The current and future challenges of electricity market in Nigeria in the face of deregulation process

Abstract

Electricity is fundamental and inevitable to our daily living as it lightens our environment, powers our homes, schools, hospitals, offices, businesses, and promotes industrialization. It is a known phenomenon that the economic growth of a nation depends on electrical power supply. While telecommunication market in Nigeria has recorded advancement and stability, the electricity market in Nigeria is facing mixed challenges ranging from slow growth in generation capacity, market deregulation process interference by Government, electrical transmission lines and distribution equipment vandalism, poor maintenance of existing electrical facilities and corruption. Nigeria should not be different in the vogue of global electricity market which focuses on building a cleaner, more diverse and more sustainable energy mix, electricity market investment system that is quality, affordable and of proven security. This paper focuses on the challenges facing electricity market in Nigeria and possible ways by which the nation can builds a sustainable electricity market.

Keywords: Electricity market, mixed challenges, electric power sector reform, economic growth, Power Holding Company of Nigeria.