By DAYO ADESULU
The Nigerian Senate has declared the privatization of the power sector, initiated 11 years ago, a complete failure. Senators attributed the persistent lack of constant electricity across the country to flaws in the policy and hinted at proposing legislative measures to repeal it.
The condemnation followed the presentation of a report by the Senate Committee on Power, chaired by Senator Enyinnaya Abaribe (APGA, Abia South), during Thursday’s plenary session.
Grid Collapses: Costing Nigeria Billions
In his presentation, Abaribe highlighted aging infrastructure, abandoned projects worth trillions of naira, and regulatory inefficiencies as significant contributors to frequent national grid collapses.
He revealed that the national grid, over 50 years old, has suffered 105 collapses in the past decade, resulting in significant economic losses. Restarting power plants after a collapse, known as a black start, costs significantly more than regular operations.
- Key Statistics:
- Running costs for power plants like Azura, Delta, or Shiroro: $105,000.
- Restarting costs after a grid collapse: $7 million per incident.
- Total cost of grid collapses for Azura, Delta, and Shiroro plants: ₦42.5 billion annually.
“Aging infrastructure and outdated systems make the grid prone to frequent failures,” Abaribe stressed.
Privatization Under Fire: Exploitation and Accountability
Senator Adams Oshiomhole (APC, Edo North) criticized the privatization policy as exploitative and flawed.
“The privatized power sector has become a burden on Nigerians. Discos prioritize profits while providing substandard services, charging people for what they do not deliver,” Oshiomhole stated.
Senator Abdul Ningi (PDP, Bauchi Central) pointed out the lack of accountability in the power sector, stating:
“Over the years, nobody has been punished for the failures in the sector. Without sanctions, these inefficiencies will persist.”
Senate Calls for Comprehensive Investigation
After extensive debates, the Senate deferred consideration of the report, granting Abaribe’s committee an additional six weeks to conduct a holistic investigation into the issues plaguing the power sector.
Key Recommendations for Reform
- Modernize Infrastructure: Upgrade the 50-year-old grid to meet modern standards.
- Strengthen Regulation: Address regulatory inefficiencies and improve oversight.
- Ensure Accountability: Introduce penalties for lapses in service delivery.
- Abandon Flawed Policies: Reassess and potentially repeal the privatization framework.
The Senate’s call for action highlights the urgency of addressing Nigeria’s power sector challenges, which have far-reaching implications for economic growth and national development.
