Assessment of Power Sector and Industrial Development in Nigeria: A Study of Ikeja Electricity Distribution Company

Abstract

Purpose: The paper examines the nexus of power sector and industrial development in Nigeria using Ikeja Electricity Distribution Company as a case study. Industrial development necessitates efficient management of available resources, as well as equitably allocating these resources and effectively utilizing them productively for industrial growth. Contemporary, industries uses modern operational technologies in respect to production, resource allocation and utilization. These are designed and tied strictly to the use of energy in one form or the other. Over a decade ago, lack of improvement in the power sector has led to total collapse of industrial sector in Nigeria. The resultant effect of poor power generation, distribution and transmission has crippled many manufacturing companies in Nigeria leading to mass exodus of investors in the industrial sector. Methodology: The study adopts a survey research design and chi-square statistical method. The population of the study which consist of employees of Ikeja Electricity Distribution Company were purposely selected for the study. Findings: Findings provide that significant relationship exists between power generation, transmission and distribution and industrial development in Nigeria. Recommendation: Based on the findings, the major recommendations proffered require power sector operators to ensure adequate investment in power infrastructure that will meet the electricity needs of consumers, render qualitative services at affordable tariffs, taking post-privatization challenges into account by creating a good governance structure that will boost consumers' confidence.