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This study takes a view on effects of the reforms in the power sector of the Nigerian economy. A detailed outline of the essence of this research which was geared toward informing and educating prospective writers on the origin of Nigerian electrical power body and the objective of the reform, programmes that were done and the ongoing in the country. The reforms are put in place to ensure the eradication of the erratic power supply and enhance an increase n electricity production to satisfy the ever rising demands of electricity. The impact of this reforms are tested on the research question if the effect of this reforms is being felt by the Nigeria breweries Plc.





1.1     Background to the Study

Basically, this research is succinctly designed to enable the prospective readers have an inclination reform agenda of the federal government of Nigeria on the energy (power) sector of the economy. It is equally designed to overtly demystify in clear terms, the various sources of generating energy (power) in Nigeria for economy activities from 1896 when the first electricity was generated to the nascent reform in 2013.

It is also examine aptly, the strategies benefits and challenges abound in these reform efforts by the federal government of Nigeria.

In all honesty, it should be noted that energy power reform means taking a clear-eyed  look at our nation’s energy needs and sources and considering what policies that will best suit our interest in this 21st century, (sourced from was yecte.org/need/15 ). It is in this regard that the federal government had made frantic efforts in devising policies and reforms to positively effecting the power sector.

But spit of her various effort in this regard, no meaningful and valuable achievement has been recorded on that there have been epileptic power supplies, numerous broken down and abandoned power generating plants, incessant power outages, total darkness which have culminated in rampant economics degradation and health hazard of both people and animals in the country for instance, the incessant burning of fossils which are combusted into the air causing carbon monoxide to be inhaled by  humans and animals leading to their health defects and consequent death. High cost of preserving food items, manufacturing, mining, ICT related activities etc. are also incurred by the citizen as a result of the death of public supply of energy (power) thereby leaving the citizens the hands of few capitalist who can only provide these services at minimal rate.

It is at this point that attempts are expedited to providing meaningful suggestions that can boost the energy (power) sector of the economy of the country.


1.2     Statement of the Problem

The problem hereby stated are the major ones encountered by the power sector of the economy and their numerous consumers and how it affects their economy activities.

The probe are thus:

i         The over rising populace and how it affect power energy production,

ii        The establishment of power generating electrical equipment which were sub-standard leading to poor energy power generation

iii       The abysmal high tariff in power sector

iv       High cost of consumption and maintenance of electrical equipment

1.3     Research Questions

In this study, the researcher intend to address the following questions:

(i)      What has the reforms in the power sector been like from year 2000 to 2013.

(ii)     Have the various power sector reforms by the federal government altered production in the Nigerian economy within the last six years?

(iii)    what has been the government’s efforts at improving electricity production?

(iv)    What have been the alternative sources of energy power generation in enhancing growth in the Nigerian economy.

1.4     Objective of the Study

The primary purpose of this work is to find a practical means of revealing the various bottlenecks in the power sector reforms progroummes and proffering some valuable solutions in eradicating these bottle-necks involved in the reform polices proposed to improve electricity supply and also combat these bottle-necks using Nigerian breweries as a case study.

The following steps  should be strictly pursued in achieving this purpose viz:

  • To identify the economy activity of Nigerian industries and it’s needed electrical capacity
  • To seek alternative ways needed to increase energy power production e.g the federal government can by covering gas supply and power purchase agreement.
  • To identify and investigate the bottle-necks involved in the distribution of electricity
  • Recommend measures towards minimizing the dependencies on hydro electricity supply by NEPA.

1.5     Statement of  Hypotheses

A research hypothesis is a tentative statement that the researcher states about variables which could be true of false. In this light, the following hypotheses were formulated viz.

(1)     Electricity reforms have no effects on the productive capacity of Nigerian economy.

(2)     Electricity reforms have some effects on the productive capacity of Nigerian industries

1.6     Scope of the Study

Electricity is needed in every sector of the economy. But for the purpose of this study,  discussions will be restricted to the Nigerian industries using the Nigerian breweries (Enugu branch) as a case study.

This is to enable the researcher determine the dividends of the power sector reforms and extent it has affected the economy activity of industries in the production.

1.7     Significance of the Study

Power sector is indeed a major determination of economic development. I enhances speedy development of the economy in the light of improved services and encourages foreign investments in all spheres of the economy.

It is in this light that efforts are made to enlighten the prospective readers of this work of the benefits that they stand to gain.

From the responses gotten from the respondents, it is apparent that the general public stands to benefits that they stand to gain.

From the responses gotten from the respondents, it is apparent that the general public stands to benefit from the power energy reform agenda as it cuts across the development of different economic sectors of the country such as mining industries, food processing industry, information technology (ICT .

Through the reform agenda in the power sector, the various economic activities would be well navigated towards recording magnificence in their economy engagement without breakdown of economy process leading to poor and untimely quality.

It will also help student and academic institutions in the country to perform well as students would be comfortable to read especially in the night as a result of availability of energy (power) supply.

1.8     Limitation of the Study

The problem of data collection has long been constituted basic hindrance in the study of effect of the power sector reforms on the Nigeria economy. This problem seemed to have increased as a result of some industries uneasiness to divulge information on power consumptions and charges.

To prove the afore-mentioned impediments right, about a hundred questionnaires were administered to respondents and unfortunately only few were returned and right information stated about the answers needed from them.

There was also the difficulty in the generalization of my findings attributed to the establishment of just one case study.

Another limiting factor was time and the long distance to be covered from Auchi to Enugu for the research work and findings of facts.

1.9     Operational Definition of Terms

          In order to enhance the contents of this study, the following terms are defined as used.

Energy reforms: Energy reform means taking a clear-eyed look at our nation’s energy needs and sources, and considering what policies best suit our interests in the 21st century, (cited from www,ye4er.org/node/15).

Brewery: A deductive building for the making of bear through steeping a starch source (commonly cereal grains) in water and then fermenting with yeast (cited from  www.en.wikipedia.org/wrk./brewing .).

Electricity: it is the set of physical phenomena associated with the presence and flow of electric charge. It gives a wide variety of well known effects such as lighting, static electricity and electromagnetic induction (cited from  www.en.wikipedia.org/wik/electricity ).

Bottle-Neck: It is a point in an enterprise where the flow of data is impaired or stopped entirely (search enterprisewan.techtarget.com.)


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