EconPapers    
Economics at your fingertips  
 

Efficiency Performance of Electricity Distribution Companies in Nigeria

Iyabo Olanrele

African Journal of Economic Review, 2024, vol. 07, issue 2

Abstract: This paper examines the technical efficiency of electricity supply across 11 electricity distribution companies using the Data Envelopment Analysis (DEA). The analysis was performed with a recent and extended data from 2015 to 2022. The output indicator for calculating electricity supply efficiency is electricity supply proxy by energy received by each electricity distribution company. The input indicators are network losses (proxy by transmission losses) and aggregate technical commercial and collection losses (ATC&C). The results show that all electricity distribution utilities are technically inefficient in electricity supply to a varying degree. Four electricity distribution companies performed above 45 percent level of technical efficiency, while two operate at less than 80 percent. Also, the efficiency performance of the 11 distribution companies worsened since the beginning of the COVID-19 pandemic era. Thus, privatization has not eradicated technical inefficiencies in the electricity supply. The inefficiencies in the electricity distribution sub-sector are partly due to technical constraints from network losses.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/344145/files/Iyabo%20Olanrele.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:afjecr:344145

DOI: 10.22004/ag.econ.344145

Access Statistics for this article

More articles in African Journal of Economic Review from African Journal of Economic Review
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2025-03-19
Handle: RePEc:ags:afjecr:344145