AN ASSESSMENT OF MARKET COMPETITION IN THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY AS PROVIDED UNDER THE ELECTRIC POWER SECTOR REFORM ACT, 2005

The liberalisation of the electric power sector in Nigeria through a process of reform introduced novel concepts and ideas in the management of the sector. The paradigm shift from a government owned monopoly to a private sector led market is, in itself, novel in Nigerian electricity governance. The novel ideas formed the basic objectives of the reform of the sector, and they include the introduction of an independent supervisory body for the sector and competition whose objective is to ensure stability of supply and reduce prices, in the sector. This article examines the concept of competition and its introduction into the electricity sector by the EPSR Act to cover both the pre and post privatisation stages of the liberalisation of the sector. It concludes by acknowledging the short term success achieved with competition in the sector while arguing that it is too early to determine the success or otherwise of a fully competitive electric power sector in Nigeria.