Renewable Energy: A Quantum Factor for Poverty Reduction and Sustainable Economic Development of Small and Medium Scale Enterprises in South-south, Nigeria

This study investigates the effect of renewable energy development on the performance of Small and Medium Scale Enterprises (SMEs) in South-South region of Nigeria. The research was motivated by the persistent power supply challenges in Nigeria and the potential of renewable energy to serve as a means to reduce poverty and sustainable economic development. Specifically, the study assessed how renewable energy utilization, system efficiency, and energy generation influence SMEs’ operational efficiency, profitability, and long-term growth in order to reduce poverty and enhance economic growth. A cross-sectional survey design was adopted, and data were collected from 384 SMEs selected across the states in South-South region of Nigeria using structured questionnaires. The data were analyzed using the Logit regression model, with hypotheses tested through the Likelihood Ratio test, Hosmer and Lemeshow’s test, and Pseudo R-squared statistics. The study concludes that renewable energy development plays a critical role in enhancing SME performance to reduce poverty and sustain economic development and recommended that policy interventions, financial incentives, and awareness campaigns to promote renewable energy adoption among SMEs. These findings contribute to the discourse on sustainable economic development and offer practical insights for SME owners, policymakers, and energy stakeholders in Nigeria.