ABUJA — The Federal Government will not renew the licences of poorly performing electricity distribution companies (DisCos) when they expire in 2028, Power Minister Chief Adebayo Adelabu announced on Monday.
Speaking at the Nigerian Economic Summit 2025 in Abuja during a session themed “Uninterrupted Power Supply: The Industrial Imperatives,” Adelabu blamed DisCos for the country’s persistent electricity supply challenges. He stressed that inefficiency among the distribution companies remains a major bottleneck in 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. Those that have not demonstrated technical expertise, financial stability, or acted in the country’s best interest will be kicked out,” Adelabu said.
On efforts to stabilize the power sector, Adelabu highlighted that President Bola Tinubu has approved a N4 trillion bond to settle verified debts owed to power generation companies (GenCos) and gas suppliers. He also said a targeted subsidy framework is being developed to protect vulnerable households while ensuring a sustainable path toward full commercialization.
Other stakeholders at the summit, including Azura Power CEO Edu Okeke and Nigeria LNG Limited Managing Director Philip Mshelbila, emphasized the need to improve liquidity in the sector. Okeke downplayed concerns over gas payments being made in dollars rather than naira, while Mshelbila stressed that appropriate gas pricing would attract more investment into gas production for power generation.
Adelabu further assured that the government would take all necessary measures to ensure every household is metered within the next three to five years.
