The Federal Government has announced a major reform initiative targeting Nigeria’s struggling power distribution sector, starting with a pilot overhaul of two underperforming Distribution Companies (Discos).
This bold move follows a detailed assessment of systemic issues such as governance gaps, poor infrastructure, and commercial inefficiencies affecting the Discos’ performance.
Minister of Power, Chief Adebayo Adelabu, revealed the plan during a meeting in Abuja with the Japan International Cooperation Agency (JICA), which unveiled a roadmap titled “Revamping of the Distribution Sector in Nigeria.”
According to Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations, the pilot programme will roll out between May and August 2025, targeting one Disco in the North and another in the South. The goal is to create a replicable model for operational transformation by integrating expert guidance, enforcing accountability, and demonstrating quick service delivery improvements.
JICA’s strategy focuses on restructuring Discos internally while embedding external professionals and aligning federal oversight with short-term, measurable outcomes. The plan aims to lay the foundation for long-term national reform in the electricity sector.
Minister Adelabu underscored the urgency of the initiative:
“This pilot is not optional. We will use regulatory authority to restructure underperforming Discos and enforce compliance.”
He also cited the importance of resolving the Discos’ chronic underinvestment, stating that low returns have discouraged spending on infrastructure upgrades. As a remedy, he proposed franchising viable and underperforming zones to capable operators, attracting fresh investment and operational expertise.
The Minister has tasked the Nigerian Electricity Regulatory Commission (NERC) with enforcing franchising mandates and securing Disco cooperation, warning that past resistance would not derail the current initiative.
He further emphasized the need for public education to clarify the distinctions between power generation, transmission, and distribution entities — a critical step toward restoring consumer confidence and stakeholder engagement.
JICA’s Power Sector Policy Advisor to Nigeria, Takeshi Kikukawa, stated:
“We aim for immediate impact in pilot areas, building a sustainable base for nationwide improvement.”
The pilot project will be finalized in the coming months, with priority given to Discos experiencing the most acute challenges. This initiative represents one of the most decisive federal actions to date in reforming Nigeria’s electricity sector, aiming to boost investor confidence, enforce accountability, and ensure reliable electricity access for all.