The federal government is set to launch a pilot reform programme targeting two underperforming electricity distribution companies (DisCos) as part of a broader effort to overhaul Nigeria’s troubled power sector, according to the minister of power, Adebayo Adelabu.

 

In a statement released by Bolaji Tunji, special adviser on strategic communications and media relations, Adelabu disclosed the initiative after a meeting with officials of the Japan International Cooperation Agency (JICA). The meeting featured the presentation of a proposed roadmap titled Revamping of the Distribution Sector in Nigeria.

 

Adelabu stated that the pilot scheme is expected to commence between May and August 2025, with one DisCo in the northern region and another in the southern region being selected for the programme. The plan aims to develop a model for turnaround that can be replicated nationwide by integrating internal reforms, technical expertise from external partners, and heightened 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.”

 

He noted that JICA’s strategy is to reform the DisCos from within, focusing on improved leadership and management through the integration of external experts, as well as better alignment of federal incentives with near-term service delivery goals. He acknowledged that past reform efforts were hampered by internal resistance but promised that the current initiative would be both “intentional and decisive.”

Adelabu further identified operational inefficiencies and infrastructure vandalism as key challenges, while also pointing to deeper structural issues such as the lack of attractive investment conditions. He explained that the reluctance of investors was not due to a lack of interest but rather the limited returns currently offered by the sector.

 

“We must attract investors and franchise viable and struggling areas to capable operators,” he said. He instructed the Nigerian Electricity Regulatory Commission (NERC) to lead the franchising effort and ensure active collaboration from the DisCos. “NERC must secure their buy-in. Past efforts failed due to resistance. That won’t be the case this time.”

 

The minister also emphasised the importance of increasing public understanding of the power sector’s structure. “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.”

 

Takeshi Kikukawa, JICA’s power sector policy advisor to Nigeria, said the agency’s goal is to deliver measurable improvements in the selected pilot areas while laying the groundwork for long-term nationwide reform.

 

According to Tunji, both the ministry of power and NERC will finalise the DisCos to be included in the pilot scheme in the coming months, with a focus on those experiencing critical operational challenges.