Evaluation of the impact of power sector reforms on the Nigerian economy

Abstract

The electrical power industry in Nigeria has been in a deplorable state for many years. Large, medium and small scale industries suffer adverse effects due to poor services from power utility, which results in dire consequences on the nation’s economy. This paper analyzes the economic effects of the power sector reforms on the Nigerian economy, with emphasis on the industrial sector. The study applied both the statistical method and the high level  computing language – MATLAB. The results showed that small-scale operators were more heavily affected by the infrastructural failures. The application of structural, regulatory and market reforms to electricity sectors brought along with it significant performance improvements. Thus, the Electric Power Sector Reform act is an invaluable tool in ameliorating the adverse effects observed.

Keywords: Power, electricity, economy, industries, Nigeria