Privatization of Power Sector in Nigeria: An Evaluation of Ibadan and Ikeja Electricity Distribution Companies Performance (2005–2018)

Abstract

The challenge of stable electricity supply in Nigeria with its harrowing effects on socio-economic development accounted largely for government decision for privatization of the power sector. However, the extent to which this purpose has been achieved requires investigation, which necessitates this study. Survey research design was adopted, with questionnaire administered on both residential and commercial customers of Ibadan and Ikeja electricity Distribution companies selected as focus for the study. Multiple regression statistics was used for data analysis. The result shows that both distribution companies (DISCOs) have brought no significant improvement to electricity supply going by the quality, billing, coverage, metering, load shedding, and response to customers' indicators. Thus we recommend that DISCOs should source for fund from the capital market in order engender customer satisfaction, inject fund for replacement or upgrade of dilapidated power equipments, provision of meters, especially, prepaid type while government make the business environment convenient for healthy competition and regulation.

Assessing privatization efficiency in CIS countries: financial, non-financial, and GDP-linked indicators

“…This caused the state to make a decision on the privatization of the energy sector. As a result of the research and survey of household and commercial consumers of electricity, it was found that private electric distribution companies have not made significant improvements in electricity supply, the system of settlements and payments, accounting, problems of load management, responding to consumer requests, the formation of healthy competition, and market regulation (Idowu et al, 2020).…”

Analysis of Electricity Pricing in Emerging Economies With Hybrid Multi-Criteria Decision-Making Technique Based on Interval-Valued Intuitionistic Hesitant Fuzzy Sets

“…They defined that a well-established privatization caused electricity prices to go down and an increase in the quality of services. However, some studies suggest that there is no relationship between privatization and electricity prices [21,22]. Consumption habits are one of the effective factors for electricity prices.…”

Debureaucratization of Power in Nigeria

“…A related study shows that customers' assessment of some DISCOs using the electricity supply, load shedding, pricing/metering, response to customers, and coverage area indices affirms gross underperformance (Idowu et al 2019). Hence, it is instructive that a collaborative synergy of resources and efforts between the government and new managers of the sector to recalibrate the processes leading to enhanced performance is urgently required.…”