The Senate had expressed displeasure at the performance of Nigeria’s electricity distribution companies, otherwise known as DisCos, and the Transmission Company of Nigeria, TCN, since the privatisation of the power sector.
This is as the Red Chamber of the National Assembly described the privatisation of the power sector as a failure, while threatening to initiate legislative measures to reverse the policy.
The Senate said this when the chairman of the Committee on Power, Senator Eyinnaya Abaribe, submitted his report for consideration.
Abaribe explained that the DisCos have largely failed to deliver reliable electricity to Nigerians.
This triggered concerns about the effectiveness of the 2013 privatisation program, which aimed to improve power supply through private sector involvement.
In his report presentation, the lawmaker 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 privatisation policies.
On his part, Senate President, Godswill Akpabio, criticised the privatisation of the power sector, questioning its efficiency.
He noted that despite privatisation, distribution companies 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.
Speaking, Adams Oshiomhole (Edo North) expressed regret over his earlier support for privatisation, 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The motion was subsequently withdrawn to allow for actionable and comprehensive recommendations.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 Committee on Power was thereafter given six weeks to develop improved recommendations concerning the non-functionality of DisCos and TCN.