FG Deploys Special Teams to Troubled DisCos as Power Sector Restructuring Kicks Off
In a bold move to salvage Nigeria’s ailing power sector, the Federal Government has begun deploying specialised intervention teams to underperforming electricity distribution companies (DisCos), marking the commencement of a comprehensive restructuring agenda for the nation’s power distribution value chain.
The first phase of this initiative — a pilot reform programme — is slated to begin between May and August 2025, targeting two low-performing DisCos, one each from the northern and southern regions of the country.
The Minister of Power, Chief Adebayo Adelabu, disclosed the plan following a strategic meeting with the Japanese International Cooperation Agency (JICA), which presented a detailed roadmap titled “Revamping of the Distribution Sector in Nigeria”. The document outlines a path toward correcting structural, operational, and financial inefficiencies that have dogged the DisCos since privatisation in 2013.
“We can no longer sit idly by while electricity distribution companies underperform and frustrate our national aspirations,” Adelabu declared during a high-level meeting in Abuja. “This pilot reform is not optional. Where necessary, we will invoke our regulatory authority to compel compliance and implement sweeping changes.”
The minister, through a statement issued by his Special Adviser on Strategic Communications and Media Relations, Mr. Bolaji Tunji, said the new intervention is a response to deep-seated issues ranging from poor governance structures and infrastructural decay to inadequate commercial performance.
A senior source within the Federal Ministry of Power, who spoke to The PUNCH under condition of anonymity, revealed that the reform would involve deploying a team of sectoral experts to dissect the operations of the affected DisCos, offering hands-on support and laying the groundwork for sector-wide reform.
“These experts will collaborate directly with the DisCos — not to take over, but to identify root problems and chart a clear course for turnaround,” the source explained. “This is not a voluntary exercise. All DisCos involved must comply, as the findings from the pilot will shape interventions for other distribution companies.”
Performance rankings within the sector offer some clues as to the likely candidates for overhaul, with the 11 DisCos listed in descending order of efficiency: Ikeja, Abuja, Eko, Ibadan, Benin, Port Harcourt, Enugu, Kano, Kaduna, Jos, and Yola.
The government’s approach, described as a model for operational turnaround, will integrate external expertise with internal restructuring while maintaining federal oversight. The goal is to rapidly elevate service delivery in select pilot areas and use the successes as templates for broader transformation.
Adelabu admitted that previous reform attempts were marred by pushback, opaque structures, and weak coordination, but assured stakeholders that the current plan is deliberate, structured, and backed by political will.
He cited inadequate investment by the DisCos in critical infrastructure as a major stumbling block. “It’s not always due to unwillingness,” he said. “The returns on investment are often not commensurate. We need to incentivise infrastructure upgrades by introducing franchising and attracting capable operators who can drive efficiency.”
The Minister further directed the Nigerian Electricity Regulatory Commission (NERC) to accelerate franchising frameworks and secure DisCos’ cooperation. “The NERC must ensure buy-in. We will no longer tolerate foot-dragging,” he warned.
A core component of the reform strategy involves public enlightenment. Adelabu stressed the need for consumer education to demystify the sector’s value chain — from generation to transmission to distribution — and enhance public trust.
The JICA roadmap, developed after Adelabu’s recent visit to Japan’s power sector ecosystem, emphasises a holistic, data-driven, and partnership-based approach to reform. According to JICA’s Power Sector Policy Advisor, Mr. Takeshi Kikukawa, the goal is to deliver short-term results in pilot zones while laying a sustainable foundation for long-term national impact.
Meanwhile, industry stakeholders are responding with cautious optimism. The Association of Nigerian Electricity Distributors (ANED), the umbrella body for DisCos, expressed support for progressive reforms while distancing itself from power sector politicking.
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“We are fully aligned with policies that will improve electricity supply,” said Sunday Oduntan, ANED’s Executive Director of Research and Advocacy. “We want more power delivered to Nigerians because it improves our revenues and supports national development. We are not interested in politics, but in the growth and progress of the industry.”
Twelve years after the sector’s privatisation, experts have criticised the government’s failure to review licences and enforce performance benchmarks, citing it as one of the major reasons for the sector’s prolonged underperformance.
With this latest intervention, the Federal Government appears poised to enforce accountability, attract fresh investment, and reposition the distribution segment as a viable link in Nigeria’s energy supply chain.
