Federal Government Threatens to Revoke DisCos Licenses Over Persistent Power Shortage

Taiwo Ajayi
3 Min Read

The Federal Government has issued a stern warning to power distribution companies (DisCos) over the consistent power shortage experienced nationwide.

The Minister of Power, Adebayo Adelabu, stated this in a press release on Wednesday in Abuja.

Despite an increase in power generation to 4000MW by generation companies, the ministry remains deeply concerned about the inadequate electricity distribution by the Discos. Minister Adelabu has summoned the chief executives of Abuja Electricity Distribution Company (AEDC) and Ibadan Electricity Distribution Company (IEDC), as well as the Managing Director of the Transmission Company of Nigeria (TCN), to explain the ongoing challenges in power distribution across the country.


“The Ministry has been pressuring the Generating Companies (GENCOs) to improve their performance, leading to a recent increase in generation to over 4000MW,” said Adelabu. “However, certain distribution companies are failing to distribute the power supplied by TCN adequately, while vandalism of power infrastructure exacerbates the problem in regions such as Abuja, Benin, Port Harcourt, and Ibadan.”

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Adelabu emphasized his commitment to holding all distribution companies accountable for their performance, warning that “willful non-performance will not be tolerated, and severe consequences, including license revocation, may be imposed.” He also instructed TCN to prioritize repair works on damaged transmission towers and power lines to improve supply in affected regions.

In addressing the financial challenges faced by power generation and gas supply companies, Adelabu revealed plans to settle outstanding debts, which will alleviate financial strain and contribute to improved generation levels nationwide. He urged electricity consumers to remain patient as efforts are underway to address these issues and provide better service to all Nigerians.

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Earlier, the Federal Government accused certain electricity distribution companies of intentionally not accepting power supply from TCN, contributing to the persistent power crisis. In response, Adelabu disclosed that the government is preparing to issue queries to underperforming power distribution companies.

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