ABSTRACT

This project work examines the issue of corruption and performance of public corporations in Nigeria, with Power Holding Company of Nigeria (PHCN) as a casestudy. The specific objectives of this study include: (i) To determine if corruption in PHCN constitute a major contributory factor which has undermined the effectiveness of PHCN to provided adequate quantity and quality of electricity in Nigeria, and (ii) To ascertain whether or not government regulation and policy on provision of electricity in Nigeria encourages corruption in the electricity sector. The theoretical framework of analysis adopted in this study is the Systems Theory which enables us to analyse PHCN as a system that receives input of demand and support from its environment and produces output in form of delivery of electricity services to its environment. The data for this study were obtained from secondary sources such as text books, journals, official documents, and articles and were analyzed with simple percentage method of analysis. The findings of the study are: (i) Corruption in PHCN does not constitute a major contributory factor to the ineffectiveness and poor performance of PHCN, and (ii) Government regulations and policy on provision of electricity in Nigeria encourages corruption in the electricity sector in Nigeria which
undermines the performance of PHCN. Consequently, our recommendations advocate for government to ensure a comprehensive reform of the power sector and application of market principles in the operation of the sector to attract private investments in the sector as well as introduce and enforce policies that will protect the interests of the low income earners and low electricity consumers in the operation of the electricity industry.

Contents

Title Page ………………………………………………………………………… i Certification/Approval ……………………………………………………. ii Dedication …………………………………………………………………….. iii Acknowledgement …………………………………………………………….. iv Preface …………………………………………………………………….. v Abstract …………………………………………………………………….. vii Contents …………………………………………………………………….. vii

List of figures/tables …………………………………………………………….. x
Chapter One: Introduction …………………………………………………….. 1
1.1 Introduction ……………………………………………………………… 1
1.2 Statement of problem …………………………………………….. 5
1.3 Objective of study …………………………………………………… 7
1.4 Significance of study …………………………………………… 7
1.5 Literature review …………………………………………………… 8
1.6 Theoretical framework …………………………………………… 18
1.7 Hypothesis …………………………………………………… 21
1.8 Methodology …………………………………………………… 21
1.9 Method of data collection …………………………………………… 21
1.10 Method of data analysis …………………………………………… 22
Chapter Two: The History of Electricity Generation, Transmission and
Distribution in Nigeria …………………………………… 24
2.1 Introduction …………………………………………………………… 24
2.2 The growth of electricity generation, transmission and distribution in Nigeria
…………………………………………………………………………… 24
2.3 Statistics on provision and consumption of electricity in Nigeria and in 22
selected countries from 1992 to 2006 ……………………………. 32
2.4 Data on Power Holding Company of Nigeria personnel …………… 44
Chapter Three: Corruption and Performance of Power Holding Company of
Nigeria ……………………………………………………….. 46
3.1 Introduction …………………………………………………………… 46
3.2 Corruption in Power Holding Company of Nigeria ……………………. 46
3.3 Analysis of statistics on provision and consumption of electricity in Nigeria in
view of statistics on provision and consumption of electricity in other
countries, PHCN personnel, and corruption in PHCN …………… 49
Chapter Four: Government Regulation and Policy on Provision of Electricity in
Nigeria and Corruption in the Electricity Sector ………… 60
4.1 Introduction …………………………………………………………… 60
4.2 History of government regulation and policy on provision of electricity in
Nigeria ………………………………………………………….. 60
4.3 Government regulation and policy on provision of electricity in Nigeria and
corruption in the Electricity Sector ………………………………… 65
4.4 Analysis of government regulation and policy on provision of electricity in
Nigeria, corruption in the electricity sector and the performance of the public
electric utility company ……………………………………….. 73
Chapter Five: Summary, Conclusion, and Recommendation …………… 84
5.1 Summary …………………………………………………………… 84
5.2 Conclusion …………………………………………………………… 85
5.3 Recommendation …………………………………………………… 85
Bibliography

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