ANALYSIS OF NIGERIA POWER SYSTEM VOLTAGE COLLAPSE AND ITS EFFECT ON THE OPERATIONS OF SMES IN EKITI STATE.

CHAPTER ONE

INTRODUCTION

Background of the study

Many individuals neglect to take a moment to reflect upon the profound and revolutionary influence that electricity has had on the human experience. Electricity is extensively employed in several aspects of modern civilizations. It powers transportation, plays a crucial role in production, and enables the functioning of heating systems (Dele, 2019). Without electricity, there would be a rapid deterioration in the quality of living, and human advancements in technology would likely cease. Akinyemi (2022) argues that the true capacity of electricity rests not in the provision of social amenities, but in its ability to stimulate sustainable economic growth. 

Electricity has a crucial role in the national sector, serving as a significant catalyst for progress and enhancing people's quality of life. It stimulates several sectors such as healthcare, education, commerce, and industry (Christopher, 2018). The power grid, also known as an electricity distribution network, is utilized to provide customers with electrical power. The power system comprises generation stations, transmission towers, and distinct consumer distribution lines. The generator produces electrical energy for gearbox and transforms it into high voltage (Samuel et al., 2019).

As stated by Jones (2018), the main objective of an electrical power system is to deliver sufficient power to all sites of consumption at a rate that is both economically viable and reasonably dependable, hence avoiding system failure during operation. Hence, it is anticipated that any power system will operate at its highest efficiency without encountering any system failure throughout its functioning (Samuel et al., 2019). Okafor (2019) provides a definition Voltage collapse refers to the situation where end users or consumers experience a partial or complete disruption of their connection to the electrical power grid. The primary reasons are natural, environmental, and meteorological variables, as well as human errors, malfunctions, or faults like as overload, component malfunction, or issues with the control and protection systems of the distribution system. There are two kind of voltage breakdown that can occur on the electrical grid: short disruptions and persistent interruptions (Short, 2006: Akinyemi, 2022). Voltage breakdowns are sometimes synonymous with power outages. The country has been facing regular power outages, causing disruptions to various operations and damaging countless industrial processes. A multitude of power outages across the nation are resulting in persistent voltage disruptions. 

Moreover, it has resulted in a fluctuating and unreliable electricity distribution throughout the country. Oriaku (2021) has reported that it has resulted in an increase in the country's unemployment rate and a decline in production. Voltage collapse refers to the instability of a power system network that is heavily loaded, leading to a decrease in voltage and sometimes causing a blackout (Enefiok, 2020). A "system collapse" occurs when all or some of the power producing stations connected to the grid totally or partially shut down, either simultaneously or sequentially, resulting in a blackout across the whole grid-supplied area (Folorunsho, 2017). This compromises the crucial function of supplying consumers with reliable and uninterrupted power and has significant consequences for the security of the system. Voltage collapse is an unwanted event that can occur in power system networks due to many factors. The occurrence of system breakdown, a frequent event in Nigeria's national grid, sometimes leads to either a partial or complete blackout. This has a substantial influence on the country's industry and socioeconomic progress.

For instance, in Ekiti state, the persistent voltage collapse in the power grid has caused several detrimental impacts on small and medium-sized enterprises (Kadiri, 2023). The majority of small and medium-sized enterprises (SMEs) in the state have ceased operations, and some that are still operating are on the brink of closure due to inadequate power supply. This issue has been exacerbated by the rising cost of fuel. The smallest and medium-sized companies are no longer able to afford the high expenses associated with running their businesses, leading to closures, layoffs, and a decline in product quality or an increase in prices. The elevated unemployment rate has consequently exacerbated the already high crime rates in the state (Ganiyat, 2023). Therefore, this study will thoroughly examine the phenomenon of voltage collapse in the power system of Nigeria and its impact on the operations of small and medium-sized enterprises (SMEs) in Ekiti state.

1.2 Statement of the Problem

The generating, transmission, and distribution stages of the electricity business are interconnected by the national grid. Multiple grid failures have occurred in Nigeria due to the grid's inability to promptly respond to various system dynamics. Despite Nigeria's rapidly growing economy, the power infrastructure in the country has been unable to provide sufficient electricity to meet the needs of both households and industries (Amadi & Ekeng, 2024). The country possesses significant deposits of coal, oil, gas, and uranium, which positions it as the leading oil producer in Africa. Notwithstanding the ample availability of resources, the viability of these firms has been significantly impeded by the absence of electricity.

According to Amadi & Ekeng (2024), one of the main causes of voltage collapse in Nigeria's power system is the reluctance to upgrade facilities to keep up with current technological advancements, such as the incorporation of SCADA, GPRS, PLCs, and IT applications, in order to make the system SMART (Self-Monitoring, Analysis, And Reporting Technology). The absence of upgrades results in grid failures as the system is incapable of effectively monitoring and detecting defects in order to promptly implement predictive and preventive maintenance measures. Imoh (2024) supports this claim by asserting that in October 2023, there were two instances of system failure, one of which was caused by an explosion of a capacitive voltage transformer (CVT) at Kanji power station. According to Imoh (2024), the prevention of such events could be achieved if our systems possess sufficient intelligence to detect and anticipate faults. 

Furthermore, as previously mentioned in the study's background, voltage breakdown in the power system has detrimental effects on business. A study conducted in January 2019 indicates that more than 196 hours of power outages occur on a monthly basis for over 97% of Nigerian enterprises. This suggests that due to the inconsistent supply of energy in the country, these enterprises encounter an average of eight complete days of reduced productivity. The use of alternative energy sources is a potential threat to businesses, as it might lead to a decrease in profit margins (Ganiyat, 2023). 

Additional issues related to voltage collapse, in addition to those mentioned earlier, are linked to a lack of proper maintenance practices, insufficient compensation equipment in the system, prolonged neglect by the government, and political intervention. Therefore, the necessity for this investigation arises. 

1.3 Objectives of the study

The primary objective of this study is to critically analyse the Nigeria power system collapse and its effects on the operations of SMEs in Ekiti state. Specific objectives of this study are to:

Ascertain the prevalence level of Voltage Collapse in the Nigeria Power System Ekiti State.

Identify the causes of Voltage Collapse in the Nigeria Power System Ekiti State.

Assess the effect of Voltage Collapse on the Operations of SMEs in the Nigeria Power System Ekiti State.

Identify the strategies adopted by SMES in Ekiti State to mitigate the effects of voltage collapse

1.4 Research Questions

The following research questions which are in line with the objectives of this study will be answered in this study:

What is the the prevalence level of Voltage Collapse in the Nigeria Power System in Ekiti State?

What are the causes of Voltage Collapse in the Nigeria Power System?

What is the effect of Voltage Collapse on the Operations of SMEs in the Nigeria Power System Ekiti State?

What strategies are to be adopted by SMES in Ekiti State to mitigate the effects of voltage collapse?

1.5 Research Hypotheses

The following research hypothesis will be validated in this study:

Ho: The impact of the power system voltage collapse on the operations of SMEs in Ekiti state is low.

Ha: The impact of the power system voltage collapse on the operations of SMEs in Ekiti state is high

1.6 Scope of the study

Broadly, this study focuses on analysing the Nigeria Power system voltage collapse and its effect on the operations of SMEs in Ekiti state. Specifically, this study seeks to assess the impact of the power system voltage collapse on the operations of SMEs in Ekiti state, the factors that causes the Nigeria power system voltage collapse, the effect of power system voltage collapse on the operations of SMEs in Ekiti state, and the causes of the power system voltage collapse.

This study will be carried out in Ekiti state.

1.7 Significance of the study

This study will serve as a baseline for researchers and students and also guide government, policy makers to evaluate the need of her citizens. 

Additionally, the study's significance lies in its potential to contribute valuable data and empirical evidence to the existing body of knowledge on power system dynamics and SME resilience.

Finally, this study will also serve as a reference material to students and researchers for further studies and future research.

1.8 Limitations of the study

As is typical in all human endeavours, the researchers faced minor limitations during the course of the study. The main limitation was the lack of extensive literature on the subject, as there is limited data available on the analysis of voltage collapse in Nigeria's power system and its impact on the operations of small and medium-sized enterprises (SMEs) in Ekiti state. Additionally, there is a need to establish parameters for measuring the effects of voltage collapse on the local population, determining whether it has a positive or negative impact. Consequently, a significant amount of time and effort was necessary to locate the appropriate resources, books, or information, as well as to gather data. Also, this study is constrained by its small sample size and narrow geographic scope, as it just focuses on Ekiti state. Consequently, the results of this study are not applicable for generalization, thereby leaving room for other research.

Furthermore, the researcher faced a time constraint due to the need to do this research while also fulfilling obligations such as attending lectures and other educational activities. 

1.9 Definition of terms

Voltage collapse: Voltage collapse is the partial or complete loss of end users' or customers' access to the electrical power grid

Power outage: an interruption or failure in the supply of power, especially electricity. the period during which power is lost

National grid: The national grid is an interconnecting system that comprises all generation stations, transmission substations, and distribution substations.

SMEs: SMEs is an acronym that stands for Small and Medium-sized Enterprises. These are companies that deliberately keep their size below a specific limit in terms of the number of employees, revenue, or assets. The specific threshold may vary based on the country and industry categorization. Small and medium-sized enterprises (SMEs) have a significant impact on economies globally, frequently serving as the foundation of numerous local and regional economies.