BREAKING: FG BEGINS OVERHAUL OF DISCOs

May 12, 2025

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The Federal Government has begun moves to initiate sweeping reforms to revitalise the nation’s electricity distribution sector, starting with a pilot overhaul of two underperforming distribution companies.

The move follows a comprehensive assessment of systemic challenges plaguing the DisCos, including governance gaps, infrastructure deficits, and commercial inefficiencies.

The Power Minister, Chief Adebayo Adelabu, disclosed the plan after a meeting with the Japanese International Cooperation Agency, which presented a roadmap titled “Revamping of the Distribution Sector in Nigeria”.

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.”

The pilot scheme, slated to commence between May and August 2025, will target one DisCo in the North and another in the South.

Recall that the minister has repeatedly expressed concerns about the lack of investment in the distribution network by electricity distribution companies.

He has specifically pointed out that this lack of investment is hindering progress towards achieving the government’s goals, particularly regarding customer migration to higher tariff bands.