Technical efficiency and impact of ownership on performance : the case of the Nigerian electricity industry
The notion that different ownership types may create a divergence in outcome
naturally led to an appraisal of the performance of the Nigerian electricity industry
and to the investigation of the influence of ownership structures upon performance as
a way of explaining the disappointing state of electricity production in Nigeria. This
research is primarily concerned with the factors that influence performance, the
estimation of efficiency and productivity of the National Electric Power Authority
(NEP A) - the integrated public utility responsible for electricity in Nigeria.
The first part of the thesis is concerned with developing a conceptual framework for
the performance assessment of the public enterprise focusing on transformation of
inputs to outputs. The various principles and methods of measuring efficiency are
considered. And consequently, an appropriate methodology for the appraisal of
NEP A's performance and an examination of how NEP A's production efficiency can
be improved is outlined. This provides the basis for the empirical and data analysis,
which forms the second part of the thesis.
The empirical analyses use the two popular approaches for measuring efficiency.
These are the non-parametric (data envelopment analysis and Malmquist productivity
index approach) and parametric (stochastic frontier method) approaches. The third
part of the thesis investigates the issues pertaining to the reform of the electricity
industry from an ownership perspective. Attention is given to privatisation and
regulation. Given the state of the industry in Nigeria, and the fact that reform is
imminent, a modelling approach is used to examine the impact on performance of
changes in ownership type and the organisational structure of the electricity industry.
The thesis concludes with a summary of the research findings and draws policy
implications of the study for the reform of the electricity industry in Nigeria.