The Nigerian Senate has announced its intention to withdraw the privatization policy of the power sector, declaring a state of emergency due to the industry’s failure to meet the nation’s power supply demands.
The Senate referred the matter to the Committee on Power for further investigation, directing it to report back with findings within six weeks.
Lawmakers harshly criticized the privatization policy, introduced in 2013, labeling it a “total failure.” They described operators of Generation Companies (GenCos), the Transmission Company of Nigeria (TCN), and Distribution Companies (DisCos) as ineffective and accused them of worsening the country’s power crisis.
During a heated plenary session on Thursday, Senate President Godswill Akpabio expressed frustration over the inability of power operators to deliver value. He highlighted instances where citizens and state governments were forced to fund and install transformers, only for DisCos to claim ownership.
“The people who took over the sector are just making money without adding value. We must act decisively to fix this failing system,” Akpabio stated.
The Senate Committee on Power, led by Senator Enyinnaya Abaribe, presented a report revealing that Nigeria’s national grid had collapsed 105 times in the past decade. Restarting the grid after such incidents costs approximately $25 million (₦42.5 billion) per collapse. The report also pointed to aging infrastructure, abandoned projects, and the absence of Supervisory Control and Data Acquisition (SCADA) systems as key contributors to the failures.
Senator Adams Oshiomhole described the privatization policy as exploitative and flawed, calling for a comprehensive review to align with the current administration’s “Renewed Hope Agenda.” Similarly, Senator Abdul Ningi emphasized the need for accountability and sanctions to address lapses in the sector and drive meaningful reform.
The Senate’s decision underscores growing discontent with the power sector’s performance and signals a push for transformative changes to meet the country’s energy demands.
