A CRITIQUE OF THE FEDERAL COMPETITION AND CONSUMERS PROTECTION ACT: IMPLICATION FOR THE PRIVATIZATION AND DEREGULATION OF THE NIGERIA ELECTRICITY INDUSTRY.

ABSTRACT

This research discusses the implication of the privatization policy in Nigeria as stipulated in the Federal Competition and Consumer Protection Act, 2018. It examines the implications of the privatization policy in the electricity sector and its effectiveness, effects of non-privatization of public enterprises during the pre-privatization period, challenges faced by the privatized enterprises in the post-privatization period, and suggests recommendations to curtail the challenges faced in the privatized and liberalized industry. Finding reveals that the privatization has birthed several enterprises with the goal of service production, hence, competition. The effect of non-privatization (pre-privatization period) was that the monopolistic nature of NEPA made it impossible for competition to thrive and as such service provision was poor and this remains a challenge in the post-privatization era as the sector still faces major setbacks such as liquidity, manpower and other challenges which continues to hunt the sector hence, improvement in power supply chain has become very minimum as majority of the Nigerian population do not have access to electricity grid and self-generation of power. The study recommends that the legislation relating to anti-competitive practices should be more stringent in order to deal with these acts accordingly. Also, the Federal Government has a role to provide support to, and encourage private sector investments in gas processing infrastructure to encourage competition.