Naija247news – Abuja (October 6, 2025):
The Minister of Power, Chief Adebayo Adelabu, has issued a stern warning to electricity distribution companies (DisCos), stating that the Federal Government will not renew licences for companies that fail to meet performance standards when their current licences expire in 2028.
Speaking at the Nigerian Economic Summit 2025 during a session themed “Uninterrupted Power Supply: The Industrial Imperatives,” Adelabu said inefficiency within the DisCos remains a major obstacle to stable electricity supply in Nigeria.
“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,” Adelabu said.
On efforts to address the sector’s liquidity crisis, Adelabu revealed that President Bola Ahmed Tinubu has approved a N4 trillion bond to settle verified debts owed to power generation companies (GenCos) and gas suppliers. He added that a targeted subsidy framework is being developed to protect vulnerable households while ensuring long-term sector viability.
The minister emphasized that reforms will include stricter performance standards, expanded metering coverage, and DisCo ownership restructuring where necessary to guarantee efficient service delivery.
Stakeholders, including Azura Power CEO Edu Okeke and Nigeria LNG MD Philip Mshelbila, called for improved liquidity and better gas pricing mechanisms to encourage investment in electricity generation.
Okeke noted that payment issues linked to gas priced in dollars were less challenging than structural inefficiencies, while Mshelbila stressed that appropriate gas pricing is crucial to attracting investment and sustaining generation capacity.
The summit session concluded with a consensus that restoring efficiency and accountability in the distribution system is essential for Nigeria to achieve uninterrupted power supply and attract further investment into the sector.
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Reporting by Joshua Chinonye in Lagos, Nigeria.
