Electricity infrastructure failure and the development of micro sized enterprises in Nigeria: Evidence from Benin City

Abstract

Using a sample frame of seven hundred micro enterprises in some selected part of Benin City, the study considered electricity infrastructure failure and the development of micro sized enterprises in Benin City, Edo State, Nigeria. More than fifty nine percent of the owners of business agree that they usually experience light outages for more than five hours per day which usually peak in the afternoon; the boom of business period. This leads to financial and customer losses on the operators of micro enterprises. Further more, it sometimes leads to equipment damage. As regards infrastructure needs, electricity was rated first by the respondents followed by water and roads. Though, corruption by electricity supply officials and equipment failures were rated by enterprise owners as the major reason for poor power supply, they suggested that competition for electricity supply should be encouraged while electricity tariff be increased.