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The House of Representatives Ad hoc Committee investigating Nigeria’s power sector reforms and expenditure between 2007 and 2024 has laid strong blame on electricity distribution companies (DisCos) for the persistent poor power supply that Nigerians endure despite steadily rising electricity bills.
At the committee’s hearing yesterday, Chairman Arch. Ibrahim Almustapha Aliyu accused the DisCos of crippling the country’s electricity supply chain through chronic underinvestment, refusal to expand their distribution networks, and a general failure to fulfil the promises they made during the privatisation of the power sector more than a decade ago, reports Daily Independent.
Aliyu criticised the DisCos for presenting “fantastic business plans” at the point of acquisition, only to abandon the required investments in substations, transformers, and distribution infrastructure after taking over the assets. This failure, he said, has left a widening gap in the sector: while the Transmission Company of Nigeria (TCN) declares a wheeling capacity of 8,000 megawatts, the DisCos consistently fail to take more than 4,000 megawatts due to inadequate infrastructure.
According to him, the distribution companies “have refused to invest, refused to expand their networks, and rejected franchising opportunities,” thereby enabling widespread energy theft, meter bypassing, and growing consumer frustration.
“You created this problem because you failed to improve what you met,” he told representatives of the DisCos.
“For 13 to 14 years, if you had invested in substations, functional transformers, and proper network upgrades, we wouldn’t be here today. You would be taking more power, the average cost to consumers would be cheaper, and Nigerians would be satisfied.”
Aliyu warned that the failure of the DisCos to provide reliable electricity has pushed many consumers toward illegal connections, particularly after months of paying for electricity they either do not receive or receive in extremely poor quality.
“How do you expect someone whose monthly bill equals his salary to keep paying?” he asked. “Naturally, people will seek alternatives. Your lack of investment has fuelled the rise of bypassing and illegal consumption.”
He added that many Nigerians enjoyed more stable electricity under the former NEPA/NITEL era and had expected significant improvements once private operators took over the sector.
Aliyu challenged the DisCos to explain why companies that once boasted of financial capacity and technical competence are now struggling to meet tariff obligations, expand networks, or deliver improved service.
Appearing before the committee, Kaduna Electric’s Chief Regulatory and Compliance Officer, Dr. Mahmood Abubakar, pointed to the government’s subsidy policy as a major factor distorting the financial viability of the sector.
He disclosed that about 60 percent of electricity consumed nationwide is subsidised, a situation that has eroded investor confidence and restricted DisCos’ ability to fund critical infrastructure upgrades.
He noted that only about 40 percent of electricity, mostly consumed by Band A customers, is paid for at cost-reflective rates, yet even Band A feeders record up to 80 percent energy losses due to theft, bypassing, and poor metering.
Abubakar explained that because the DisCos cannot recover enough revenue, they remain unable to access loans or attract investments required to upgrade their networks.
He further highlighted how delayed subsidy payments cascade through the entire electricity value chain, leaving generation companies unable to pay for gas, which then affects power production.
“The subsidy does not come when it should; government pays whenever it chooses,” he said. “This affects everyone. We cannot meet our market obligations, the Gencos cannot meet their contractual commitments to gas suppliers, and the entire system becomes fragile.”
The committee is expected to continue its probe with further engagements involving sector operators, regulators, and other key stakeholders as Nigerians await real accountability and long-overdue improvements in electricity supply.
