Electricity Infrastructure and the Sustainability of Small Enterprises in Lagos State, Nigeria

Electricity infrastructure is a cornerstone of modern economies, fostering development and enhancing living standards globally. In Lagos State, Nigeria, small enterprises grapple with persistent challenges, including frequent power outages, high electricity costs, generator dependence, and insufficient government policies. This study investigated the influence of electricity infrastructure on the sustainability of small enterprises in Lagos State. The research assessed how power generation capacity, transmission and distribution networks, and backup power systems impact small enterprises' sustainability. A survey research design was adopted, utilising both primary and secondary data sources. The population comprised 42,067 small enterprises, and a sample size of 331 was determined using the Taro Yamane (1967) formula. Data was collected using a researcher-designed questionnaire and analyzed with SPSS version 25. To ensure reliability, a pilot study was conducted in Abuja with 33 participants, yielding a Cronbach’s Alpha coefficient of 0.84, indicating high reliability. Validity was verified through expert reviews by two supervisors and a university lecturer. Data collection was conducted through face-to-face administration of the questionnaire. Analytical methods included mean scores, standard deviations, and regression analysis, while Pearson’s correlation was used to test the hypotheses. The findings demonstrated significant positive relationships between electricity infrastructure components and the sustainability of small enterprises. Power generation capacity (β = 0.514, p < 0.05), transmission and distribution networks (β = 0.493, p < 0.05), and electricity infrastructure maintenance (β = 0.529, p < 0.05), were found to significantly contribute to enterprise sustainability. The overall model (Adjusted R² = 0.946; F (7,280) = 956.225, p < 0.05) showed that these variables explained a substantial portion of the variance in small enterprises' sustainability. The study concluded that robust electricity infrastructure is essential for the sustainability of small enterprises in Lagos State. It recommended the adoption of predictive maintenance and condition-based monitoring to enhance reliability and efficiency. Further research was also suggested to investigate the role of energy storage systems in stabilising electricity supply and integrating renewable energy sources into Nigeria’s energy mix.