The Federal Government has warned that it will not renew the licenses of electricity distribution companies (DisCos) that fail to meet performance expectations when their current licenses expire in 2028.
Minister of Power, Chief Adebayo Adelabu, made this announcement during a power sector session at the Nigerian Economic Summit 2025 in Abuja.
The minister emphasized that the government is committed to ensuring that DisCos meet their obligations, stating that “those that have not demonstrated technical expertise, financial stability, or commitment to national interest will be replaced.” He also mentioned that the government plans to meter every household within the next three to five years.
To address the liquidity crisis in the sector, President Bola Tinubu has approved a N4 trillion bond to offset verified debts owed to power generation companies (GenCos) and gas suppliers. According to Adelabu, “to stabilize the market, Mr. President has approved a N4 trillion bond to clear verified GenCo and gas supply debts.”
The minister assured that the government is working to stabilize the power sector and improve electricity supply across the country. He expressed disappointment with the performance of DisCos, stating that they are a major bottleneck in the sector.
Adelabu’s warning comes as the government seeks to reform the power sector and improve electricity supply. The Minister emphasized that the DisCos need to “sit up” and meet expectations, as the government will not tolerate underperformance.
The government’s efforts to reform the power sector are ongoing, with plans to attract investment and improve infrastructure. The N4 trillion bond approved by President Tinubu is expected to help address the liquidity crisis in the sector.
