WATCH THE VIDEO HERE THE Senate today, expressed dissatisfaction with the performance of Nigeria’s electricity Distribution Companies (DisCos) and the Transmission Company of Nigeria (TCN) since the privatization of the power sector. The upper chamber labeled the privatization effort a failure and hinted at potential legislative actions to reverse the policy. This sentiment emerged as Senator Eyinnaya Abaribe, Chairman of the Senate Committee on Power, presented a report for consideration. During the debate, Abaribe noted that DisCos have largely failed to provide reliable electricity, raising concerns about the effectiveness of the 2013 privatization program, which aimed to enhance power supply through private sector involvement. He also highlighted the financial toll of grid collapses, revealing that restarting a power plant costs around $7.5 million, with total costs per collapse reaching $25 million when three plants are operational. The Senate engaged in a heated discussion on the persistent national grid collapses and inefficiencies in the power sector, with senators expressing frustration over the poor outcomes of privatization. Senate President Godswill Akpabio criticized the privatization process, questioning its effectiveness and pointing out that DisCos fail to meet consumer demands, resulting in declining service quality. He further asked, “Why do governors and individuals have to purchase transformers, hand them over to DisCos, and still bear the installation costs?” Other lawmakers, including Osita Izunaso, proposed declaring a state of emergency in the sector, while Adams Oshiomhole expressed regret over his initial support for privatization, calling it “ill-conceived and poorly executed.” Oshiomhole also decried the burden placed on consumers, who pay for services not provided. The motion was eventually withdrawn to enable actionable and comprehensive recommendations. The Senate resolved to broaden its investigation to include: A review of funds injected into the power sector over the past 10-20 years and their utilization. An examination of why DisCos are underperforming and failing to meet consumer needs. An inquiry into the frequent grid collapses. A reassessment of the laws underpinning power sector privatization. Meanwhile, the Senate Committee on Power was given six weeks to develop enhanced recommendations addressing the inefficiencies of DisCos and TCN.
DisCos have failed – Akpabio
