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  • Mathieu Provencher

Privatizing Power

Hi Guys! New topic for those that have some time to get into it: The Privatisation of Nigeria's power industry could improve the reliability and general quality of their services. Why are private firms likely to do better than the government in this case?

It is fairly clear that the Nigerian government is inadequate in running their energy infrastructures. They may in fact lack the knowledge and organisational skills (very similar to the Peruvian government it would seem) to properly manage such a company. Other concerns such as corruption and lack of planning made them very inefficient and incapable to supply enough for their citizens.

Privatisation may indeed correct most of these problems by selling these services to firms that already have successful experience abroad (for example). However, these new companies will have to be closely regulated to make sure they don't become too powerful, in which case some other inefficiencies would cancel any advantage that may have been received.

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