n Acta Commercii - Infrastructure deficiency and the performance of small- and medium-sized enterprises in Nigeria's Liberalised Economy : original research

Volume 16, Issue 1
  • ISSN : 2413-1903
  • E-ISSN: 1684-1999



The paper investigates the situation facing SME's in Nigeria, who have to function in an environment with depleted infrastructure.

To examine the effects of infrastructure deficiency on the performance of manufacturing small and medium sized enterprises in Nigeria.
Low budgetary allocation by the Nigerian government toward investment and rehabilitation of infrastructure in favor of attempts to conform to the tenets of trade liberalisation, has created a situation where basic infrastructure provision is a huge challenge in the creation of SME's.
A longitudinal approach was followed, where a survey was conducted amongst 500 SME's in Nigeria. To complement this, semi-structured interviews were conducted in 2007 and 2011 respectively.
The deficiency in infrastructure negatively impacts the profitability and performance of SMEs, due to the high cost incurred by SMEs in the self-provision of infrastructure and distribution of finished goods. Furthermore, despite the successful privatisation of electricity production in November 2013, there is still no significant improvement in the power supply in Nigeria. However, the government has embarked onroad rehabilitation to ease the transportation of goods and services.
The study uncovers the practical realities of the challenges faced by SME's operating in an environment with insufficient infrastructure, which is typical of much of the developing world.
The study highlights the necessity of sound infrastructure provision as a key factor to the development of SME's.

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