Vol. 2006 No. 1 (2006)
Power-Distribution System Cost-Effectiveness Assessment in Nigeria: A Replication Study
Abstract
The power-distribution system in Nigeria is a critical infrastructure that supports various sectors including industry, agriculture, and residential living. Despite its importance, there are significant inefficiencies and cost overruns associated with current systems. The study employs a fixed effects model to estimate the impact of different types of power-distribution equipment on costs and efficiency, controlling for potential confounding variables such as geographic location and economic conditions. A key finding is that the use of high-efficiency transformers reduces overall system costs by approximately 15% compared to conventional models. This reduction was statistically significant with a $p$-value <0.05 (95% confidence interval: -20% to -6%). The replication study confirms the effectiveness of high-efficiency transformers in reducing power distribution system costs, providing robust evidence for policy and investment decisions. Policy makers should prioritise investments in high-efficiency transformer technology to enhance Nigeria's power-distribution systems' cost-effectiveness and reliability.