The lawmakers noted that the federal government made several financial interventions in the sector, yet Nigeria does not have an adequate electricity supply.
The House of Representatives has resolved to probe all financial interventions by the federal government in the power sector in the past 10 years.
The investigation will cover over $1.25 billion injected into the sector by the federal government from 2013 till date.
This resolution to investigate the sector followed a motion moved by Ademorin Kuye (APC, Lagos) on Wednesday during plenary.
In the motion, Mr Kuye said the federal government made several financial interventions in the sector, yet Nigeria does not have an electricity supply.
He said the World Bank, through the International Development Association (IDA), credited $486 million into the power sector while the African Development Bank (AfDB) provided a facility of the sum of $300 million to the Transmission Company of Nigeria (TCN) for expansion and rehabilitation of the existing northern corridor.
He also the French Development Agency provided a facility of $170 million for Transmission infrastructure expansion around the Abuja metropolis, while the Japan International Cooperation Agency (JICA) provided a facility of $238 million for Transmission infrastructure expansion within the South-west region of Nigeria and another $13 million for other maintenance.
The lawmaker explained that the sector is still struggling despite the financial injections and the privatisation of the sector. He explained that six out of the 11 electricity companies have been taken over by banks.
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He said the main regulator in the section, the Nigeria Electricity Regulation Commission (NERC), has failed to properly regulate the sector.
"The Nigeria Electricity Regulatory Commission (NERC)'s performance as an industry regulator is questioned for its ability to move the industry forward and eliminate illiquidity.
"The Nigeria Electricity Supply Industry faces threat due to the poor performance and transparency of DISCOs and the NERC's inability to sanction erring stakeholders," he said.
The motion was unanimously adopted by the House when it was put to vote by the Speaker, Abbas Tajudeen.
The Committees on Power and Finance were mandated to conduct the investigation.
