‘They Have Added No Value At All’

The Senate has launched an inquiry into the operations of Generation Companies (GenCos), the Transmission Company of Nigeria (TCN), and Distribution Companies (DisCos), citing their failure to deliver reliable electricity.

Lawmakers described the power sector as a “total failure” and criticized its operators for failing to add significant value since the 2013 privatization.

The Senate Committee on Power, chaired by Senator Enyinnaya Abaribe, has been tasked with conducting a comprehensive investigation.

The committee is to explore challenges in the sector, recommend measures to reverse privatization if necessary, and consider declaring a state of emergency. The committee will present its findings in six weeks.

Senate President Lashes Out

Senate President Godswill Akpabio expressed frustration with the power sector operators, accusing them of worsening Nigeria’s electricity challenges.

“They have added no value at all,” Akpabio lamented. He criticized the practice of communities and state governments providing transformers, only for DisCos to assume ownership without making necessary investments.

Akpabio said: “Why do state governors and communities buy transformers, hand them over DisCos and still pay for installation?

“The people who took over (power sector) are just making money from those transformers and they are not adding value at all.

“Why do we hand over GenCos and the TCN can’t move what they generate? Why are DisCos not investing in transformers, or we have to pay the DisCos for transformers bought by Nigerians?

“We can make the laws, we can reverse the laws and ask the Federal Government to take back those things from them.”

Privatization Under Fire

Presenting his report, Senator Abaribe attributed frequent national grid collapses to outdated infrastructure, abandoned projects, regulatory lapses, and a lack of modern monitoring systems like SCADA.

He revealed that over the past decade, the national grid has collapsed 105 times, with each incident costing Nigeria around ₦42 billion in restart costs for three major power plants: Azura, Delta, and Shiroro.

Abaribe emphasized that Nigeria’s 50-year-old grid urgently requires modernization to meet current demands. He also identified inefficiencies in project implementation, regulatory oversight, and security as critical issues.

“Whenever a plant is shut down, they restart the plant and to restart it which they call a black start, it cost far more that running the plant.

“While it cost $105,000 to run the plant, to restart it will cost $7m. So for anytime we have a shut down occasioned by grid collapse, three plants in Nigeria, three plants in Nigeria that supply most of our electricity, Azura, Delta and Shiroro, to restart the plant cost Nigeria $25m or ¦ 42.5bn and if we expand it yo the rest of the operating plants in Nigeria, it is actually not quantifiable.

“Aging infrastructure has been identified as a critical factor contributing to frequent grid failures. Many components of the grid are outdated and have not undergone necessary maintenance or upgrades, leading to increased vulnerability to failures,’’ Abaribe said.

Calls for Reform

Senator Adams Oshiomhole criticized the privatization policy as flawed and exploitative, accusing DisCos of profiting while Nigerians suffer.

Sharing a personal experience, he recounted purchasing and installing a transformer at his expense, only for it to become the property of Abuja Electricity Distribution Company (AEDC).

He said: “The DisCos are out for profit, while they make our people suffer. I never imagined that a private person will collect money for services he did not render and Nigerians are helpless.”

Oshiomhole called for a review of the privatization policy in line with the administration’s “Renewed Hope Agenda.”

Senator Abdul Ningi added that accountability is critical for reform. He argued that inefficiencies persist because no one has been penalized for failures in the sector.

“Over the years, nobody has been punished for the lapses in the power sector. Reports alone without sanctions will not allow Nigeria make any headway. The implication is that the problems will continue,” Ningi said.

The Senate postponed adopting the committee’s report, granting it six more weeks to conduct a deeper investigation and provide actionable recommendations.