Issues and challenges in the Privatized Power Sector in Nigeria

Abstract: Various attempts by successive Nigerian governments at industrialization and rapid economic growth have been hampered by energy infrastructure deficit gap. Constant and adequate power supply is an important condition for industrialization. Many efforts have been made to close this gap including privatization. The economic rationale behind privatization includes efficiency among others. Therefore, the privatization of the power sector is aimed at tackling the myriads of problems in the sector: limited access to power, inadequate generation and usage of power capacity, overlapping/conflicting roles and responsibilities between government and holding companies etc. Apart from the above, unbundling of the power sector is now becoming a global practice. This paper therefore examines the efforts at revamping the sector before privatization/unbundling, with special focus on the issue and challenges that confronts the sector after privatization: inadequacy of gas for firing turbines, community issues over bidding and ownership, cost recovery challenge due to over -priced power plants, transmission issues, the Multi Year Tariffs Orders, end user tariffs, labour and workforce, assets and liabilities of holding company etc. It is the view of this paper that if these issues are solved and the challenges tackled, then would a solid foundation for actualization of Vision 20:2020 laid for a rapid industrial development that will transform Nigeria to a highly industrialized economy.