Senate of Nigeria has expressed strong dissatisfaction with the performance of the country’s electricity distribution companies, known as DisCos, and the Transmission Company of Nigeria (TCN), following the power sector’s privatization.
The Senate labeled the privatization effort a failure and hinted at potential legislative actions to reverse the policy.
Key Concerns;
– Inefficient Service Delivery: DisCos have largely failed to provide reliable electricity to Nigerians, sparking concerns about the effectiveness of the 2013 privatization program.
– Financial Losses: The financial toll of grid collapses is substantial, with restarting a power plant costing approximately $7.5 million and total costs per collapse reaching $25 million when three plants are operational.
– Lack of Accountability: Despite privatization, distribution companies are unable to meet consumer demands, leading to deteriorating service quality.
Senate’s Response;
– Criticism of Privatization: Senate President Godswill Akpabio criticized the privatization of the power sector, questioning its efficiency and highlighting the burden on consumers.
– Call for Action: The Committee on Power was given six weeks to develop improved recommendations concerning the non-functionality of DisCos and TCN.
– Potential Legislative Measures: The Committee threatened to initiate legislative measures to reverse the privatization policy, indicating a potential overhaul of the power sector.
Way Forward;
The Committee’s stance on the power sector’s privatization reflects the growing frustration among Nigerians with the persistent inefficiencies and lack of accountability in the sector.
As the Committee on Power develops its recommendations, it is essential to prioritize the needs of consumers and ensure that any future policies or reforms address the underlying issues plaguing the power sector.
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