The Federal Government has announced begin a major reform of Nigeria’s electricity distribution sector, starting with a pilot project to fix two poorly performing power distribution companies (DisCos).
This decision comes after a full review of the challenges facing the DisCos, including poor management, outdated infrastructure, and financial problems that make it hard for them to operate efficiently.
Speaking after a meeting with the Japanese International Cooperation Agency (JICA), Nigeria’s Minister of Power, Chief Adebayo Adelabu, said that the government had no choice but to act.
“We can no longer fold our hands and watch the inadequacies of DisCos, whose performances fall short of expectations,” the minister said.
“This pilot is not optional. We will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”
The Japanese agency presented a detailed roadmap titled “Revamping of the Distribution Sector in Nigeria” to guide the reforms.
The pilot phase of the reform will begin between May and August 2025, targeting one DisCo in the North and another in the South. These companies will be closely monitored and restructured as needed to improve service delivery.
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Chief Adelabu has often spoken out about the lack of investment by DisCos in Nigeria’s power distribution network. He believes this lack of spending on infrastructure is one of the biggest reasons the sector is not improving.
He also said this problem is making it harder for the government to reach its targets, especially plans to move more customers to higher electricity tariff bands — which should come with better service.
“This pilot is not optional,” he repeated. “We will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”