ABUJA: The Federal Government is considering re-privatising Nigeria’s 11 electricity distribution companies (Discos) if the Electricity Act (Amendment) Bill, 2025, currently before the National Assembly, is passed into law.
This legislation aims to enforce reforms that could lead to core investors losing their stakes if they fail to inject fresh capital and improve performance.
Sponsored by Senator Enyinnaya Abaribe (Abia South), the bill seeks to amend the 2023 Electricity Act by closing regulatory gaps and setting a 12-month deadline for investors to recapitalise their stakes.
Failure to comply could result in share dilution, receivership, or outright re-privatisation.
The bill empowers the Nigerian Electricity Regulatory Commission (NERC) to compel investors to inject new capital or face sanctions, including re-privatisation.
It also mandates the development of a comprehensive financing framework to address the sector’s chronic debt of over ₦4 trillion, attract long-term local currency investments, and phase out unstructured subsidies.
The 11 Discos affected cover regions including Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt, and Yola.
While power experts welcome the intent to improve the sector, many caution that subsidy debts must be cleared first. Some advocate extending the recapitalisation period from 12 to 24 months to ensure a smoother transition, similar to past banking reforms.
Minister of Power, Adebayo Adelabu, expressed frustration with the Discos’ poor performance despite billions invested. If you can’t invest, give way to those who can,” he said at a recent briefing.
The government is also piloting reforms targeting underperforming Discos, in partnership with the Japanese International Cooperation Agency, aiming for a full overhaul by August 2025.
The bill is still under legislative review and discussion.
