, companies like the Geometric Power Group in Aba, Abia State should be allowed to feed only their surrounding areas without transmitting energy to the national grid; third, dependable and effective energy supply should be prioritized for industrial and commercial hubs in the South East.