Efficiency of Nigeria's Electricity Market: Emerging Issues, Prospects and Challenges

Association of Energy and Environmental Economics of Nigeria - Nigerian Journal of Energy and Environmental Economics, 6(1), 105-121, 2014

20 Pages Posted: 17 Jan 2019

See all articles by Uju Ezenekwe

Uju Ezenekwe

affiliation not provided to SSRN

Ebele Nwokoye

Nnamdi Azikiwe University - Department of Economics

Amaka Metu

Nnamdi Azikiwe University - Department of Economics

DR CHRISTOPHER ULUA KALU

NNAMDI AZIKIWE UNIVERSITY, AWKA

Date Written: March 8, 2014

Abstract

The overwhelming objective of the electricity power policy strategy is to ensure that Nigerian has an electricity supply market (ESM) that can meet the needs of its citizens in the 21st century. This paper examines the efficiency of the Nigeria electricity market under the current framework. The priority is to create efficient market structures, within clear regulatory frameworks, that encourage more competitive market for electricity distribution and sales (marketing) which, at the same time, is able to attract private investors and ensure economically sound development of the system. The technique of analysis is purely descriptive (statistical). And a major factor is the distribution losses that are in double digits and which are extremely large by international standards, being among the highest in the world and a situation that are symptomatic of the technical inefficiency in the market. Reducing the losses to single digit is a major challenge facing the Nigerian electricity market. Cost reflective tariff is recommended.

Keywords: efficiency, electricity market, distribution, generating, transmission, Nigeria

Suggested Citation

Ezenekwe, Uju and Nwokoye (nee Nwabude), Ebele and Metu, Amaka Gertrude and KALU, DR CHRISTOPHER ULUA, Efficiency of Nigeria's Electricity Market: Emerging Issues, Prospects and Challenges (March 8, 2014). Association of Energy and Environmental Economics of Nigeria - Nigerian Journal of Energy and Environmental Economics, 6(1), 105-121, 2014. Available at SSRN: https://ssrn.com/abstract=3312131

Uju Ezenekwe

affiliation not provided to SSRN

Ebele Nwokoye (nee Nwabude) (Contact Author)

Nnamdi Azikiwe University - Department of Economics ( email )

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

HOME PAGE: http://www.unizik.edu.ng/profile/nwokoyees

Amaka Gertrude Metu

Nnamdi Azikiwe University - Department of Economics ( email )

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

DR CHRISTOPHER ULUA KALU

NNAMDI AZIKIWE UNIVERSITY, AWKA ( email )

ECONOMICS DEPARTMENT
WAKA, AK ANAMBRA 140020
Nigeria

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