Nigeria’s power sector continues to grapple with serious challenges on the distribution front, threatening to undermine recent improvements in electricity generation and transmission, according to Minister of Power Bayo Adelabu.
Speaking at a senate committee retreat, Adelabu criticized the electricity distribution companies (DisCos) for failing to meet performance expectations and frustrating efforts to deliver stable power to consumers. Despite a historic peak in power generation earlier this year and significant transmission upgrades, the minister warned that without urgent reforms, these advances will not translate into reliable household electricity.
Adelabu highlighted the weak infrastructure outside economic hubs as a major cause of the problem, noting that many DisCos have underinvested in their networks, with some using bank loans to acquire assets rather than upgrade systems. This has left many distribution lines dilapidated and unable to efficiently deliver power.
The minister revealed stark regional disparities in revenue remittance by DisCos, with northern companies returning only 30 percent of billed amounts compared to better performance in the south, driven largely by Lagos DisCo’s contributions.
He also pointed out the persistent metering gap, which fuels revenue losses and mistrust among consumers. To address this, the government has launched a presidential metering initiative backed by the World Bank aiming to install over four million meters by 2025.
Adelabu warned that the sector is burdened by a staggering N4 trillion subsidy backlog and stressed that sustaining current tariffs without capital injection is unsustainable.
He promised to restructure underperforming DisCos and tighten enforcement of performance benchmarks, alongside efforts to attract private investment into grid infrastructure and regionalize transmission networks to reduce failures.
He also called on the national assembly to pass stricter laws to protect power infrastructure from vandalism, stating that without decisive action, the country risks squandering the gains made in power generation and transmission.