The Senate has urged the Federal Government to halt the use of public funds to indirectly enrich private electricity distribution companies, calling for a more equitable approach to managing the power sector.
Speaking during Thursday’s plenary, Chairman of the Senate Committee on Environment, Senator Yunus Akintunde (APC – Oyo Central), criticised the practice of using government resources to purchase electricity transformers for communities, only for the assets to be taken over by DisCos.
“When you buy a transformer with public funds and hand it over to a community, the DisCos still demand payment for installation. The moment it is energised, it becomes their asset. That’s how public money ends up enriching private monopolies,” Akintunde said.
He described the arrangement as unsustainable and unfair, urging the government to develop a structured subsidy regime that truly benefits ordinary Nigerians rather than private operators.
“Electricity subsidies are a global necessity, not a Nigerian anomaly. Even in advanced economies like the UK, energy is subsidised to protect vulnerable populations and drive growth. We shouldn’t abandon subsidies because of past abuses; instead, we should manage them effectively,” he stated.
Akintunde also highlighted structural imbalances in Nigeria’s power sector, noting that while generation and distribution have been privatised, transmission remains under government control with outdated infrastructure that limits reliable power supply.
“Most of our transmission lines and substations are obsolete and cannot handle modern power needs. This is one of the biggest bottlenecks to consistent electricity across the country.
“This issue is bigger than just transformers; it’s about fixing a broken system. We must stop using public funds to empower private interests and instead focus on delivering affordable and reliable electricity to Nigerians,” he warned.
