The Federal Government has directed the Nigerian Electricity Regulatory Commission (NERC) to revoke licenses of underperforming electricity distribution companies (DISCOs). This directive comes amidst a 21% year-on-year drop in power generation, down to 3,475MW in March 2024 from 4,404MW in the same period in 2023, largely attributed to low investment and inadequate gas supply.

Minister of Power, Adebayo Adelabu, emphasized the importance of addressing distribution challenges, considering it the weakest link in the electricity supply chain. He urged NERC to explore innovative approaches to compel DISCOs to improve service, including imposing stiff penalties for non-compliance and considering license cancellation.

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Adelabu highlighted plans for restructuring DISCOs into smaller entities

Adelabu highlighted plans for restructuring DISCOs into smaller entities, with each company serving a single state. He stressed the need for improved performance, indicating that failure to pick up allocated power or provide consistent supply could lead to license revocation.

Furthermore, Adelabu outlined government efforts to boost power generation to 6,000MW within six months by clearing debts owed to power generation companies and gas suppliers. While subsidies will continue temporarily, the government aims to transition the sector to commercially driven tariffs over the next three years.

Regarding recent incidents, Engr. Sule Abdulaziz, Managing Director of the Transmission Company of Nigeria, clarified that a fire at the Kano substation occurred during efforts to repair a transformer leak.