The Nigerian political economy is bereft with abject lack of policy focus, development, progress, stability, efficiency, accountability, participation and responsiveness on the part of state actors in the socio-economic scheme of things. This is against the backdrop of poor governance arising from lack of political will by the elite or ruling class who have literally sabotaged the ailing Nigerian economy to a stand still. Inspite of very many economic measures put in place to cushion the harsh realities of our time, the various policies of government have grossly remained at the level of rhetorics without corresponding outcome.
Consequent upon the foregoing, there seem to be no closer remedy geared towards revamping the Nigerian chequered economy, while infrastructures are decaying, value orientation of both the elite and the governed are diminishing at an alarming rate. Corruption through the art of siphoning billions of public funds meant for major infrastructural development (including the embattled power sector) are diverted into private pockets with impunity. All of these clearly define the sorry state of the present Nigerian economy as part of the problems of underdevelopment. Things however, are falling apart in the affairs of governance in the Nigerian state while the centre can no longer hold. However, it is interesting to note that one of the most critical aspect of good governance and social responsibilities on the path of the state system is the provision of goods and services as well as ensuring efficient service delivery of such existentials for the overall interest of its people.
However, the capacity and the capability of the nation-state to cater for the teeming population clearly defines who gets what, when and how. At the same time, the majority interest becomes the core priority of government and its agencies in the distributive processes of the wealth of nations. However, such acts of distributive policies would only enhance the quality of lives of the people only through such measures that fosters equity, fairness, national integration, peace and tranquility, distributive justice, to mention but a few.
The aforementioned therefore becomes a veritable instrument for national cohesion, stability and cooperation, socio-economic and political growth, development and sustainability. All these are crucial as they are critical in policy frameworks of nation-states in the present era of globalization. Policy objectives of a nation-state directly or indirectly affects the direction of its internal and external growth and development. Thus, the Nigerian privatization policies as it affects power sector reforms is a function of its socio-economic and political growth process. While this assertion is true, the policy and policy directions of government shape as well as reinforces the level and direction of change in the Nigerian political system as a whole. Privatization of the Nigerian power sector constitutes an all-important area of government economic reform strategy aimed at propelling Nigeria’s growth to greater heights in the 21st century and beyond.
The thrust of this thesis is to expouse on the concept of privatization and its impacts on the Nigeria’s power sector as well as examine the various situational constraints that follows such policy actions in relation to the overall well-being of Nigerian citizens. The thesis also considers the nuclear energy option as a veritable means of sustainable power generation and distribution in Nigeria.
For the purpose of clarity, there is the need to trace the ecology of the Nigerian power sector from history and examine how it became transformed to the present status of Power Holding Company of Nigeria (PHCN) today. The history of the Nigerian power sector is as old as colonialism itself. Power generation in Nigeria could be traced as far back as 1896 with the installation of the pioneer power station in Lagos under the auspices of the then Public Works Department. The process of transmutation then continued via the activities of stakeholders in the sector, namely, the Lagos State Municipal Authority. However, the emergence of the Nigerian Electricity Supply Company (NESCO) latter in 1929 witnessed an extension and diversification of the power sector through the construction of the famous Kurra Falls near the present Jos, capital of Plateau state.
The establishment of the Electricity Corporation of Nigeria in 1951 marked a turning point in the power supply process in Nigeria with the first capacity generation to the tune of 132kv watt. Late in 1962, the Ijora power station in Ibadan was also put in place to enhance further generation in Nigeria.
It is interesting to note that the Niger Dams Authority was established in 1962 with the mandate to further develop and enhance the hydropower potentials of the country. However, the merger between the Electricity Corporation of Nigeria and Niger Dams Authority gave rise to the abrupt change of nomenclature to the contentious National Electricity Power Authority (NEPA) in 1972 (Cole, 1972).
Interestingly, however, the enabling Decree No. 24 of 1972 gave the necessary impetus to the merger of both the ECN and NDA, the essence of which the procedure defines the critical economic, technological and social development of the Nigerian state as a whole. From the foregoing, therefore, electricity consumption in Nigeria has become one of the most crucial indices of growth, development and sustainabilities of both government institutions and the people at large. Thus, a deliberate and carefully planned effort by government to institutionalize a good maintenance culture, due process, efficiency and productivity in the power sector informs the present attempt to relieve the pressures on the public sector, and hence place the responsibilities of generation and distribution of energy in private hands. The primacy of this research therefore highlights key areas of concern aimed at revitalizing the ailing power sector for an enhanced socio-economic growth, development and sustainability of the Nigerian economy, in all its ramifications (Ekpo, 1997).