Senate to FG: Stop Using Taxpayers Money to Enrich Private DISCOs—Fix Nigeria’s Power Sector Instead
The Senate has called on the Federal Government to halt the use of public funds in supporting private electricity distribution companies (DISCOs), describing the current approach as both unjust and unsustainable.
The issue was raised on Thursday by Senator Yunus Akintunde (APC, Oyo Central), Chairman of the Senate Committee on Environment. He criticised the continued government financing of electricity infrastructure that eventually benefits profit-driven private operators.
According to Akintunde, when the government purchases transformers and provides them to communities, DISCOs demand payment for their installation. However, once the equipment is energised, it is claimed as a DISCO asset.
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“That’s how public money ends up enriching private monopolies,” he stated, condemning the model as a systemic flaw in Nigeria’s power sector.
He advocated for a new subsidy regime that prioritises public interest rather than corporate profits.
“Electricity subsidies are not unique to Nigeria—they’re a global necessity,” Akintunde noted. “Even developed nations like the UK subsidise energy. We should not discard the idea due to past mismanagement. Properly administered, subsidies can drive economic growth and protect vulnerable populations.”
The Senator also highlighted a deeper structural problem in the sector. While electricity generation and distribution are privatised, transmission remains under government control—a framework he described as outdated and detrimental to nationwide power stability.
“Most transmission lines and substations are obsolete and cannot support modern power demands. This is one of the major obstacles to consistent electricity supply across the country,” he said.
Akintunde stressed that the core issue goes beyond equipment procurement, pointing instead to a need for systemic reform that prioritises public welfare over private interests.
“This is not just about transformers. It’s about repairing a broken system. We must stop using public resources to strengthen private enterprises. Instead, we need to focus on delivering affordable and reliable electricity to Nigerians.”
The Senate’s position reflects growing public discontent over persistent power outages and rising energy costs, despite substantial annual government spending on the electricity sector.
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