The Nigerian Senate has urged the Federal Government to reconsider its approach to the power sector by halting the use of public funds to indirectly enrich private electricity distribution companies (DisCos). This call was made on Thursday by Senator Yunus Abiodun Akintunde (APC – Oyo Central), Chairman of the Senate Committee on the Environment, during plenary. Akintunde criticized the current model in which government-funded electricity infrastructure, such as transformers, ultimately ends up in the hands of DisCos, who then charge communities for installation and service.
Addressing fellow lawmakers on the Senate floor, Akintunde condemned the practice as exploitative and unjust. “When you buy a transformer with government funds and hand it over to a community, the DisCos demand payment for installation,” he said. “But the moment it is energised, it becomes their asset. That’s how public money ends up enriching private monopolies.” He argued that such a model only serves to deepen inequality while failing to address the core issues in the power sector.
Akintunde, Nigeria’s first PhD holder in Energy and Environmental Studies, stressed the need for a well-structured subsidy regime that genuinely benefits ordinary Nigerians. “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.”
He further highlighted a major imbalance in the structure of Nigeria’s power sector, pointing out that while power generation and distribution have been privatised, transmission remains under government control and is critically outdated. “Most transmission lines and substations are incapable of handling modern power demands,” Akintunde stated. “This is not just about transformers—it’s 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.”
