PRIVATIZATION AND NATIONAL DEVELOPMENT IN NIGERIA
PRIVATIZATION AND NATIONAL DEVELOPMENT IN NIGERIA
Nigeria's public policy thrusts over the years towards socioeconomic and political growth, development, and system sustainability have been severely lacking in direction and vision. As a result, this research explores a wide range of Privatisation and National Development issues in relation to Nigeria's electricity sector reform.
The thesis contends that social responsibility is an essential component of good governance and should be approached with caution while managing Nigeria's public space in regard to the wellbeing of the people as a whole.
According to the findings of this study, the current administration's efforts to reform the electricity industry do not appear to be the solution to Nigeria's ongoing power outages.
As a result, nuclear energy remains the most viable alternative for providing effective and efficient power in Nigeria. The study concludes with policy proposals for improving the already lifeless electricity sector in Nigeria's Fourth Republic and beyond.
1.1 Introduction and Background to the Study
The Nigerian political economy suffers from a severe lack of policy focus, development, progress, stability, efficiency, accountability, participation, and responsiveness from state players in the socioeconomic scheme of things.
This is set against the backdrop of poor governance caused by a lack of political will on the part of the elite or ruling class, which has essentially stalled Nigeria's ailing economy.
Despite several economic measures put in place to soften the harsh reality of our day, the various government programmes have remained largely rhetorical, with no commensurate outcomes.
As a result of the preceding, there appears to be no closer solution aimed at revitalising Nigeria's troubled economy, as infrastructures deteriorate and the value orientation of both the elite and the governed dwindles at an alarming rate.
Corruption is the art of diverting billions of public monies intended for significant infrastructure improvements (particularly the troubled electricity industry) into private pockets with impunity.
All of this plainly defines the terrible status of Nigeria's current economy as one of the problems of underdevelopment. However, things are breaking apart in Nigerian administration, and the centre cannot hold.
However, it is worth noting that one of the most important aspects of good governance and social duties on the route of the state system is the provision of goods and services, as well as the efficient delivery of such existentials for the overall benefit of its people.
However, the nation-state's capacity and capability to accommodate for the burgeoning population clearly specifies who receives what, when, and how. Simultaneously, the majority interest becomes the primary focus of government and its institutions in the distribution of national resources.
However, such distributive policies will only improve people's lives if they promote equity, fairness, national integration, peace and tranquilly, and distributive justice, to name a few.
As a result, the aforementioned becomes an effective tool for national cohesion, stability, and cooperation, as well as socioeconomic and political growth, development, and sustainability.
All of these are vital in national policy frameworks in today's globalisation period. A nation-state's policy objectives influence its internal and external growth and development, either directly or indirectly. Thus, Nigeria's privatisation policies, as they effect power sector reforms, are a reflection of the country's socioeconomic and political development.
While this assumption is correct, government policies and policy directions influence and reinforce the level and direction of change in the Nigerian political system as a whole.
Privatisation of Nigeria's electricity industry is a critical component of the government's economic reform agenda aimed at accelerating the country's growth to new heights in the twenty-first century and beyond.
The purpose of this thesis is to discuss the notion of privatisation and its implications for Nigeria's electricity sector, as well as to evaluate the many situational restrictions that arise as a result of such policy measures in connection to the general well-being of Nigerian inhabitants. The thesis also addresses nuclear energy as a viable source of sustainable power generation and distribution in Nigeria.
To be clear, the ecology of the Nigerian power sector must be traced back in time and examined to see how it evolved into the current condition of Power Holding Company of Nigeria (PHCN).
The Nigerian power sector has existed since colonialism. Power generating in Nigeria may be traced back to 1896, when the Public Works Department established the first power station in Lagos.
The process of transmutation then continued through the operations of sector stakeholders, namely the Lagos State Municipal Authority. However, the establishment of the Nigerian Electricity Supply Company (NESCO) in 1929 resulted in the expansion and diversification of the power sector, including the construction of the famed Kurra Falls near Jos, the current capital of Plateau State.
The founding of the Electricity Corporation of Nigeria in 1951 was a watershed moment in Nigeria's power supply process, with the first capacity generating at 132kv watt. Late in 1962, the Ijora power station in Ibadan was also built to increase Nigerian generation capacity.
It is worth noting that the Niger Dams Authority was founded in 1962 with the goal of further developing and enhancing the country's hydroelectric potential.
However, the merging of the Electricity Corporation of Nigeria and the Niger Dams Authority resulted in an abrupt change of name to the disputed National Electricity Power Authority (NEPA) in 1972 (Cole, 1972).
Interestingly, the authorising Decree No. 24 of 1972 provided the essential push for the merging of both the ECN and the NDA, and the substance of the procedure defines the critical economic, technological, and social development of the Nigerian state as a whole.
As a result of the preceding, power consumption in Nigeria has emerged as one of the most important indicators of growth, development, and sustainability for both government institutions and the general population.
Thus, the government's deliberate and carefully planned effort to institutionalise a good maintenance culture, due process, efficiency, and productivity in the power sector informs the current attempt to relieve pressures on the public sector and, as a result, place responsibility for energy generation and distribution in private hands.
The primary goal of this research is to revitalise the ailing power sector in order to improve socioeconomic growth, development, and sustainability in all aspects of the Nigerian economy (Ekpo, 1997).
1.2 Statement of the Problem
The potential of any piece of research to solve fundamental societal problems (including those in Nigeria) determines its relevance and usefulness. Thus, Nigeria's energy crisis during the postcolonial era has hampered socioeconomic and political progress and sustainability.
Thus, abject lack of electricity supply has largely institutionalised the culture of absolute poverty, deprivation, want, unemployment, high costs of generating sets, crippling of infant industries, downturn of medium and small scale enterprises,
corruption, ineptitude, inequality, lack of transparency and accountability, lack of responsiveness, money laundering, total blackout, high maternal and infant mortality, lack of economic growth, development, and sustainability.
The fundamental questions to ask in order to find answers or solutions to the problem under consideration are: why has Nigeria been unable to solve her problems of persistent power outages while proudly displaying her big-brother status in front of other African countries such as Niger, Togo, and Benin?
What benefits may the privatisation of the power sector offer to the Nigerian economy? Why aren't Nigerian citizens participating in the privatisation exercise? Why has the privatisation of the power sector been skewed in favour of a few affluent Nigerians at the expense of the majority of the Nigerian people?
What is the potential environmental impact of Mr. President's nuclear energy option, and why? Why have there been so many incidences of vandalism, illicit connections, theft of PHCN power installations, corruption, and the like? Why are Nigerians so sceptical and pessimistic about the present inquiry into the power sector?
What causes a lack of public participation, among other things. In terms of this study, these are key issues that must be addressed. It is in the interests of the aforementioned that the research is focused on the potential for improving electricity delivery to all Nigerians in the twenty-first century and beyond.
1.3 RESEARCH QUESTIONS.
This study will investigate the following set of research questions:
Does the privatisation of Nigeria's power sector have a good impact on national economic development?
What role does civil society play in the privatisation of Nigeria's power sector?
What are the global ramifications of privatising Nigeria's power sector?
Is there a link between the efficiency of Nigeria's power sector and its privatisation and divestiture?
Is Nigeria's inadequate electricity supply due to a lack of competition and an enabling environment?
Privatisation of Nigerian power does not mean expression of national progress in Nigeria.
1.4 Research Objectives
Essentially, this study seeks to provide a theoretical explanation of the privatisation policy in Nigeria's power industry and how it impacts national growth. The following research objectives will be considered:
To clearly establish the relationship between privatisation and Nigeria's socioeconomic well-being.
To completely comprehend the major obstacles of Nigerian power reform, as well as to outline viable solutions to the dilemma.
To assess the environmental costs of privatising the energy sub-sector in relation to Nigeria's political economy.
To investigate the effects of global privatisation, deregulation, and divestment policies for Nigeria and Africa as a whole.
To assess the efficacy and commitment of the current administration's efforts to investigate public electricity funds misused by Nigerian officials.
To investigate the environmental impact of nuclear energy as a means for the federal government to provide a long-term solution to Nigeria's epileptic power supply.
1.5 Research Methodology
As a result, the researcher uses both primary and secondary data sources to gain a deeper understanding of the subject under investigation. As a result, primary data sources include questionnaires, observations, and face-to-face interactions with respondents.
The secondary source of data gathering for the research is the utilisation of information sources such as government publications, journals, periodicals, research papers,
magazines, and papers presented by researchers on comparable topics, to name a few. This is intended to improve the study's efficacy. The sample results will also be empirically tested using chi-square and goodness-of-fit to improve the research's feasibility and scientific outlook.
1.6 Scope and Limitations.
This study examines the policy underpinnings of Nigeria's electricity sector privatisation and its ramifications for the country's growth process during the Obasanjo administration (1999-2007).
Nigeria's socioeconomic policies in the twenty-first century prioritise privatisation, liberalisation, divestment, and deregulation, all of which are concepts and practices similar to the IMF/World Bank's Bretton Woods system.
Thus, the thesis exposes the researcher to additional examination of the aforementioned, as well as determining the amount of relevance on the political, socioeconomic, and cultural life of the people and the Nigerian nation state.
By extension, the study's limitations and constraints are enormous. Time, finances, and a lack of documented materials for study are all critical considerations. All of them are significant impediments to the researcher's ability to complete this difficult work.
1.7 Research Hypothesis
The following hypotheses were developed to guide the investigation.
National development is linked to the privatisation of Nigeria's power sector.
Privatisation of the power sector does not have the capacity to improve power supply efficiency in Nigeria.
All of the hypotheses described above will be examined using quantitative analysis to determine whether they are accepted or rejected.