Federal House probe says electricity distributors have fallen short on investment and service delivery more than a decade after sector privatization.
Nigeria’s House of Representatives has accused electricity distribution companies, known as DisCos, of failing to meet their obligations to consumers, intensifying scrutiny of a power sector that was privatized more than a decade ago with promises of improved supply and efficiency.
The allegations were made on Wednesday by an ad-hoc committee of the House investigating expenditure and performance in the electricity industry. Lawmakers spoke during a resumed public hearing in Abuja, where officials from power sector institutions and private operators were invited to account for their activities since privatization in 2013.
Committee members said that 13 years after the handover of electricity distribution to private operators, Nigerians continue to face unreliable power supply, estimated billing, and poor customer service, despite repeated tariff increases and government interventions.
“The core objective of privatization was to improve efficiency, attract investment, and deliver reliable electricity to Nigerians,” the committee chairman said. “What we see today suggests that many of the DisCos have failed to live up to these expectations.”
Lawmakers accused the companies of underinvesting in critical infrastructure such as transformers, meters, and distribution networks, while continuing to collect revenues from consumers. They also raised concerns about the use of public funds injected into the sector through bailouts, stabilization funds, and intervention programs by the federal government and the Central Bank of Nigeria.
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Nigeria’s power sector has long struggled with structural weaknesses, including aging infrastructure, gas supply constraints, and financial shortfalls. Although generation capacity has increased on paper, electricity delivered to homes and businesses remains far below demand in Africa’s largest economy.
The DisCos, which are responsible for delivering electricity to end-users and collecting tariffs, are often blamed for the sector’s failures. They, in turn, argue that low tariffs, energy theft, and non-payment by consumers and government agencies have undermined their ability to invest and operate sustainably.
During the hearing, lawmakers questioned representatives of the Abuja Electricity Distribution Company and other operators on revenue collection, metering gaps, and compliance with regulatory requirements. Committee members said the investigation would examine whether funds allocated for network upgrades were properly utilized.
The House committee said its inquiry is aimed at identifying systemic failures and recommending reforms to protect consumers and ensure value for money. Possible outcomes include tighter regulation, sanctions for non-performing operators, or a review of the privatization framework itself.
Power supply remains a critical political and economic issue in Nigeria, where millions of households and businesses rely on costly diesel and petrol generators due to unreliable grid electricity. Analysts say sustained pressure from lawmakers could force long-awaited changes in a sector widely seen as central to the country’s growth.
The committee said hearings would continue in the coming weeks before a final report is submitted to the House for consideration.