In a decisive move to address Nigeria’s longstanding electricity distribution woes, the Federal Government has rolled out a strategic reform plan aimed at overhauling underperforming Distribution Companies (DisCos), starting with a pilot intervention in two key regions.
Minister of Power, Adebayo Adelabu, confirmed the development on Tuesday, outlining a vision to restore efficiency, accountability, and service excellence in the nation's power distribution sector—a crucial component of Nigeria’s energy value chain.
According to the minister, the reform follows a rigorous diagnostic assessment of systemic failures plaguing DisCos, including weak governance structures, aging infrastructure, poor commercial viability, and widespread customer dissatisfaction.
To kick off the initiative, the government has partnered with the Japanese International Cooperation Agency (JICA), which presented a comprehensive roadmap titled “Revamping of the Distribution Sector in Nigeria.” The roadmap details actionable strategies aimed at repositioning the sector for sustainable growth and improved delivery.
As part of the pilot phase—set to run between May and August this year—one DisCo in the northern region and another in the southern region will undergo an intensive transformation process. These two companies will serve as test beds for a national-scale turnaround, combining targeted internal reforms with technical support from international partners and enhanced regulatory oversight from federal authorities.
Adelabu noted that this model is designed to be scalable and replicable across other DisCos nationwide. The pilot will focus on structural reorganization, operational efficiency, customer metering, revenue collection improvements, and the integration of modern grid technologies.
“Our objective is to demonstrate that with the right mix of reforms, investment, and oversight, even the weakest of our DisCos can be transformed into viable, customer-focused entities,” Adelabu stated.
The Minister emphasized that the reform is not just about infrastructure, but about instilling discipline, transparency, and professionalism in the power distribution ecosystem.
Energy experts have welcomed the move, describing it as a long-overdue intervention that could finally unlock the bottlenecks stifling electricity access in Nigeria. With only a fraction of generated power reaching end-users efficiently, the reform is seen as a potential game-changer in the nation's energy landscape.
If successful, the pilot scheme will mark a significant turning point in Nigeria’s decades-long struggle with erratic power supply, and set a new standard for performance within the sector.
