— By Fresh Facts Staff Writer
In a bold and unprecedented move aimed at addressing the longstanding challenges in Nigeria’s power sector, the Federal Government has announced the commencement of a pilot overhaul targeting underperforming electricity distribution companies (DisCos). This strategic intervention marks a significant shift in the government’s approach to tackling the inefficiencies that have plagued electricity distribution across the country.
Speaking after a high-level meeting with the Japanese International Cooperation Agency (JICA), the Minister of Power, Chief Adebayo Adelabu, unveiled the government’s reform roadmap, aptly titled Revamping of the Distribution Sector in Nigeria. The roadmap outlines a comprehensive plan to restructure and revitalize the sector, beginning with a pilot scheme that will focus on two DisCos — one in the northern region and the other in the southern region of the country.
The initiative, scheduled to take off between May and August 2025, is expected to serve as a model for future reforms in other parts of the country. According to Minister Adelabu, the pilot scheme is not optional but mandatory, and the government will not hesitate to invoke regulatory powers to compel compliance from defaulting DisCos.
“We cannot continue to fold our arms while the distribution segment of our power value chain continues to underperform,” Adelabu stated. “This pilot reform is not up for negotiation. The regulatory authority will be fully deployed to restructure inefficient operators and ensure that the distribution sector delivers value to Nigerians.”
The decision follows a comprehensive diagnostic assessment of the nation’s power distribution sector, which revealed deep-rooted issues ranging from governance lapses and inadequate infrastructure to poor customer service and commercial inefficiencies. These systemic failures have hindered the effective delivery of electricity to millions of homes and businesses, undermining the broader economic development agenda.
Of particular concern to the Power Minister is the lack of investment by DisCos in critical distribution infrastructure. Despite years of privatization and regulatory support, many DisCos have failed to upgrade their networks or expand access to underserved areas. This inertia, the minister noted, has significantly delayed the federal government’s plans to transition electricity consumers to higher service-based tariff bands, which are designed to improve power supply reliability while ensuring financial sustainability in the sector.
Adelabu, who has consistently voiced dissatisfaction with the performance of the DisCos, emphasized that the government’s intervention is aimed not at taking over the companies but at correcting structural deficiencies and creating an enabling environment for efficiency and accountability.
“We’re not on a witch hunt,” he clarified. “This is about enforcing discipline, strengthening governance, and putting in place the right incentives for DisCos to operate like real businesses that are customer-centric and performance-driven.”
The involvement of JICA is expected to bring in international best practices, technical support, and possibly funding, as Nigeria seeks to emulate the success stories of countries that have successfully turned around their power sectors.
Stakeholders across the energy industry have welcomed the move, describing it as a long-overdue corrective step. Energy analysts have also pointed out that revamping the distribution segment is critical if Nigeria hopes to reap the full benefits of recent gains in power generation and transmission.
As the government prepares to launch this reform pilot, the spotlight will be firmly on the two selected DisCos, whose performance over the next several months could determine the scale and pace of future overhauls. For millions of electricity consumers across the country, this intervention may just be the beginning of long-awaited improvements in power supply and service delivery.
Fresh Facts Magazine will continue to monitor and report on this critical reform effort as it unfolds.
