New Telegraph

Senate Berates Discos, GenCos, TCN, For Poor Electricity Delivery

The Senate, on Thursday, vehemently condemned power sector operators, including Generation Companies (GenCos), the Transmission Company of Nigeria (TCN), and Distribution Companies (DisCos), for failing to deliver reliable electricity to Nigerians, asserting that they have added no significant value to the sector.

The Senate made the condemnation during plenaryplenary, following the presentation of a report by the Senate Committee on Power, which investigated frequent national grid collapses and related issues

The Senate described the privatization of the power sector as a “total failure” and warned that it might propose legislative measures to repeal the policy, just as the lawmakers claimed that the privatization, introduced in 2013, had plunged Nigeria deeper into darkness, leaving citizens without solutions.

Senator Enyinnaya Abaribe (APGA, Abia South), who presented the findings, attributed the persistent grid failures to factors such as aging infrastructure, abandoned projects worth trillions of naira, regulatory inefficiencies, security lapses, lack of modern monitoring systems like SCADA, and inadequate financial oversight.

Abaribe highlighted that despite substantial investments in electricity infrastructure, the grid has suffered 105 collapses over the past decade, revealing the significant costs incurred during grid failures, particularly in restarting power plants.

According to the report, restarting a plant after a grid collapse (known as a “black start”) is considerably more expensive than normal operations. For instance, while running costs for a plant like Azura, Delta, or Shiroro are approximately $105,000, restarting costs can reach $7 million per incident. Collectively, grid collapses cost Nigeria an estimated ₦42.5 billion for these three plants alone, with broader implications for the entire power sector.

The report emphasised that the National Grid, over 50 years old, is outdated and in urgent need of modernization to meet current operational standards. Abaribe also noted other pressing issues, including operational inefficiencies, abandoned projects, regulatory gaps, security challenges, and the absence of Supervisory Control and Data Acquisition (SCADA) systems essential for real-time monitoring and management.

“While it cost $105,000 to run the plant, to restart it will cost $7m. So for anytime we have a shut down occasioned by grid collapse, three plants in Nigeria, three plants in Nigeria that supply most of our electricity, Azura, Delta and Shiroro, to restart the plant cost Nigeria $25m or ₦42.5bn and if we expand it yo the rest of the operating plants in Nigeria, it is actually not quantifiable,” he stressed

“Aging infrastructure has been identified as a critical factor contributing to frequent grid failures. Many components of the grid are outdated and have not undergone necessary maintenance or upgrades, leading to increased vulnerability to failures.”

Contributing to the debate, Sen. Adams Oshiomhole (APC, Edo North), criticised the privatisation policy as flawed and exploitative, stating it imposed undue financial burdens on Nigerians.

He recounted a personal experience of having to purchase a transformer and pay for its installation, only for it to become the property of the Abuja Electricity Distribution Company (AEDC). Oshiomhole called for a comprehensive review of the privatisation policy in line with the administration.

On his part, Sen. Abdul Ningi (PDP, Bauchi Central) added that the ongoing failures in the power sector persist due to a lack of accountability. He argued that without sanctions for lapses, the sector’s inefficiencies would remain unaddressed.

He said, “Over the years, nobody has been punished for the lapses of the power sector.

“Reports alone without sanctions will not allow Nigeria to make any headway. The implication is that the problems will continue.”

Following a series of debates, the Senate stood down the consideration of the report and gave Abaribe’s committee an additional six weeks to do a holistic investigation into the issues in the power sector and report back for further legislative actions.

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