ELECTRICITY SECTOR REFORMS AND POWER SUPPLY RELIABILITY IN NIGERIA: POST-PRIVATIZATION REALITIES AND PROSPECTS

Abstract

Nigeria’s electricity sector underwent major restructuring following the Electric Power Sector Reform
Act and the 2013 privatisation of generation and distribution companies, which unbundled the former
National Electric Power Authority under the Power Holding Company of Nigeria and established the
Nigerian Electricity Regulatory Commission to oversee the market. Despite these reforms, electricity
supply remained unreliable, characterised by frequent outages, grid instability, low-capacity utilisation
and persistent ATC&C losses, raising concerns about whether reform objectives had been achieved. This
study examined the extent to which post-2013 reforms improved reliability, identified structural and
regulatory constraints, evaluated regulatory oversight, and proposed measures to align outcomes with
long-term energy transition goals. The study adopted a qualitative design. Findings showed that although
installed capacity was about 13,000 MW, available generation rarely exceeded 5,000 MW, reflecting
significant utilisation gaps driven by gas constraints, weak maintenance and hydrological variability.
Transmission bottlenecks, distribution losses exceeding 40%, tariff–service mismatches and limited
regulatory enforcement further undermined reliability. While privatisation increased nominal investment
and revenue, governance weaknesses, political interference and institutional capacity deficits constrained
performance. The study recommended that ownership reform alone was insufficient; reliability depended on integrated sector planning, stronger regulatory independence, reduced ATC&C losses, cost-reflective
yet socially sensitive tariffs, renewable energy expansion, and enhanced public–private collaboration to
achieve sustainable and equitable electricity supply improvements.