The Senate has urged the Federal Government to stop using public funds to indirectly enrich private electricity distribution companies, warning that the current practice undermines fair governance and leaves Nigerians without meaningful benefits.
Raising the issue during plenary on Thursday, July 10, Senator Yunus Abiodun Akintunde (APC – Oyo Central), Chairman of the Senate Committee on the Environment, said the Federal Government must reconsider how it intervenes in the power sector.
“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’s how public money ends up enriching private monopolies,” Akintunde said.
Akintunde, Nigeria’s first PhD holder in Energy and Environmental Studies, described the situation as “unsustainable and unjust,” calling for a policy shift that prioritises Nigerian citizens over private interests.
He argued that while electricity subsidies have sometimes been abused, they remain a global tool for economic protection and inclusion.
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“Electricity subsidies are not a Nigerian anomaly—they’re a global necessity,” he stated. “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The senator also criticised the structural imbalance in Nigeria’s power sector, where the government still controls the outdated transmission infrastructure while generation and distribution have been privatised.
“If you check most transmission lines and substations, they’re outdated and incapable of handling modern power needs,” he said. “That’s one of the biggest bottlenecks to reliable supply across the country.”
Akintunde concluded by calling for a system-wide overhaul, saying the government must stop subsidising private companies and instead focus on delivering affordable and reliable electricity to Nigerians.
“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,” he said.