ABUJA — Chief Adebayo Adelabu, Nigeria’s Minister of Power, announced on Monday that the Federal Government will refuse to renew the licences of electricity distribution companies (DisCos) that fail to perform adequately when their current licences expire in 2028.
Addressing the Nigerian Economic Summit 2025 in Abuja during a discussion focused on the power sector, Adelabu cited the DisCos’ inefficiency as a key reason for the ongoing inadequate electricity supply in the country. The session, titled “Uninterrupted Power Supply: The Industrial Imperatives,” gathered major stakeholders in the industry.
Adelabu acknowledged existing systemic challenges but emphasized that the inefficiency of the DisCos continues to hinder progress. He stated, “Distribution companies must improve their operations. They represent a significant obstacle in the sector. The government is committed to ensuring they meet standards. Licences will expire in two years, and substantial reforms will precede any renewals.
“Those lacking technical expertise, financial stability, good faith, or alignment with national interests will be removed. All necessary measures to ensure every household is metered within the next three to five years will be taken.”
On the issue of the N4 trillion owed to power generation companies (GenCos), the Minister disclosed, “To stabilize the market, the President has approved a N4 trillion bond to clear verified GenCo and gas supply debts. Additionally, a targeted subsidy framework is being created to protect vulnerable households and promote a sustainable path toward full commercialization and a viable power industry.”
Separately, Azura Power CEO Edu Okeke and Nigeria LNG Managing Director Philip Mshelbila highlighted the need to enhance liquidity in the power sector. Okeke downplayed concerns regarding gas payments in dollars instead of naira, describing them as minor compared to larger industry challenges, while Mshelbila stressed that correct gas pricing would attract further investment in gas production for power generation.
