Minister Sets New Rules For DisCos License Renewal
In Nigeria, the Minister of Power, Adebayo Adelabu, has said only electricity distribution companies that meet performance standards will have their licences renewed after 2028.
Speaking in Abuja, Adelabu explained that the current licences held by power distribution companies (DisCos), issued after the 2013 privatisation, will expire soon, and renewal will depend strictly on performance.
He said many DisCos failed to meet expected targets over the years, but new benchmarks have now been set.
According to him, only companies that can show clear capacity to deliver improved service will be allowed to continue operations.
The minister noted that the government is also supporting the sector through initiatives like the Distribution Sector Recovery Programme and the Presidential Power Initiative, aimed at improving infrastructure and service delivery.
On electricity supply, Adelabu said Nigerians should begin to see improvements within weeks, as repairs to gas pipelines are nearing completion and efforts are ongoing to ensure gas supply to power plants.
He also revealed that the government owes generating companies trillions of naira, with a large portion owed to gas suppliers, a situation he said affects consistent power generation.
Despite these challenges, the minister expressed optimism that ongoing reforms and investments, including private sector funding in generation, transmission, and renewable energy, will gradually stabilise the power sector.
