The Senate, under the leadership of Godswill Akpabio, has accused Generating Companies (GenCos), the Transmission Company of Nigeria (TCN), and Distribution Companies (DisCos) of incompetence following persistent power supply issues since the sector’s privatisation in 2013.
The Senate cited frequent grid collapses across the country as evidence of failures by GenCos, TCN, and DisCos, and threatened to reverse the privatisation policy.
Speaking on behalf of the legislative arm of government, Senate President Godswill Akpabio criticised the companies for their lack of impact on the nation’s economy, stating, “They have added no value at all.”
He questioned the ongoing inefficiencies, asking, “Why do state governors and communities buy transformers, hand them over to DisCos, and still pay for installation?”
Akpabio further remarked, “The people who took over the power sector are just profiting from these transformers without adding value.”
He expressed dissatisfaction with the privatisation process, adding, “Why do we hand over GenCos when the TCN can’t transmit what they generate? Why are DisCos not investing in transformers, yet Nigerians have to pay for transformers they purchase themselves?”
The Senate President warned the GenCos, TCN, and DisCos of a potential reversal of the privatisation policy, emphasizing that the Federal Government may take back control of the power sector to align its operations with the current administration’s economic development goals.
The Senate underscored the importance of the electricity sector as a critical driver of economic growth, powering industries, supporting businesses, enhancing productivity, and improving living standards. “The sector must function effectively,” Akpabio stressed.
Among the issues raised by the lawmakers was the recurring grid collapse, which has cost the nation approximately $25 million (₦42 billion) to restart the country’s three generating plants.
Investors King reported that frequent grid collapses have significantly harmed Nigeria’s economy, primarily due to the rising costs of petroleum and diesel. These collapses force businesses to rely on expensive backup power sources, resulting in substantial financial losses.
