The Federal Government has launched a bold plan to reform Nigeria’s ailing electricity distribution sector, starting with a pilot overhaul of two of the country’s worst-performing Distribution Companies (DisCos).
Minister of Power, Chief Adebayo Adelabu, announced the initiative following a strategic meeting in Abuja with officials from the Japan International Cooperation Agency (JICA), where a roadmap titled “Revamping of the Distribution Sector in Nigeria” was unveiled.
According to a statement by Adelabu’s Special Adviser on Strategic Communications and Media Relations, Mr. Bola Tunji, the pilot project will begin between May and August 2025, targeting one DisCo each from the northern and southern regions.
“This pilot is not optional,” Adelabu stated. “We will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”
The pilot aims to serve as a national model by integrating internal restructuring, external technical support, and strict federal oversight. JICA’s proposal includes embedding external experts into DisCos, improving leadership, and setting clear performance benchmarks.
The reform is intended to combat long-standing sector challenges, including poor governance, infrastructure decay, and weak commercial returns.
Adelabu emphasized that the government would no longer tolerate the sector’s failures. He noted that past reform efforts were derailed by resistance from DisCos but vowed this initiative would be intentional and enforced.
A key part of the reform is incentivizing infrastructure investment. “Returns on infrastructure spending are not commensurate. We must attract investors and franchise both viable and struggling areas to competent operators,” the minister explained.
He directed the Nigerian Electricity Regulatory Commission (NERC) to support franchising and ensure DisCo cooperation, warning that the government would act decisively against any resistance.
The minister also stressed the need for public education to correct misconceptions about the power sector, noting that many Nigerians still view generation, transmission, and distribution as a single system.
JICA’s Power Sector Policy Advisor to Nigeria, Takeshi Kikukawa, said the project aims to achieve immediate improvements in pilot locations while laying the groundwork for long-term national reforms.
The final design of the pilot, including the selection of the two DisCos, will be concluded in the coming months by the Ministry of Power and NERC, with focus on areas with the most severe operational deficiencies.
This initiative represents the Federal Government’s most assertive step yet in addressing Nigeria’s electricity distribution crisis, aiming to restore investor confidence, ensure accountability, and improve power access for Nigerians.
