The Nigerian Senate has issued a stern warning to the Federal Government over its continued use of public funds to support private electricity distribution companies (DisCos), describing the practice as exploitative and unsustainable.
During plenary on Thursday, the Chairman of the Senate Committee on the Environment, Senator Yunus Abiodun Akintunde (APC – Oyo Central), raised alarm over what he termed an “unjust enrichment of DisCos” through the direct purchase and donation of infrastructure such as transformers with taxpayers’ money—assets which eventually end up under the ownership of private distribution companies.
Akintunde, Nigeria’s first PhD holder in Energy and Environmental Studies, condemned the prevailing model where communities, using government-funded or constituency-provided transformers, are subsequently forced to pay DisCos for installation and connection services—only for those assets to be absorbed into the balance sheets of the electricity firms.
“When you buy a transformer with government funds and hand it over to a community, the DisCos demand payment for installation,” he stated. “But the moment it is energised, it becomes their asset. That’s how public money ends up enriching private monopolies.”
This, according to the senator, not only undermines fiscal transparency but also shortchanges Nigerian taxpayers who are essentially subsidizing private monopolies without any legal framework to guarantee equitable returns or service improvements.
The lawmaker further highlighted deep-rooted issues in Nigeria’s power sector. He noted that although the generation and distribution arms of the electricity value chain have been privatised, the transmission infrastructure remains under government control, creating a disconnect that hampers efficient delivery and power reliability.
“Most transmission lines and substations are outdated and incapable of handling modern power needs,” Akintunde said. “That’s one of the biggest bottlenecks to a reliable power supply across the country.”
The senator emphasized that the current power structure is unbalanced and inefficient, with dilapidated transmission lines undermining whatever gains may have been made in generation capacity.
Addressing the contentious issue of energy subsidies, Senator Akintunde advocated for a structured and transparent subsidy regime, as opposed to complete subsidy elimination. He argued that energy subsidies, when well-managed, are essential tools to protect vulnerable citizens and stimulate growth.
“Electricity subsidies are not a Nigerian anomaly—they’re a global necessity,” he said. “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.”
The Senate’s criticism comes amid mounting frustration among Nigerians over poor power supply, rising electricity tariffs, and the continued failure of the privatization efforts to deliver meaningful improvements in service. The DisCos, often accused of inefficiency and exploitation, have frequently blamed poor transmission infrastructure and non-cost-reflective tariffs for their performance.
Akintunde’s remarks add to growing calls for a holistic reform of Nigeria’s power sector, one that prioritizes accountability, equitable asset management, and consumer protection over corporate enrichment.
“This is not just about transformers—it’s about fixing a broken system,” he concluded. “We must stop using public funds to empower private interests. Instead, we must empower Nigerians with affordable and reliable electricity.”
Over the years, government interventions in the power sector—such as the N701 billion Payment Assurance Guarantee and various liquidity support schemes—have failed to translate into improved service delivery for millions of Nigerians. Communities often resort to self-help measures, including funding the purchase of transformers, poles, and cables.
The Senate’s position now signals a possible legislative push to demand clearer ownership frameworks, asset audit trails, and perhaps restructured public-private partnerships that ensure accountability for every naira spent.