The Nigerian Senate has urged the Federal Government to end what it described as the indirect enrichment of private electricity distribution companies through the continued use of public funds for power infrastructure, calling instead for a more equitable and sustainable approach to energy sector reform.
Senator Yunus Abiodun Akintunde (APC – Oyo Central), who chairs the Senate Committee on the Environment, raised the alarm during plenary on Thursday, criticising the prevailing model where government-funded transformers are handed over to communities, only to be absorbed into the asset base of private Distribution Companies (DisCos).
“When you buy a transformer with government funds and hand it over to a community, the DisCos demand payment for installation,” Akintunde said. “But the moment it is energised, it becomes their asset. That’s how public money ends up enriching private monopolies.”
Akintunde, Nigeria’s first PhD holder in Energy and Environmental Studies, described the trend as both unjust and economically unsustainable. He called for the development of a transparent and structured subsidy regime that genuinely benefits the public, rather than propping up private operators.
“Electricity subsidies are not a Nigerian anomaly—they’re a global necessity,” he said. “Even in advanced economies like the UK, energy is subsidised. We shouldn’t abandon the idea simply because of past abuses. Subsidies, when properly managed, drive growth and shield the poor.”
The senator also pointed to what he termed a “structural imbalance” in the nation’s power sector, noting that while power generation and distribution have been privatised, the government still maintains control over an aging and inadequate transmission network—one he described as a critical bottleneck.
“If you check most transmission lines and substations, they’re outdated and incapable of handling modern power needs,” he said. “This is not just about transformers—it’s about fixing a broken system.”
He called for a rethink of the current policy framework and warned against the continued use of taxpayer money to subsidise what he referred to as “private inefficiency.”
“We must stop using public funds to empower private interests. Instead, we must empower Nigerians with affordable and reliable electricity,” Akintunde said, urging a national conversation on energy equity and reform.
