Two power Distribution Companies, DisCos, face a review of their operation over underperformance.
This was announced by the Minister of Power, Adebayo Adelabu.
He said the federal government had planned to launch a pilot reform programme targeting two underperforming electricity distribution companies as part of broader efforts to fix Nigeria’s troubled power sector.
Adelabu made this statement following a meeting with officials of the Japan International Cooperation Agency, JICA.
This was contained in a statement by the Special Adviser, Strategic Communications and Media Relations, Bolaji Tunji, on Monday in Abuja.
Tunji said the meeting witnessed the presentation of a roadmap titled ‘Revamping of the Distribution Sector in Nigeria’.
The minister, while speaking at the meeting, said the pilot scheme, scheduled for May and August 2025, will focus on one DisCo in the northern region and another in the south.
According to him, the goal is to develop a replicable turnaround model by combining internal restructuring, external technical support, and stronger federal oversight.
“We can no longer fold our 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," Adelabu said.
The minister also ordered the Nigerian Electricity Regulatory Commission, NERC, to drive the franchising effort and ensure the cooperation of DisCos.
On his part, JICA’s power sector policy advisor to Nigeria, Takeshi Kikukawa, said the goal is to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement.