FG To Revoke Licences Of Underperforming DisCos In 2028 – Adelabu

The Minister of Power, Chief Adebayo Adelabu, has cautioned that the Federal Government will not renew the licences of electricity distribution companies (DisCos) that fail to meet performance standards when their current licences expire in 2028.

During a power sector session at the Nigerian Economic Summit 2025 in Abuja, Adelabu highlighted that inefficiencies within the DisCos remain a significant barrier to achieving a stable electricity supply nationwide.

The session, themed “Uninterrupted Power Supply: The Industrial Imperatives,” convened key stakeholders in the power industry to explore solutions for addressing Nigeria’s persistent energy challenges.

Adelabu noted that while systemic issues plague the power sector, the underperformance of DisCos continues to hinder progress. “The distribution companies need to sit up,” he said. “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.”

Regarding the government’s efforts to address the liquidity crisis impacting the power sector, the minister disclosed that President Bola Tinubu has approved a N4 trillion bond to settle 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.

Adelabu further explained that the reforms will involve implementing stricter performance standards, increasing metering coverage, and restructuring DisCo ownership where necessary to ensure consumers receive efficient and reliable service.

In separate statements, the Chief Executive Officer of Azura Power, Mr. Edu Okeke, and the Managing Director of Nigeria LNG Limited, Mr. Philip Mshelbila, advocated for improved liquidity in the sector and more effective gas pricing to attract investment in electricity generation.

Okeke pointed out that concerns about gas payments being priced in dollars were less significant compared to other structural challenges facing the industry, while Mshelbila stressed that appropriate gas pricing would encourage greater investment in gas supply, which remains the backbone of Nigeria’s power generation capacity.

The session concluded with stakeholders agreeing that restoring efficiency and accountability within the power distribution system is critical to achieving Nigeria’s goal of an uninterrupted power supply.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli