The pilot scheme, slated to commence between May and August 2025, will target one DisCo in the North and another in the South.
Following an assessment of systemic challenges plaguing the electricity distribution companies (DisCos), the President Bola Tinubu-led Nigerian government has announced plans to overhaul the distribution companies.
Some of the issues identified include governance gaps, infrastructure deficits, and commercial inefficiencies.
This move was disclosed by the Minister of Power, Adebayo Adelabu, after a meeting with the Japanese International Cooperation Agency, which presented a roadmap titled “Revamping of the Distribution Sector in Nigeria.”
According to PUNCH, Adelabu said, “We can no longer fold our hands and watch the inadequacies of DisCos, whose performances fall short of expectations. This pilot is not optional; we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”
The pilot scheme, slated to commence between May and August 2025, will target one DisCo in the North and another in the South.
The scheme is expected to start with two underperforming DisCos.
Earlier in November 2024, in a motion sponsored by Ayokunle Isiaka, the member representing the Ifo/Ewekoro Federal Constituency of Ogun State, the House of Representatives called for action to address the activities of DisCos in Nigeria.
The call was made under the title “Need to Address the Activities of Distribution Companies in Nigeria.”
This is even as the lawmakers mandated a House Committee on Power to investigate DisCos in a bid to safeguard Nigerians’ interests.
It is unclear if the most recent move by the Minister of Power, Adelabu, is connected to his recent complaint about the need for “Nigerians to pay cost-reflective prices for electricity.”
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