An Overview of Electricity Sector Reforms in Nigeria
Keywords:
Electricity, Oligopoly, Nigeria
Abstract
The paper examined the challenges and prospects of power sector reform in Nigeria by employing a purely descriptive approach. The focus of exposition is on the market structure, market design and supply gap in electricity generation within the context of power reform. The paper adopted oligopolistic game theory - based models of Cournot, Betrand and Supply Function Equilibrium to explain the complex interest groups in the electricity industry and relate d them to experiences in other countries. It concluded with a number of suggestions for moving the sector forward from its lacklustre performance of the years.
References
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Borenstein, S. and Bushnell, J. (1999). An empirical analysis of the potential for market power in Californian electricity industry. J. Indus. Econ. 47(3): 285-323.
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Chernenko, N. (2013). The Russian electricity supply industry: From reform to reform? Cambridge Working Paper in Economics 1342, University of Cambridge, UK.
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Green, R.J. and Newbery, D.M. (1992). Competition in the British electricity spot market. J. Poli. Econ. 10(5): 929-953.
Hobbs, B. (1986). Network model of spatial oligopoly with an application to deregulation in electricity generation. Operations Research 34(3): 395-409.
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Isola, W.A. (2005). Market reforms and de-industrialisation in Nigeria. The ICFAI J. Indus. Econ. 11(2): 21-30.
Isola, W.A. (2011). Market structure in the generation of the Nigerian restructuring electricity industry. Journal of Energy and Development 34(1& 2): 209-299.
Iwayemi, P.A. (1975). Investment resource allocation in the electricity industry in Nigeria: A mixed integer programme approach . Unpublished doctoral thesis, Johns Hopkins University, Baltimore, USA.
Jehle, G.A. and Reny, P.J. (2001). Advanced Microeconomic Theory. New York; Addison Wesley.
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Politt, M. (2004). Electricity reform in Chile: Lessons for developing countries. CMI Working Paper 51, Electricity Policy Research Group, University of Cambridge.
Stern, J. (1997). What makes an independent regulator independent? Business Strategy Review 8(2): 67-74.
Sweeting, A. (2007). Market power in the England and Wales wholesale electricity market. Economic Journal 117(520): 654-685.
Taiwo, I.O. (1982). Measurement in economics the case of cost of electricity sup ply in Nigeria. Nigerian Journal of Economic and Social Studies 24(3): 276 – 286.
Ukpong, I. (1973). The economic consequences of electric power failure in the Greater Lagos Area. Nigerian Journal of Economic and Social Studies 15(1): 53-74.
Watts, P.C. (2001). Heresy? The case against regulation of electricity generation. Electricity Journal 14(4): 19 – 24.
World Bank (2002). Structure and Performance of manufacturing enterprises in Nigeria. Results of the RPED 2001 on Nigerian firms.
Woolf, F. Gambhir, V., Londres, I. and Sampson, L. (2010). Brazil’s electricity market. A Successful journey and interesting destination. Cameron Mckenna, London.
Wolfram, C.D. (1999). Measuring duopoly power in the British electricity survey. World Bank spot market. The American Economic Review 89(4): 805-826.
Awosipe, C.O. (2003). Power Demanded But Not Supplied: The agonizing roles of emergency power supply and transmission system inadequacy. Inaugural Lecture Series. University of Lago s Press, Nigeria.
Ayodele, A.I. (1978). An econometric analysis of the pattern of electricity consumption in Nigeria: 1960 – 1975. Unpublished doctoral thesis, Department of Economics, University of Ibadan.
Bacon, R.W. (1999). Global energy sector reform in developing countries. A scorecard report No.219-99. Washington DC; UNDP/World Bank.
Blake M. (2003). Game Theory and Electricity Markets. Drayton analysis research series. South Australia; Drayton.
Borenstein, S. and Bushnell, J. (1999). An empirical analysis of the potential for market power in Californian electricity industry. J. Indus. Econ. 47(3): 285-323.
Bye, T. and Hope. (2006). Electricity market reform: The Norwegian experience. In: T. Sorgard (ed) Competition and Welfare: The Norwegian experience. Norway; Norwegian Competition Authority.
Chernenko, N. (2013). The Russian electricity supply industry: From reform to reform? Cambridge Working Paper in Economics 1342, University of Cambridge, UK.
Dorman, M. (2014). Reform despite politics? The political economy of power sector reform in Fiji, 1996 -2013. Energy Policy 67: 703-712. Energy Commission of Nigeria (ECN, 2014). National Energy Masterplan, Draft Revised Edition. Accessed from www.energy.gov.ng
Fehr, N.V. and Harbond, D. (1998). Competition in Electricity Spot Market: Economic Theory and International Experience. Oxford.
Green, R.J. and Newbery, D.M. (1992). Competition in the British electricity spot market. J. Poli. Econ. 10(5): 929-953.
Hobbs, B. (1986). Network model of spatial oligopoly with an application to deregulation in electricity generation. Operations Research 34(3): 395-409.
Hobbs, B.F. and Berry, C.A. (1999). Understanding how market power can arise in network competition: A game theoretic approach. Utilities Policy 139-158.
Imoke, L. (2004). The power sector: the catalyst for economic growth & development. Presented by the Hon. Minister of Power and Steel and Chairman of the NEPA Technical Committee at an interactive forum with President Obasanjo, Nigeria.
Isola, W.A. (2002). Privatisation . In: M.O.A Adejugbe (ed.) Perspective on Nigeria’s Fledging Fourth Republic . Lagos; Malthhouse Press. 80 – 88.
Isola, W.A. (2005). Market reforms and de-industrialisation in Nigeria. The ICFAI J. Indus. Econ. 11(2): 21-30.
Isola, W.A. (2011). Market structure in the generation of the Nigerian restructuring electricity industry. Journal of Energy and Development 34(1& 2): 209-299.
Iwayemi, P.A. (1975). Investment resource allocation in the electricity industry in Nigeria: A mixed integer programme approach . Unpublished doctoral thesis, Johns Hopkins University, Baltimore, USA.
Jehle, G.A. and Reny, P.J. (2001). Advanced Microeconomic Theory. New York; Addison Wesley.
Joskow, P. (1998). Electricity sectors in transition. The Energy Journal 19(2): 25-52.
Joskow, P. (2001). California’s electricity crisis. Oxford Review of Economic Policy 17(3) 365-388.
Joskow, P.L. (2007). Competitive electricity markets and investment in new generating capacity. In: Dieter Helm (ed.) The New Energy Paradigm. Oxford University
Press.
Kayode, M.O. (1972). Some growth factors in certain selected manufacturing firms in Nigeria. Unpublished doctoral thesis, Department of Economics, University of Ibadan, Nigeria.
Klemperer, P.D. and Meyer, M.A. (1989). Supply function equilibra in oligopoly under uncertainty. Econometrica 57(6): 1243-1277.
Littlechild, S.C. (2013). Foreword in F.P. Sioshansi and W. Pfaffenberger (eds) Evolution of Global Electricity Markets: New Paradigm, New Challenge, New Approaches. London; Elsevier Global Energy Policy and Economic Series.
Midttum, A. and Thomas, S. (1996). The Norwegian, Swedish and Finnish Reforms. Public Capitalism in the Nordic Internal Market in European Electricity System.
London; Elsevier Science Limited.
Ma, J. (2011). On -grid electricity tariffs in china ’s development: Reform and prospects. Energy Policy 39(5): 2633-2645.
Nordic Competition Authorities. (2007). Capacity for Competition, No. 1/2007,
Newbery, D.M. (2002). Electricity supply industries. A mimeo of Department of Applied Economics, Cambridge University; Cambridge.
Ogunkola, E.O. (1992). A transcendental logarithmic (translog) cost model of the electricity supply industry in Nigeria. Unpublished doctoral thesis, Department of
Economics, University of Ibadan.
Onimode, B. (1984). Nigeria: The dynamics of the challenge of underdevelopment. In: M.O. Kayode and Y.B. Usman (eds.). The Economic and Social Development of Nigeria. 37 – 56. Gaskiya Corporation Limited, Zaria.
Penrose, E. (1963). Theory of the Growth of Firm. Uk; Oxford Basil Blackwell.
Politt, M. (2004). Electricity reform in Chile: Lessons for developing countries. CMI Working Paper 51, Electricity Policy Research Group, University of Cambridge.
Stern, J. (1997). What makes an independent regulator independent? Business Strategy Review 8(2): 67-74.
Sweeting, A. (2007). Market power in the England and Wales wholesale electricity market. Economic Journal 117(520): 654-685.
Taiwo, I.O. (1982). Measurement in economics the case of cost of electricity sup ply in Nigeria. Nigerian Journal of Economic and Social Studies 24(3): 276 – 286.
Ukpong, I. (1973). The economic consequences of electric power failure in the Greater Lagos Area. Nigerian Journal of Economic and Social Studies 15(1): 53-74.
Watts, P.C. (2001). Heresy? The case against regulation of electricity generation. Electricity Journal 14(4): 19 – 24.
World Bank (2002). Structure and Performance of manufacturing enterprises in Nigeria. Results of the RPED 2001 on Nigerian firms.
Woolf, F. Gambhir, V., Londres, I. and Sampson, L. (2010). Brazil’s electricity market. A Successful journey and interesting destination. Cameron Mckenna, London.
Wolfram, C.D. (1999). Measuring duopoly power in the British electricity survey. World Bank spot market. The American Economic Review 89(4): 805-826.
Published
2016-03-01
Section
Articles
