Reps c’ttee accuses Discos of crippling power system

The House of Representatives Ad hoc Committee investigating Nigeria’s power sector reforms and expenditure from 2007 to 2024 has accused electricity distribution companies (DisCos) of crippling the country’s power supply system through years of poor investment, inadequate expansion, and failure to meet obligations outlined in their original business plans.

Speaking during a hearing on Wednesday, the committee chairman, Arch. Ibrahim Almustapha Aliyu, said most DisCos misled the government at the point of acquisition by presenting ambitious business plans but failing to deploy the required resources to upgrade substations, transformers, and distribution networks more than a decade after privatisation.

He expressed shock that, despite claims by the Transmission Company of Nigeria (TCN) that it can wheel up to 8,000 megawatts, the DisCos continue to absorb only about 4,000 megawatts due to limited infrastructure—a problem he described as self-inflicted.

According to him, the power distribution firms have “refused to invest, refused to expand, and refused franchising options,” thereby enabling energy theft, meter bypassing, and increasing consumer apathy nationwide.

“You caused this problem because you could not expand from what you inherited.

“If you had made the necessary investments in substations, modern transformers, and proper network expansion over the past 13 to 14 years, there would be no issue. You would uptake more energy, the cost would be lower, and Nigerians would be happy,” he said.

He added that many consumers resort to illegal connections because they are billed monthly for electricity that is inadequate or not supplied at all.

“How do you expect someone whose monthly bill equals their salary to keep paying? People will seek alternatives. Your refusal to invest has contributed to this unholy practice of bypassing and stealing energy,” he said.

Aliyu reminded the DisCos that Nigerians enjoyed better supply in some areas during the days of NEPA/NITEL and that citizens expected significant improvements after private investors took over.

He challenged the DisCos to reconcile their initial claims of competence and financial capacity with their current inability to meet tariff obligations, expand networks, and deliver quality service.

Speaking during the hearing, Chief Regulatory and Compliance Officer of Kaduna Electric, Dr Mahmood Abubakar, said about 60 per cent of electricity supplied nationwide is subsidised, a situation he said weakens investor confidence and limits DisCos’ ability to make necessary capital investments.

He noted that only about 40 per cent of electricity—mostly consumed by Band A customers—is cost-reflective, while the rest depends on government subsidies that are often delayed or unpaid.

Abubakar added that because DisCos cannot recover their full revenue requirement, they struggle to secure investments or loans needed for network upgrades, and delays in subsidy payments weaken the entire value chain.

“The subsidy is not forthcoming as and when due. It comes whenever the government decides to pay. That is the reality, and it affects everyone. We cannot pay our market invoices fully, the Gencos cannot fulfil firm contracts with gas suppliers, and the whole chain is weakened,” he said.

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