Tuesday, October 7, 2025 - The Minister of Power, Chief Adebayo Adelabu, has warned that the Federal Government will not renew the licences of electricity distribution companies (DisCos) that fail to meet performance expectations when their current licences expire in 2028.
Speaking during a power sector session at the Nigerian
Economic Summit 2025 in Abuja, Adelabu said inefficiency within the DisCos
remains one of the biggest obstacles to achieving stable electricity supply
across the country.
The session, themed “Uninterrupted Power Supply: The
Industrial Imperatives,” brought together key stakeholders in the power
industry to discuss strategies for addressing Nigeria’s long-standing energy
challenges.
Adelabu stated that while the power sector faces systemic
issues, the poor performance of the DisCos continues to impede progress. “The
distribution companies need to sit up,” he said. “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. The government will ensure that every household is metered within the
next three to five years.”
On the government’s efforts to resolve the liquidity crisis
affecting the power sector, the minister revealed that President Bola Tinubu
has approved a N4 trillion bond to offset 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 said.
Adelabu added that the reforms will include enforcing
stricter performance standards, expanding metering coverage, and restructuring
DisCo ownership where necessary to ensure that consumers receive efficient and
reliable service.
In separate remarks, the Chief Executive Officer of Azura
Power, Mr. Edu Okeke, and the Managing Director of Nigeria LNG Limited, Mr.
Philip Mshelbila, called for improved liquidity in the sector and more
efficient gas pricing to attract investment in electricity generation.
Okeke noted that payment concerns over gas being priced in
dollars were less significant compared to other structural challenges facing
the industry, while Mshelbila emphasized that appropriate gas pricing would
encourage greater investment in gas supply, which remains the backbone of
Nigeria’s power generation capacity.
The session ended with stakeholders agreeing that restoring
efficiency and accountability within the power distribution system is key to
achieving Nigeria’s goal of uninterrupted power supply.
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