Title:
PRIVATIZATION OF THE POWER SECTOR AND ECONOMIC WELL-BEING IN NIGERIA

Authors:
Johnbosco C. Ozigbu, Nigeria

Abstract:

This paper examined how Nigeria’s post-privatization experience in the power sector in terms of rural and urban access to electricity affects economic well-being in the country between 2005Q1 and 2020Q4. Gross national income (GNI) per capita was used as a proxy for economic well-being. Data on GNI per capita was obtained from the World Development Indicators (WDI) while data on rural and urban access to electricity was obtained from World Bank Global Electrification Database International Energy Agency (IEA) and United Nations Statistics Division (UNSD). Descriptive statistics, unit root and bounds cointegration tests, and non-linear autoregressive distributed lag (NARDL) model form the basis for data analysis. The unit root test results reveal that the variables are fractionally integrated. In addition, the bounds cointegration test result showed that GNI per capita has a long-run relationship with rural and urban access to electricity. The findings highlight that rural and urban access to electricity impacted negatively on GNI per capita during the study period. These findings imply that the expected post-privatization benefits in the power sector in terms of improved economic well-being through optimal, affordable and reliable access to electricity amongst others are yet to be achieved. Given the findings, this paper recommended for the government should build synergy with the private sector through long term funding, capital investment and adequate regulation to address the post-privatization challenges in Nigeria’s power sector.