FG PLANS RIVAL POWER FIRMS TO COMPETE WITH DISCOS

The Federal Government is set to license new electricity distribution companies to foster competition and challenge the monopoly of existing Distribution Companies (Discos).

Minister of Power, Adebayo Adelabu, made this known on Friday while addressing industry stakeholders in the capital.

Adelabu explained that the initiative aims to improve efficiency, reduce aggregate technical, commercial and collection (ATC&C) losses, and give Nigerians better service options.

“We want a truly competitive market. New credible players will be licensed to operate alongside or in specific franchise areas with the current Discos,” he stated.

The move is part of ongoing power sector reforms under the Electricity Act, which seeks to liberalise the industry and attract fresh investments in distribution infrastructure.

Power consumers have welcomed the plan, hoping it will end the era of poor service delivery and arbitrary billing.

The government assured that rigorous criteria will be applied in the licensing process to ensure only serious investors with technical and financial capacity are allowed into the market.