The Federal Government will not renew the operating licences of electricity distribution companies (DisCos) that fail to meet performance standards when their current licences expire in 2028, Minister of Power Adebayo Adelabu has said.
Adelabu disclosed this while addressing industry stakeholders in Abuja, warning that the government is prepared to enforce tougher accountability measures across the power value chain. He stated that the era of inefficiency in the electricity distribution subsector must end if Nigeria is to achieve stable and sustainable power supply.
According to him, the government has observed persistent service failures, technical losses, and poor customer experience among some DisCos despite previous interventions and tariff reviews. He noted that the Nigerian Electricity Regulatory Commission (NERC) will conduct a comprehensive review of each company’s performance before any licence renewal decision is made.
The minister added that only operators demonstrating significant improvements in network efficiency, customer satisfaction, and investment in infrastructure will be considered for licence renewal. He emphasised that Nigeria’s economic growth depends heavily on a reliable electricity supply, and the government will no longer tolerate excuses from underperforming firms.
Analysts say this marks a major shift toward performance-based regulation in the power sector. If strictly implemented, the decision could open the market to new investors capable of driving efficiency and innovation in electricity distribution across the country.
