As embodied in the Electricity Power Industry Reform Act (EPIRA), the economy’s electricity supply industry has been restructured paving the way for the privatization of the state-owned National Power Corporation (NPC). The restructuring calls for the separation of the different components of the power sector namely, generation, transmission,
distribution and supply. Transmission and distribution exhibit natural monopoly characteristics which make the regulation of them appropriate. The generation and retail sale of electricity, on the other hand, can be efficient in the competitive environment as a result of the reforms introduced by the EPIRA. The privatization of NPC involves the sale of the state-owned power generation and transmission assets (e.g. power plants and transmission facilities) to private investors.