Policy Options for Improving the Efficiency of the Power Sectormin Nigeria. (An Inipacit Analysis of National Electric Power Authority)

Abstract

One of the key effects of privatization of National Electric Power Authority (NEPA) is to ensure that power supply could be enhanced to mitigate the erratic power supply in Nigeria. The study examines issues relating to productive and distributive inefficiency of state owned enterprises in Nigeria. It is increasingly clear that NEPA is incapable of meeting the needs of all consumers in Nigeria. As a component of reforms initiatives, privatization process is seen as a better option for management which introduces competition and efficiency in the sector. A regressional analysis was used to establish the fact that the actual available capacity was far bclow thc installed capacity in spite of the huge public investment in the sector. Productivity and efficiency also dropped in addition to this governmental financial commitment. The paper further suggests proper and transparent privatization as a possible means of restructuring the Nigerian Economy with a view to attaining greater productivity and efficiency.