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Senate Declares Power Sector Privatization A Failure, Initiates Investigation
The Senate has launched an investigation into the operations of Generation Companies (GenCos), the Transmission Company of Nigeria (TCN), and Distribution Companies (DisCos), citing their failure to provide reliable electricity. Lawmakers criticized the privatization of the power sector since 2013, labeling it a “total failure” and asserting that these entities have failed to contribute any substantial value.....KINDLY READ THE FULL STORY HERE▶
Chaired by Senator Enyinnaya Abaribe, the Senate Committee on Power has been tasked with a thorough inquiry. The committee aims to identify problems within the sector, propose measures to potentially reverse the privatization, and explore the possibility of declaring a state of emergency, with findings expected to be presented in six weeks.
Frustration Expressed by Senate President
Senate President Godswill Akpabio voiced his dissatisfaction with the power sector operators, accusing them of exacerbating Nigeria’s electricity issues. “They have added no value at all,” he lamented, criticizing the trend of communities and state governments providing transformers that DisCos then take over without necessary investments.
Akpabio questioned, “Why do state governors and communities purchase transformers, hand them over to DisCos, and still pay for installation?” He added, “The individuals who took over the power sector are simply profiting from these transformers without delivering any real value.”
He continued, questioning the rationale behind handing over GenCos when the TCN is unable to transmit the power they produce and why DisCos are not investing in needed infrastructure. “We can amend laws and ask the Federal Government to reclaim these assets from them,” Akpabio stated.
Critique of Privatization
Senator Abaribe highlighted the frequent collapses of the national grid, attributing them to aging infrastructure, neglected projects, regulatory shortcomings, and a lack of modern monitoring systems. Notably, he reported that the national grid has collapsed 105 times in the last decade, costing Nigeria approximately ₦42 billion in restart expenses for key power plants, including Azura, Delta, and Shiroro.
Abaribe stressed the urgent need for modernizing Nigeria’s outdated 50-year-old grid to meet contemporary demands. He pointed out that the costs associated with restarting plants after shutdowns are significantly higher than simply running them, indicating a deeper inefficiency.
“Aging infrastructure is a major contributor to frequent grid failures. Many grid components are outdated and have not received the necessary maintenance, making them more susceptible to breakdowns,” Abaribe elaborated.
Demands for Reform
Senator Adams Oshiomhole condemned the privatization policy as flawed and exploitative, emphasizing that DisCos profit while Nigerians endure suffering. He shared a personal story of paying for and installing a transformer that ultimately became the property of the Abuja Electricity Distribution Company (AEDC). “DisCos are focused on profit while leaving our citizens in distress. It’s shocking that a private entity can charge for services not provided, leaving Nigerians powerless,” Oshiomhole remarked.
He called for a reassessment of the privatization policy within the framework of the administration’s “Renewed Hope Agenda.” Senator Abdul Ningi echoed the need for accountability, arguing that the absence of penalties for failures in the sector perpetuates inefficiencies. “Without consequences, the issues will persist. Reports alone won’t drive real change,” Ningi stated.
Ultimately, the Senate postponed approval of the committee’s report, allowing an additional six weeks for further investigation and actionable recommendations.
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