Adelabu: FG to restructure two underperforming DisCos

Adebayo Adelabu, minister of power, says the federal government has plans to launch a pilot reform programme targeting two underperforming electricity distribution companies (DisCos), as part of broader efforts to fix Nigeria’s troubled power sector.

In a statement on Monday, Bolaji Tunji, special adviser, strategic communications and media relations, said Adelabu spoke after a meeting with officials of the Japan International Cooperation Agency (JICA).

According to Tunji, the meeting witnessed the presentation of a roadmap titled ‘Revamping of the Distribution Sector in Nigeria’.

Speaking at the meeting, Adelabu said the pilot scheme, scheduled for May and August 2025, will focus on one DisCo in the northern region and another in the south.

He added that the goal is to develop a replicable turnaround model by combining internal restructuring, external technical support, and stronger federal oversight.

“We can no longer fold our hands and watch the inadequacies of DisCos whose performances fall short of expectations,”   Adelabu said.

“This pilot is not optional—we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”

According to Adelabu, JICA’s approach focuses on “reforming DisCos from within,” integrating external experts into management, strengthening leadership, and aligning federal incentives with short-term service improvements.

He added that past reform efforts had faced stiff resistance, but said the current initiative would be “intentional and decisive”.

FG TO RESOLVE STRUCTURAL ISSUES

Adelabu pointed out issues such as regional operational barriers and vandalism, and said the government was also looking to resolve deeper structural problems like poor investment incentives.

“Their lack of investment is not solely due to unwillingness but also a lack of returns,” he said.

“We must attract investors and franchise viable and struggling areas to capable operators.”

He directed the Nigerian Electricity Regulatory Commission (NERC) to drive the franchising effort and ensure the cooperation of DisCos.

“NERC must secure their buy-in. Past efforts failed due to resistance. That won’t be the case this time,” he said.

Adelabu also emphasised the need for greater public awareness of the power sector’s operation.

“Many Nigerians still see the sector as a single entity. We must educate consumers on generation, transmission, and distribution roles if we want their trust and support.”

On his part, Takeshi Kikukawa, JICA’s power sector policy advisor to Nigeria, said “the goal is to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement”.

Tunji also said the ministry of power and NERC are expected to finalise the pilot selection in the coming months, focusing on DisCos with severe operational shortfalls.