Power Scam? Senate Blasts DisCos Over Billions In Public Funds, Demands Urgent Overhaul

The Nigerian Senate has raised alarm over what it termed the indirect enrichment of private electricity Distribution Companies (DisCos) through the use of government funds. Lawmakers are now urging the Federal Government to urgently reassess its strategy for intervening in the power sector.....KINDLY READ THE FULL STORY HERE▶

During Thursday’s plenary, Senator Yunus Akintunde (APC – Oyo Central), Chairman of the Senate Committee on Environment, criticized the practice of using public funds to procure electricity transformers, which are then handed over to private DisCos as assets.

He lamented the arrangement where government-purchased transformers, once installed and powered, automatically become the property of DisCos—even though the companies charge communities for installation.

“When a transformer is bought with public funds and handed to a community, DisCos still collect fees to install them. But once energized, the asset becomes theirs. This effectively means public money is boosting private monopolies,” Akintunde said.

Calling the trend unsustainable and unfair, the senator stressed that such practices undermine the intent of public investment and worsen inequality in electricity access.

Akintunde also made a case for a well-structured electricity subsidy program, noting that energy subsidies are a global norm and not unique to Nigeria.

“Subsidies aren’t a Nigerian problem; they’re used even in advanced economies like the UK. The issue isn’t the idea of subsidies, but how they’re implemented. Properly managed subsidies can promote growth and protect the poor,” he stated.

He further highlighted structural flaws in the power sector, particularly the misalignment between privatised generation and distribution on one side, and government-owned transmission on the other. According to him, Nigeria’s transmission network is outdated and ill-equipped to meet present-day demands.

“Most of our transmission lines and substations are obsolete. That’s one of the main reasons for frequent power failures across the country,” he added.

Senator Akintunde concluded by calling on the Federal Government to overhaul its intervention strategy and shift focus from supporting private players to empowering ordinary Nigerians.

“This issue goes beyond just transformers. It’s about overhauling a flawed system. We must stop using public funds to prop up private interests. Instead, let’s give Nigerians access to affordable, dependable electricity,” he declared.