The Senate has urged the Federal Authorities to cease utilizing public funds to not directly enrich personal electrical energy distribution firms, warning that the present follow undermines honest governance and leaves Nigerians with out significant advantages.
Elevating the problem throughout plenary on Thursday, July 10, Senator Yunus Abiodun Akintunde (APC – Oyo Central), Chairman of the Senate Committee on the Surroundings, mentioned the Federal Authorities should rethink the way it intervenes within the energy sector.
“If you purchase a transformer with authorities funds and hand it over to a group, the DisCos demand fee for set up.
“However the second it’s energised, it turns into their asset. That’s how public cash finally ends up enriching personal monopolies,” Akintunde mentioned.
Akintunde, Nigeria’s first PhD holder in Power and Environmental Research, described the scenario as “unsustainable and unjust,” calling for a coverage shift that prioritises Nigerian residents over personal pursuits.
He argued that whereas electrical energy subsidies have typically been abused, they continue to be a worldwide software for {economic} safety and inclusion.
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“Electrical energy subsidies are usually not a Nigerian anomaly—they’re a worldwide necessity,” he said. “Even in superior economies just like the UK, vitality is subsidised.
“We shouldn’t abandon the thought merely due to previous abuses. Subsidies, when correctly managed, drive development and defend the poor.”
The senator additionally criticised the structural imbalance in Nigeria’s energy sector, the place the federal government nonetheless controls the outdated transmission infrastructure whereas era and distribution have been privatised.
“Should you examine most transmission strains and substations, they’re outdated and incapable of dealing with trendy energy wants,” he mentioned. “That’s one of many greatest bottlenecks to dependable provide throughout the nation.”
Akintunde concluded by calling for a system-wide overhaul, saying the federal government should cease subsidising personal firms and as an alternative deal with delivering reasonably priced and dependable electrical energy to Nigerians.
“This isn’t nearly transformers, it’s about fixing a damaged system. We should cease utilizing public funds to empower personal pursuits. As a substitute, we should empower Nigerians with reasonably priced and dependable electrical energy,” he mentioned.
