An analysis of electricity market structure and its implications for energy sector reforms and management in Nigeria

Abstract

The paper examines the challenges and prospects of power sector reform in Nigeria by employing a purely
descriptive analysis. The focus of exposition is on the market structure, market design and supply gap in
the electricity generation within the context of power reform. The paper adopts oligopolistic game theory
based models of Cournot, Betrand and Supply Function Equilibrium to explain the complex interest groups
in Nigeria energy sector and relate them to experiences in other countries. The paper concludes with a
number of suggestions that can move the power sector forward from its lack luster performance of the
years.