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Senate Fires Warning Shot: Stop Bankrolling Inefficient DISCOs With Taxpayer Money
The Senate has urged the Federal Government to reassess its strategy for the power sector, particularly the ongoing practice of indirectly enriching private electricity distribution companies (DISCOs) with taxpayer funds.....KINDLY READ THE FULL STORY HERE▶
Chairman of the Senate Committee on Environment, Senator Yunus Akintunde (APC – Oyo Central), raised the concern during plenary on Thursday.
Speaking on the Senate floor, Akintunde criticised the government’s continued funding of electricity infrastructure—such as transformers—for communities, only for the assets to be absorbed by private DISCOs.
“When transformers are purchased with public funds and handed over to communities, DISCOs still demand installation fees. Yet, once powered, those transformers become their property. This is how public resources end up boosting private monopolies,” Akintunde lamented.
He described the practice as both unfair and unsustainable, urging the Federal Government to adopt a well-defined subsidy policy that genuinely serves the interests of everyday Nigerians.
“Energy subsidies are not unique to Nigeria—they’re a global phenomenon. Even developed nations like the UK subsidise energy. What we need is a system that’s transparent and efficiently managed, not the total abandonment of subsidies because of past mismanagement,” he said.
Akintunde also highlighted a structural flaw in Nigeria’s electricity sector, noting that while generation and distribution have been privatised, the government still controls a largely outdated and inefficient transmission network.
“Most transmission lines and substations are obsolete and ill-equipped to meet today’s power demands. This remains one of the major roadblocks to stable electricity across Nigeria,” he said.
“This goes beyond transformer distribution—it’s about fixing a dysfunctional system. We must stop funnelling public money into private hands and instead focus on delivering reliable, affordable power to Nigerians,” the senator concluded.
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