Governors of all 36 states in Nigeria have united to address the nation’s chronic power shortages by challenging the existing monopoly of Distribution Companies (DisCos).
Naijaonpoint reports that this development follows the enactment of key legislative reforms aimed at decentralizing power distribution across the country.
The push for these reforms gained momentum after President Muhammadu Buhari signed the constitutional amendment in March 2023, allowing states to independently generate, transmit, and distribute electricity.
More recently, President Bola Tinubu reinforced this shift by signing the Electricity Act of 2023, further encouraging the breakdown of existing monopolies in electricity generation, transmission, and distribution.
This legislative overhaul, often referred to as a significant step towards realistic restructuring, empowers states, companies, and individuals to engage more actively in the electricity sector.
“The new Electricity Act is a game-changer, allowing states to set up their own distribution frameworks, which should address many of the inefficiencies currently plaguing our power supply,” stated Asishana Okauru, the Director General of the Nigeria Governors’ Forum (NGF).
Responding to the challenges, the NGF has taken a proactive role by establishing a dedicated power desk within its Secretariat.
The forum has engaged consultants and set up a Forum of Commissioners of Power across the states, aiming to tailor local solutions to local energy needs.
This includes the restructuring of Discos, as confirmed by Adebayo Adelabu, the Minister of Power, who revealed ongoing efforts to reorganize the distribution companies along state lines for enhanced efficiency.
“The current structure, where a single Disco might cover multiple states, is impractical and detrimental to efficiency. By aligning Discos with state boundaries, we can enhance accountability and performance,” explained Adelabu during a recent oversight visit by the Senate Committee on Power.
Labor unions, represented by the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC), have also welcomed these developments, particularly emphasizing the need for equitable metering to eliminate the controversial practice of estimated billing.
Despite these promising steps, the actual implementation remains a significant challenge.
The federal government has begun the process by ordering the restructuring of Discos that are currently underperforming or managed by financial institutions due to debt.
This restructuring includes transitioning management to state control where possible.