The Federal Government may re-privatise Nigeria’s 11 electricity distribution companies (Discos) if they fail to invest fresh capital in the sector, according to the proposed Electricity Act (Amendment) Bill, 2025. The bill, currently before the National Assembly, seeks to reform the Nigerian power sector by giving the Nigerian Electricity Regulatory Commission (NERC) authority to enforce recapitalisation or take punitive measures—including share dilution, receivership, or outright sale—against non-performing Discos.
Sponsored by Senator Enyinnaya Abaribe, the amendment mandates Discos to inject new investments within 12 months of the bill’s passage, or risk losing ownership. The bill also directs the Minister of Power and NERC to create a new financing framework for the power sector to attract long-term local investment, reduce reliance on subsidies, and resolve over ₦4 trillion in sector debt.
However, the proposal has sparked criticism. Power sector experts and state energy commissioners warn that the bill threatens Nigeria’s decentralised electricity system and may reverse gains from the 2023 Electricity Act. Analysts also argue that recapitalisation will fail unless government settles outstanding subsidy debts and allows cost-reflective tariffs.
Minister of Power, Adebayo Adelabu, has repeatedly criticised Discos for poor performance, despite extensive financial support. In response, he confirmed ongoing restructuring plans, including deploying special teams to underperforming Discos. Meanwhile, industry stakeholders, including Discos and power analysts, called for a longer 24-month recapitalisation period and more practical implementation strategies to ensure sector stability and investor confidence.
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