Programme: Policy and Strategic Studies

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THE NIGERIAN BULK ELECTRICITY TRADING COMPANY AND LIQUIDITY CRISIS IN THE ELECTRICITY INDUSTRY: AN INTERROGATION.
(Nigerian Chapter of Arabian Journal of Business and Management Review, 7(2), 2021-12-05) Idowu Samuel Sunday; Chukwudi Ekene Celestina; Memud Olanrewaju Rafiu
The Nigerian electricity sector has been characterized by underperformance and reputed for inefficiency since independence. Despite government efforts to reverse this trend through liberalization and privatisation of two sections of the sector value chain - the power generation and distribution – and the establishment of NBET for the financial security of operators, liquidity crisis remains a major challenge. Hence, this article examines the role of NBET as enshrined in PSRB while the economic liberal theory was used as an anchor for analysis. Secondary data sources were explored for textual analysis for this study. The findings reveal that the non-privatisation of the TCN and NBET bulk-buyer function limits competition among operators and also weakens solvency in the industry. The paper recommends that government ownership across the sector value chain should be disembarked while NBET should be expunged and replaced with private and public sectors owned insurance company to engender financial security and the sector regulator (NERC) strengthened financially and with a required human resource to enhance its capacity for taking proactive steps amongst others.