The Federal Government has initiated plans to overhaul Nigeria’s struggling electricity distribution sector, beginning with a pilot reform of two poorly performing distribution companies.
This decision follows a thorough review of persistent issues within the sector, including weak corporate governance, inadequate infrastructure, and operational inefficiencies.
Minister of Power, Chief Adebayo Adelabu, revealed the reform initiative after a meeting with the Japan International Cooperation Agency, which presented a strategic plan titled “Revamping of the Distribution Sector in Nigeria.”
“We cannot continue to tolerate the poor performance of the DisCos.
This pilot is mandatory. We will use our regulatory powers to restructure and enforce compliance where necessary,” Adelabu stated.
The pilot programme is scheduled to begin between May and August 2025, targeting one DisCo in the North and one in the South.
The minister has consistently criticised the DisCos for failing to invest in distribution infrastructure, a shortfall he says is delaying efforts to shift consumers to higher tariff bands and improve overall power delivery.