The Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, representing Abia South, yesterday, expressed concern over the country’s deeply troubled electricity sector, saying that the federal government’s unpaid subsidy obligations to distribution companies have ballooned to over N4 trillion.
![](https://thenigerialawyer.com/wp-content/uploads/2024/11/TheNigerialawyer-WhatsApp-Channel1.jpg")
![](https://thenigerialawyer.com/wp-content/uploads/2025/05/idrinstitute.png")
He warned that the situation is unsustainable and poses a major threat to national development.
Abaribe who made this known in an interview, explained that the sector is trapped in poor collections, infrastructure decay, and broken trust among stakeholders, from power generators to distributors and the federal government.
He emphasised that the sector’s crisis is not a matter of party politics, but a shared national failure of government and private operators in meeting expectations.
He also lamented a fractured system where the Generation Companies (Gencos) produce more power than the Transmission Company of Nigeria (TCN) can wheel, capped at around 7,000 megawatts. The Distribution Companies (Discos), he said , can only deliver about 5,000 megawatts to end-users, further compounding the inefficiency.
“This disconnect between generation, transmission, and distribution shows how broken the system is,” he said, adding that the Discos, many privately owned, lack the financial backbone to expand infrastructure due to unpaid debts and poor tariff recovery.
Abaribe traced the growing N4 trillion debt to a failed subsidy model, where the federal government promised to offset part of the actual cost of electricity, but rarely fulfilled this commitment.
“The cost of electricity is made up of generation, transmission, and distribution costs. Government says it will cover part of that, but it doesn’t. That unpaid balance keeps growing,” he explained.
As a result, he stated that banks hesitate to finance Discos due to their weak financials, and Gencos can’t pay gas suppliers, leading to shutdowns of thermal plants , which account for 80 per cent of Nigeria’s power. He pointed out that the country operates a single, centralised transmission line controlled from Osogbo.
“ If one part of the grid fails, say in Lagos, it can take down power across the country, including the North,” Abaribe warned
To address these problems, the senator called for an aggressive metering programme. “If everyone is metered, billing becomes transparent, and consumers pay for what they use,” he said, calling it the first step toward restoring trust and revenue flow.
He also emphasised the need to strengthen transmission capacity through direct government investment, noting that the TCN remains fully government-owned and therefore within reach for federal intervention.
Evidence And Trial Proceedings, Pleadings And Damages, Civil Appeals — All In Civil Litigation Serial Volumes 4–6!
4. Evidence and Proceedings at Trial in Civil Litigation — Governing Principles 5. Pleadings, Reliefs and Measures of Damages — with Precedents 6. Civil Appeal at Court of Appeal and Supreme Court — with Precedents "Civil Litigation Serial is designed to be an indispensable reference for lawyers engaged in civil litigation practice," said Basil Momodu Esq., the author of the series. Call 07051822705 to get your copies today! ______________________________________________________________________ Follow the voice of wisdom. Read Prof. Mike Ozekhome SAN. Be Inspired. 
For Enquiries: 📞 +234 704 044 9375 | +234 814 813 4773 | +234 816 872 3532 ✉️ educodexl@gmail.com ______________________________________________________________________ Grab Your Complete Law Reports Now!!! IP, Company, Evidence & Land Cases - All Volumes With Digital Index!!!
To get a copy kindly Call 07044444777, 07044444999, 08181999888, https://alexandernigeria.com/ _____________________________________________________________________
[A MUST HAVE] Evidence Act Demystified With Recent And Contemporary Cases And Materials
