Nigerian govt to launch pilot reform programme targeting 2 struggling DisCos —Minister Adelabu

In a bold step aimed at revitalizing Nigeria’s faltering power sector, the Federal Government will, by 2025, launch a pilot reform programme targeting two underperforming electricity distribution companies (DisCos), Minister of Power Adebayo Adelabu has announced.

The initiative, which is expected to kick off between May and August 2025, will focus on one DisCo in the North and another in the South. According to Adelabu, the pilot is part of a broader strategy to establish a replicable model that can be scaled across the nation’s distribution sector.

Speaking after a strategy session with the Japan International Cooperation Agency (JICA) on Monday, Adelabu underscored the urgent need to restructure inefficient DisCos. The session featured the presentation of a comprehensive roadmap titled ‘Revamping of the Distribution Sector in Nigeria’, which outlines internal restructuring, the integration of external technical expertise, and strengthened regulatory oversight as key elements.

“We can no longer fold our arms while underperforming DisCos continue to hinder progress in the power sector,” Adelabu said. “This pilot is not optional. Where necessary, we will enforce compliance using the full weight of regulatory authority.”

The announcement was conveyed in a statement issued Monday by Bolaji Tunji, the minister’s special adviser on strategic communications and media relations.

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Adelabu emphasized that previous reform efforts often failed due to entrenched resistance and weak enforcement mechanisms. But he assured that the new approach—intentional and decisive—will ensure better outcomes. He pointed to JICA’s reform model, which prioritizes internal transformation by embedding external experts, reinforcing leadership, and aligning incentives with performance goals.

“We’re dealing with deep-rooted issues—not just managerial inefficiencies but also structural disincentives. Investors are wary, not because they don’t want to invest, but because the returns are unclear,” the minister said.

He further highlighted ongoing challenges, including operational bottlenecks and vandalism, noting that the government is working to address these while simultaneously pushing forward with a franchising model to attract credible operators for both viable and struggling areas.

To that end, Adelabu directed the Nigerian Electricity Regulatory Commission (NERC) to lead the charge in driving franchising agreements and ensuring DisCo participation.

“NERC must get their buy-in. We can’t allow the kind of resistance that derailed previous reform efforts to continue,” he said.

Beyond technical and regulatory solutions, Adelabu called for greater public engagement and awareness to rebuild consumer trust. “Most Nigerians still view the power sector as a monolith. We need to help them understand the distinct roles of generation, transmission, and distribution. Without this clarity, we can’t expect their full support,” he added.

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