Nigeria’s Power Sector Privatisation Branded a Failure by Senate

The Nigerian Senate has declared the privatisation of the power sector, implemented 11 years ago, a resounding failure, citing persistent electricity instability across the country. Lawmakers are now considering legislative measures to repeal the policy in a bid to address the sector’s chronic inefficiencies.

During a session on Thursday, the Senate deliberated on a report presented by its Committee on Power, led by Senator Enyinnaya Abaribe, which investigated frequent national grid collapses and related systemic issues. The findings painted a dire picture, with Abaribe attributing the failures to ageing infrastructure, regulatory lapses, abandoned projects valued at trillions of naira, and the absence of essential monitoring systems like SCADA.

The report revealed that the national grid, now over five decades old, has suffered 105 collapses in the past decade alone, costing the country billions. Restarting power plants after grid collapses — a process termed a “black start” — was highlighted as particularly expensive. For key facilities like Azura, Delta, and Shiroro plants, restarting costs can soar to $7 million per incident, compared to $105,000 for regular operations. These collapses have collectively cost Nigeria an estimated ₦42.5 billion for just three plants, with broader implications across the sector.

Lawmakers expressed deep frustration over the privatisation model, describing it as exploitative and misaligned with public interest. Senator Adams Oshiomhole criticised the distribution companies (Discos) for profiting at the expense of Nigerians, accusing them of collecting payments for undelivered services. “The privatised power sector is more of a failure now,” Oshiomhole said, lambasting the policy as flawed.

Senator Abdul Ningi added that the sector’s inefficiencies are perpetuated by a lack of accountability, stressing that without sanctions for failures, reforms would remain elusive. “Reports alone without sanctions will not allow Nigeria to make any headway,” he argued, underscoring the need for punitive measures to drive improvement.

Following the heated debate, the Senate granted Abaribe’s committee an additional six weeks to conduct a more comprehensive investigation into the power sector’s challenges and provide actionable recommendations. The session highlighted the growing urgency to overhaul the system, with lawmakers warning that without decisive reforms, Nigeria’s power crisis will persist unabated.