Over the last decade, the Nigerian government has been carrying out wholesale reforms of its electricity sector. This commenced with the unbundling of the government owned vertically integrated utility and further enacting an Act, the Electricity Power Sector Reform Act 2004, to create an independent regulator and the enabling environment for the reform of the sector. Government then proceeded to commence a privatization. Following this privatization the Utilities began to have acute liquidity issues resulting in their inability to meet payment obligations and make the required investments to improve on their performance. This study is therefore important to dimension the challenges and provide some understanding to government on the remote and immediate causes and the potential solutions to the challenges which is now a threat to the success of the privatization. The Nigerian Bulk Electricity Trading Plc (NBET), is the credit worthy off taker set up by Government to play the role of the bulk buyer and seller of electricity in the NESI, hence this study is critically important to NBET and the government of Nigeria to provide greater insight into the challenges and also possible solutions that could be explored.
The objective of the study are to:
1. Ascertain the key issues creating liquidity challenges in the Nigerian Electricity Supply Industry (NESI)
2. Examine why the issues persist and the dimensions to the challenges
3. Proffer possible solution to the liquidity challenges
4. Recommend appropriate mitigation strategies for immediate and future reforms of the Nigerian Electricity Supply Industry (NESI)
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