Mohamed Garba
The Federal Government has launched a bold initiative to revitalize Nigeria’s electricity distribution sector, announcing plans to restructure two underperforming Distribution Companies (DisCos) in a pilot scheme aimed at addressing chronic power supply failures.
The move marks the first major step in a sweeping reform agenda following years of systemic inefficiencies, infrastructure decay, and governance gaps plaguing the sector.
Power Minister Chief Adebayo Adelabu disclosed the strategy on Monday after a high-level meeting with the Japanese International Cooperation Agency (JICA), which presented a technical roadmap titled “Revamping of the Distribution Sector in Nigeria.”
The pilot overhaul, slated to commence between May and August 2025, will target one DisCo in the northern region and another in the south, with stricter regulatory enforcement to ensure compliance. “We can no longer fold our hands and watch the inadequacies of DisCos, whose performances fall short of expectations,” Adelabu declared.
This pilot is not optional—we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.
The announcement follows a comprehensive federal assessment highlighting crippling challenges, including aging infrastructure, poor revenue collection, and governance lapses, which have left millions of Nigerians grappling with erratic electricity supply despite privatization efforts over a decade ago.
Adelabu emphasized that the lack of investment in distribution networks by DisCos has stalled progress on critical goals, including migrating customers to higher tariff bands designed to reflect service quality and operational costs.
JICA’s involvement signals international support for the reforms, with the agency’s roadmap expected to guide infrastructure upgrades, governance restructuring, and financial sustainability measures. While details of the targeted DisCos remain undisclosed, the initiative has sparked cautious optimism among industry stakeholders long frustrated by the sector’s underperformance.
The minister’s remarks align with his earlier critiques of DisCos’ failure to modernize grids or improve metering, exacerbating revenue losses and public discontent. Analysts warn that the success of the pilot will hinge on transparent enforcement and adequate funding to avoid repeating past pitfalls.