…Deploys Special Teams To Underperforming DisCos
Worried by the abysmal performance of the power sector in terms of electricity distribution nationwide despite huge investments over the past years, the Federal Government has unveiled a new reform plan to overhaul the industry, starting with a pilot reform of two struggling Distribution Companies (DisCos) in the power sector value chain.
The government’s latest move was sequel to a comprehensive review of the DisCos’ lingering challenges, including infrastructure deficits, weak governance, and poor commercial performance.
The Minister of Power, Adebayo Adelabu, spoke on the proposed reform initiative following a strategic meeting with representatives of the Japanese International Cooperation Agency (JICA), who presented a reform blueprint titled “Revamping of the Distribution Sector in Nigeria” for implementation in the sector.
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The Minister, in a statement issued on Monday by his Special Adviser, Strategic Communications and Media Relations to the minister, Mr Bolaji Tunji, explained that the pilot scheme, scheduled for between May and August 2025, would target one DisCo each in the North and South, serving as a model for nationwide transformation.
According to him, the reform initiative will combine internal restructuring, external technical input, and strong federal oversight to achieve rapid improvements in service delivery.
He said: “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, who also spoke about the historical resistance to reforms in the sector, promised to adopt a firm approach to both common and region-specific issues, ranging from vandalism to cultural barriers impeding operations, including the DisCos’ inability to fund infrastructure upgrades.
He maintained that the issue had not been always unwillingness of the operators but lack of incentives, adding that the government needs “to create models that attract investment and encourage franchising of both viable and non-viable zones to capable operators.”
To ensure the successful implementation of the reform, the Minister directed the Nigerian Electricity Regulatory Commission (NERC) to enforce franchising mechanisms and ensure full cooperation from the DisCos, stressing that this time, government will be intentional and decisive and the NERC must secure the DisCos’ buy-in.
While speaking on the importance of public enlightenment to demystify the structure of Nigeria’s power sector, he noted that “many Nigerians still believe the sector operates as a single entity. Educating consumers on the roles of generation, transmission, and distribution is critical to the success of these reforms.”
Speaking on the reform plan, JICA’s Power Sector Policy Advisor to Nigeria, Mr. Takeshi Kikukawa, said: “The goal is to achieve short-term wins in pilot areas while laying a foundation for long-term national improvement.”
Based on the discussions between the parties, details of the pilot programme will be finalized in the coming months, with priority given to DisCos that are currently facing the most severe operational setbacks.
