All around the world, monopolies limit the incentive for companies to innovate and satisfy consumers.
Nigerians are all too familiar with the disadvantages of monopoly power.
We see it in the electricity sector.
Although we have largely relinquished government control of our electricity industry, power distribution is still a monopoly with various distributors monopolising energy supply in their own regions.
The result is that many consumers are paying electricity bills in excess of what they consume due to inefficiencies in the sector. These customers have no choice but to pay because there is no reasonable alternative.
Ideally, consumers would be able to switch electricity retailers if they were not satisfied with the service. Just like what happened in the Texas electricity sector. Texas de-monopolised the sector in 2002, opening it up to over 25 companies.
Within seven years, over 85% of Texan consumers had switched electricity providers at least once.