The President of the Nigeria Consumer Protection Network, Mr. Kunle Olubiyo, has called for increased competition in Nigeria’s electricity markets to address ongoing inefficiencies and improve consumer choice.
He suggested that the current market structure, which comprises large, regional franchises, should be re-evaluated to allow for smaller, more manageable units.
Olubiyo also expressed frustration with the inability of consumers to switch between providers, unlike the telecom sector where competition is more robust.
In an exclusive interview with NewsNGR, Olubiyo blamed electricity distribution companies (DisCos) for lack of investment in the sector.
He noted that despite the passage of time since privatisation, the DisCos have failed to enhance their services or invest adequately in infrastructure.
“Maybe we’re expecting that after 10 years, the tenure or moratorium for the license will have expired. And by giving us free litigation opportunity to review and make sure that the definition of a franchise is not just four, five-state or regional franchise. That should be smaller.
“Instead, the discos that are not efficient, are sourcing their inefficiency to other people to come and invest. They’ve not invested in this sector. So, we expect that we’ll have smaller and smaller units.
“With emphasis, we need to encourage competition because as we speak now, I don’t know from where you are calling, but I believe that if you are not satisfied with the services of a particular disco, the consumer lacks the right to choices.
“You can’t make a choice like you have in the telecom sector. So, when you have a monopolistic market or ecosystem that consumers do not have the right to choose, then the essence of it is just like changing the metric or change of name’’, Olubiyi said.
He also criticized the mindset of the managers in the post-privatization electricity sector, comparing it unfavourably to public sector practices.
“The mindset of the managers of the post-privatized electricity sector is that of the public sector. They do not see efficiency or customer satisfaction as top-notch. There are lots to be addressed that we cannot say in this particular conversation,” he said.