Government policy on privatization of power in Nigeria: end-users financial cost perspective

Abstract

Since the privatization of the power sector in Nigeria in 1999, the cost impact to end-users have not received adequate empirical evaluation. Using data from consumers of privatized electricity power in Enugu State, this paper sought to evaluate the significant effect of privatization on end-users of electricity product. The survey research method was employed with two major hypotheses formulated to govern the study. Respondents were selected using random sampling technique and generated data was tested with Z-test statistic. Descriptively, a proportion of the respondents strongly agreed that privatization has a significant cost effect on consumers. The finding led to the acceptance of the two alternative hypotheses and rejection of the null hypotheses because the computed Z values were between -1.96 and 1.96 of their critical values. The paper among others recommed that government should establish a mechanism to regulate charges to end users of electricity product by privatized electricity distribution companies.

Keywords: Privatization, electricit, financial cost, end users