The Federal Government will not renew the licences of underperforming electricity distribution companies (DisCos) when they expire in 2028, Minister of Power Adebayo Adelabu announced on Monday at the Nigerian Economic Summit 2025 in Abuja.
Speaking during a session titled “Uninterrupted Power Supply: The Industrial Imperatives,” Adelabu criticised DisCos for the persistent poor electricity supply nationwide, describing them as the sector’s “major bottleneck.”
He warned that only operators demonstrating technical competence, financial stability, and public interest commitment would have their licences renewed. “Those that have failed to show good faith or capacity will be kicked out,” he stated, adding that the government is determined to ensure universal metering within five years.
Adelabu also revealed that President Tinubu had approved a ₦4 trillion bond to settle verified debts owed to generation companies (GenCos) and gas suppliers, alongside a targeted subsidy framework to protect vulnerable consumers and sustain market viability.
Industry leaders, including Azura Power CEO Edu Okeke and NLNG Managing Director Philip Mshelbila, called for improved liquidity and competitive gas pricing to attract new investments into power generation.
