By John Umeh
The Federal Government has announced plans to restructure two underperforming electricity distribution companies (DisCos) in a renewed push to improve power delivery and efficiency in Nigeria’s energy sector.
Minister of Power, Adebayo Adelabu, revealed the development during a press briefing on Monday in Abuja, stating that the government could no longer tolerate the persistent inefficiencies and operational failures that continue to plague certain DisCos. Though he declined to name the two companies under immediate scrutiny, Adelabu confirmed that they have consistently ranked lowest in service delivery, customer satisfaction, and financial performance.
“We have identified two DisCos that have consistently failed to meet their obligations, both in terms of supply reliability and revenue generation,” Adelabu said. “The Federal Government, in collaboration with regulatory agencies and relevant stakeholders, will begin a restructuring process aimed at restoring accountability and improving operational outcomes.”
Performance-Based Review Triggers Action
The decision comes after a recent performance audit conducted by the Nigerian Electricity Regulatory Commission (NERC), which revealed that several DisCos are not meeting their key performance indicators, including energy distribution targets, customer service benchmarks, and timely remittance of revenues to the national grid.
According to the audit, the two targeted DisCos have shown “chronic underperformance,” contributing significantly to national energy losses and consumer complaints in their respective coverage areas. Sources within the power ministry hinted that the restructuring may involve management overhaul, ownership review, or partial government intervention.
Stakeholder Involvement and Next Steps
Adelabu emphasized that the restructuring process will be carried out in a transparent and consultative manner, involving shareholders, regulatory authorities, and affected communities. “This is not about political witch-hunting. It’s about salvaging a sector that is crucial to Nigeria’s economic growth,” he noted.
He further disclosed that a task force would be set up to oversee the transition, including representatives from the Ministry of Power, NERC, the Bureau of Public Enterprises (BPE), and independent consultants.
Wider Power Sector Reform
This move is part of broader reforms under the government’s Electricity Roadmap Initiative, which aims to deliver stable power supply across the country by 2030. The plan includes recapitalization of the DisCos, enforcement of service-level agreements, and the attraction of private sector investment.
Industry experts have welcomed the move, describing it as a long-overdue measure to hold non-performing operators accountable. “For too long, consumers have borne the brunt of inefficiencies in the distribution segment,” said Engr. John Ogar, a power systems consultant. “This restructuring signals a shift towards performance-based regulation.”
Public Reaction and Consumer Expectations
Nigerians, many of whom continue to suffer from irregular power supply and estimated billing, have expressed cautious optimism about the announcement. Advocacy groups have urged the government to go beyond rhetoric and ensure that the process results in tangible improvements for end-users.
“This is an opportunity to reset the power sector, but it must be done with a clear timeline, measurable outcomes, and regular updates to the public,” said Ngozi Ezike, coordinator of the Energy Rights Network.
As the government initiates this critical restructuring process, the power sector—and the public—will be watching closely to see whether long-standing inefficiencies can finally be addressed.
