Senate warns FG against funding DISCOs

The Nigerian Senate has warned the Federal Government against enriching private DISCOs with public funds.

Senator Yunus Akintunde, the Chairman of the Senate committee on environment, said this on Thursday at the plenary.

The lawmaker spoke against the current act of using public funds to purchase transformers for communities. He pointed out that those assets are later being claimed by the private DISCOs.

“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. Electricity subsidies are not a Nigerian anomaly—they’re a global necessity.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 noted.

He also claimed that a fundamental structural imbalance in the power sector exists and needs to be fixed.

“If you check most transmission lines and substations, they’re outdated and incapable of handling modern power needs. That’s one of the biggest bottlenecks to reliable supply across the country.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 warned.