An evaluation of 2013 privatization on Benin Electricity Distribution technical and workforce performance

Abstract

Purpose: This study aims to investigate the impact of the 2013 privatization of Nigeria’s energy sector on the technical performance of the Benin Electricity Distribution Company (BEDC) and its workforce. Design/methodology/approach: This study used a questionnaire-based approach, and 196 participants were randomly selected. Analytical tools included standard deviation, Spearman rank correlation and regression analysis. Findings: Before privatization, the energy sector, managed by the power holding company of Nigeria, suffered from inefficiencies in fault detection, response and billing. However, privatization improved resource utilization, replaced outdated transformers and increased operational efficiency. However, in spite of these improvements, BEDC faces challenges, including unstable voltage generation and inadequate staff welfare. This study also highlighted a lack of experience among the trained workforce in emerging electricity technologies such as the smart grid. Research limitations/implications: This study’s focus on BEDC may limit its generalizability to other energy companies. It does not delve into energy sector privatization’s broader economic and policy implications. Practical implications: The positive outcomes of privatization, such as improved resource utilization and infrastructure investment, emphasize the potential benefits of private ownership and management. However, voltage generation stability and staff welfare challenges call for targeted interventions. Recommendations include investing in voltage generation enhancement, smart grid infrastructure and implementing measures to enhance employee well-being through benefit plans. Social implications: Energy sector enhancements hold positive social implications, uplifting living standards and bolstering electricity access for households and businesses. Originality/value: This study contributes unique insights into privatization’s effects on BEDC, offering perspectives on preprivatization challenges and advancements. Practical recommendations aid BEDC and policymakers in boosting electricity distribution firms’ performance within the privatization context.