JUST IN: FG commences reform of electricity distribution companies

The Federal Government has initiated a fresh round of reforms aimed at revitalising Nigeria’s electricity distribution sector, beginning with the restructuring of two underperforming power distribution companies (DisCos).

This action comes after a thorough review of persistent issues affecting the DisCos, including poor governance, outdated infrastructure, and widespread operational inefficiencies.

Minister of Power, Chief Adebayo Adelabu, disclosed the plan after a meeting with officials of the Japanese International Cooperation Agency (JICA), who presented a strategic framework titled “Revamping of the Distribution Sector in Nigeria.”

Adelabu stressed that the current state of the DisCos could no longer be tolerated. “We won’t continue to overlook the inefficiencies of these DisCos whose operations are far below expectations,” he stated.

“This reform is compulsory. We will not hesitate to exercise regulatory powers to restructure any company that is not performing and enforce necessary compliance.”

The pilot phase of the reform, scheduled to begin between May and August 2025, will focus on one DisCo each from the northern and southern regions of the country.

The minister has repeatedly criticised the DisCos for failing to invest in expanding and upgrading their infrastructure.

He has also maintained that this lack of investment is a major obstacle to the government’s objectives, particularly the migration of consumers to more cost-reflective tariff bands.