Effect of Privatization and Commercialization of PHCN on Service Delivery. Privatization of Government-owned Enterprises in Nigeria

Abstract or Introduction

Power Holding Company of Nigeria Limited (PHCN), a public enterprise was established, financed and managed by the Federal Government of Nigeria. The paper utilized both primary and secondary sources to analyzed the effect of privatization and commercialization of PHCN on service delivery to electricity customers in Uyo, Akwa Ibom State, Nigeria.

The study engaged one hundred and fifty-four (154) respondents randomly-selected from the five departments of PHCN, Uyo. The findings revealed that PHCN has to contend with internal and external externalities and constraints such as: poor funding of the enterprise, corruption, excessive control by the Federal Government, vandalization of its equipment by hoodlums, fraud, shady dealings, poor maintenance, damage to electricity infrastructure by windstorms and erosion, debts owed it and irregular rainfall. Government should examine and select the competent professionals as Public-Private Partners (PPP) and not people/enterprises with questionable character to handle commercialized and privatized Government enterprises . Capturing the confidence of labour Unions, building more power plants, staff training and motivation, monitoring of the privatization processes, transparency and accountability will check corruption, Government interference and recruitment
by patronage. The paper concluded that electricity is the bedrock of socio-economic development of any nation, hence priority must be set for its full privatization and commercialization as it did to the national telecommunication carrier, NITEL, so than Nigerians and Nigeria can grow and develop like other nations such as Malaysia, Indonesia and India, which have almost same characteristics as Nigeria. A Private sector-driven economy is key to this development and government must create this
opportunity and environment in Nigeria, if it must grow and develop industrially, socially and economically.