Problem: Lack of investment in the power sector and stalled expansion of Nigeria’s grid capacity over many decades led to low and erratic electricity supply. This stifled growth, increased the cost of production and frustrated citizens.
- Road Map for Power Sector Reform
- Presidential Action Committee on Power
- Presidential Task Force on Power
- Unbundling of the Power Holding Company of Nigeria
- Strengthening of the Nigeria Electricity Regulatory Commission
- New Tariff Regime
- Consumer Assistance Fund
- Reform of the Rural Electrification Agency
- Contracting out and Privatisation of New Business Units (Transmission Company of Nigeria, Generation Companies, Distribution Companies, and the Nigerian Electricity Liabilities Management Company).
- Improvements in Power Generation
- Improvements in Transmission and Distribution
Main Achievements: The unbundling of the Power Holding Company of Nigeria (PHCN) and privatisation of power generation and transmission after many years of unsuccessful attempts remains a significant achievement. Power generation has improved from 2,800MW in 2011 to 4,517MW in 2014. The reforms have also reduced the cost of governance, as government is no longer saddled with huge cost outlays incurred before privatisation. Corruption that was hitherto rife on estimated bills, ghost workers, and inflated contracts is no longer a big issue.
(a) low level of electricity supply to the citizens;
(b) inadequate gas supply to the power stations;
(c) inadequate funding to support massive investments required in the sector;
(d) frequent acts of sabotage and vandalism in the sector;
(e) long-drawn labour disputes following privatisation exercise; and
(f) sustainability issues.
Reference: Public Service Reforms in Nigeria (1999-2014) - A Comprehensive Review
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