The amendment bill warns that investors risk losing their stakes through “share dilution, receivership, or outright re-privatisation.”
The Federal Government may re-privatise Nigeria’s 11 power distribution companies if the proposed Electricity Act (Amendment) Bill, 2025, is passed into law.
The bill, sponsored by Senator Enyinnaya Abaribe, seeks to overhaul the 2023 Electricity Act and compel core investors in Discos to inject fresh capital within 12 months or risk sanctions, including share dilution, receivership, or outright re-privatisation.
“Using excuses to frustrate reforms is no longer acceptable,” Minister of Power Adebayo Adelabu said, lamenting that despite trillions spent, Nigerians still suffer erratic supply.
The bill has passed its second reading in the National Assembly. It mandates the Nigerian Electricity Regulatory Commission to implement a financing framework aimed at de-risking investments and phasing out what it calls “regressive subsidies.”
However, consumer groups and experts warned that recapitalisation may fail unless subsidy debts—estimated at over ₦4 trillion—are cleared. Power analyst Habu Sadiek argued that “24 months, not 12, would be more realistic.”
The 11 Discos, including Abuja, Eko, Ikeja, Kano, and Port Harcourt, remain under scrutiny after most failed to meet performance benchmarks set during the 2013 privatisation exercise.