The Minister of Power, Chief Adebayo Adelabu, has said 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 the inefficiency of the DisCos remains one of the biggest challenges to stable power supply in Nigeria.
The session, themed “Uninterrupted Power Supply: The Industrial Imperatives,” brought together key industry stakeholders to discuss solutions to Nigeria’s persistent electricity problems.
Adelabu stated that while the power sector faces systemic issues, the performance of the DisCos continues to impede progress.
He said: “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.”
On efforts to resolve the liquidity crisis in the sector, Adelabu disclosed 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.
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 and efficient gas pricing to attract investment in power generation.
Okeke noted that payment concerns over gas being priced in dollars were minor compared to other structural challenges facing the industry, while Mshelbila stressed that appropriate pricing would help stimulate investment in gas supply for electricity generation.
