The Minister of Power, Chief Adebayo Adelabu, made a significant announcement on Monday.
He stated that the Federal Government will not renew the licences of electricity distribution companies (DisCos) that fail to meet the required performance standards.
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This directive will come into effect when the current licences of these DisCos expire in 2028.
Speaking during a session at the Nigerian Economic Summit 2025 in Abuja, themed “Uninterrupted Power Supply: The Industrial Imperatives,” Adelabu said inefficiency among the DisCos remains a major barrier to stable electricity supply in Nigeria.
He stressed the government’s determination to enforce accountability and drive reforms across the sector.
“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,” Adelabu stated.
“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.”
Adelabu also revealed that President Bola Tinubu has approved a N4 trillion bond to offset verified debts owed to power generation companies (GenCos) and gas suppliers, as part of efforts to stabilize the market.
“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 added.
