Senate President Godswill Akpabio is dissatisfied with the privatization of the power sector, stating that the Distribution Companies (Discos) and the Transmission Company of Nigeria (TCN), have failed Nigerians.
On Thursday, the senate described the privatization of the power sector as a failure, while threatening to initiate legislative measures, to reverse the policy.
This was the stance of Chairman of the Senate Committee on Power, Senator Eyinnaya Abaribe, submitted his report for consideration.
During the debate, he noted that the Discos have largely failed to deliver reliable electricity to Nigerians. This sparked concerns about the effectiveness of the 2013 privatization program, which aimed to improve power supply through private sector involvement.
In his report presentation, Abaribe highlighted the financial losses incurred each time the grid collapses.
According to him, restarting a power plant costs approximately $7.5 million. With three plants in operation, the total cost per grid collapse amounts to $25 million.
The Senate engaged in an intense debate over the persistent collapse of the national grid and inefficiencies in Nigeria’s power sector, with senators expressing deep frustration over the state of the country’s electricity distribution and privatization policies.
On his part, Senate President, Godswill Akpabio, criticized the privatization of the power sector, questioning its efficiency.
He noted that despite privatization, distribution companies (DISCOs) are unable to meet consumer demands, leading to deteriorating service quality.
“Why do governors and individuals have to buy transformers and then hand over to Discos and still pay for installation?” Akpabio queried.
Other lawmakers like Osita Izunaso suggested declaring a state of emergency in the sector, emphasizing that the current inefficiencies should not be tolerated.
However, Adams Oshiomhole, expressed regret over his earlier support for privatization, describing the process as “ill-conceived and ill-executed.”
He lamented the fact that consumers are forced to pay for services not rendered.
The motion was subsequently withdrawn to allow for actionable and comprehensive recommendations.
The senate resolved to expand the scope of investigation to include the probe of funds injected into the power sector over the past 10-20 years to determine their utilization; a review of why DisCos are underperforming and failing to meet their obligations to consumers; answers to the frequent grid collapses and revoking the laws that established privatization of the power sector.
The Senate Committee on Power was thereafter given six weeks to develop improved recommendations concerning the non-functionality of DISCOs and the TCN.
