Social and Behavioral Sciences Commons^™

Economic Cost Of Electricity Outages: Evidence From A Sample Study Of Industrial And Commercial Firms In The Lagos Area Of Nigeria., O. A. Uchendu

Economic and Financial Review

The purpose of this study is to estimate some of the measurable costs of electricity outages from a sample of industrial and commercial firms in the Lagos area. To achieve this objective, over 100 firms were surveyed. Analysis of the survey returns showed that firms in the area sustained substantial economic costs, consisting of adaptive costs (investments and operating costs on own generations), operating losses (raw and processed materials), equipment losses and unproduced output. Most of the firms indicated that NEPA's tariff was expensive. They also recommended among other things, private sector participation in the electricity industry and privatization of …