A QUALITATIVE INQUIRY INTO POLICY AND INSTITUTIONAL BARRIERS TO RENEWABLE ENERGY USE AMONG SMES IN NIGERIA

Abstract

Small and Medium Enterprises (SMEs) are vital to Nigeria’s economic development, accounting for a large share of employment and innovation. However, the persistent energy crisis—marked by frequent outages and over-reliance on costly diesel generators—continues to constrain the growth and competitiveness of these enterprises, especially in rural and off-grid areas. This study investigates the potential of renewable energy sources such as solar, wind, and hydropower in supporting SME resilience and productivity in Nigeria. Drawing on qualitative data from 22 SME informants across diverse sectors and regions, as well as documentary analysis of relevant energy policies, the study reveals a growing interest in decentralized renewable energy solutions, particularly solar. Key findings highlight the operational, financial, and environmental benefits of renewable energy adoption, while also identifying major barriers such as limited access to financing, inadequate technical capacity, and weak policy enforcement. Using thematic analysis and NVivo for data coding, the research highlights the need for integrated policy actions—such as targeted subsidies, technical training programs, and public-private partnerships—to accelerate renewable energy uptake among SMEs. The study concludes that renewable energy is not only a viable alternative to fossil fuels but also a strategic pathway to sustainable and inclusive economic growth in Nigeria.