Minister of Power, Adebayo Adelabu, warns DisCos over poor performance and announces Tinubu’s approval of a four trillion naira bond to clear GenCo and gas debts.
The Federal Government has warned electricity distribution companies (DisCos) that their operating licences will not be renewed in 2028 if they fail to meet required performance benchmarks.
Minister of Power, Chief Adebayo Adelabu, issued the warning at the 2025 Nigerian Economic Summit in Abuja during a session titled “Uninterrupted Power Supply: The Industrial Imperatives.”
Adelabu identified DisCos inefficiency as one of the biggest obstacles to achieving a stable electricity supply, noting that the government would introduce major reforms before the current licences expire.
“The distribution companies need to sit up. They are a major bottleneck in the sector, and their licences will not be renewed if they fail to deliver on performance, technical competence, and national interest,” Adelabu said.
He added that the government aims to ensure every Nigerian household is metered within three to five years, eliminating estimated billing and improving transparency in electricity consumption.
N4tr Bond to Clear GenCos Debts
In a move to stabilize the power sector, the minister revealed that President Bola Tinubu has approved a four trillion-naira bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers.
“This intervention will ease liquidity pressure in the market and restore investor confidence,” Adelabu said. “A targeted subsidy framework is also being developed to protect vulnerable households while maintaining financial sustainability.”
Improved liquidity
At the same session, Mr. Edu Okeke, Chief Executive Officer of Azura Power, and Mr. Philip Mshelbila, Managing Director of Nigeria LNG Limited, emphasised the need for improved liquidity and a transparent gas pricing structure.
Okeke said concerns over gas pricing in dollars were less critical than other structural challenges facing the industry, while Mshelbila argued that appropriate gas pricing would attract new investments and improve power generation capacity.
Power Value Chain
Analysts say Adelabu’s comments signal the government’s readiness to enforce accountability across the power value chain, from distribution to generation and transmission.
With the bond approval and stricter performance enforcement, the administration hopes to reposition the electricity market for sustainable growth, ensure reliability, and reduce dependency on subsidies.
If implemented effectively, these measures could help Nigeria transition from its long-standing energy deficit to a more productive and investor-friendly power sector by 2030.
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