The Federal Government has initiated plans to reform Nigeria’s electricity distribution sector, beginning with a pilot program targeting two struggling distribution companies (DisCos).
This decision comes after a thorough review of persistent issues affecting the sector, including poor governance, aging infrastructure, and low commercial performance.
Minister of Power, Chief Adebayo Adelabu, announced the initiative following a meeting with the Japan International Cooperation Agency (JICA), which presented a strategic roadmap titled “Revamping of the Distribution Sector in Nigeria.”
“We can no longer stand by while DisCos continue to underperform,” Adelabu said. “This pilot project is mandatory. We will use our regulatory powers to restructure inefficient DisCos and enforce compliance where necessary.”
The pilot phase is scheduled to run between May and August 2025 and will involve one DisCo in the northern region and another in the south.
The minister has consistently raised concerns about the lack of investment by DisCos in their distribution networks, emphasizing that this shortfall hampers the government’s efforts to advance key reforms, including the planned migration of consumers to higher tariff bands.
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