Nigeria Launches Bold Plan To Revamp Underperforming Electricity DisCos.
The Federal Government has unveiled an ambitious plan to overhaul Nigeria’s struggling electricity Distribution Companies (DisCos), aiming to address chronic underperformance and improve power supply across the country. The announcement, made by Minister of Power Adebayo Adelabu in Abuja on Monday, comes amid a legal dispute over the controversial takeover of Ibadan Electricity Distribution Company (IBEDC).
Adelabu revealed that the government is collaborating with the Japanese International Cooperation Agency (JICA) to develop a comprehensive reform blueprint. The initiative targets underperforming DisCos, with a pilot scheme set to begin between May and August 2025. Two DisCos—one in the northern region, where Kaduna DisCo recorded a staggering 60.65% aggregate technical, commercial, and collection (ATC&C) loss in late 2024, and another in the southern region, where IBEDC is embroiled in controversy—are the initial focus.
“We will use our regulatory authority to restructure underperforming DisCos and compel compliance where necessary. Nigerians have endured poor service for too long,” Adelabu declared, underscoring the government’s resolve to enforce reforms.
The push for change follows calls from the National Assembly and industry experts, including Edu Okeke, Managing Director of Azura Power West Africa, who stressed that Nigeria’s 11 DisCos require at least $5.5 billion in capital investment. Okeke argued that each DisCo needs a minimum of $500 million to operate effectively, given their outdated infrastructure and financial constraints.
JICA’s Power Sector Policy Adviser to Nigeria, Takeshi Kikukawa, advocated for a holistic approach, combining internal reforms with external expertise, stronger leadership, and federal oversight. “The aim is to deliver immediate results in the pilot zones while building a foundation for sustainable, nationwide improvement,” Kikukawa said.
The reform initiative coincides with a brewing legal storm over the proposed $62 million sale of the Asset Management Corporation of Nigeria’s (AMCON) 60% equity in IBEDC, one of Nigeria’s largest DisCos. The controversy has heightened scrutiny of the sector’s challenges, including poor service delivery and financial mismanagement.
As the government moves to transform the electricity distribution landscape, the collaboration with JICA and the focus on regulatory enforcement signal a determined effort to deliver reliable power to Nigerians and end years of frustration with underperforming DisCos.