The Nigerian Senate has commenced deliberations on the Energy Sector Reform Bill, which was presented for first reading during Tuesday’s plenary session. The bill, sponsored by Senator Enyinnaya Abaribe, triggered robust discussions among lawmakers, particularly those with strong backgrounds in the energy sector.
Several senators made insightful contributions on the urgent need to reform Nigeria’s energy landscape to reflect global best practices and address the persistent inefficiencies plaguing the sector.
Notably, Senator Yunus Akintunde, representing Oyo Central Senatorial District and Chairman of the Senate Committee on the South West Development Commission, offered a critical perspective. A PhD holder in Energy Studies with vast international exposure, Senator Akintunde highlighted deep-seated challenges in the management and financing of Nigeria’s energy sector.
He called for a comprehensive assessment of the bill, which among other proposals, addresses the removal of electricity subsidies, introduces stringent penalties for vandalism and corruption, and calls for adequate government funding to stabilize and grow the sector.
Senator Akintunde decried the current business practices of Distribution Companies (DisCos) and Generation Companies (GenCos), citing the misuse of public funds in their operations. He noted a disturbing trend where DisCos rely on government allocations to procure equipment such as transformers and wires for community use, only to lay claim to ownership of these assets once they are energized.
“That is abnormal and tantamount to the misuse of public resources to enrich private monopolies. As we reform the energy sector, we must eliminate such practices and commit to providing sustainable and clean energy for Nigerians,” Akintunde stated.
He also opposed the bill’s position on subsidy removal, emphasizing the global precedent where developed nations subsidize electricity to foster economic growth.
“I do not agree with the proposed removal of electricity subsidies. In fact, it is the global standard—as seen in the US, UK, and other advanced economies—to subsidize energy for development. Nigeria should not be an exception,” he added.
It will be recalled that Senator Akintunde had earlier sponsored a motion in the early days of the 10th Senate opposing a proposed hike in electricity tariffs, coming just months after the removal of fuel subsidies by the Federal Government.
Also contributing, Senator Solomon Olamilekan Adeola (Yayi) raised alarm over the underfunding of the sector and its ballooning debt profile, which he said had reached unsustainable levels. He warned that the sector’s inefficiencies pose a grave risk to Nigeria’s economic growth and energy security.
Nigeria, despite its abundant natural resources, continues to rank among the least performing countries in electricity generation and distribution globally. The energy sector’s reform remains pivotal to achieving sustainable development and industrial competitiveness.
The Senate reaffirmed its commitment to ensuring that the Energy Sector Reform Bill is refined to reflect the will of the people. Lawmakers pledged that the final version of the bill will protect the interests of Nigerian citizens, in line with their mandate to represent and defend public interest.
The ongoing energy reform efforts align with President Bola Tinubu’s administration’s broader economic reform agenda, aimed at repositioning Nigeria’s economy and accelerating national infrastructure development.
Kunle OLATUNJI
Special Assistant on Media and Publicity to Senator Yunus Akintunde.
