AN INVESTIGATION OF THE ECONOMIC IMPLICATIONS OF NATIONAL GRID COLLAPSES ON SMALL HOLDER FARMS IN UYO, NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Agriculture has a crucial role in driving the economy and acts as a significant catalyst for growth in emerging societies. It generates employment opportunities, alleviates poverty, assures food security, and promotes economic development (Oyakhilome, 2023). Consequently, it serves as the fundamental support for the economy of Sub-Saharan Africa (Oladele, 2022). Therefore, the majority of Africans rely on agriculture as their primary means of sustenance. It is estimated that over 86 percent of rural individuals in the continent directly or indirectly depend on agriculture for income and employment, benefiting around 1.3 billion people (Tita, 2019). According to the FAO (2017), in 2015, the average global food losses due to wastage were expected to be around 40% for fruits and approximately 50% for vegetables and root crops.

Agriculture is of paramount importance to the economy of Uyo, since numerous small-scale farms make substantial contributions to both local food production and employment. These farms are usually characterised as small, family-owned enterprises that rely on diverse forms of mechanisation and technology for tasks such as irrigation, processing, and storage. Dependable electricity is crucial for these operations to operate efficiently and economically. Small-scale agricultural plots in Uyo play a crucial role in the production of food for the local community. They cultivate a diverse range of crops, encompassing essential staples such as cassava, maize, and yams, along with various vegetables and fruits. These farms provide local markets with a consistent supply of fresh produce, which helps meet the nutritional requirements of the people. Smallholder farms make a substantial contribution to food production, hence reducing reliance on imported food items that are often costlier and less dependable in terms of availability. In order for smallholder farms in Uyo to function optimally and achieve cost-efficiency, a dependable supply of energy is very necessary. Recurring power outages and grid failures significantly interrupt agricultural operations, resulting in several detrimental consequences. 

Nigeria has had multiple instances of grid collapse as a result of the grid's failure to quickly adapt to different system dynamics. Notwithstanding Nigeria's economic expansion, the power infrastructure in the nation has been unable of satisfying the electricity requirements of homes and businesses (Itina, 2020). In their study, Beawuchi et al. (2017) investigated the potential for processing fruits and vegetables, including onions, tomatoes, okra, pepper, carrot, and melon, to promote sustainable growth and development in Nigeria. They found that the lack of essential infrastructure, such as reliable irrigation systems for enhanced farming practices, well-developed road networks for efficient transportation of harvested crops, and consistent electricity supply for storage facilities, posed significant c Thus, it is advised that the government enhance the provision of infrastructural amenities, such as efficient irrigation systems for agricultural production, well-developed road networks for transportation, and improved electricity supply to facilitate storage facilities for fruits and vegetables. 

Agriculture is a fundamental and essential component of Uyo's economy and social framework, wherein small-scale farms play a crucial part in the production of food, generation of employment, and fostering community development (Mmeyene, 2023). Dependable power is crucial for supporting the mechanisation and technology requirements of these farms, guaranteeing their efficient and sustainable operation. Addressing the obstacles related to electricity supply is essential for improving the efficiency and economic sustainability of small-scale farming in Uyo.

1.2 Statement of the Problem

The national system in Nigeria is notorious for its frequent disruptions and inconsistent electricity provision. The grid outages have extensive ramifications on multiple sectors, including agriculture. Smallholder farms in Uyo, the capital of Akwa Ibom State, have a crucial impact on local food production and employment. These farms are highly dependent on a steady and dependable supply of power for crucial activities including irrigation, processing, and storage.

The frequent power outages and grid breakdowns result in operational disruptions, heightened production expenses, and substantial post-harvest losses. Farmers frequently turn to costly and environmentally harmful alternatives, such as diesel generators, to alleviate the consequences of power outages (Adewale, 2023). The presence of these supplementary expenses and inefficiencies diminishes the profitability and competitiveness of small-scale farms, jeopardising their economic sustainability and the livelihoods of the farming households. Moreover, the occurrence of voltage breakdown in the electricity grid has adverse consequences for businesses, including small holder farms. According to a research done in January 2019, over 97% of Nigerian firms’ experience power outages for a total of more than 196 hours every month. This indicates that as a result of the unreliable energy supply in the country, these businesses experience an average of eight full days of decreased output. The use of alternative energy sources poses a possible risk to enterprises, as it could result in a reduction in profit margins (Ganiyat, 2023).

Although smallholder farms play a crucial role in the local economy and power outages clearly affect their operations, there is a dearth of thorough research that accurately measure the economic consequences of these grid failures. Gaining a comprehensive understanding of the particular difficulties encountered by these farmers and the wider economic impacts is crucial in order to create focused interventions and policies that can provide support to the agricultural industry. Therefore, the necessity for this investigation arises. 

Objectives of the study

The primary objective of this study is to critically investigate the economic implications of national grid collapses on small holder farms in Uyo, Nigeria. Specific objectives of this study are to:

To evaluate the extent of National grid collapse in Nigeria

To identify the effects of grid collapses on smallholder farms in Uyo.

To assess the impacts of grid collapses on the income levels of smallholder farmers in Uyo.

To provide best practices and innovative solutions to minimize the economic impact of grid collapses on agriculture

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 extent of National grid collapse in Nigeria?

What are the effects of grid collapses on smallholder farms in Uyo?

What are the impacts of grid collapses on the income levels of smallholder farmers in Uyo?

What are the best practices and innovative solutions to minimize the economic impact of grid collapses on agriculture?

1.5 Research Hypotheses

To determine the effectiveness of this study, the following research null hypotheses will be formulated to guide the study and it will be tested at 0.05% levels of significance.:

Ho: There are no effects of grid collapses on smallholder farms in Uyo.

Ha: There are effects of grid collapses on smallholder farms in Uyo.

1.6 Significance of the study

The value of this study rests in its capacity to stimulate policy reforms, improve agricultural productivity, bolster farmer livelihoods, and contribute to local and regional economic development. The study seeks to analyse the economic consequences of national grid failures on smallholder farms in Uyo, Nigeria. Its objective is to offer practical insights and recommendations to enhance the resilience and sustainability of the agricultural industry. The study will also be advantageous to students and intellectuals.

The study offers significant data and insights that help enlighten policymakers regarding the economic ramifications of grid collapses on smallholder farms. This can result in the implementation of more efficient and focused measures to assist these farmers and bolster overall economic progress in the region. The study can assist in the effective distribution of resources to minimise the consequences of grid failures by measuring economic losses, guaranteeing that funds are allocated to the areas that require them the most.

Moreover, the results of the study will enhance agricultural productivity. Comprehending the precise manner in which grid breakdowns impact farming operations might facilitate the creation of tactics to reduce disruptions and enhance production. The results can emphasise the necessity of allocating resources towards technological and infrastructural improvements that can enhance the ability of smallholder farmers to withstand power interruptions. The study highlights the significance of a reliable electricity supply for the economic stability and well-being of smallholder farmers, as it evaluates the effects on income levels and quality of life.

Furthermore, future scholars will utilise it as a thorough examination of the current body of literature. Consequently, other students with an interest in studying this subject will have the opportunity to utilise this work as reliable knowledge that can be thoroughly evaluated. 

1.7 Scope of the study

Broadly, this study focus is to critically investigate the economic implications of national grid collapses on small holder farms in Nigeria. Specifically, this study seeks to evaluate the extent of National grid collapse in Nigeria and identify the effects of grid collapses on smallholder farms in Nigeria. 

Further, this study will focus on assessing the impacts of grid collapses on the income levels of smallholder farmers in Nigeria and it also seeks to provide best practices and innovative solutions to minimize the economic impact of grid collapses on agriculture.

The study is carried out in Uyo, Nigeria.

1.8 Limitations of the study

As is common in all human endeavors, the researchers faced minor limitations when conducting the study. The main limitation was the lack of extensive literature on the subject, as there is limited data available for an investigate the economic implications of national grid collapses on small holder farms in Uyo. Consequently, a significant amount of time and effort was necessary to locate the appropriate materials, books, or information and to gather data. 

Another limitation was the linguistic barrier. The majority of inhabitants in Uyo lack comprehension of the English language. There was a lack of contact between the rural inhabitants and the researcher

Additionally, this study is constrained by its small sample size and narrow geographical scope, focusing just on Uyo, Akwa Ibom state. Consequently, the results of this study are not applicable for generalization, thereby leaving room for further research. 

Furthermore, the researcher faced a time constraint due to the need to do this research while also fulfilling the obligations of 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.

Smallholder farmers: Smallholders are small-scale farmers, pastoralists, forest keepers, fishers who manage areas varying from less than one hectare to 10 hectares