The Minister of Power, Chief Adebayo Adelabu, has issued a stern warning to Nigeria’s electricity distribution companies (DisCos), stating that their licences will be revoked in 2028 if they fail to meet performance expectations.

Adelabu gave the warning during a power sector session at the 2025 Nigerian Economic Summit held in Abuja. The session, themed “Uninterrupted Power Supply: The Industrial Imperatives,” gathered key players in the energy industry to discuss lasting solutions to Nigeria’s power challenges.

According to the minister, inefficiency within the DisCos remains one of the biggest obstacles to stable electricity supply in the country.

“The distribution companies need to sit up,” Adelabu said. “They are a major bottleneck in the sector, and the government is doing everything possible to ensure they meet expectations. Their licences will expire in two years, and there will be major reforms before any renewal.”

He explained that any DisCo that fails to demonstrate technical expertise, financial stability, or national commitment will lose its licence. He also emphasized that the government’s target is to ensure every Nigerian household is metered within the next three to five years.

Adelabu further disclosed that President Bola Tinubu has approved a ₦4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers.

“To stabilize the market, Mr. President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure the sector’s long-term viability,” he added.

The minister said ongoing reforms would focus on enforcing stricter performance standards, expanding metering coverage, and restructuring DisCo ownership where necessary to ensure consumers get efficient and reliable service.

Also speaking at the session, Mr. Edu Okeke, CEO of Azura Power, and Mr. Philip Mshelbila, Managing Director of Nigeria LNG Limited, stressed the need for improved liquidity and better gas pricing to encourage investment in power generation.

Okeke noted that concerns over dollar-denominated gas pricing were secondary to the structural problems plaguing the industry, while Mshelbila emphasized that fair gas pricing would attract more investors to boost electricity supply.

The session concluded with industry stakeholders agreeing that accountability and efficiency in power distribution remain critical to achieving Nigeria’s dream of uninterrupted electricity supply.