Bayo Adelabu, minister of power, says electricity distribution companies (DisCos) have disappointed the country regarding performance expectations and hindered the government’s efforts at improving supply.
Adelabu spoke during a two-day retreat organised by the senate committee on power, according to a statement on Tuesday by Bolaji Tunji, special adviser, strategic communication and media relations to the minister.
“We need to get tough with the DisCos, as they can easily frustrate all the gains we have made,” the minister said .
“They have disappointed us in performance expectations. Whatever we do in generation does not mean anything to consumers if it is frustrated at the distribution points.”
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Adelabu said during the 2003 sector restructuring, DisCos were required to have technical partners, but many partnerships with foreign companies dissolved within three months of their takeover.
“Instead of investing in infrastructure, many used bank loans for asset acquisition and redirected funds to repay those loans,” Adelabu said.
The minister said despite a 70 percent increase in market liquidity due to tariff adjustments, raising sector revenue from N1 trillion in 2023 to N1.7 trillion in 2024, the distribution segment remains the weakest link.
“In the fourth quarter of 2024, DisCos in the North remitted just N124.4 billion (30 percent) of their N408.86 billion invoice, with Abuja DisCo accounting for 85 percent of Northern payments. Southern DisCos fared slightly better, remitting N254.6 billion (67 percent), though 70 percent of this came from Lagos DisCos alone,” he said.
“These discrepancies are largely due to crumbling infrastructure outside economic hubs, where underinvestment has left networks dilapidated.”
The minister also addressed the sector’s metering gap, which he described as a major source of revenue loss and consumer distrust.
To close the gap, he said the government launched a N700 billion presidential metering initiative (PMI) and a World Bank-backed programme targeting 4.3 million meters by 2025.
‘Underperforming DISCOS Will Be Restructured’
Adelabu warned that the sector faces a N4 trillion subsidy backlog, including N1.94 trillion for 2024 alone.
With monthly subsidy shortfalls reaching N200 billion, the politician said maintaining current tariffs is “unsustainable” and strains funds needed for infrastructure improvements.
“To salvage the sector, we will soon embark on restructuring underperforming DisCos and tightening enforcement of performance benchmarks,” Adelabu said.
“Without urgent capital injection into distribution networks, gains in generation—including a historic 6,003MW output in March 2025—and transmission upgrades, such as 61 new transformers deployed in 2024, will fail to translate to reliable household supply.”
Adelabu further highlighted plans to attract private investment into grid infrastructure and regionalise transmission networks to reduce failure risks.
The minister noted that DisCos in Lagos, with a 70 percent remittance rate, reflect better infrastructure compared to northern networks.
He called on the national assembly to enact stricter legislation to safeguard Nigeria’s power infrastructure from vandalism.
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