The Political Economy of Electricity Privatization in Nigeria

Abstract

In this study we examine the drives for utility privatization in less developed countries in an overall economic reform package. Third World States are rolling back on provisions of water, health, telecommunication, and electricity. This article investigates this trend in Nigeria especially in the electricity sector which is regarded as a sine qua non in the economic and industrial growth of a nation. The result shows that the need to fulfil the conditions for aid and debt relief from donor countries and external agencies becomes the overwhelming and primary motive to privatize. This paper argues that subjecting public policy to the dictates of external agencies undermines the democratization process in Nigeria. Accordingly the paper posits that the Federal government need to take into cognizance the contribution of civil society and organized labour in articulating a people based economic reform.

Keywords: Privatization, electricity, aid, donor agencies, organized labour