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Only Efficient DisCos Will Survive 2028 Licence Renewal — Adelabu

Published by Samuel Ayomide on March 30th, 2026.

Minister of Power, Adebayo Adelabu, made this known in Abuja while presenting a performance review of the Nigerian Electricity Supply Industry (NESI), stressing that future renewals would be strictly tied to measurable service delivery standards.

According to BusinessDay, Adelabu said the government is already reviewing existing performance frameworks to ensure that operators in the distribution segment deliver improved electricity supply and infrastructure upgrades. He noted that the next licensing phase would mark a “fresh deal” for the sector.

He explained that although DisCos were initially expected to meet certain targets following their privatisation in 2013, many fell short, leading to disputes between operators and the government. However, the current administration, he said, has introduced new benchmarks and support mechanisms to reposition the sector.

Part of that support includes intervention programmes such as the Distribution Sector Recovery Programme (DISREP) and the Presidential Power Initiative (PPI), both aimed at strengthening infrastructure, improving metering, and enhancing service delivery. The Punch reports that these initiatives are designed to boost efficiency while ensuring that operators have access to financing at favourable terms.

Adelabu maintained that despite these interventions, underperforming DisCos would not be allowed to continue business as usual. “It is those that can demonstrate capacity and commitment to meet the required standards that will be considered for licence renewal,” he said.

The minister also expressed optimism that power supply would improve in the near term, linking recent challenges to disruptions in gas supply. He disclosed that ongoing repairs of critical gas pipelines, particularly those affecting major suppliers, are expected to restore stability within weeks.

Nigeria’s power sector continues to grapple with liquidity constraints, with generating companies owed trillions of naira. Adelabu revealed that a significant portion of these debts is tied to gas suppliers, a situation that has affected fuel availability for power generation. Nairametrics notes that the debt burden has been a longstanding obstacle to consistent electricity supply across the country.

He acknowledged that while domestic gas supply obligations require producers to prioritise local demand, payment challenges have discouraged compliance. The government, he said, is engaging stakeholders in the oil and gas sector to resolve the issue and ensure steady supply to power plants.

With private sector investments estimated at about $2 billion across generation, transmission, and distribution, the minister expressed confidence that ongoing reforms, combined with stricter enforcement, would gradually stabilise the sector.

As the 2028 deadline approaches, industry watchers say the government’s position signals a shift toward accountability, with operators now under increasing pressure to deliver tangible improvements or risk losing their licences.