The Federal Government will not renew the licences of electricity distribution companies (DisCos) that fail to meet performance expectations when their current licences expire in 2028.
The Minister of Power, Chief Adebayo Adelabu, who made the vow on Monday while speaking during a power sector session at the Nigerian Economic Summit 2025 in Abuja, said the inefficiency of the DisCos remains one of the biggest challenges to stable power supply in Nigeria.
The session, themed “Uninterrupted Power Supply: The Industrial Imperatives,” brought together key industry stakeholders to discuss solutions to Nigeria’s persistent electricity problems.
According to Adelabu, while the power sector faces systemic issues, the performance of the DisCos continues to impede progress.
“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 commitment to national interest will be replaced. The government will ensure that every household is metered within the next three to five years, ” the minister said.
Adelabu, speaking efforts to resolve the liquidity crisis in the sector, disclosed that President Bola Tinubu has approved a N4 trillion bond to offset 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.
