Akpabio Criticizes DisCos for Failing Nigerians

“Senate President Godswill Akpabio expresses disappointment in Nigeria’s electricity distribution companies (DisCos), citing their failure to meet public expectations. Learn more about his remarks.”

On Thursday, the Senate conveyed its disappointment with the performance of Nigeria’s electricity Distribution Companies (Discos) and the Transmission Company of Nigeria (TCN) following the privatization of the power sector.

The upper chamber criticized the privatization of the power sector as a failure and threatened to introduce legislative actions to reverse the policy.

This was created when Senator Eyinnaya Abaribe, the Chairman of the Senate Committee on Power, submitted his report for review.

During the debate, he pointed out that the Discos have mostly been unsuccessful in providing Nigerians with reliable electricity. This raised concerns about whether the 2013 privatization program, intended to enhance power supply through private sector participation, has been effective.

In his presentation of the report, Abaribe emphasized the financial losses that occur with each grid collapse.

He stated that restarting a power plant costs about $7.5 million. When three plants are operational, the total cost for each grid collapse reaches $25 million.

The Senate held a heated debate regarding the ongoing failures of the national grid and inefficiencies within Nigeria’s power sector. Senators voiced significant frustration about the nation’s electricity distribution issues and privatization policies.

Senate President Godswill Akpabio, on his part, criticized the privatization of the power sector and questioned its efficiency.

He observed that although privatization has occurred, distribution companies (DISCOs) still struggle to meet consumer demands, resulting in a decline in service quality.

Akpabio questioned why governors and individuals are required to purchase transformers, hand them over to Discos, and still cover the installation costs.

Osita Izunaso and other lawmakers proposed declaring a state of emergency in the sector, stressing that the existing inefficiencies are unacceptable.

Adams Oshiomhole expressed regret for his prior support of privatization, describing the process as “ill-conceived and poorly executed.”

He expressed regret that consumers must pay for services they do not receive.

The motion was later withdrawn to enable the development of actionable and thorough recommendations.

The senate decided to broaden the investigation’s scope to examine how funds invested in the power sector over the past 10-20 years have been utilized. This includes reviewing why Distribution Companies (DisCos) are underperforming and not fulfilling their obligations to consumers, addressing frequent grid collapses, and considering revoking privatization laws of the power sector.

The Senate Committee on Power was subsequently assigned a six-week deadline to formulate enhanced recommendations regarding the non-functionality of DISCOs and the TCN.