Senate Slams Power Sector Privatisation, Considers Policy Review

On Thursday, the Nigerian Senate described the 11-year-old privatisation of the power sector as a “total failure,” pointing to the ongoing lack of reliable electricity across the country. The Senate hinted at the possibility of revisiting and potentially repealing the privatisation policy.

This condemnation arose during the Senate’s review of a report by its Standing Committee on Power, which investigated frequent national grid collapses and other power sector issues.

Senator Enyinnaya Abaribe (APGA, Abia South), chairman of the committee, presented the findings, which attributed persistent grid failures to multiple factors, including outdated infrastructure, abandoned projects worth trillions of naira, regulatory inefficiencies, security issues, lack of modern monitoring systems like SCADA, and inadequate financial oversight.

Despite significant investments in electricity infrastructure, the national grid has experienced 105 collapses over the past decade. Abaribe noted that restarting power plants after these collapses is far more expensive than normal operations. For instance, while running costs for plants like Azura, Delta, or Shiroro amount to $105,000, restarting them after a grid collapse can cost as much as $7 million per incident. In total, grid collapses have cost Nigeria approximately ₦42.5 billion just for these three plants, with wider implications across the sector.

The report stressed that Nigeria’s National Grid, which is over 50 years old, is in urgent need of modernisation to meet current standards. Abaribe also highlighted other critical challenges, including abandoned projects, regulatory gaps, security concerns, and the absence of essential SCADA systems for real-time grid monitoring and management.

“Aging infrastructure is a key factor contributing to frequent grid failures. Much of the grid is outdated and has not been adequately maintained or upgraded, making it increasingly susceptible to failures,” Abaribe explained.

Senator Adams Oshiomhole (APC, Edo North) criticized the privatisation policy as flawed, claiming it has only burdened Nigerians financially. “The Discos are focused on profit while our people suffer. It’s shocking that private companies are charging for services they don’t deliver, and Nigerians are helpless. The privatised power sector is a failure,” he said.

Senator Abdul Ningi (PDP, Bauchi Central) echoed concerns about a lack of accountability in the power sector. He pointed out that without penalties for those responsible for the sector’s inefficiencies, the problems would persist. “Reports alone won’t drive change. Without sanctions, the issues in the power sector will continue,” Ningi added.

After extensive debate, the Senate deferred further consideration of the report, giving the Abaribe-led committee an additional six weeks to conduct a thorough investigation into the power sector’s challenges and provide recommendations for legislative action.