FG to Drop Underperforming DisCos by 2028, Says Power Minister Adelabu

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The Minister of Power, Chief Adebayo Adelabu, has declared that the Federal Government will not renew the licences of electricity distribution companies (DisCos) that fail to perform effectively when they expire in 2028.

Speaking at the Nigerian Economic Summit 2025 in Abuja during a session themed “Uninterrupted Power Supply: The Industrial Imperatives,” Adelabu blamed the DisCos for the nation’s persistent power supply challenges.

He admitted that while the power sector faces long-standing structural issues, the inefficiency of the distribution companies remains a key obstacle.


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“The DisCos need to sit up. They are a major bottleneck, and the government will ensure only capable ones continue. Their licences expire in two years, and there will be major reforms before any renewal,” Adelabu said.

He added that any DisCo that fails to show technical capacity, financial strength, and genuine commitment to national interest will be removed.

Adelabu also assured that the government is determined to ensure every household is metered within three to five years, pledging that “no stone will be left unturned.”

On the N4 trillion debt owed to power generation companies (GenCos), the minister revealed that President Bola Tinubu has approved a N4 trillion bond to settle verified GenCo and gas supply debts. He further disclosed that a targeted subsidy framework is being developed to protect vulnerable households while moving toward a sustainable, fully commercialized power market.

In their remarks, the CEO of Azura Power, Mr. Edu Okeke, and the Managing Director of Nigeria LNG Limited, Mr. Philip Mshelbila, both highlighted the urgent need to improve liquidity in the sector.

Okeke dismissed concerns over dollar-denominated gas payments as minor, while Mshelbila emphasized that appropriate gas pricing would attract more investment into gas production for power generation.


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