Senate Urges FG to Stop Using Public Funds to Bail Out Discos

The Senate has urged the Federal Government to reconsider its strategy regarding the power sector, advocating for an end to the indirect benefit that private electricity distribution companies receive from public funds.

Senator Yunus Abiodun Akintunde, the Chairman of the Senate Committee on the Environment (APC – Oyo Central), shared this viewpoint during a session on Thursday.

While addressing his fellow senators, he criticized the existing situation in which government resources are spent on buying electricity transformers for communities, only for those assets to be claimed by the distribution companies (Discos).

“When the government funds a transformer and gives it to a community, the DisCos will ask for payment to install it,” lamented Akintunde. “However, as soon as it is powered up, it becomes theirs. This is how taxpayer money enriches private monopolies.”

As the first Nigerian with a PhD in Energy and Environmental Studies, he deemed this situation unsustainable and unfair, stressing the need for the government to create a clear subsidy program that genuinely benefits everyday Nigerians.

“Electricity subsidies aren’t unique to Nigeria—they are necessary worldwide,” he pointed out. “Even in developed countries like the UK, energy receives subsidies. We shouldn’t discard this idea just because of previous misuses. When managed well, subsidies can foster growth and support the less fortunate.”

The senator also highlighted what he referred to as a critical structural issue in Nigeria’s power industry. He explained that even though generation and distribution have been privatized, the government continues to control the outdated transmission system, which he classified as inefficient and insufficient.

“Most transmission lines and substations are old and unable to meet today’s power demands. This presents a major obstacle to consistent electricity supply throughout the nation.

“It’s not solely about transformers—it’s about repairing a flawed system. We need to cease the use of public resources to benefit private entities. Instead, we ought to ensure that Nigerians have access to affordable and reliable electricity,” he cautioned.