The Federal Government has launched a comprehensive initiative to revamp the electricity distribution sector, starting with a pilot overhaul of two underperforming Distribution Companies (DisCos).
This move, according to The Nation, follows a thorough assessment of the sector’s challenges, including governance gaps, infrastructure deficits, and commercial inefficiencies.
Power Minister Chief Adebayo Adelabu broke the news after a meeting with the Japanese International Cooperation Agency (JICA) in Abuja.
There was a presentation of a roadmap titled: ‘Revamping of the Distribution Sector in Nigeria’.
His Special Adviser, Strategic Communications and Media Relations, Mr. Bola Tunji made this known in a statement.
The pilot scheme, slated to begin between this month and August, according to the statement, will target one DisCo in the North and another in the South.
It aims to demonstrate a replicable model for operational turnaround, combining internal restructuring, external expertise, and federal oversight to achieve rapid improvements in service delivery.
JICA’s proposal emphasizes reforming DisCos “from within” by integrating outside experts, strengthening leadership, and aligning government support with short-term results in pilot zones to lay the groundwork for long-term sector-wide transformation.
Adelabu acknowledged persistent resistance to past reforms but vowed to address both universal challenges—such as vandalism and governance—and region-specific issues, including cultural barriers hindering operations.
According to The Nation report, the key to the initiative is resolving the DisCos’ inability to invest in infrastructure upgrades, as said by Adelabu.
“Their lack of investment is not solely due to unwillingness but also a lack of incentives. Returns on infrastructure spending are not commensurate, so we must attract investors and franchise viable and the not so viable areas to capable operators, so we can have a mix,” Adelabu explained.
He directed the Nigeria Electricity Regulatory Commission (NERC) to enforce franchising opportunities and ensure DisCos’ cooperation, noting: “NERC must secure their buy-in.
He also highlighted the need for public education to clarify the roles of generation, transmission, and distribution entities.
“Many Nigerians still view the sector as a single entity. Educating consumers is critical to building trust and support for these reforms, “he added.
JICA’s proposal, developed after the minister’s earlier visit to Japan’s energy market, underscores a “holistic approach” to revamping distribution, including proactive government-JICA collaboration and measurable milestones.
The Federal Ministry of Power and NERC will finalise pilot details in the coming months, prioritizing DisCos with acute operational deficits. The initiative marks the most robust effort to date to resolve the power distribution crisis, signalling a renewed push for accountability, investor confidence, and reliable electricity access.
Takeshi Kikukawa, JICA’s Power Sector Policy Advisor to Nigeria, noted during the presentation: “The goal is to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement.”
Power Minister Chief Adebayo Adelabu stressed the urgency of the intervention, stating: “We can no longer fold our hands and watch the inadequacies of DisCos whose performances fall short of expectations.”
Adelabu stressed the urgency of the intervention, stating: “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.”
