What can Nigeria learn from the previous mistakes in electricity Research Paper

What can Nigeria learn from the previous mistakes in electricity liberalisation - Research root word ExampleThe industrial policy decisions and normal finances, the physical characteristics of supply, the magnitude of capital requirement and size of industry, and the complex and close relationships between the industry and other significant economic elements all combine to impose challenges to the easiness process. During electricity industry the liberalization in Brazil, Argentina, and Peru, various mistakes occurred, though these industries are the road to set productive models. Currently, Nigeria is liberalizing her energy industry, and may draw upon the earlier flaws of these models to fortify the sector. This paper proves to present a discussion on the fundamental mistakes and discuss the way forward for Nigeria. Privatization is a term that evokes sharp governmental reactions. The concept covers a great range of policies and ideas, varying from reasonableness to impracti cal. Despite the variation and the somewhat unclear meaning, privatization has unequivocal political accusives and origins. Proposals for privatization not only return the service to the original tete-a-tete sphere but also seek to create new types of commercialize relations and assure results superior or comparable public programs. In essence, privatization refers to the transfer of government assets or services to the private sector. The state may sell some of its assets to private investors, or alternatively lift statutory restrictions on competition between publicly and privately own enterprises. Furthermore, by the state may be contract out services that it initially provided. The primary objective of privatization is to increase government efficiency1. Nonetheless, implementation of this concept may result in either negative or positive effects on governments revenue. Essentially, privatization is the opposite of nationalization. Reasons for Privatization In general, privat ization of the electricity industry in Nigeria was a result of the desire to increase efficiency and competitiveness, as well as the belief that the market place powers can achieve this more efficiently and effectively than state control. Nonetheless, given the previous narration of government participation in services and goods production in Nigeria, and the prevalent history of crisis in these public enterprises, the process of privatization in Nigeria has various expected objectives. First, privatization is a way to inject market discipline to the display panel members, as the board must reflect the interests of shareholders, primarily the private sector investors whose interest lie with simoleons maximization. Second, the process results