The Federal Government has announced plans to implement sweeping reforms in Nigeria’s electricity distribution sector, beginning with a pilot overhaul of two underperforming electricity distribution companies (DisCos).
This initiative follows a thorough assessment of the sector, which uncovered major challenges such as poor governance, inadequate infrastructure, and persistent commercial inefficiencies.
Minister of Power, Chief Adebayo Adelabu, revealed the reform strategy after a meeting with representatives of the Japan International Cooperation Agency (JICA), who presented a roadmap titled “Revamping of the Distribution Sector in Nigeria.”
“We can no longer fold our hands and watch the inadequacies of DisCos, whose performances fall short of expectations,” Adelabu said. “This pilot is not optional. We will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”
The pilot scheme, scheduled to launch between May and August 2025, will target one distribution company in the North and another in the South.
The minister has repeatedly criticized the DisCos for failing to invest in network upgrades, stressing that their inaction continues to hamper the government’s broader goals — particularly the migration of customers to higher tariff bands with improved service delivery.
The reform is expected to serve as a model for nationwide intervention aimed at improving electricity supply and operational efficiency in Nigeria’s power sector.
More details to follow.
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