Privatisation of Electricity and Socio- Economic Development in Akure, Nigeria

Abstract

Electricity supply by PHCN in Nigeria was unsteady, ineffective, inefficient and intermittent resulting in persistent power failure. In a bid to improve the power supply, the Federal government privatised the power sector. This paper examined the impact of privatisation of electricity on the socio-economic development of Akure urban city. The research methodology consisted of the distribution of 200 questionnaires through systematic random sampling of one in every five flats. The streets of Isolo, Arakale, Oba-Adesida and Oke-Ijebu were consequently examined using 50 questionnaires in each of them. The result revealed that privatisation had not improved the power supply which has a deteriorating effect on the socio-economy as follows: generators were used to supplement power supply with a resultant increase in prices of goods and services thus inflicting hardship and poverty on the people; power had affected home equipment negatively and reduced effective working hours. More People resort to the use of old and obsolete bulb which consume more of the available electricity. The paper therefore recommended dynamic legal system that can stimulate investment in the power sector. The paper concluded that socio-economic development of Akure can be greatly enhanced with effective, efficient and reliable power supply which privatisation is capable of ensuring. Key Words: Privatization, Electricity, Socio-Economic, Development, Urban City.