The Impact of Privatization of Nigeria’s Electricity Industry on the Quality of Electricity Service Delivery in Lokoja Metropolis

Edino O. Ferdinand & Audu Enojo

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Abstract

This study empirically examined the impact of the privatization of the electricity industry on electricity service delivery in the Lokoja metropolis by Abuja Electricity Distribution Company (AEDC). Data for the study were elicited from copies of structured questionnaire administered to 400 (four hundred) residential electricity consumers in the Lokoja metropolis via the cluster sampling technique. Data were analyzed using simple percentages, frequency distribution tables and the mean (x) score respectively. The rational choice theory which provides insight into how the vested interests of Nigeria’s ruling class compromised the privatization process of the Nation’s electricity industry constituted the theoretical foundation of the study. Findings revealed, among other things, that the privatization of the electricity industry in Nigeria has not translated to significant improvement in power supply in the Lokoja metropolis and that electricity billing is not a fair reflection of the electricity consumption rate in the metropolis. To this end, the study concluded that the privatization of Nigeria’s electricity industry has not impacted positively on electricity service delivery in the Lokoja metropolis. Consequently, the study recommended, amongst others, that the Nigerian government should put in place measures to attract globally reputable electricity utility companies to invest in the Nation’s electricity industry and prepaid metering as against estimated billing should be the sole criterion for determining electricity consumers' tariff in the country.

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