Impact of Public-Private Partnership (PPP) on the performance of Abuja Electricity Distribution Company (AEDC), Gwagwalada Area Council, FCT-Abuja

Abstract

The introduction of Public-Private Partnership (PPP) is a paradigm shift in the role of a state as service provider to that of enabler and regulator to ensure efficient service delivery, cost-effectiveness, value for money, fair competition, accountability and risk sharing between the public and private sectors. However, there have been mixed reaction among scholars on the extent to which PPP has enhanced the performance of electricity distribution companies in Nigeria. Therefore, the main objective of this study is to determine the impact of PPP on power supply in the distribution of prepaid meters to customers, reduction in electricity tariffs and regular power supply by AEDC in Gwagwalada Area Council. A descriptive survey research design was adopted for data collection and analysis in conjunction with documents obtained from secondary sources. Random and purposive samplings were used to determine the sample size of the study. Out of 361 questionnaire administered to selected respondents in Gwagwalada Abuja, 297 were completed and returned. Frequency distribution and simple percentage were used for descriptive analysis, while chi-square statistical tool was adopted for the test of hypotheses with the aid of Statistical Package for Social Sciences (SPSS). The findings of the study reveal that the impact of PPP in power supply on the distribution of prepaid meters to customers, reduction in electricity tariffs and regular power supply by AEDC in Gwagwalada Area Council, FCT, Abuja have not been quite impressive due to poor maintenance culture, persistence collapse of the national grid, lack of transparency and accountability in revenue generation. The study therefore recommends for the use of cost-benefit analysis in determining electricity tariff, metering of all households and effective monitoring mechanisms.

Keywords: Public-private partnership, performance, electricity distribution company, power supply.