Senate Criticizes Power Sector Privatization, Threatens Reversal Over DisCos and TCN Inefficiencies
The Senate has expressed dissatisfaction with the performance of Nigeria’s electricity distribution companies (DisCos) and the Transmission Company of Nigeria (TCN), raising serious concerns about the country’s 2013 power sector privatization.
The upper legislative chamber has described the privatization process as a failure, suggesting the possibility of reversing the policy through legislative intervention.
This sentiment was made clear during the presentation of a report by Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, detailing the underperformance of DisCos and TCN. Abaribe emphasized that DisCos have largely failed to provide reliable electricity to Nigerians, undermining the original goals of privatization.
Privatization Under Scrutiny
The 2013 privatization of the power sector aimed to improve electricity generation and distribution by involving the private sector. However, the Senate’s deliberations highlighted the inability of DisCos to deliver quality services and the frequent collapse of the national power grid, which continues to hinder electricity supply.
In his report, Senator Abaribe drew attention to the financial implications of grid collapses. Restarting a power plant after a grid collapse costs approximately $7.5 million, and with three plants operating, the total cost per incident reaches $25 million. These recurring expenses, he noted, are a significant drain on the nation’s resources.
Senate Debates Worsening Power Supply
Senators engaged in a heated debate over the persistent inefficiencies in Nigeria’s power sector, expressing deep frustration with the current state of electricity distribution. Many lawmakers criticized the privatization process for failing to achieve its objectives, with Senate President Godswill Akpabio questioning its effectiveness.
Akpabio pointed out that despite privatization, DisCos are still unable to meet consumer demands. He criticized the practice of forcing governors and private individuals to procure and install transformers for communities, only for the DisCos to take ownership without providing adequate services.
“Why do governors and individuals have to buy transformers, hand them over to DisCos, and still pay for installation? This makes no sense,” Akpabio said.
Oshiomhole Reflects on Mistakes
Senator Adams Oshiomhole (Edo North), who had initially supported privatization, expressed regret over his stance. He described the process as poorly planned and executed, leaving Nigerian consumers to bear the burden of paying for electricity services that are often not rendered.
Oshiomhole lamented the inefficiencies that have left many Nigerians without reliable power supply, calling for a re-evaluation of the privatization policy to ensure accountability and better service delivery.
Next Steps for the Senate
While the Senate discussed the possibility of reversing the privatization policy, the motion was withdrawn to allow for a more actionable and comprehensive set of recommendations. The Senate Committee on Power has been tasked with developing these recommendations within six weeks to address the non-functionality of the DisCos and TCN.
Public Concerns and Implications
The Senate’s deliberations have reignited public discourse about the challenges facing Nigeria’s power sector. The privatization, once hailed as a solution to decades of electricity woes, has failed to meet expectations, leaving millions of Nigerians in darkness and businesses struggling to survive.
The inefficiencies in the power sector have also had broader economic consequences, stifling industrial growth and increasing the cost of doing business. The frequent grid collapses and inadequate infrastructure continue to raise questions about the viability of private sector involvement in critical national utilities.
As the Senate Committee on Power prepares its recommendations, there is growing pressure on lawmakers to address the root causes of the sector’s failure and chart a new course that ensures reliable and affordable electricity for all Nigerians. Whether through policy reversal, stricter regulation, or a complete overhaul of the system, the need for urgent reform has never been more critical.
The coming weeks will determine the Senate’s approach to resolving these longstanding issues, as Nigerians await tangible solutions to the power crisis that has plagued the nation for decades.
