FG To Sell 11 Discos To New Investors

FG To Sell 11 Discos To New Investors

The Federal Government may remove the core investors in Nigeria’s 11 power distribution companies if they fail to bring in fresh funds within one year.

This was proposed in the Electricity Act (Amendment) Bill, 2025, currently under review by the National Assembly.

The bill, sponsored by Senator Enyinnaya Abaribe, is intended to strengthen regulation in the power sector and address years of poor performance by the Discos.

If passed into law, it will give the Nigerian Electricity Regulatory Commission (NERC) the power to take over or re-privatise any power distribution company that fails to recapitalise within 12 months after the law takes effect.

The amendment proposes a fresh approach to solving the financial problems in the sector, which has struggled since the 2013 privatisation.

Under the bill, Discos may face share dilution, receivership, or outright sale to new investors if they do not comply.

The law will also direct the Minister of Power, working with NERC, to design a new financial structure for the Nigerian Electricity Supply Industry (NESI).

This plan must attract local currency investment, reduce dependency on diesel and petrol-based generation, and phase out unplanned subsidies.

The sector is currently burdened by over N4 trillion in debts.

There are 11 Discos serving different regions in Nigeria: Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt, and Yola.

Many of them are struggling to meet performance benchmarks, even after multiple government bailouts.