The Nigerian Senate on Thursday criticized the privatization of the power sector, labeling it a failure, and threatened to introduce legislative measures to reverse the policy. This came during the presentation of a report by Senator Eyinnaya Abaribe, Chairman of the Senate Committee on Power, highlighting the underperformance of electricity Distribution Companies (DisCos) and the Transmission Company of Nigeria (TCN).
Senator Abaribe’s report detailed the persistent inefficiencies plaguing the power sector, particularly the frequent national grid collapses and their financial impact. He revealed that restarting a power plant costs about $7.5 million, and with three plants in operation, the total cost of a grid collapse amounts to $25 million.
The Senate engaged in a heated debate, with lawmakers voicing frustration over the inability of DisCos to deliver reliable electricity since the sector’s privatization in 2013. Senate President Godswill Akpabio criticized the policy’s failure to improve service quality, questioning why consumers are burdened with costs such as purchasing and installing transformers for the DisCos.
“Why do governors and individuals have to buy transformers, hand them over to DisCos, and still pay for installation?” Akpabio asked, emphasizing the disconnection between privatization promises and realities.
Senator Adams Oshiomhole expressed regret over his prior support for privatization, calling it “ill-conceived and ill-executed,” and lamented that consumers pay for services they do not receive. Senator Osita Izunaso proposed declaring a state of emergency in the sector to address the pressing issues.
The Senate resolved to expand its investigation into the power sector to include:
•Probing funds injected into the sector over the past two decades and their utilization.
•Examining why DisCos are underperforming and failing to meet obligations.
•Addressing frequent grid collapses.
•Reviewing and potentially revoking the laws that established privatization.
The Senate Committee on Power has been given six weeks to develop actionable recommendations to address the inefficiencies in the power sector and improve its overall functionality.
