By Tochukwu Bliss, Abuja
The federal government yesterday said it has launched sweeping reforms to overhaul Nigeria’s electricity distribution sector, starting with two underperforming Distribution Companies (DisCos).
The Minister of Power, Adebayo Adelabu, was quoted to have disclosed this in a statement issued by his spokesperson, Bolaji Tunji.
Although the identities of the two DisCos were not revealed, Mr Adelabu was said to have hinted at the plan after a meeting with the Japanese International Cooperation Agency (JICA), who presented a roadmap titled: “Revamping of the Distribution Sector in Nigeria.”
The statement reads: “The federal government has begun moves to initiate sweeping reforms to revitalise Nigeria’s electricity distribution sector, starting with a pilot overhaul of two underperforming Distribution Companies (DisCos).
“The move follows a comprehensive assessment of systemic challenges plaguing the DisCos, including governance gaps, infrastructure deficits, and commercial inefficiencies.”
Calls for the overhaul of Nigeria’s power sector have continued to resonate given the worsening electricity supply situation, with consumers having to pay more for services not enjoyed.
Indeed, services have deteriorated so badly that many have even called for the revocation of the power privatisation in which private entities were issued licences to operate the entities unbundled from the defunct Power Holding Company of Nigeria (PHCN).
Meanwhile, the statement said that JICA’s proposal was developed after the Minister’s earlier visit to Japan to assess its energy market and underscores a “holistic approach” to revamping distribution, including proactive government-JICA collaboration and measurable milestones.
According to Mr Adelabu, the pilot scheme, slated to begin between May and August, would target one DisCo each from the North and South regions.
The Minister explained that the overhaul of the DisCos aims to demonstrate a replicable model for operational turnaround, combining internal restructuring, external expertise, and federal oversight to achieve rapid improvements in service delivery.
He added that JICA’s proposal emphasises “reforming the DisCos from within by integrating outside experts, strengthening leadership, and aligning government support with short-term results in pilot zones to lay the groundwork for long-term sector-wide transformation.”
This pilot is not optional; we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.
Urgent intervention
Mr Adelabu, while stressing the urgency of the intervention, said the government will no longer fold its hands and watch the inadequacies of DisCos whose performances fall short of expectations.
He reiterated that “This pilot is not optional; we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”
Acknowledging the sustained resistance to past reforms the Minister vowed to address both universal challenges such as vandalism and governance in the system.
He informed that the government will also address region-specific issues, including cultural barriers hindering operations.
He continued: “The key initiative is resolving the DisCos’ inability to invest in infrastructure upgrades. Their lack of investment is not solely due to unwillingness but also a lack of incentives.
“Returns on infrastructure spending are not commensurate, so we must attract investors and franchise viable and the not so viable areas to capable operators, so we can have a mix.”
To this end, the Minister directed the Nigeria Electricity Regulatory Commission (NERC), to enforce franchising opportunities and ensure DisCos’ cooperation.
“NERC must secure their buy-in. Past efforts failed due to resistance, but this time, we will be intentional and decisive,” he said.
He further highlighted the need for public education to clarify the roles of generation, transmission, and distribution entities, noting that many Nigerians still viewed the sector as a single entity, as such, educating consumers is critical to building trust and support for these reforms.
Mr Adelabu said that the Ministry of Power and NERC will finalise the pilot details in the coming months, prioritising DisCos with acute operational deficits.
According to him, the initiative marks the most robust effort to date to resolve the power distribution crisis, signalling a renewed push for accountability, investor confidence, and reliable electricity access.
JICA’s Power Sector Policy Advisor to Nigeria, Takeshi Kikukawa, said during the presentation that the goal is to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement.
