The Minister of Power, Chief Adebayo Adelabu, has criticized the electricity Distribution Companies, labeling them the weakest link in the nation’s power supply chain.
Speaking at a two-day retreat organized by the Senate Committee on Power in Ikot-Ekpene, Akwa Ibom State, Adelabu accused Discos of disappointing Nigerians and undermining the sector’s progress due to chronic underinvestment and inefficiencies.
The minister highlighted alarmingly low remittances from Discos, particularly those in northern Nigeria, which paid only 30% of expected revenues last year.
This shortfall, coupled with a monthly subsidy deficit of N200 billion, has rendered current electricity tariffs unsustainable, straining public finances, Adelabu noted.
In a statement issued by the Special Adviser on Strategic Communication and Media Relations,
Bolaji Tunji, the minister urged the National Assembly to introduce tougher legislation to protect Nigeria’s power infrastructure from vandalism, which continues to exacerbate service disruptions.
Adelabu also pointed to systemic issues plaguing the sector, including aging distribution networks, widespread electricity theft, and inadequate investment by Discos.
These challenges have deepened reliance on government subsidies and left millions of Nigerians without reliable power, despite ongoing reforms in the electricity sector.
He stated, “We need to get tough with the Discos, as they can easily frustrate all the gains we have made. They have disappointed us in performance expectations. Whatever we do in generation does not mean anything to consumers if it is frustrated at the distribution points.”
He explained that during the 2013 restructuring of the power sector, distribution companies were expected to have technical partners. Although many Discos claimed to have formed alliances with foreign firms for this purpose, these partnerships were short-lived—lasting only about three months. He noted that once the Discos assumed control, the foreign companies quickly withdrew.
“So we need utility companies that can invest in the sector to improve infrastructure, improve service. A lot of them went to the banks to take loans to buy the assets. After taking over, instead of providing infrastructure they are taking out the money to pay the loans,” he stated.
According to the minister, despite tariff adjustments that boosted market liquidity by 70 per cent, raising sector revenue from N1 trillion in 2023 to N1.7 trillion in 2024, the distribution segment remained the weakest link.
He stated, “In the fourth quarter of 2024, Discos in the North remitted just N124.4 billion (30 per cent) of their N408.86 billion invoice, with Abuja Disco accounting for 85 per cent of Northern payments.
“Southern Discos fared slightly better, remitting N254.6 billion (67 per cent), though 70 per cent of this came from Lagos Discos alone. These discrepancies are due largely to crumbling infrastructure outside economic hubs, where underinvestment has left networks dilapidated.”
Adelabu pointed out that the metering gap, which drives revenue losses and erodes consumer trust, is a result of longstanding systemic neglect.
To address this, he said the government has introduced a N700 billion Presidential Metering Initiative alongside a World Bank-supported programme aimed at installing 4.3 million meters by 2025. As of April 2024, 75,000 meters had been deployed, with another 200,000 expected in May.
“Closing this gap is fundamental to fair billing and financial sustainability,” the minister acknowledged. “But we are not there yet due to underinvestment and operational inefficiencies,” he stressed.
He revealed that the power sector is burdened with a subsidy backlog of N4 trillion owed to generation companies, including N1.94 trillion for 2024 alone. He added that monthly subsidy shortfalls have now risen to N200 billion.
“To salvage the sector, we will soon embark on restructuring underperforming Discos and tightening enforcement of performance benchmarks.
“However, without urgent capital injection into distribution networks, gains in generation—including a historic 6,003mw output in March 2025—and transmission upgrades, such as 61 new transformers deployed in 2024, it will fail to translate to reliable household supply,” he noted.
He emphasized that vandalism should be treated not as a civil offence but as a criminal act, noting that power theft, non-payment of bills, and illegal connections are major issues that must be addressed. Despite these challenges, he acknowledged that the national grid has remained stable, with no recorded collapses since the beginning of the year.
Adelabu said, ”The level of stability on our grid today is not by accident but hard work and expenditure. In 2024, TCN installed 61 new transformers by either replacing aged ones or building new ones.
“Also in 2025, within the first four months, TCN installed about 13 new transformers and there are high-capacity transformers ranging from 10 megawatts to 300 megawatts. Put together, they run into hundreds of million dollars to install and these are what our people still go out to vandalise. Our towers are toppled by saboteurs and vandals. We have illegal connections, and people tampering with meters.”
