Senate Slams Power Sector Privatization as Total Failure, Orders Comprehensive Probe

The Senate has launched an in-depth investigation into the performance of Nigeria’s power sector, condemning its privatization as a “total failure” and accusing operators of worsening the nation’s electricity crisis since 2013. The Senate described the privatization process as exploitative, with no tangible improvement in service delivery.

Senate President Godswill Akpabio expressed frustration at the plenary, declaring: “They have added no value at all.” Akpabio criticized the power sector operators, particularly the Distribution Companies (DisCos), for failing to invest in critical infrastructure, leaving citizens to bear additional costs.

“Why do state governors and communities buy transformers, hand them over to DisCos, and still pay for installation?” Akpabio asked. “The people who took over (the power sector) are just making money from those transformers, and they are not adding value at all.”

He suggested reversing the privatization policy, stating, “We can make the laws, we can reverse the laws, and ask the Federal Government to take back those things from them.”

Senate Committee to Probe Power Sector

The Senate directed its Committee on Power, chaired by Senator Enyinnaya Abaribe (APGA, Abia South), to conduct a comprehensive investigation into the challenges plaguing the sector. The committee was tasked with exploring recommendations, including potentially reversing the privatization policy and declaring an emergency in the power sector.

In his report, Abaribe outlined the persistent issues contributing to frequent grid collapses, including aging infrastructure, abandoned projects, regulatory inefficiencies, security lapses, and the absence of modern monitoring systems like Supervisory Control and Data Acquisition (SCADA).

Abaribe disclosed alarming financial implications of grid failures, stating, “Whenever a plant is shut down, restarting it—called a black start—costs far more than running the plant. For example, while it costs $105,000 to run a plant like Azura, Delta, or Shiroro, restarting can cost $7 million per incident. These collapses have cost Nigeria an estimated ₦42.5 billion for just three plants.”

He added, “The national grid, which is over 50 years old, is outdated and urgently needs modernization to meet current operational standards.”

Calls for Accountability and Policy Review

Senators across party lines criticized the privatization framework. Senator Adams Oshiomhole (APC, Edo North) described it as a deeply flawed policy that exploits Nigerians.

“The DisCos are out for profit, while they make our people suffer,” Oshiomhole said. He shared a personal experience of buying and installing a transformer at his expense, only for it to be claimed by the Abuja Electricity Distribution Company (AEDC).

“We have to revisit this ill-advised privatization. We will advise Mr. President, in line with his Renewed Hope Agenda, to review the power sector privatization,” Oshiomhole added.

Senator Abdul Ningi (PDP, Bauchi Central) lamented the absence of accountability in the sector, which he argued has perpetuated inefficiencies. “Over the years, nobody has been punished for the lapses in the power sector. Reports alone, without sanctions, will not allow Nigeria to make any headway,” he said.

Next Steps

Following heated debates, the Senate resolved to give Abaribe’s committee six additional weeks to conduct a holistic investigation and report back for further legislative action.

The Senate’s inquiry underscores growing dissatisfaction with the performance of the privatized power sector, as lawmakers push for reforms to address Nigeria’s enduring electricity challenges.