The Nigerian Senate has expressed deep concerns over what it described as the indirect enrichment of private electricity Distribution Companies (DISCOs) through the use of public funds, calling on the Federal Government to urgently review its approach to power sector interventions.
Speaking on the floor of the red chamber during Thursday’s plenary, Chairman of the Senate Committee on Environment, Senator Yunus Akintunde (APC – Oyo Central), criticised the ongoing practice of purchasing electricity transformers with government funds, only for the assets to be handed over to private distribution companies.
Senator Akintunde condemned the situation where government-funded transformers are installed in communities, but ownership automatically transfers to DISCOs upon energisation.
“When you buy a transformer with government funds and hand it over to a community, the DISCOs demand payment for installation. But the moment it is energised, it becomes their asset. That’s how public money ends up enriching private monopolies,” the lawmaker stated.
Describing the practice as unsustainable and unjust, he warned that such a trend not only defeats the purpose of public investment but also entrenches inequality in access to power supply.
Akintunde further argued in favour of a structured electricity subsidy regime, stressing that the idea of subsidising energy should not be discarded because of past inefficiencies.
“Electricity subsidies are not a Nigerian anomaly, they’re a global necessity. Even in advanced economies like the UK, energy is subsidised. We shouldn’t abandon the idea simply because of past abuses. Subsidies, when properly managed, drive growth and shield the poor,” he added.
The senator also pointed to what he described as a fundamental structural imbalance within Nigeria’s power sector, particularly the disconnect between privatised generation and distribution and government-controlled transmission.
He noted that the transmission infrastructure remains largely outdated and is unable to support modern power needs, thereby contributing to persistent energy supply failures across the country.
“If you check most transmission lines and substations, they’re outdated and incapable of handling modern power needs. That’s one of the biggest bottlenecks to reliable supply across the country,” Akintunde observed.
Senator Akintunde concluded by urging the Federal Government to rethink its intervention strategy in the power sector, insisting that it must prioritise policies that empower Nigerians, not private interests.
“This is not just about transformers, it’s about fixing a broken system. We must stop using public funds to empower private interests. Instead, we must empower Nigerians with affordable and reliable electricity,” he said.