An energy specialist has urged Nigeria’s new Minister of Power, Joseph Tegbe, to cancel the operating licences of the country’s electricity distribution companies (DISCOs) and re‑award them to more capable operators.
In an interview with Arise Television on Sunday, Nick Agule argued that the current distribution framework is a major obstacle to meeting Nigeria’s electricity demand. He noted that the nation requires roughly 200,000 megawatts (MW) of generation capacity but is producing only about 5,000 MW, leaving a substantial supply‑demand gap.
Agule said the minister’s recent statements on addressing metering, gas supply and transmission problems focus on operational issues that fall under the remit of the distribution and transmission businesses. “The minister’s role is policy and administration – to create an enabling environment for the businesses managing those challenges to thrive,” he explained.
The expert called for a review of the 2013 privatisation of the power sector, asking why the transmission segment was excluded from privatisation. He suggested that moving transmission into private hands would alleviate chronic under‑funding and remove bottlenecks that hinder power delivery.
“Re‑assigning DISCO licences to competent operators would improve efficiency, reduce technical losses and enhance service quality for consumers,” Agule said. He added that a transparent re‑licensing process, overseen by the regulator, could attract investment and promote better governance in the distribution network.
The call comes as the government prepares to implement the Electricity Supply Industry Reform Act (ESIRA) and other reforms aimed at stabilising the power sector. Stakeholders, including the Nigerian Electricity Regulatory Commission (NERC), have indicated a willingness to reassess existing licences, but no formal timeline has been announced.
If the minister follows Agule’s recommendation, the next steps would involve a detailed audit of DISCO performance, identification of qualified private operators, and a revised licensing framework. Such actions could accelerate progress toward closing the generation‑supply gap and improving reliability for Nigeria’s growing economy.
The proposal underscores the broader debate on how best to restructure Nigeria’s power sector to attract investment, boost generation capacity and deliver affordable electricity to households and industry.
