FG to Revoke Licences of Underperforming DisCos in 2028 – Adelabu
The Minister of Power, Chief Adebayo Adelabu has called on DisCos to improve their services.
This is as he announced that the Federal Government will revoke licences of electricity distribution companies (DisCos) that fail to meet performance expectations when their current licences expire in 2028.
Speaking during a power sector session at the Nigerian Economic Summit 2025 in Abuja, Adelabu said inefficiency within the DisCos remains one of the biggest obstacles to achieving stable electricity supply across the country.
The session, themed “Uninterrupted Power Supply: The Industrial Imperatives,” brought together key stakeholders in the power industry to discuss strategies for addressing Nigeria’s long-standing energy challenges.
Adelabu stated that while the power sector faces systemic issues, the poor performance of the DisCos continues to impede progress. “The distribution companies need to sit up,” he said. “They are a major bottleneck in the sector, and the government is doing everything possible to ensure they meet expectations. Their licences will expire in two years, and there will be major reforms before any renewal. Those that have not demonstrated technical expertise, financial stability, or commitment to national interest will be replaced. The government will ensure that every household is metered within the next three to five years.”
On the government’s efforts to resolve the liquidity crisis affecting the power sector, the minister revealed that President Bola Tinubu has approved a N4 trillion bond to offset verified debts owed to power generation companies (GenCos) and gas suppliers. “To stabilize the market, Mr. President has approved a N4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure the sector’s long-term viability,” he said.
Adelabu added that the reforms will include enforcing stricter performance standards, expanding metering coverage, and restructuring DisCo ownership where necessary to ensure that consumers receive efficient and reliable service.
In separate remarks, the Chief Executive Officer of Azura Power, Mr. Edu Okeke, and the Managing Director of Nigeria LNG Limited, Mr. Philip Mshelbila, called for improved liquidity in the sector and more efficient gas pricing to attract investment in electricity generation.
Okeke noted that payment concerns over gas being priced in dollars were less significant compared to other structural challenges facing the industry, while Mshelbila emphasized that appropriate gas pricing would encourage greater investment in gas supply, which remains the backbone of Nigeria’s power generation capacity.
The session ended with stakeholders agreeing that restoring efficiency and accountability within the power distribution system is key to achieving Nigeria’s goal of uninterrupted power supply.