Despite improved power generation and a stabilised national grid, Minister of Power Adebayo Adelabu says DisCos remain the weakest link in Nigeria’s electricity supply chain. Speaking at a Senate retreat, Adelabu criticised DisCos for poor performance, low remittances, and lack of investment, despite a 240% Band A tariff increase.
LEADERSHIP NG
The Federal Government has identified distribution companies (DisCos) as the weakest link in Nigeria’s power sector, despite recent reforms and tariff hikes.
At a Senate Power Committee retreat, Minister of Power Adebayo Adelabu blamed DisCos for widespread service failure, noting that increased generation and a stabilised grid mean little without effective distribution.
“DisCos have disappointed us… Whatever we do in generation means nothing if distribution fails,” he said.
Adelabu revealed that Northern DisCos remitted only 30% of their Q4 2024 invoices, with Abuja DisCo the standout at 85%. Southern DisCos fared better, though 70% of payments came from Lagos.
The minister decried the N4 trillion subsidy burden, noting a ₦1.94 trillion shortfall for 2024 and a metering gap that continues to drain revenue.
He urged legal backing against power theft, citing TCN’s transformer investments and ongoing vandalism. Adelabu pledged reforms, including restructuring underperforming DisCos and reviving key projects like the 1,000MW Makurdi dam and 215MW Kaduna thermal plant.