Abstract

This paper explores politics on the consumer side and how they shape the electricity market within the Nigerian context. Using mixed method approach, quantitative data from news reports and government records, together with informal interviews of some targeted energy consumers were used to gain understanding on the motives of political consumption in Nigeria's electricity sector. The study reveals that there are four salient energy consumer groups in Nigeria categorized based on their willingness-to-pay and ability-to-pay for electricity bills. The study further reveals the origins and evolution of unwillingness-to-pay for electricity by certain consumer groups and their impact on the workings and development of the Nigerian electricity market. The study concludes by stressing the importance of value-added services by energy businesses as a way to start to engage with customers which leads to the establishment of trust and a gradual transition to a customer-driven energy future.