Powering Through Challenges: the Energy Crisis and Its Impact on Msmes in Kaduna Metropolis, Kaduna State Nigeria (2015–2022)
Year: 2025
Type: article
Abstract: The global energy crisis, driven by natural and manmade factors, has profound implications for socio-economic development. Notable historical instances, such as the 1973 Oil Crisis triggered by the OPEC embargo, and more recent events like the Russia-Ukraine war, highlight the fragility of energy supply systems. These crises have disrupted global oil and gas supplies, causing severe consequences for enterprises, particularly Micro, Small, and Medium Enterprises (MSMEs), which are vital to local economies. This study investigates the impact of the energy crisis on MSMEs in Kaduna, Nigeria, during the pre-subsidy removal era (2015–2022), focusing on how fuel scarcity and rising energy costs hinder their operations and profitability. Anchored in the Resource-Based Theory (RBT), the study explores how energy, as a critical resource, affects MSME performance and sustainability. An interpretivist methodology that employs qualitative approaches, incorporating both primary and secondary data, alongside content analysis. The findings reveal that energy crises, exacerbated by global disruptions and domestic inefficiencies, significantly hinder MSME operations in Kaduna. Key effects include increased costs of goods and services, reduced profitability, and the collapse of several enterprises. The study further highlights how fuel scarcity and high energy costs directly undermine socio-economic development in Kaduna and Nigeria at large. The research concludes that addressing energy crises requires immediate and strategic interventions. Recommendations include establishing a multi-sectoral taskforce to monitor petroleum product distribution, reviving and scaling up refinery operations, issuing modular refinery licenses, and increasing investment in renewable energy. Additionally, tailored support such as toolkits for MSMEs can help mitigate the adverse impacts of energy crises. This study contributes to knowledge by providing a nuanced understanding of the interplay between energy crises and MSME performance, offering practical solutions for policymakers and stakeholders to foster resilience and sustainable development.
Authors: Auwalu, Musa, Nurudeen, Bashar Saleh, Mohammed, Sadiq Garba
Institution: Nigerian Defence Academy
Language: English
Subfield: General Energy
Field: Energy
Domain: Physical Sciences
Open Access status: green
OpenAlex ID: W6949534254
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