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The Federal Government has launched a new initiative to reform Nigeria’s electricity distribution sector, starting with the restructuring of two poorly performing electricity distribution companies (DisCos).
This development comes after a detailed evaluation of the challenges confronting the DisCos, including weak governance, outdated infrastructure, and inefficiencies in commercial operations.
Minister of Power, Chief Adebayo Adelabu, revealed the plan following a meeting with representatives of the Japanese International Cooperation Agency, who presented a strategic document titled “Revamping of the Distribution Sector in Nigeria.”
According to the minister, the government can no longer stand by as distribution companies continue to underperform.
“We can no longer fold our hands and watch the inadequacies of DisCos, whose performances fall short of expectations,” he said.
“This pilot is not optional. We will apply regulatory powers to restructure inefficient DisCos and enforce compliance where needed.”
The reform pilot is expected to take off between May and August 2025, focusing on one distribution company in the northern region and another in the southern part of the country.
It is worth noting that Chief Adelabu has previously voiced his dissatisfaction with the DisCos’ failure to invest in critical infrastructure.
He noted that this ongoing neglect is slowing down government efforts, especially the transition of customers to higher tariff categories aimed at improving service delivery.