FG Launches Major Overhaul of Electricity Distribution Companies
The Federal Government of Nigeria has launched a major initiative to overhaul the country’s electricity distribution sector, starting with a pilot reform of two underperforming Distribution Companies (DisCos).
Mr Bolaji Tunji, Special Adviser, Strategic Communications and Media Relations to the minister of power in a statement in Abuja on Monday, said that the Pilot scheme of the overhauling would begin with the two underperforming DisCos.
Tunji quoted the Minister of power, Mr Adebayo Adelabu, as disclosing the plan after a meeting with the Japanese International Cooperation Agency (JICA), who presented a roadmap titled, ‘Revamping of the Distribution Sector in Nigeria’.
He said that JICA’s proposal was developed after the minister’s earlier visit to Japan’s energy market and it underscored a “holistic approach” to revamping distribution, including proactive government-JICA collaboration and measurable milestones. Adelabu said that the pilot scheme, slated to begin between May and August would target one DisCo in the North and another in the South.
He said” the Federal Government has begun moves to initiate sweeping reforms to revitalise Nigeria’s electricity distribution sector, starting with a pilot overhaul of two underperforming Distribution Companies (DisCos).
”The move follows a comprehensive assessment of systemic challenges plaguing the DisCos, including governance gaps, infrastructure deficits, and commercial inefficiencies,”he said.
The minister said that the overhaul of the DisCos was also aimed to demonstrate a replicable model for operational turnaround, combining internal restructuring, external expertise, and federal oversight to achieve rapid improvements in service delivery. According to him, JICA’s proposal emphasises reforming DisCos “from within”.
“By integrating outside experts, strengthening leadership, and aligning government support with short-term results in pilot zones to lay the groundwork for long-term sector-wide transformation.”
The minister, while stressing the urgency of the intervention, said that government could no longer fold its hands and watch the inadequacies of DisCos whose performances fall short of expectations.
”This pilot is not optional, we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.,”he said. Adelabu also acknowledged the persistent resistance to past reforms but vowed to address both universal challenges such as vandalism and governance.
He also said that government would also address region-specific issues, including cultural barriers hindering operations. ”The key initiative is resolving the DisCos’ inability to invest in infrastructure upgrades. “Their lack of investment is not solely due to unwillingness but also a lack of incentives.
”Returns on infrastructure spending are not commensurate, so we must attract investors and franchise viable and the not so viable areas to capable operators, so we can have a mix,”he said.
Adelabu directed the Nigeria Electricity Regulatory Commission (NERC) to enforce franchising opportunities and ensure DisCos’ cooperation. “NERC must secure their buy-in. Past efforts failed due to resistance, but this time, we will be intentional and decisive, ”he said.
The minister also highlighted the need for public education to clarify the roles of generation, transmission, and distribution entities. He said that many Nigerians still viewed the sector as a single entity, adding that educating consumers was critical to building trust and support for these reforms,.
Adelabu said that the ministry of power and NERC would finalise pilot details in the coming months, prioritising DisCos with acute operational deficits.
According to him, the initiative marks the most robust effort to date to resolve power distribution crisis, signalling a renewed push for accountability, investor confidence, and reliable electricity access.
Mr Takeshi Kikukawa, JICA’s Power Sector Policy Advisor to Nigeria, said during the presentation that the goal was to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement. #FG Launches Major Overhaul of Electricity Distribution Companies#
