The Federal Government to revoke the licenses of underperforming Distribution Companies (DisCos) in 2028.

The Minister of Power, Chief Adebayo Adelabu, has announced that the Federal Government will not extend the licences of electricity distribution companies (DisCos) that do not meet performance standards when their current licences come to an end in 2028.

Adelabu made this statement during the 2025 Nigerian Economic Summit in Abuja, at a session focused on the power sector, where he highlighted the inefficiency of the DisCos as a significant obstacle to achieving a stable electricity supply in the nation.

The session, themed: "Uninterrupted power supply: The Industrial Imperatives," drew key industry stakeholders to deliberate on solutions to Nigeria's persistent electricity challenges.

The minister noted that although the power sector faces structural issues, the inadequate performance of the DisCos continues to hinder progress towards reliable and sustainable power delivery.

He stated: "The distribution companies must improve their performance. They represent a significant bottleneck in the sector, and the government is taking all necessary measures to ensure they meet the required standards. Their licences will expire in two years, and substantial reforms will be implemented prior to any renewal.

“Those that have not demonstrated technical expertise, financial stability, or commitment to national interest will be replaced. The government will ensure that every household is metered within the next three to five years.”

On efforts to resolve the liquidity crisis in the sector, Adelabu disclosed that President Bola Tinubu has approved a N4 trillion bond to offset verified debts owed to power generation companies (GenCos) and gas suppliers.

“To stabilize the market, Mr. President has approved a N4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure the sector’s long-term viability,” he said.

Chief Executive Officer of Azura Power, Mr. Edu Okeke, and the Managing Director of Nigeria LNG Limited, Mr. Philip Mshelbila, called for improved liquidity and efficient gas pricing to attract investment in power generation.

Okeke observed that the issues related to gas being priced in dollars were relatively minor when compared to the other structural challenges confronting the industry. Meanwhile, Mshelbila emphasized that suitable pricing would encourage investment in gas supply for electricity generation.