Power minister scouts for franchisees for floundering DisCos
By Adeola Atanda
Nigeria’s minister of power, Adebayo Adelabu, has said the government would adopt franchising as a way of optimizing the operations of underperforming electricity distribution companies (DisCos) in the country.
Adelabu, in a statement signed by his media aide, said the government had met with officials of the Japan International Cooperation Agency (JICA) for purpose. He also said that the government would pick a DisCo each from the north and southern regions, in May and August 2025, to test run its plans. He explains that the plans will focus on internal restructuring of the affected DisCos, providing them with external technical support, and strengthening governmental oversight.
“We can no longer fold our hands and watch the inadequacies of DisCos whose performances fall short of expectations,” Adelabu said.
“This pilot is not optional—we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.” Adelabu vowed that the government would be “intentional and decisive” in ensuring the reforms succeed, as the DisCos had resisted previous attempts to do so.
The minister also addressed poor investment incentives caused by “a lack of returns”. As a solution, Adelabu said: “We must attract investors and franchise viable and struggling areas to capable operators.”
Corroborating the minister, Takeshi Kikukawa, JICA’s Nigeria power sector policy advisor, said the reforms “goal is to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement”.
