IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-22-00167.html
   My bibliography  Save this article

Electricity supply efficiency in Nigeria: A case of electricity distribution companies

Author

Listed:
  • Iyabo Adeola Olanrele

    (Nigerian Institute of Social and Economic Research)

Abstract

This paper examines the technical efficiency of electricity supply across eleven electricity distribution companies using the Data Envelopment Analysis (DEA). The analysis was performed with a recent and extended data from 2015 to 2019. The output indicator for calculating electricity supply efficiency is electricity supply proxy by energy received by each electricity distribution company. The input indicators are network losses (proxy by transmission losses) and aggregate technical commercial and collection losses (ATC&C). Empirical findings were reinforcing and in line with other findings in the literature. The results show that all electricity distribution utilities are technically inefficient in electricity supply to a varying degree. Four electricity distribution companies performed above 65 percent level of technical efficiency, while two operate at less than 70 percent. Thus, privatization has not eradicated technical inefficiencies in the electricity supply. The inefficiencies in the electricity sector are partly due to technical and commercial limitations

Suggested Citation

  • Iyabo Adeola Olanrele, 2022. "Electricity supply efficiency in Nigeria: A case of electricity distribution companies," Economics Bulletin, AccessEcon, vol. 42(4), pages 2054-2064.
    • Handle: RePEc:ebl:ecbull:eb-22-00167
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I4-P170.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bjurek, Hans & Hjalmarsson, Lennart & Forsund, Finn R., 1990. "Deterministic parametric and nonparametric estimation of efficiency in service production : A comparison," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 213-227.
    2. Md Kamrul Hossain & Anton Abdulbasah Kamil & Md Azizul Baten & Adli Mustafa, 2012. "Stochastic Frontier Approach and Data Envelopment Analysis to Total Factor Productivity and Efficiency Measurement of Bangladeshi Rice," PLOS ONE, Public Library of Science, vol. 7(10), pages 1-9, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohammad Nourani & Qian Long Kweh & Evelyn Shyamala Devadason & V.G.R. Chandran, 2020. "A decomposition analysis of managerial efficiency for the insurance companies: A data envelopment analysis approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 885-901, September.
    2. Madau, Fabio A., 2015. "Technical and Scale Efficiency in the Italian Citrus Farming: Comparison between SFA and DEA Approaches," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(2), pages 1-13.
    3. Vintilă Alexandra & Trucmel Irina-Maria & Roman Mihai Daniel, 2022. "Measuring and Analyzing the Efficiency of Firms in the Insurance Industry Using DEA Techniques," Journal of Social and Economic Statistics, Sciendo, vol. 11(1-2), pages 59-83, December.
    4. Yunos, Jamaluddin Mohd & Hawdon, David, 1997. "The efficiency of the National Electricity Board in Malaysia: An intercountry comparison using DEA," Energy Economics, Elsevier, vol. 19(2), pages 255-269, May.
    5. Phu Nguyen-Van & Nguyen To-The, 2016. "Technical efficiency and agricultural policy: evidence from the tea production in Vietnam," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(3), pages 173-184, November.
    6. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    7. Basanta R. Dhungana & Peter L. Nuthall & Gilbert V. Nartea, 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 347-369, June.
    8. Yingying Shi, 2024. "Corruption, technical efficiency and total factor productivity growth: empirical evidence from China," Economic Change and Restructuring, Springer, vol. 57(6), pages 1-24, December.
    9. Yong Liu & Jorge Ruiz-Menjivar & Junbiao Zhang, 2023. "Do soil nutrient management practices improve climate resilience? Empirical evidence from rice farmers in central China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 10029-10054, September.
    10. Giokas, Dimitris I., 2008. "Assessing the efficiency in operations of a large Greek bank branch network adopting different economic behaviors," Economic Modelling, Elsevier, vol. 25(3), pages 559-574, May.
    11. Burki, Abid A. & Terrell, Dek, 1998. "Measuring production efficiency of small firms in Pakistan," World Development, Elsevier, vol. 26(1), pages 155-169, January.
    12. Rashed Khanjani Shiraz & Adel Hatami-Marbini & Ali Emrouznejad & Hirofumi Fukuyama, 2020. "Chance-constrained cost efficiency in data envelopment analysis model with random inputs and outputs," Operational Research, Springer, vol. 20(3), pages 1863-1898, September.
    13. Christian Grovermann & Sylvain Quiédeville & Adrian Muller & Florian Leiber & Matthias Stolze & Simon Moakes, 2021. "Does organic certification make economic sense for dairy farmers in Europe?–A latent class counterfactual analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 1001-1012, November.
    14. Andrew Worthington & Brian Dollery, 2000. "Efficiency Measurement in the Local Public Sector: Econometric and Mathematical Programming Frontier Techniques," School of Economics and Finance Discussion Papers and Working Papers Series 078, School of Economics and Finance, Queensland University of Technology.
    15. De Borger, Bruno & Kerstens, Kristiaan, 1996. "Cost efficiency of Belgian local governments: A comparative analysis of FDH, DEA, and econometric approaches," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 145-170, April.
    16. E Zere & Diane Mcintyre & T Addison, 2001. "Technical Efficiency And Productivity Of Public Sector Hospitals In Three South African Provinces," South African Journal of Economics, Economic Society of South Africa, vol. 69(2), pages 336-358, June.
    17. Yan Li & Catherine Waddams Price, 2012. "Effect of Regulatory Reform on the Efficiency of Mobile Telecommunications," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2012-01, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    18. Maria Francesca Cracolici & Peter Nijkamp & Miranda Cuffaro, 2007. "Efficiency and Productivity of Italian Tourist Destinations: A Quantitative Estimation Based on Data Envelopment Analysis and the Malmquist Method," Springer Books, in: Álvaro Matias & Peter Nijkamp & Paulo Neto (ed.), Advances in Modern Tourism Research, chapter 0, pages 325-343, Springer.
    19. Maria Francesca Cracolici & Peter Nijkamp & Piet Rietveld, 2008. "Assessment of Tourism Competitiveness by Analysing Destination Efficiency," Tourism Economics, , vol. 14(2), pages 325-342, June.
    20. World Bank, 2016. "Mexico Public Expenditure Review," World Bank Publications - Reports 25062, The World Bank Group.

    More about this item

    Keywords

    Electricity supply; Technical efficiency; Data Envelopment Analysis; Distribution Companies; Nigeria;
    All these keywords.

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-22-00167. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.