Ghazali Ibrahim
The Federal Government has unveiled plans to initiate a sweeping reform, starting with a pilot overhaul of two underperforming electricity distribution companies (DisCos).
The pilot initiative, announced by the Minister of Power, Chief Adebayo Adelabu, follows a comprehensive assessment that identified key challenges plaguing the DisCos, including governance lapses, weak infrastructure, and persistent commercial inefficiencies.
Speaking after a strategic meeting with the Japanese International Cooperation Agency (JICA), which presented a detailed roadmap titled “Revamping of the Distribution Sector in Nigeria”, Adelabu made it clear that government intervention is imminent.
“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 pilot reform, set to begin between May and August 2025, will focus on one distribution company in the North and another in the South, chosen based on performance metrics and regional coverage.
The initiative comes amid growing frustration over the sector’s failure to attract sufficient investment, particularly in infrastructure needed to support the government’s ambitious energy goals.
Adelabu, who has been vocal in his criticism of the sector, has repeatedly called out the DisCos for neglecting much-needed upgrades and expansion of their networks.
The planned reforms are expected to serve as a blueprint for nationwide transformation, aimed at delivering reliable, sustainable power to millions of Nigerians.