The Federal Government has initiated bold reforms aimed at overhauling Nigeria’s struggling electricity distribution sector, beginning with a pilot project to restructure two underperforming Distribution Companies (DisCos).
According to Hobnob News, the move follows a detailed assessment of systemic issues affecting the DisCos, including poor governance structures, inadequate infrastructure, and low commercial efficiency.
Minister of Power, Chief Adebayo Adelabu, unveiled the plan after a high-level meeting with the Japanese International Cooperation Agency (JICA), which presented a strategic roadmap titled “Revamping of the Distribution Sector in Nigeria.”
Adelabu stated firmly, “We can no longer fold our hands and watch the inefficiencies of DisCos. This pilot is mandatory—we will enforce compliance and restructure where performance is below par.”
The pilot reform is scheduled to roll out between May and August 2025 and will focus on one DisCo in the Northern region and another in the Southern part of the country.
This development follows the minister’s ongoing criticism of the distribution companies’ failure to invest meaningfully in expanding and modernizing their infrastructure—an issue he says continues to undermine government efforts to transition customers to higher service tariff bands.
The government says the pilot scheme will serve as a model for wider reforms across the electricity distribution landscape.
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