The House of Representatives Ad hoc Committee investigating Nigeria’s power sector reforms and expenditure from 2007 to 2024 has accused electricity distribution companies (DisCos) of crippling the country’s electricity system through years of poor investment and failure to expand infrastructure.
Speaking at a hearing, the committee chairman, Ibrahim Almustapha Aliyu, said most DisCos misled the government at the point of acquisition by presenting strong business plans but failing to deliver the promised upgrades more than a decade after privatization.
He expressed shock that despite the Transmission Company of Nigeria (TCN) claiming it can wheel up to 8,000 megawatts, DisCos take only about 4,000 megawatts due to their inadequate infrastructure—an issue he described as self-inflicted.
Aliyu stated that refusal to invest, expand, or adopt franchising options has worsened challenges such as energy theft, meter bypassing, and growing consumer dissatisfaction across the country.
According to him, many Nigerians resort to illegal connections because they are billed for electricity that is either insufficient or not supplied at all, making legal payment impractical for low-income earners.
The chairman reminded the distribution companies that Nigerians expected improved service after privatization, noting that some areas even enjoyed better electricity under the former NEPA-era system.
Responding, Dr. Mahmood Abubakar, Chief Regulatory and Compliance Officer of Kaduna Electricity, said about 60 percent of electricity supplied nationwide is subsidised—an arrangement that undermines investor confidence and limits the capacity of DisCos to invest in infrastructure.
He added that with only 40 percent of electricity consumption being cost-reflective, DisCos cannot recover full revenue requirements, making it difficult to attract investment or secure loans needed to upgrade distribution networks more than a decade after privatization.