The Federal Government has announced plans to revoke the licences of electricity distribution companies (DisCos) that fail to meet performance standards when their current licences expire in 2028.
Minister of Power, Chief Adebayo Adelabu, made this known at the 2025 Nigerian Economic Summit in Abuja during a session on the power sector themed "Uninterrupted power supply: The industrial imperatives."
Adelabu identified the inefficiency of some DisCos as a major bottleneck to achieving a stable electricity supply, stressing that the government will not renew the licences of operators who fail to deliver on technical, financial, and service obligations.
"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 said.
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The minister also disclosed that President Bola Tinubu has approved a ₦4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers — part of broader efforts to stabilise the electricity market.
He explained that the bond will be complemented by a targeted subsidy framework aimed at protecting vulnerable households and ensuring the long-term viability of the power sector.
Industry stakeholders including Mr Edu Okeke, Chief Executive Officer of Azura Power, and Mr Philip Mshelbila, Managing Director of Nigeria LNG Limited, called for improved liquidity and efficient gas pricing to attract investment in power generation.
Okeke noted that while gas pricing concerns remain, the industry's deeper structural issues must be addressed to sustain investor confidence. Mshelbila added that transparent and cost-reflective pricing would help stimulate investments in gas supply for power generation.
Adelabu reaffirmed government's commitment to ensuring all households are metered within the next three to five years, stating that "only efficient, transparent and accountable operators will be part of the new power sector structure beyond 2028."
