The Impact of Privatization and Commercailization on Nigeria's Power Sector (Acase Study of Power Holding Company of Nigeria)

2773 Words Dec 26th, 2012 12 Pages
THE IMPACT OF PRIVATIZATION AND COMMERCIALIZATION ON NIGERIA’S POWER SECTOR [A CASE STUDY ON POWER HOLDING COMPANY OF NIGERIA (PHCN)]

1.1 BACKGROUND TO THE STUDY
Privatization is the implementation of a decision to sell companies owned by the State to private individuals/ companies.
Benefits of privatization are making the public sector commercial enterprise survive in competitive markets through better efficiency, higher productivity, improved product quality and customer service, and reduction of waste and leakages due to State ownership.

Prior to the enactment of EPSRA, 2005, FGN was responsible for policy formulation, regulation, operation, and investment in the Nigeria power sector. Regulation of the sector was done through
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for operating public enterprises
Efforts to provide answers to these questions led to the following objectives; 1.3 1:3. OBJECTIVES OF THE STUDY

1:3.1 Main objectives
The aim of the study was to investigate the viability of commercialization and privatization in public enterprises. Nigeria Electric Power Sector as a case study.

1:3.2 Other objectives
In specific terms, the study would;
(1) Ascertain the potential of Electric Power sector.
(2) Find the constraints to satisfactory performance of the sector.
(3) Determine the relationship between real per capital gross domestic product, tariff trend, total energy generated and total energy consumption.
(4) Find what mitigating circumstance surrounds the seemingly unreliable nature of Electric power sector.
Solutions would also be proffered to all the factors based upon the findings

1.4. SCOPE OF STUDY.

In our quest to research on issues surrounding privatization and commercialization in Nigeria Public Enterprises using Electric Power sector as a case study, the basic and primary focus of this research work is on the viability of the exercise. However, attention is also focused on capacity utilization.
This study essentially covers the periods 1970-2003; it fundamentally covered pre-commercialization and post-commercialization Era. This is to enable us have a thorough analysis of this work.

REVIEW OF STUDY
2.1 PRIVATIZATION AND COMMERCIALIZATION CONCEPT
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