The Federal Government has commenced the deployment of special teams to underperforming power distribution companies as part of a restructuring programme of the Discos.
It announced a major reform of the power distribution sector, beginning with a pilot reform programme targeting two underperforming electricity distribution companies. The pilot phase of the reform, set to commence between May and August 2025, will involve one electricity distribution company each from the Northern and Southern regions of the country.
In response to the government’s initiative, the affected Discos stated that they are not concerned with power sector politics but expressed their willingness to support progressive policies that promote business growth and sector improvement.
The latest development comes after a thorough assessment of the systemic challenges facing the country’s electricity distribution companies, including governance weaknesses, inadequate infrastructure, and commercial inefficiencies.
Minister of Power Adebayo Adelabu announced the restricting plan following a meeting with the Japanese International Cooperation Agency, which presented a roadmap titled “Revamping of the Distribution Sector in Nigeria”.
A statement released in Abuja by the Special Adviser, Strategic Communications and Media Relations to the minister, Mr Bolaji Tunji, revealed that Adelabu presented the roadmap during a high-level meeting in Abuja. According to the statement, the initiative is aimed at initiating sweeping reforms to revive the nation’s electricity distribution sector.
The minister said “We can no longer fold our hands and watch the inadequacies of Discos, whose performances fall short of expectations. This pilot is not optional; we will use regulatory authority to restructure underperforming Discos and compel compliance if necessary.”
Adelabu acknowledged ongoing resistance to previous reforms and pledged to tackle both widespread issues, such as vandalism and governance, and region-specific challenges, including cultural barriers.
He emphasized that a major focus of the initiative is overcoming the Discos’ limited investment in infrastructure, which stems not just from unwillingness but from a lack of incentives. To address this, he proposed attracting investors and franchising both viable and less viable areas to capable operators to ensure balanced sector development.
The Minister instructed the Nigerian Electricity Regulatory Commission (NERC) to enforce franchising opportunities and ensure full cooperation from the Discos. He emphasized, “NERC must secure their buy-in. Past efforts failed due to resistance, but this time, we will be intentional and decisive.”
He also stressed the importance of public awareness, pointing out the widespread misconception that the power sector operates as a single entity. “Many Nigerians still view the sector as a single entity. Educating consumers is critical to building trust and support for these reforms,” he noted.
During the presentation, JICA’s Power Sector Policy Advisor to Nigeria, Takeshi Kikukawa, stated that “the goal is to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement.”
Officials from the Ministry of Power and NERC are expected to finalize the specifics of the pilot programme in the coming months, with a focus on Discos facing the most severe operational challenges.
This initiative represents the most ambitious attempt to tackle the country’s power distribution crisis, reflecting a renewed commitment to accountability, investor engagement, and improved electricity access.
