FG begins overhaul of DisCos

The Federal Government has begun moves to initiate sweeping reforms to revitalise the nation’s electricity distribution sector.

The move, according to it, will commence with a pilot overhaul of two underperforming distribution companies.

Power Minister, Adebayo Adelabu, who announced the plan after a meeting with the Japanese International Cooperation Agency, which presented a roadmap titled Revamping of the Distribution Sector in Nigeria, said the pilot scheme will commence between May and August 2025.

Adelabu explained that the scheme will target one DisCo in the North and another in the South.

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

According to him, the federal government could no longer fold its hands and watch the inadequacies of DisCos, whose performances fall short of expectations.

Adelabu, however, said the pilot is not optional, as the regulatory authority would be used to restructure underperforming DisCos and compel compliance if necessary.

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.