Innovations in Electricity Infrastructure and Small Enterprises Sustainability in Lagos State, Nigeria

Abstract

In Lagos State, Nigeria, Small enterprises faced challenges such as frequent power outages, elevated electricity costs, reliance on generators, and inadequate government support. This study investigated the effects of innovations in electricity infrastructure on the sustainability of small enterprises in Lagos State, Nigeria. Specifically, it evaluated the impacts of backup power systems, smart grid integration, and renewable energy solutions on small enterprise sustainability. A survey design was adopted, utilizing both primary and secondary data. The population comprised 42,067 small enterprises, with a sample size of 331 determined using the Taro Yamane (1967) formula. Data were collected through a researcher-structured questionnaire and analyzed using Statistical Package for the Social Sciences (SPSS) version 25. The reliability of the questionnaire was tested with a pilot study conducted in Abuja involving 33 participants, yielding a Cronbach’s Alpha coefficient of 0.84, indicating high reliability. Validity was ensured through expert review by two supervisors and a university lecturer. Data collection was carried out through face-to-face administration. The study employed analytical methods, including mean scores, standard deviations, and regression analysis, with hypotheses tested using Pearson’s correlation. The findings revealed positive and significant relationships between electricity infrastructure dimensions and the sustainability of small enterprises. Results showed that backup power systems (β = 0.433, p < 0.05), smart grid integration (β = 0.503, p < 0.05), and renewable energy solutions (β = 0.508, p < 0.05) significantly contributed to the sustainability of small enterprises in Lagos State, Nigeria. The overall model (Adjusted R² = 0.946; F(7,280) = 956.225, p < 0.05) indicated that these variables accounted for a substantial portion of the variance in small enterprise sustainability. The study concluded that electricity infrastructure played a critical role in sustaining small enterprises in Lagos State, Nigeria. Recommendations included adopting smart grid technologies to improve reliability and efficiency and conducting further research to explore the role of energy storage systems in stabilizing electricity supply and supporting the integration of renewables into Nigeria's energy portfolio.

Keywords: Innovations, Electricity Infrastructure, Small Enterprises Sustainability