ABUJA — The Minister of Power, Chief Adebayo Adelabu, has announced that the Federal Government will not renew the licences of poorly performing electricity distribution companies (DisCos) when they expire in 2028.
Speaking during a session on the power sector at the Nigerian Economic Summit 2025 in Abuja, Adelabu blamed the DisCos for Nigeria’s persistent electricity challenges, describing them as a major bottleneck to reliable power supply.
The session, themed “Uninterrupted Power Supply: The Industrial Imperatives,” brought together key players in the energy sector to discuss reforms and the country’s power future.
“The distribution companies need to sit up. Their licences will expire in two years, and there will be major reforms before any renewal,” Adelabu stated. “Those that have not shown good faith, technical expertise, financial strength, or acted in the national interest will be kicked out,” he warned.
He further assured Nigerians that the government is committed to ensuring every household is metered within the next three to five years, saying no effort would be spared to achieve this.
Addressing the N4 trillion debt owed to power generation companies (GenCos), Adelabu revealed that President Bola Tinubu has approved a bond issuance to clear verified debts and stabilize the electricity market. A targeted subsidy is also being developed to protect vulnerable households while pushing toward full commercialization.
In separate remarks, Azura Power CEO, Mr. Edu Okeke, and NLNG Managing Director, Mr. Philip Mshelbila, highlighted the need for improved liquidity and gas pricing to attract more investments into the power sector.
Okeke dismissed concerns about gas payments in dollars as minor compared to deeper structural issues, while Mshelbila stressed that ensuring the right gas pricing policy is crucial for boosting electricity generation capacity.
