The Minister of Power, Chief Adebayo Adelabu, has revealed the Federal Government will not renew the licences of electricity distribution companies (DisCos) that fail to meet performance standards when their current licences expire in 2028.

Adelabu issued the warning at the 2025 Nigerian Economic Summit in Abuja during a session on the power sector, where he identified the inefficiency of the DisCos as one of the major challenges preventing a stable electricity supply in the country.

The session, with the theme: “Uninterrupted power supply: The Industrial Imperatives,” attracted key industry stakeholders to discuss solutions to Nigeria’s enduring electricity problems.

According to the minister “The distribution companies need to sit up. 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.

“Those that have not demonstrated technical expertise, financial stability, or commitment to national interest will be replaced. The government will ensure that every household is metered within the next three to five years.”

On the N4 trillion debt owed to power generation companies (GenCos), the Minister said: “To stabilize the market, Mr. President has approved a N4 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 a sustainable path toward full commercialization and a viable industry.”