Analysis of the Privatization Exercise of Power Supply Chain in South West Nigeria

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Date
2016-04-30
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Publisher
Ilorin Journal of Business and Social Science
Abstract
This study assessed the impact of privatization exercise in the power sector of the consumers in Nigeria. The study utilized the Pressure Activity State Impact Response (PASIR) network and theories of organic evolution of property rights to examine the impact of privatization on consumers. Both qualitative and quantitative techniques were used in analyzing the collected data. Focus Group Discussion was employed to analyze the effect of the reform of the power supply chain on consumers in 3 out of 11 newly constituted Distribution Companies (DISCO), these are Eko, Ikeja and Ibadan Distribution Companies. Similarly 200 respondents were purposively sampled in Mowe, a suburb of Lagos metropolis, from which 105 questionnaires were retrieved for analysis. Two hypotheses were tested in the study. The first, there is no significant difference in the flow of information, power supply and billing system between affluent and poor neighborhoods was supported by the findings (a p < .001). The second, ongoing privatization exercise has significantly improved the billing system, power supply, and information flow was also supported by the findings. The study recommends that the new managers should not place emphasis on economic factors only but also on noneconomic factors particularly information flow and equitable energy distribution
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Keywords
Power supply chain, Privatization, Economic factors, Non-economic factors, Consumers
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