Application of Data Envelopment Analysis to the Evaluation of the Nigerian Electricity Company

Electricity distribution is vital for Nigeria’s economic growth, but it faces operational challenges. This study evaluates the performance of Nigerian electricity distribution companies from 2015 to 2022 using DEA models (CCR and BCC), Super-efficiency DEA, and the Malmquist Productivity Index (MPI) to assess efficiency and productivity changes. A two-phase DEA model incorporates environmental factors like regulations and economic conditions. The findings highlight Ikeja (IKEDC) and Eko (EKEDC) as top performers, while Enugu (EEDC) and Jos (JEDC) show declining productivity, requiring improvement measures. Benin (BEDC) and Kaduna (KEDC) demonstrate potential scale efficiencies under the BCC model. Some companies have improved efficiency, while others struggle due to mismanagement and outdated technology. Policy reforms, smart metering, and infrastructure investments are crucial for improving operational efficiency. Performance benchmarking and regular monitoring can help address inefficiencies. This research provides valuable insights for decision-makers and stakeholders aiming to enhance Nigeria’s electricity distribution sector. Keywords: Efficiency Analysis, Data Envelopment Analysis (DEA), Electricity Distribution Companies, Nigerian Power Sector, Operational Efficiency