Adebayo Adelabu, the Minister of Power, has called on DisCos to improve their services.

The minister stated that the Federal Government will revoke licences of electricity distribution companies (DisCos) that fail to meet performance expectations when their current licences expire in 2028.

Adelabu during a power sector meeting at the Nigerian Economic Summit 2025 in Abuja, stated that inefficiency within the DisCos is one of the biggest obstacles for stable electricity supply across the country.

The meeting, themed “Uninterrupted Power Supply: The Industrial Imperatives,” brought together key stakeholders in the power industry to discuss strategies for addressing Nigeria’s long-standing energy challenges.

Adelabu also disclosed that while the power sector faces systemic issues, the poor performance of the DisCos continues to impede progress.

“The distribution companies need to sit up,” he stated.

“They are a major bottleneck in the sector, and the government is doing everything possible to ensure they meet expectations. Their licences will expire in two years, and there will be major reforms before 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 the government’s efforts to resolve the liquidity crisis affecting the power sector, the minister also stated 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 every households and ensure the sector’s long-term viability,” he said.

Adelabu in his statements added that the reforms will include enforcing stricter performance standards, expanding metering coverage, and restructuring DisCo ownership where necessary to ensure that consumers receive efficient and reliable service.

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

Okeke raised a concern over gas priced in dollars were less significant compared to other structural challenges facing the industry, while Mshelbila further explained that appropriate gas pricing would encourage greater investment in gas supply, which remains the backbone of Nigeria’s power generation capacity.

The meeting ended with stakeholders agreeing that restoring efficiency and accountability within the power distribution system is key to achieving Nigeria’s goal of uninterrupted electrical power supply.