The Federal Government has announced that it will not renew the licences of electricity distribution companies (DisCos) that fail to meet performance expectations when their current licences expire in 2028. Minister of Power, Chief Adebayo Adelabu, made this known on Monday during a power sector session at the Nigerian Economic Summit 2025 in Abuja. The session, themed “Uninterrupted Power Supply: The Industrial Imperatives,” brought together key industry stakeholders to discuss lasting solutions to Nigeria’s electricity challenges. Adelabu identified the inefficiency of DisCos as one of the major obstacles to achieving a stable power supply in the country.
“The distribution companies need to sit up. They are a major bottleneck in the sector, and the government is doing everything possible to ensure they meet expectations. Their licences will expire in two years, and there will be major reforms before any renewal,” he stated. He warned that only companies that demonstrate technical competence, financial capacity, and commitment to national interest would have their licences renewed. The minister also reaffirmed the government’s commitment to achieving full metering of households within the next three to five years.
On efforts to tackle the power sector’s liquidity crisis, Adelabu disclosed that President Bola Tinubu has approved a ₦4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers. “To stabilize the market, Mr. President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure the sector’s long-term viability,” he said.
Source: https://businesstodayng.com/
