Across the country, electricity consumers are shouldering the heavy cost of funding critical infrastructure for private distribution companies, often at great personal expense. Many recount agonising tales of repeated payments, erratic power supply, and a system that leaves households and businesses paying more for increasingly unreliable electricity, CHIJIOKE IREMEKA reports
For over a year, some parts of the Ogidi community in Anambra State lived in prolonged darkness after their electricity transformer broke down, forcing families and small businesses to rely on costly alternatives.
What should have been a basic public utility became a collective burden, as community members had no choice but to contribute their personal funds to restore power.
A 41-year-old Lagos-based professional, Jideofor Ozoekwe, told Saturday PUNCH how the reality of this challenge followed him even while away from home.
He said he was in Lagos when he received a call, which he initially assumed was from a client he was working for; instead, it was a fellow townsman calling with an urgent message about their community's electricity situation.
"I am just coming from your house now, and your mum said I should call you," the fellow townsman told him, explaining the urgency of the situation.
"Our transformer got spoiled, and we are contributing money to fix it. We are going from house to house to collect the money, and your family's share has not been paid.
"Each household is to contribute N7,000 for cables and other electrical parts. The neighbouring communities that we share the same transformer with are also contributing," he said.
According to Ozoekwe, this has been the situation in the country, adding that when the transformer got faulty earlier, they stayed in darkness for over a year.
"We wrote letters and reminders to the Enugu DISCO, but there was no response. Later, they said they had applied for a new transformer for us and that we had to wait for it to be supplied, or we (consumers) should buy one. Days went by, weeks went by, and three months later, we were still in darkness.
"It was a terrible situation. Businesses that depended on electricity were packing up. Barbers' shops and battery chargers that depended on the power supply were frustrated. Those who could afford power-generating sets bought them, while others who couldn't suspended operations.
"That was our situation until the letter we wrote to the governor yielded results, and a new transformer was brought to our community. The transformer serves three different communities - Ndiagu, Ire, and Isieke. That was how we got reconnected to the grid. The DISCO did nothing about it," he said.
Saturday PUNCH learnt that despite living in a commercial hub like Lagos, he remained tied to the struggles of his hometown, where access to electricity is neither stable nor guaranteed.
Like many others, he had to contribute financially to a service that should ordinarily be provided and maintained by the private company that purchased that once government-owned facility.
"Across various communities, prolonged blackouts have become common, often lasting months or even years due to faulty transformers, damaged lines, or a lack of maintenance.
"In addressing this challenge, communities frequently organise fundraisers, going door to door to levy households to restore electricity. This shouldn't be happening in a country where there is government," he lamented.
Ironically, Saturday PUNCH learnt that even after contributing to fix critical infrastructure, consumers continue to bear additional costs of installation and crazy bills.
Ozoekwe lamented that families not only pay to repair transformers and purchase cables but are also required to pay for meters and monthly electricity bills.
"This was a situation I faced, and I still pay heavily for it. We pay for meters and still pay bills. Unfortunately, the government would allow the exploitation of the masses by a few individuals after privatising the power sector. The telecom sector is standing on its own; why won't the power sector be made to work?" he added.
Ozoekwe's frustration reflects a wider sentiment among Nigerians who feel overburdened by the cost of accessing basic amenities in the country.
While DISCOs are responsible for distributing power, many consumers argue that they are unfairly made to shoulder the cost of infrastructure repairs and upgrades.
For affected communities, the implications go beyond inconvenience, Saturday PUNCH learnt. Small businesses suffer losses, students struggle to study at night, and households spend more on fuel for generators, further stretching already limited incomes.
Ozoekwe's experience raises critical questions about accountability, regulation, and the role of government in ensuring equitable access to electricity.
In a similar development, Chima Okolo, a landlord at Saidu, Onikan, Ogijo, Sagamu in Ogun State, had not had electricity in his area for the past two months.
According to the father of four, he has been spending almost half of his salary running a generator because their transformer is faulty, saying that he had reported to the Ibadan Electricity Distribution Company, but the company did nothing.
Not knowing how many more months to wait before they fix the transformer, since the IBEDC had remained unconcerned about their plight, they started contributing money to buy a new transformer for the IBEDC.
"Our transformer has been bad for the past three months. We called on the IBEDC, but there is nothing they have done. We are currently contributing N5,000 per house to buy a transformer and other equipment that the DISCO will claim as its own after supply.
"We are over 100 houses on the street, and this will amount to N500,000. We are going to be investing in the IBEDC without any form of compensation or return on investment. We will buy all the equipment needed, and we will still pay the DISCO officials to connect us back.
"Before I moved into my house and got connected, I was forced to pay about N80,000. The residents said they contributed money for poles, cables, electrical fittings, and also paid the DISCO before they electrified the street," Okolo said.
He noted that the most annoying part of the exploitation was the transition to Band A, which he described as "criminal Band A," that was supposed to give them more electricity but never made any impact; rather, the power situation deteriorated in the area.
"Before our transformer got spoilt, we were transferred to Band A, which the Federal Government said would be a 300 per cent increase in tariff. Before then, I was paying N9,000 on bills. So, I was expecting at least N27,000, but I got N42,000 every month. How was I supposed to pay my children's school fees?
"I went to the DISCO and complained, but they didn't listen to my concerns. I asked them to give me a prepaid meter, but they said it wasn't available. I even threatened them with the Nigerian Electricity Regulatory Commission, but they told me to forget about NERC.
"This means that they are not answerable to anybody, and that is why they treat us the way they do. We will always hear NERC say it is going to punish and penalise the DISCOs, but nothing happens. I tell you that DISCO is a major problem confronting Nigerians. They are not working for the development of this country," he said.
He alleged that the DISCO is working against the people, exploiting and destroying the country. "They don't invest in infrastructure; we are the ones doing that, and they make huge profits and lavish it on their alleged corrupt lifestyles. The DISCO system has become a second phase of corruption in the country.
"People in places like Ogijo and Shagamu in Ogun State are all affected. Even the minister seems unable to do anything about it. I also experienced similar issues in Port Harcourt before I moved to Ogun State. If Nigerians were more aggressive in demanding accountability, things might be different," he said.
He told Saturday PUNCH that when a power consumer doesn't pay their bills and is disconnected, DISCO officials will take the cables that they didn't purchase, yet the consumers will still pay a reconnection fee when they have cleared their bills.
"This is how powerful the government has made DISCOs to be. And you could be jailed if you connect to the grid without their permission. If the police see you with cables, they will interrogate you and sometimes, effect an arrest because they feel the property should belong to DISCOs, not individuals. That mindset is terrible," he added.
The exploitation of electricity consumers in Nigeria has become a long-standing feature of the system, one that the government has, for years, appeared to tolerate while offering little in terms of effective solutions.
For decades, consumers have been overburdened with exorbitant bills for services often not rendered, while also being compelled directly or indirectly to fund and provide critical power infrastructure.
Power stakeholders said even when the government fully controlled the sector under the National Electric Power Authority and later Power Holding Company of Nigeria, consumers were made to contribute to the purchase of transformers, cables, and other essential equipment.
Findings revealed that this trend has persisted, and arguably worsened, under the current privatised structure, where distribution companies are expected to invest in infrastructure and deliver improved services in exchange for customer payments.
Instead, electricity consumers said the reverse is the case, as they bear the cost of procuring and installing infrastructure for profit-driven entities, yet still face inflated tariffs, erratic supply, and, in some cases, disconnection from a grid they helped finance.
Ideally, a private company is expected to invest capital, drive efficiency, and provide reliable services to customers who pay for value received. However, in Nigeria's electricity landscape, that model remains largely unfulfilled.
According to a political economist and lecturer at Legacy University, Okija, Anambra State, Dr Vincent Ezeme, when the power sector was privatised, there was widespread optimism that private sector involvement would lead to improved power supply and efficiency, but this did not happen.
Instead, he noted, many Nigerians' conditions have deteriorated, with some households reporting less than an hour of electricity over several days.
He said electricity consumers are compelled to fund power facilities, including transformers, cables, poles, and other installation equipment meant to be provided by DISCOs, supposedly private firms.
"This is the only private firm that customers are directly or indirectly compelled to build infrastructure for, yet do not have access to those installations, and still pay heavy tariffs or remain in darkness without help.
"It's unfortunate that the government enabled this mass exploitation of the masses. While other private companies that were privatised alongside are building infrastructure and allowing consumers to pay for their services, DISCOs do not do this, and the government allowed it.
"Despite bearing the cost of infrastructure that ordinarily falls within the responsibilities of the power companies, consumers say they still face high electricity tariffs, estimated billing, poor supply, and slow response to complaints," he added.
Following this mass exploitation by the DISCOs, and what was described as the failure of the privatisation exercise, the National Assembly discussed the possible revocation of licences and undoing what has been done in the power and oil sectors, among others.
According to the Senate President, Godswill Akpabio, electricity and basic utilities were once provided to communities regularly, often with public funding.
However, he noted that during the privatisation process, these assets were handed over to distribution companies, yet they never paid a single naira.
Akpabio said he purchased transformers for communities, which are now being used by DISCOs to generate profit without any form of reimbursement or investment.
He said, "These companies are reaping profits from assets they didn't invest in. They were expected to revamp and upgrade the infrastructure handed over to them. Instead, they sit back, make money, and avoid making any capital investments.
"This situation is not limited to one company; it's the same story across all DISCOs. The original intention was to give these assets to private companies so they could improve them."
The Senate President added, "As far as I'm concerned, DISCOs have failed. They took what the government gave them, contributed nothing, and continued to make profits. When power collapses, they remain unaffected. As distribution deteriorates, their only reaction is to increase tariffs, not to fix the system.
"DISCOs cannot provide meters or transformers, so what is the purpose of this privatisation? Billions are being sunk into the sector, yet there's no visible improvement. Some communities go without electricity for over a year, raising money themselves to buy transformers, yet they pay bills, and the DISCO is unaffected."
Lamenting the situation, which he described as 'legalised looting,' a former president of the Nigeria Labour Congress and current senator, Adams Oshiomhole, shared how he purchased a transformer for his Abuja house, paid for its installation, handed it over to DisCos, and still pays service fees every month.
Saddened by the injustice where the government allowed the mass exploitation of Nigerians by these capitalists, Oshiomhole said the true essence of justice lies in correcting injustice wherever it is committed.
Criticising the electricity distribution companies for what he described as "barefaced stealing" and "mass extortion," Oshiomhole said the Federal Government must muster the courage to revoke the licences of non-performing DISCOs.
"We must find the courage, in this administration, to end this barefaced stealing and extortion of the masses by DISCOs. We have the power to revoke their licences," he insisted.
Oshiomhole acknowledged that he might be accused of committing "class suicide" for supporting privatisation in the past, despite opposition from his labour allies.
"At the time, I supported privatisation because I believed the beauty of capitalism was that, in pursuit of profit, services would improve. I feared public ownership would lead to service deterioration while funding continued from the public treasury.
"But never in my wildest imagination did I think private entities would collect money for services they didn't render, and that Nigerians would be left helpless. Even the privileged class has not been spared."
The senator recounted his personal experience in Abuja, where he had to buy a transformer and still pay DISCO despite footing the bill for installation.
However, he alleged that the DISCOs have relied largely on loans sourced from Nigerian depositors' funds through commercial banks, a move he said caused some banks to collapse, becoming liabilities to the Asset Management Corporation of Nigeria.
"What these DISCOs borrowed from the Central Bank and commercial banks is more than 10 times what they paid to acquire the assets. Today, they own no more than 60 per cent of the companies. It is debatable whether a company that borrows more public money than its capital is truly privately owned," Oshiomhole argued.
Oshiomhole also criticised the Federal Government's lack of oversight, stating that although it retains 30 per cent ownership of DISCOs, there is no governing council or functional board in place.
"There is no board, nothing. The government does not know what is happening in DISCOs. The Federal Government must revoke this ill-conceived and poorly executed privatisation. We must revisit and reform it in line with a new national agenda.
"No private organisation should be paid for services not rendered. The public must be protected from the real owners of these DISCOs. We must ensure seamless and accountable operations. Injustice must be corrected. That is the true essence of justice," he added.
A consumer rights advocate and Director-General of the Anambra Electricity Consumer Rights Initiative, Okechukwu Cyril-Nwuche, told our correspondent that power consumers were not only battling irregular power supply but were forced into extra payments beyond what the NERC capping order stipulated.
"Before I started my advocacy work, I had firsthand experience of the Enugu Electricity Distribution Company's officials disconnecting my power and still bringing electricity bills despite my lights being disconnected. I had to raise the issue with the relevant authorities.
"In my advocacy, I have informed power consumers on how to calculate and know what costs they should pay once they're on estimated billing, looking at the feeder that supplies each transformer, and from NERC's monthly energy cap data, and what each DISCO is expected to charge.
"Our research after engagement with NERC showed that most of these DISCOs never obeyed NERC's 'capping methodology' even once, despite sanctions and fines," Okechukwu added.
He stressed the need for transparent business dealings between DISCOs and electricity consumers without passing the burden of commercial losses to unsuspecting consumers.
Speaking further, an accountant and a business consultant, Dapo Ogundipe, told our correspondent that under normal circumstances, consumers should not be responsible for building infrastructure for DISCOs, adding that the entire privatisation process was fundamentally flawed.
"The key question is: were the DISCOs sold to the right investors? The answer is no. Many of the entities that acquired these assets lacked the technical expertise and financial capacity to run such a complex business. Instead, some saw it merely as an opportunity for profit," he said.
According to the terms of privatisation, DISCOs were expected to inject significant capital into the sector, but unfortunately, most of them did not have the funds to do so.
"They largely mobilised resources just to acquire the assets, leaving little or nothing for investment in infrastructure. As a result, they have been unable to replace obsolete equipment or improve service delivery across the sector," he argued.
On why consumers are being exploited all the time, Ogundipe said, "Consumers are exploited primarily because they lack both a voice and viable alternatives. From a cost-benefit perspective, even when electricity service is poor, many consumers feel compelled to remain connected.
"The alternative, relying on generators, is often more expensive and inefficient. With fuel prices around N1,300 per litre, combined with maintenance costs and wear and tear, generators may not provide better value.
"Faced with this reality, consumers reluctantly return to the grid and, in many cases, even fund infrastructure themselves. For example, in my village, residents experienced a blackout for two months because the oil in a transformer had dried up," he said.
He noted that despite repeated complaints, the DISCO failed to respond, and eventually, the community had no choice but to contribute money to purchase the oil and repair the transformer, something that should have been the DISCO's responsibility.
"The government also bears significant responsibility. It has failed to meet its obligations, particularly in terms of subsidies and regulatory enforcement. While the government established regulatory bodies, enforcement has been weak, and accountability is lacking.
"In many cases, the expectation that regulators would ensure compliance has not been met, leaving consumers unprotected," he added.
Lending his voice, an economist and former Director General of Lagos Centre for Commerce and Industry, Dr Muda Yusuf, said many DISCOs are financially insolvent and lack operational capacity, revealing that some original investors have already exited, leaving banks to take over control.
"Despite all the challenges, grid electricity remains the most viable option for most Nigerians. Especially if supply can be improved to 10-12 hours daily, many Nigerians still prefer it. However, the core issue remains capacity, both financial and technical.
"Some operators have already lost their licences, and parts of the value chain, including transmission and distribution, are under severe strain. The government reportedly owes the sector trillions of naira, which has further weakened operations.
"Efforts such as issuing bonds have been introduced to manage these debts, but they are not a sustainable long-term solution. The entire system requires a comprehensive overhaul. The current model is unsustainable, and the government cannot continue to absorb the financial burden indefinitely," Yusuf said.
He added that the privatisation of the power sector became politicised, and many investors entered the sector without the necessary competence or long-term vision, insisting that tariff adjustments have not always reflected economic realities, further complicating the situation.