An Appraisal of the Legal Framework for the Privatization and Reform Programme for the Energy Sector in Nigeria

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This Research Study titled: “AN APPRAISAL OF THE LEGAL FRAMEWORK FOR THE PRIVATIZATION AND REFORM PROGRAMME FOR THE ENERGY SECTOR IN NIGERIA” was chosen after a careful review of the process and nature of the legal framework put in place in some relevant Nigeria legislations such as the Public Enterprises (Privatization and Commercialization Act) Laws of the Federation of Nigeria (LFN) 2004 (being the governing law on privatization of public enterprises) and the Electric Power Sector Reform Act No 6 2005, which provides the legal framework for the reform of the Energy Utilities in Nigeria. The Research Study explains the rationale for the implementation of the Privatization Programme in Nigeria. It discusses the legal framework put in place for its implementation to guarantee investors’ confidence in the privatization programme and processes, which should be open, transparent and sustainable, backed up by a strong will demonstrated by the Government at the centre. The Research Study provides an overview of the energy sector in Nigeria to include majorly, including the electric power sector and the oil and gas industry. It touches on the various policies and Legal Frameworks established for the privatization and reform of the Electricity Sector in Nigeria. In the same vein, the research study also highlights the key provisions of some relevant Laws that guide the exploration and production of oil and gas in Nigeria over the past years, such as the Petroleum Act, 2004 and the Deep Offshore, Inland Basin Production Sharing Contract Act 2004 (DOA), Petroleum (Drilling and Production) Regulations 1995 to name a few. The Research Study presents a critical appraisal of the various legal provisions that govern the regulatory institutions and evaluates the achievements or performance of the regulatory institutions (in relation to their regulatory mandates) set up to implement the Federal Government of Nigeria’s privatization programme for the electricity sector and reform of the sector, and suggest or recommend ways of improving on the effectiveness/efficiency of these institutions going forward. The Research Study stressed the critical relevance of the reform of the Energy Sector in Nigeria to the sustenance and growth of the national economy and therefore strongly recommends, amongst others, the vigorous execution of the FGN’s reform programme for the energy sector and the strengthening of regulatory capacities of the agencies and institutions of Government that have been mandated to execute the said reform programmes. The Research Study noted that it was, therefore, imperative that scheduled timelines for specific privatization milestones are strictly adhered to and pursued with the seriousness they deserve and for the overall benefit of Nigerians. The Nigerian Energy Sector has suffered serious setbacks arising from poor infrastructure situation and improper handling and management of Energy Utilities hence the call for a reform of the sector; the objective of this thesis is to take an academic excursion into the nature of the legal framework that exists and support the privatization and reform of the said Energy sector in Nigeria and make far-reaching recommendations on how to strengthen the governing legal framework for the Energy sector in Nigeria which for purpose of this study is restricted to the Electricity Power Sector and some extent, suggest or make recommendations on the proposed oil and gas sector reform in Nigeria. This research work was chosen with the aim of broadening knowledge and academic literature on privatization and reform of the Energy Sector in Nigeria generally and in particular, providing a medium for making specific academic contributions towards developing legal issues arising from the legal framework for the privatization and reform of the said Energy Sector Nigeria.


Nigerian Petroleum Laws, 2nd Edition: 2004 by Etikerentse, G.E. Petroleum, Minerals and Mining Law published by Law Lords Publication, 2008 by Olakanmi& Co.

Policies/Unpublished Works National Electricity Power Policy 2001

Natural Gas Master Plan – Approved by the Federal Executive Council

Blue Print for Power Sector Reform (unpublished) issued by the Presidential Implementation Committee on Power Sector Reforms: 2009

Petroleum and Future of Nigeria Challenges, Constraints and Strategies for Growth by Iledare O.O. Oil and Gas Sector Reforms and Implementation Committee (OGIC) Final Report – May 2008.

Nigerian Power Sector Reforms – Opportunities and Challenges–unpublished works by: Latham and Watkins LLP – 2010.

Legal and Regulatory Framework for the Nigerian Power Sector – (unpublished) Paper by Banwo & Ighodalo (2007).

An Appraisal of the Legal Framework for the Privatization and Reform Programme for the Energy Sector in Nigeria