By Fatima Ndagi
The House of Representatives’ Ad hoc Committee investigating Nigeria’s power sector from 2007 to 2024 has accused electricity distribution companies (DisCos) of crippling the country’s electricity supply through years of underinvestment, poor infrastructure expansion, and failure to fulfill their business commitments.
At a hearing on Wednesday, Arch. Ibrahim Almustapha Aliyu, chairman of the committee, said many DisCos misled the government at the time of privatization with ambitious plans they never implemented. He noted that over a decade later, the companies have failed to upgrade substations, transformers, and distribution networks as promised.
Aliyu expressed concern that despite the Transmission Company of Nigeria’s capacity to wheel up to 8,000 megawatts, DisCos still draw only about 4,000 megawatts due to weak infrastructure — a problem he described as self-inflicted.
“The distribution firms have refused to invest, expand, or explore franchising options, creating the conditions that now enable energy theft, meter bypassing, and widespread consumer dissatisfaction,” he said.
Aliyu added that many consumers resort to illegal connections because they are billed for electricity that is either not supplied or grossly inadequate.
“How do you expect someone whose monthly bill equals their salary to keep paying? People will look for alternatives. Your refusal to invest has contributed to this unholy cycle of energy theft,” he said.
The lawmaker further noted that Nigerians experienced more reliable supply under the defunct NEPA/NITEL, and expected significant improvements after privatization — expectations that have yet to materialize. He challenged DisCos to reconcile their earlier claims of competence with their current inability to expand networks, meet tariff obligations, or deliver consistent service.
Responding, Dr. Mahmood Abubakar, Chief Regulatory and Compliance Officer of Kaduna Electric, highlighted the challenges of government subsidies. He said about 60% of electricity nationwide is subsidized, weakening investor confidence and limiting the funds needed to upgrade distribution infrastructure.
“Only 40% of electricity, mostly consumed by Band A customers, reflects cost-based tariffs. Even then, Band A feeders face up to 80% energy losses due to theft and bypasses, making full revenue recovery impossible,” Abubakar said.
He added that delayed subsidy payments disrupt the entire electricity value chain, affecting generation companies’ ability to pay for gas and ultimately undermining power production.
“The subsidy is not paid on time; it comes whenever government decides. This affects everyone — DisCos cannot fully settle invoices, Gencos cannot meet gas contracts, and the whole system suffers,” he explained.