The Senate has criticised the privatisation of Nigeria’s power sector, describing it as a failure and threatening to take legislative measures to reverse the policy.

This resolution was reached during Thursday’s plenary following the submission of a report by Senator Eyinnaya Abaribe, Chairman of the Senate Committee on Power. The report highlighted the inefficiencies of electricity Distribution Companies (DisCos) and the Transmission Company of Nigeria (TCN) in meeting consumer needs since the sector’s privatisation in 2013.

Senator Abaribe noted that DisCos have failed to provide reliable electricity, sparking concerns over the effectiveness of the privatisation programme. He revealed that each grid collapse costs the country approximately $25 million, citing financial losses incurred in restarting power plants.

During the debate, Senate President Godswill Akpabio criticised the inefficiencies in the privatisation process.
“Why must governors and private individuals buy transformers, hand them over to DisCos, and still pay for installation?” Akpabio queried.

Other lawmakers voiced frustration, with Senator Osita Izunaso suggesting that a state of emergency be declared in the sector. Meanwhile, Senator Adams Oshiomhole, who had previously supported privatisation, described the process as “ill-conceived and poorly executed.” He expressed regret, noting that consumers continue to pay for services they do not receive.

The Senate resolved to expand its investigation into the power sector, including probing the utilisation of funds injected over the past two decades, examining the reasons for DisCos’ underperformance, and addressing frequent grid collapses. It also called for a review of the laws establishing the privatisation policy.

A special Senate committee has been tasked with conducting this investigation and developing actionable recommendations within six weeks.