The Minister of Power, Chief Adebayo Adelabu, has issued a stern warning to electricity distribution companies (DisCos), saying the Federal Government will not renew their licences if they fail to meet performance expectations when their current permits expire in 2028.
Speaking during the 2025 Nigerian Economic Summit in Abuja, Adelabu said inefficiency within the DisCos remains one of the major obstacles to achieving stable electricity supply across Nigeria.
The power sector session was themed “Uninterrupted Power Supply: The Industrial Imperatives.”
DisCos Under Scrutiny
Adelabu said while Nigeria’s power challenges are complex, the poor performance of the DisCos continues to frustrate government reforms.
“The distribution companies need to sit up. 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,” he stated.
He warned that only companies showing real capacity and accountability will remain after the 2028 review.
₦4 Trillion Bond for Power Sector Debts
The minister also revealed that President Bola Tinubu has approved a ₦4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers.
“To stabilize the market, Mr. President has approved a ₦4 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,” Adelabu said.
He explained that the reforms will introduce stricter performance standards, expand metering coverage, and restructure ownership of DisCos where necessary.
Calls for Market Reforms and Fair Gas Pricing
At the same session, the Chief Executive Officer of Azura Power, Mr. Edu Okeke, and the Managing Director of Nigeria LNG Limited, Mr. Philip Mshelbila, urged the government to improve liquidity in the sector and ensure fair gas pricing to attract more investors.
Okeke said payment issues over gas being priced in dollars were less significant compared to deeper structural inefficiencies.
Mshelbila, on his part, stressed that fair pricing would encourage more investment in gas supply — the backbone of Nigeria’s power generation.
Other stakeholders agreed that the key to achieving uninterrupted power supply lies in transparency, accountability, and efficiency within the power distribution chain.
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