Senate to FG: Stop enriching DISCOs with public funds

The Senate has called on the Federal Government to overhaul its power sector strategy and cease indirectly subsidizing privately owned electricity distribution companies (Discos) with public funds.

This call came from Sen. Yunus Akintunde (APC – Oyo Central), Chairman of the Senate Committee on the Environment, during a plenary session on Thursday.

The lawmaker voiced significant concern over the current practice where government funds are used to purchase electricity transformers for communities, only for these assets to be subsequently taken over by Discos.

“When you buy a transformer with government funds and hand it over to a community, the DisCos demand payment for installation.

“But the moment it is energised, it becomes their asset. That is how public money ends up enriching private monopolies,” Akintunde said.

The lawmaker condemned the trend as unsustainable and unfair, arguing that the government should instead establish a structured subsidy system that genuinely benefits ordinary Nigerians.

He said: “Electricity subsidies are not a Nigerian anomaly—they are a global necessity. Even in advanced economies like the UK, energy is subsidised. We should not abandon the idea simply because of past abuses. Subsidies, when properly managed, drive growth and shield the poor.”

The senator also drew attention to what he called a fundamental structural imbalance in Nigeria’s power sector.

According to him, while generation and distribution have been privatised, the government still retains control of the ageing transmission infrastructure, an act he described as underutilised and inadequate.

He also said: “If you check most transmission lines and substations, they are outdated and incapable of handling modern power needs. That is one of the biggest bottlenecks to reliable supply across the country.

“This is not just about transformers—it is about fixing a broken system. We must stop using public funds to empower private interests. Instead, we must empower Nigerians with affordable and reliable electricity.”