ASSESSMENT OF GOVERNMENT INTERVENTION POLICIES ON PRIVATIZATION OF POWER SECTOR IN THE FEDERAL CAPITAL TERRITORY (FCT), ABUJA

Abstract

This study explores the extent to which how various interventions policies have supported the privatization of Nigeria’s power sector in the Federal Capital Territory (FCT), focusing on investment, infrastructure, and operational efficiency. The specific objectives of the study are to analyze pre- and post-privatization conditions of the power sector in relation to power supply in the Federal Capital Territory and assess the effectiveness of government in terms of improvement in power supply reliability, electricity availability and consumer satisfaction in supporting privatization for improved power supply. This study employs a mixed-method approach, utilizing questionnaires, in-depth interviews (IDIs), and secondary data obtained from key policy documents of the Federal Republic of Nigeria, including the Electric Power Sector Reform Act (2005), the National Electric Power Policy (NEPP), and the National Energy Policy, among others. The study revealed that the implementation of the intervention policies has fallen short of achieving the privatization objectives in the FCT’s power sector, primarily due to incomplete execution of the Electric Power Sector Reform Act (EPSRA) of 2005, which aimed to unbundle the Power Holding Company of Nigeria (PHCN) into distinct generation, transmission, and distribution companies. The paper concludes that despite well-intentioned government policies like the Electric Power Sector Reform Act (2005), weak implementation and regulatory inefficiencies have hindered the privatization of Nigeria’s power sector in the FCT, highlighting the need for stronger institutional capacity and policy consistency to achieve lasting reform outcomes.

Keywords: Privatization, Reform, Government Intervention Policies, Power Sector in FCT, Nigeria