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Senate Calls for Reassessment of Nigeria's Power Sector Strategy

POSTED ON July 11, 2025 •   BUSINESS & ECONOMY      BY Abiodun Saheed Omodara
Electricity Grid

The Senate has urged the Federal Government to reconsider its strategy regarding the power sector, advocating for an end to the indirect enrichment of private electricity distribution firms with taxpayer money.

Senator Yunus Abiodun Akintunde (APC – Oyo Central), who chairs the Senate Committee on the Environment, made this statement during the plenary session on Thursday.

He criticized the existing practice of utilizing public funds to purchase electricity transformers for communities, only for these assets to be controlled by Discos.

“When you buy a transformer with government money and give it to a community, the DisCos expect payment for its installation,” Akintunde expressed.

“However, once it is powered up, it becomes their property. That’s how public funds enrich private monopolies.”

The senator, who is Nigeria’s first PhD holder in Energy and Environmental Studies, labeled this trend as unsustainable and unfair, stressing the need for the government to establish a structured subsidy system that genuinely benefits ordinary Nigerians.

“Electricity subsidies are not unique to Nigeria—they are a global necessity,” he remarked. “Even in developed countries like the UK, energy is subsidized. We shouldn’t dismiss the idea just because of past mismanagement. When properly managed, subsidies can promote growth and protect the underprivileged.”

The senator also highlighted a critical structural imbalance within Nigeria’s power sector.

He pointed out that while generation and distribution have been privatized, the government continues to control the outdated transmission infrastructure, which he described as underutilized and insufficient.

“If you examine most transmission lines and substations, they are outdated and unable to meet modern power demands. This is one of the major obstacles to reliable supply throughout the country.

“This issue extends beyond just transformers—it is about repairing a flawed system. We must discontinue using public funds to benefit private entities. Instead, we should empower Nigerians with affordable and dependable electricity,” he cautioned.

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