Power Sector Reforms in Nigeria started under the National Electric Power Authority (NEPA). The main aim of the Nigerian government was to utilize the financial, human and other resources for the development of the electricity industry effectively and to spread the electricity supply across the country.
The supply of electricity was not adequate in Nigeria and power failure was very common. Moreover, the electricity industry had been suffering from high technical losses and less availability of the power generating plants.
That is why, power sector reform had been introduced in 2000.
The government encouraged the private sectors to invest into the electricity industry so that, the monopoly created by the NEPA could be demolished and at the same time, some independent power producers could enter into the electricity sector. The government formed some electrification agency and fund in the rural areas.
The Nigerian Electricity Regulatory Commission (NERC) was made responsible for the regulation of tariffs. This commission also got the right to supervise the electricity industry effectively.
A legislative authority was formed by the government to set some special conditions in the licenses. Moreover, the governance provided a legal basis to establish, change and regulate the technical and market rules and standards.
The government applied privatization in the electricity industry to increase the market competition. Also, the government allowed full freedom to the management of the privatized electricity companies to measure their optimum potentials.
Lot of attentions had been given on the education of the consumers, so that they could use the energy resources efficiently.
Impact of Reform:
Through power sector reform the Nigerian government was able to bring lot of foreign investments into the electricity sector. The quality of electricity services improved a lot and the government was able to provide some employment opportunities in that sector.
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Last Updated on : 26th June 2013