Abuja | July 10, 2025 — The Nigerian Senate has called on the Federal Government to end the continuous use of public funds to subsidize power distribution companies (DISCOs), warning that the current arrangement is economically unsustainable and counterproductive.
During plenary on Tuesday, lawmakers decried the heavy financial burden placed on the federal budget through consistent interventions in the power sector, particularly in the form of subsidies to private electricity firms. The Senate insisted that since the power distribution companies are privately owned, they should bear the full cost of operating their businesses and delivering services to Nigerians.
The motion, raised under matters of urgent national importance, highlighted how government bailouts to the sector have not translated into improved electricity supply for citizens. Lawmakers noted that despite trillions of naira spent since the privatization of the power sector, Nigerians continue to experience epileptic electricity services and high tariffs.
Several senators, in their contributions, expressed dissatisfaction with the performance of the DISCOs and argued that government interventions only shield the companies from accountability.
The Senate, in its resolution, urged the Federal Government to immediately stop further funding of DISCOs from public coffers and instead channel such funds toward renewable energy projects and rural electrification.
It also called on regulatory agencies like the Nigerian Electricity Regulatory Commission (NERC) to ensure strict compliance with performance targets by the DISCOs, and to take punitive action against any that fail to meet required standards.
The debate comes at a time when the federal government is considering a transition to a cost-reflective tariff system to reduce its over N4 trillion debt exposure to the power sector.
