Stop enriching Discos with public funds, Senate tells FG

The Nigerian Senate has called on the Federal Government to halt what it described as the continuous enrichment of electricity distribution companies (Discos) through the injection of public funds into their operations. The Senate made this resolution during plenary after heated deliberations on the state of the country’s power sector, which lawmakers say has failed to deliver a reliable electricity supply despite huge government interventions.

The lawmakers expressed frustration that over a decade after the privatisation of the power sector, the expected improvements in electricity generation, transmission, and distribution remain elusive, with ordinary Nigerians bearing the brunt of erratic power supply and frequent tariff hikes. Many senators argued that government bailouts to Discos amount to subsidising private businesses with taxpayers’ money without any commensurate benefit to the people.

Raising a motion on the floor, Senator Adamu Aliero (Kebbi Central) lamented that the Discos have continued to receive massive financial support from the Federal Government, including bailouts and intervention funds, yet still fail to meet performance benchmarks. He urged the Senate to prevail on the government to stop further disbursement of public funds to private power firms that have not demonstrated capacity to justify such support.

Supporting the motion, Senator Enyinnaya Abaribe (Abia South) said the failure of the power sector has become an embarrassment to the nation, stressing that Nigerians are tired of paying for darkness while a few private operators profit at public expense. He called for a thorough review of the power sector privatisation, insisting that it may be necessary to revisit the agreements that handed over critical national assets to companies that have allegedly failed to invest adequately in infrastructure upgrades.

Several lawmakers agreed that despite trillions of naira reportedly spent to stabilise the sector since 2013, blackouts, estimated billing, and energy theft persist, and there is little sign that the Discos are improving their operations to guarantee stable supply to consumers. They argued that continued government funding only encourages inefficiency and lack of accountability.

In its resolution, the Senate urged the Federal Government to channel resources instead towards strengthening the transmission network, investing in renewable energy, and providing direct support to communities for alternative power solutions such as mini-grids and off-grid systems. Lawmakers also advocated that regulators be more aggressive in enforcing existing service standards, tariff regulations, and metering requirements to protect consumers from exploitation.

The Senate further asked its committees on Power and Privatisation to investigate the utilisation of past interventions and bailouts given to the Discos and report back with recommendations for possible sanctions against defaulting companies.

Stakeholders in the power sector have long debated the effectiveness of government support for Discos, with critics arguing that the firms have failed to raise the necessary capital to expand and modernise ageing distribution networks. Industry experts suggest that without stronger regulation and stiffer penalties for non-performance, the sector will remain trapped in a cycle of inefficiency and poor service delivery.

Reacting to the Senate’s resolution, the Association of Nigerian Electricity Distributors (ANED) defended its members, insisting that challenges such as energy theft, non-cost-reflective tariffs, and infrastructure deficits hinder their performance. ANED called for a more collaborative approach, urging the government to address the entire value chain, from generation to distribution, and to ensure that Discos can recover investments through fair tariffs.

Meanwhile, Nigerians continue to grapple with high electricity costs, frequent outages, and estimated billing, with many households and businesses resorting to generators and alternative energy solutions to meet their power needs. Analysts warn that until the power sector is reformed to prioritise transparency, efficiency, and investment, the nation’s economic growth will remain stunted by inadequate electricity supply.

 

As debates continue, many citizens hope that the Senate’s push for greater accountability will lead to tangible changes that ensure Nigerians get value for the billions spent to keep the lights on.