Privatisation and Performance of Electricity Distribution Companies in Nigeria

Abstract

Privatisation of public enterprises is a complex phenomenon as the process is affected by both endogenous and exogenous factors. Advocates of privatisation of public enterprises in Developing countries tend to have a linear perspective that it will result in efficiency and improved performance of these firms. However, several studies have shown that this is not always the outcome. This paper examined the privatisation and performance of Electricity Distribution Companies in Nigeria and concluded that the outcome was determined more by the form and nature of the government than by the process of privatisation. Therefore, there is a need for further research to identify factors that could enhance or inhibit the success of the privatisation process in Developing countries.