Senate warns FG against enriching DisCos with private funds

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Kaduna DisCo threatens to disconnect customers over unpaid bills

The Nigerian Senate has urged the Federal Government to halt what it describes as the indirect enrichment of private electricity distribution companies through the use of public funds.

Raising the concern during Thursday’s plenary, Chairman of the Senate Committee on Environment, Senator Yunus Akintunde (APC – Oyo Central), condemned the current model where government-funded electricity transformers are handed over to communities, only for DISCOs to claim ownership once they are energised.

“When you buy a transformer with taxpayers’ money and hand it over to a community, DISCOs still demand installation fees. Once the equipment is powered, it becomes their asset,” Akintunde said.

“This process amounts to using government funds to boost private monopolies.”

He described the situation as “unsustainable and unfair,” calling for a shift in the government’s power subsidy approach to ensure that it truly benefits the Nigerian people.

“Subsidies are not unique to Nigeria—they’re a global practice,” he added. “Countries like the UK still subsidise electricity. The problem is not the subsidy itself, but how it is implemented. A properly managed subsidy regime can protect the poor and support economic growth.”

Senator Akintunde also highlighted a deeper issue within the sector, pointing out a critical imbalance in Nigeria’s electricity framework.

He stressed that while generation and distribution have been handed to private players, the government still controls transmission—which remains outdated and inefficient.

“Many of our transmission lines and substations are obsolete. They cannot handle the power needs of a growing economy. This is a major barrier to stable electricity supply,” he noted.

He called for a holistic overhaul of the power sector, urging the government to invest in modern infrastructure rather than continuing to channel public resources into a structure that primarily profits private interests.

“This isn’t just about transformers. It’s about correcting a flawed system. We must stop empowering private companies with public funds and instead focus on empowering Nigerians with consistent and affordable electricity,” he concluded.

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