By Obas Esiedesa
ABUJA — The Minister of Power, Chief Adebayo Adelabu, on Monday said the Federal Government will not renew the licences of poorly performing electricity distribution companies (DisCos) when they expire in 2028.
Speaking during a session on the power sector at the Nigerian Economic Summit 2025 in Abuja, Adelabu blamed the DisCos for the persistent poor electricity supply across the country.
The session, themed “Uninterrupted Power Supply: The Industrial Imperatives,” brought together key stakeholders in the power industry.
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Adelabu acknowledged that while there are systemic and long-standing challenges in the sector, the inefficiency of the DisCos remains a major bottleneck.
He said: “The distribution companies need to sit up. 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 shown good faith, demonstrated technical expertise, proven financial strength and stability, or acted in the country’s best interest will be kicked out.
“Whatever the government needs to do to ensure every household is metered within the next three to five years will be done. We will leave no stone unturned.”
On the N4 trillion debt owed to power generation companies (GenCos), the Minister said: “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 a sustainable path toward full commercialization and a viable industry.”
In their separate remarks, the CEO of Azura Power, Mr. Edu Okeke, and the Managing Director of Nigeria LNG Limited, Mr. Philip Mshelbila, emphasized the need to improve liquidity in the power sector.
Okeke downplayed concerns over gas payments being made in dollars rather than naira, saying such issues were minor compared to the broader challenges facing the industry.
Mshelbila, on his part, stressed that ensuring the right gas pricing would attract more investment into gas production for power generation.
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