Abuja, Nigeria – The Federal Government has warned that electricity distribution companies (DisCos) that fail to meet performance expectations will not have their licences renewed when they expire in 2028.
Speaking at the Nigerian Economic Summit 2025 in Abuja during a session themed “Uninterrupted Power Supply: The Industrial Imperatives”, Minister of Power, Chief Adebayo Adelabu, said the inefficiency of DisCos remains a major obstacle to stable power supply in Nigeria.
“The distribution companies need to sit up. 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,” Adelabu stated.
He added that the government aims to ensure every household is metered within the next three to five years, part of broader plans to strengthen the sector.
On addressing the liquidity crisis in the power sector, Adelabu disclosed that President Bola Tinubu has approved a N4 trillion bond to clear 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 explained.
Industry leaders also weighed in during the summit. Edu Okeke, CEO of Azura Power, emphasized that payment concerns over gas priced in dollars were minor compared to structural challenges, while Philip Mshelbila, Managing Director of Nigeria LNG Limited, stressed that appropriate gas pricing is crucial to attract investment in electricity generation.
The government’s firm stance signals a commitment to reform Nigeria’s power sector, improve electricity supply, and create a more investor-friendly environment for long-term sustainability.
