By Erewunmi Peace

The Nigerian Senate has issued a strong call to the Federal Government to stop the use of public funds for acquiring electricity infrastructure that is eventually handed over to privately-owned Electricity Distribution Companies (DisCos). Lawmakers described this as an act of public enrichment of private enterprises, urging urgent reforms in how the power sector is funded.

The motion was presented by Senator Yunus Akintunde (APC – Oyo Central), Chairman of the Senate Committee on Environment. He criticized the long-standing practice of government agencies—especially local councils and lawmakers—purchasing transformers, poles, and cables, only for them to become assets of private DisCos who then bill the public without bearing the cost of infrastructure

“This current arrangement, where the government buys power assets with taxpayers’ money only for private companies to claim ownership, is exploitative and unsustainable,” Senator Akintunde stated.

A Broken System

The Senator emphasized that the transmission segment of Nigeria’s power system remains publicly owned and underfunded, despite the privatization of generation and distribution. He noted that over 90% of the transmission equipment is outdated, hindering consistent power delivery and contributing to the nationwide energy crisis.

He proposed a structured subsidy system that directly supports the poor and ensures accountability, rather than funnelling public resources into private hands without oversight.

What the Senate Wants

The Senate urged the Federal Government to:

Immediately halt public procurement of power infrastructure for DisCos.

Amend the Electricity Act, to include clear roles and responsibilities regarding ownership and funding.

Establish regulatory checks to ensure DisCos invest in their infrastructure and improve service delivery.

Adopt a targeted subsidy model that prioritizes vulnerable communities and reduces wastage.

Why It Matters

Nigeria’s power sector has long faced criticism over inefficiency, corruption, and poor service delivery. Despite billions in investments and loans, electricity supply remains epileptic, with frequent blackouts, high tariffs, and slow infrastructure development.

This new motion by the Senate signals a push for transparency and fairness, holding private operators accountable while safeguarding public interest.