DisCos Performance Disappointing, Remain Weakest Link in Power Sector – Adelabu
Minister of Power, Chief Adebayo Adelabu, has taken a swipe at electricity Distribution Companies (Discos) operating in the country, maintaining that they have not only disappointed Nigerians, but have become the weakest link in the power supply value chain.
Adelabu also decried the continued low remittances from the power distributors, especially the Discos from the northern part of Nigeria, revealing that they only paid 30 per cent of the expected revenues last year.
Adelabu, who spoke in Ikot-Ekpene, Akwa Ibom State, at a two-day retreat organised by the Senate Committee on Power, explained that with a monthly subsidy shortfall of N200 billion, maintaining the current tariffs was “unsustainable,” and was constituting a strain on public funds.
A statement in Abuja by Special Adviser, Strategic Communication and Media Relations to the minister, Bolaji Tunji, said
Adelabu noted glaring disparities in Discos’ performance, with aging networks, rampant electricity theft, poor investment, deepening reliance on unsustainable subsidies, and leaving millions in darkness.
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 stated that in the 2013 restructuring of the sector, the Discos were supposed to have technical partners, but stated that despite a lot of them confirming partnership with foreign companies for that purpose, it only lasted for about three months. According to him, immediately the Discos took over, the companies disappeared.
“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 stated that the metering gap, a key driver of revenue loss and consumer distrust, underscored systemic neglect, adding that the government has launched a N700 billion Presidential Metering Initiative (PMI) and a World Bank-backed programme targeting 4.3 million meters by 2025, out of which 75,000 units were deployed in April 2024 while additional 200, 000 were 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 said the sector also faced a N4 trillion subsidy backlog owed to generation companies, including N1.94 trillion for 2024 alone, with monthly subsidy shortfalls now hitting N200 billion.
According to the minister, “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.”
Emphasising the need for enhanced legal measures against vandals, Adelabu stressed that robust laws were critical to deterring the destruction of vital energy assets and ensuring the stability of the nation’s electricity supply.
He said vandalism should not be treated as a civil offence but a criminal issue, stating that power theft, non-payment of bills by consumers, illegal connections are critical factors that need to be tackled.
He acknowledged that in spite of the challenges, the grid had been stabilised, as the country had not witnessed any grid collapse 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.”
The minister urged appropriate legislations and public vigilance to protect “national assets that belong to every Nigerian.
“We need more stringent legislation to tackle this problem”.
Adelabu also made a case for the Transmission Company of Nigeria (TCN) in terms of appropriation, adding that the agency does not have enough money to fund its operations.
He said of TCN, “They are short of funds, they operate solely on their Internally Generated Revenue(IGR), which has been nosediving over the years. What they get monthly cannot even pay their salaries, not to talk of maintaining aging infrastructure and expanding transmission networks. There should be a way to accommodate TCN in appropriation.”
The minister highlighted plans to attract private investment into grid infrastructure and regionalise transmission networks to reduce failure risks, stating that the 70 per cent remittance by the two Discos in Lagos reflects better infrastructure than what obtains in the northern networks.
He also spoke of plans to boost power supply in the northern part of the country.
Adelabu stated, “We are looking at developing the Makurdi hydropower project, which is about 1000 megawatts. We also want to revitalise the Kaduna thermal plant, which has been abandoned for the past five years.
“It is a 215 megawatts capacity plant and is presently at about 87 per cent completion. Efforts are ongoing to restore this power plant.”
