By Ajibola Olaide, JKNewsMedia Reporter
NIGERIA’s FEDERAL Government has unveiled a bold pilot scheme to overhaul two of Nigeria’s worst-performing electricity distribution companies, targeting long-standing failures with a forceful new model aimed at systemic reform.
The pilot initiative, expected to launch between May and August 2025, will focus on one DisCo in the North and another in the South, introducing structural changes driven by both internal overhauls and external expertise.
Following a strategic meeting with the Japanese International Cooperation Agency (JICA), Power Minister Adebayo Adelabu announced the pilot as a test case for national transformation.
JICA presented a detailed roadmap ‘Revamping of the Distribution Sector in Nigeria’ which calls for targeted reforms from within, bolstered by federal authority, stronger leadership, and measurable outcomes in high-need areas.
Adelabu said the pilot will serve as a model of operational revival that can be scaled nationwide. “We can no longer fold our hands and watch the inadequacies of DisCos whose performances fall short of expectations,” he stated.
“This pilot is not optional—we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”
The move follows a detailed federal review of the electricity sector’s endemic challenges, including weak governance, outdated infrastructure, and unsustainable commercial practices.
Adelabu acknowledged past reform efforts had faced entrenched resistance but vowed this intervention would be firm and result-driven.
A central problem, he said, is the DisCos’ limited ability and incentive to invest in infrastructure upgrades.
“Their lack of investment is not solely due to unwillingness but also a lack of incentives,” Adelabu explained. “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.”
The Nigeria Electricity Regulatory Commission (NERC) has been tasked to enforce these reforms through franchising and by securing the cooperation of the affected DisCos.
Adelabu warned that the government would not tolerate the same resistance that undermined previous efforts, declaring this round would be “intentional and decisive.”
Public understanding will also be a priority. Many Nigerians continue to perceive the electricity system as a monolith, failing to differentiate between generation, transmission, and distribution.
Adelabu said educating consumers is vital to securing their support and restoring public trust in the reform process.
JICA’s proposal calls for a holistic strategy, blending technical collaboration with firm government oversight and a focus on short-term results to drive long-term transformation.
The roadmap was developed following Adelabu’s visit to Japan’s energy sector earlier this year. JICA’s advisor, Takeshi Kikukawa, emphasised that immediate results in pilot zones will lay the groundwork for sustained national improvement.
The Federal Ministry of Power and NERC are expected to finalise the details of the pilot programme within months. Priority will go to DisCos facing severe operational failure.
With this move, Adelabu said the government is signalling a definitive shift in approach, focusing on accountability, investment readiness, and ultimately, reliable electricity access for Nigerian consumers.
