The Federal Government has initiated plans to reform Nigeria’s ailing electricity distribution sector, beginning with a pilot restructuring of two underperforming Distribution Companies (DisCos).
The initiative follows a detailed assessment of longstanding issues within the sector, including governance lapses, poor infrastructure, and widespread inefficiencies that have hindered service delivery.
Minister of Power, Adebayo Adelabu, announced the move after a strategic meeting with officials from the Japanese International Cooperation Agency (JICA), who presented a roadmap titled Revamping of the Distribution Sector in Nigeria.
Adelabu said the government would no longer stand by as DisCos continue to perform below expectations, stressing that the pilot reform is mandatory. “We will leverage our regulatory authority to enforce compliance and restructure DisCos that fail to meet performance standards,” he said.
The pilot phase, set to roll out between May and August 2025, will focus on one DisCo in the North and another in the South as a model for broader sector-wide reform.
The minister has repeatedly raised concerns about the DisCos’ failure to invest in upgrading the distribution network, a key factor stalling the transition of customers to higher tariff bands and limiting progress toward reliable power supply.
The government’s latest move signals a renewed commitment to overhauling the power sector and ensuring improved electricity delivery across the country.