A LEGAL APPRAISAL OF THE ELECTRIC POWER SECTOR REFORMS IN NIGERIA
ABSTRACT
Nigeria’s electric power sector requires substantial reform if the country’s economic development and poverty alleviation programme is to be realized. Currently, the country faces serious energy crisis due to declining electricity generation from domestic power plants which are basically dilapidated, obsolete, and in an appalling state of disrepair, reflecting the poor maintenance culture in the country and gross inefficiency of the public utility provider. The government encouraged the private sectors to invest into the electricity industry so that, the monopoly created by the NEPA could be demolished and at the same time, some independent power producers could enter into the electricity sector. This understanding is behind the introduction of the Power Sector Reform Act 2005 which was recently initiated by the Nigerian government with the goal of privatizing the National Electric Power monopoly, NEPA. Age long principles of democratic governance, of sovereignty belonging to the people, the people’s entitlement to participate in their governance and most importantly from the point of view of the topic of this paper, that security and the welfare of the people are the principal aim of government, form the theme of the provisions of section 13 of the 1999 Constitution. In Section 16 of the same Constitution, the second aim of government of ensuring the welfare of the citizens seems to be pointedly enjoined as the state is mandated therein to harness national resources and promote national prosperity and an efficient, dynamic and self-reliant economy which it shall control to secure maximum welfare, freedom and happiness of the citizens and without truncating the rights of individuals to participate in the major economic areas. Building on the analysis of the introduction of the Reform Act, this long essay intends to present the central issues that led to d enactment of the Reform Act, the key objectives of the Reform Act. This includes the legal reforms, the Act, the essential sections, licenses and tariffs, tariff regulation, consumer’s protection, the impact of the reform, the shortcomings of the reform, the innovations and the consequence of the reform. This steady decline in the Nigeria Electric Power Sector has led to a near complete failure of the system at the onset of the present civilian regime in 1999. The Reform program also led to the establishment of the Nigerian Electricity Regulatory Commission in 2005 which was made responsible for the regulation of tariffs. This long essay will therefore also examine the role of NERC as a sector regulators and its impact so far in establishing a licensing regime that will be attractive to potential investors.
As Nigeria implements its national utility privatization program, it is hoped that this legal review will benefit policy makers and emerging managers and providers of electric service in the country
TABLE OF CONTENTS
ABSTRACT
TABLE OF CONTENTS
TABLE OF STATUTES
LIST OF ABBREVIATIONS
CHAPTER 1
GENERAL INTRODUCTION
100: INTRODUCTION
110: BACKGROUND TO THE STUDY
120: OBJECTIVES OF THE STUDY
130: FOCUS OF THE STUDY
140: SCOPE OF THE STUDY
150: METHODOLOGY OF THE STUDY
160: LITERATURE REVIEW
170: DEFINITION OF TERMS
180: CONCLUSION
CHAPTER 2
EVOLUTION OF THE POWER SECTOR AND PRIVATIZATION
200: INTRODUCTION
210: DISCOVERY OF ELECTRICITY
220: HISTORY OF THE POWER SECTOR
230: PRIVATIZATION
2310: HISTORICAL PERSPECTIVE TO PRIVATIZATION
2320: ADVANTAGES AND DISADVANTAGES OF PRIVATIZATION
2330: PROBLEMS AND CHALLENGES OF PRIVATIZATION
2340: PRIVATIZATION CONSIDERATION
240: CONCLUSION
CHAPTER 3
POWER SECTOR REFORM IN NIGERIA
300: INTRODUCTION
310: IMPACT OF THE POWER SECTOR REFORM ON ELECTRICITY
320: PROPOSED REFORM
330: CHALLENGES AND OPPORTUNITIES
33 10: ECONOMIC AND SOCIAL
3320: POLITICAL ISSUES
3330: TECHNICAL CHALLENGES
3340: ENVIRONMENTAL FACTORS
340: OPPORTUNITIES
3410: EFFICIENCY AND RELIABILITY OF SERVICE
3420: INVESTMENT OPPORTUNITIES
3430: EMPLOYMENT OPPORTUNITIES
3440:TRANSFER OF TECHNICAL MANPOWER
3450: ENCOURAGEMENT OF RESEARCH
350: RECOMMENDATIONS
360: CONCLUSION
CHAPTER 4
STATUTORY REGULATORY SCHEME FOR THE POWER SECTOR REFORM
400: INTRODUCTION
410: ELECTRIC POWER SECTOR REFORM ACT 2005
420: INNOVATIONS OF THE ACT
4210: FORMATION OF INITIAL AND SUCCESSOR COMPANIES
4220: DEVELOPMENT OF A COMPETITIVE ELECTRICITY MARKET
4230: ACQUISITION OF LAND AND ACCESS RIGHTS
42310: CONDITIONS FOR LAND ACQUISITION
42320: ACQUISITION OF ACCESS RIGHTS
42330: PROTECTION OF LAND AND ACCESS RIGHTS
430: NATIONAL ELECTRIC REGULATORY COMMISSION
4310: STRUCTURE OF THE NERC
4320: GOALS AND OBJECTIVES OF THE NERC
4330: LICENSING BY THE NERC
4331: INTERIM LICENSES
4332: REGULAR LICENSES
4333: CHALLENGES OF LICENSING
440: EXTENT OF THE ACT
450: CONCLUSION
CHAPTER 5
GENERAL CONCLUSION
500: CONCLUSION
510: RECOMMENDATION
BIBLIOGRAPHY
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NEWSPAPER REPORTS
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REPORTS AND OFFICIAL DOCUMENTS
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