Adebayo Adelabu, minister of power, says the federal
government has plans to launch a pilot reform programme targeting two
underperforming electricity distribution companies (DisCos), as part of broader
efforts to fix Nigeria’s troubled power sector.
In a statement on Monday, Bolaji Tunji, special adviser,
strategic communications and media relations, said Adelabu spoke after a
meeting with officials of the Japan International Cooperation Agency (JICA).
According to Tunji, the meeting witnessed the presentation
of a roadmap titled ‘Revamping of the Distribution Sector in Nigeria’.
Speaking at the meeting, Adelabu said the pilot scheme,
scheduled for May and August 2025, will focus on one DisCo in the northern
region and another in the south.
He added that the goal is to develop a replicable turnaround
model by combining internal restructuring, external technical support, and
stronger federal oversight.
“We can no longer fold our hands and watch the inadequacies
of DisCos whose performances fall short of expectations,” Adelabu said.
“This pilot is not optional—we will use regulatory authority
to restructure underperforming DisCos and compel compliance if necessary.”
According to Adelabu, JICA’s approach focuses on “reforming
DisCos from within,” integrating external experts into management,
strengthening leadership, and aligning federal incentives with short-term
service improvements.
He added that past reform efforts had faced stiff
resistance, but said the current initiative would be “intentional and
decisive”.
FG TO RESOLVE STRUCTURAL ISSUES
Adelabu pointed out issues such as regional operational
barriers and vandalism, and said the government was also looking to resolve
deeper structural problems like poor investment incentives.
“Their lack of investment is not solely due to unwillingness
but also a lack of returns,” he said.
“We must attract investors and franchise viable and
struggling areas to capable operators.”
He directed the Nigerian Electricity Regulatory Commission
(NERC) to drive the franchising effort and ensure the cooperation of DisCos.
“NERC must secure their buy-in. Past efforts failed due to
resistance. That won’t be the case this time,” he said.
Adelabu also emphasised the need for greater public
awareness of the power sector’s operation.
“Many Nigerians still see the sector as a single entity. We
must educate consumers on generation, transmission, and distribution roles if
we want their trust and support.”
On his part, Takeshi Kikukawa, JICA’s power sector policy
advisor to Nigeria, said “the goal is to deliver immediate results in pilot
areas while creating a sustainable foundation for nationwide improvement”.
Tunji also said the ministry of power and NERC are expected
to finalise the pilot selection in the coming months, focusing on DisCos with
severe operational shortfalls.
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