POWER FAILURE: As Power Minister, Adelabu Critizes Electricity Distribution Companies…details

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CBN

Minister of power Adelabu has criticized the electricity distribution companies for the inadequate power supply, stating that they have let Nigerians down and continue to be the most vulnerable part of the power supply chain.

 

Adelabu expressed concern over the persistently low payments made by power distributors, particularly the Discos in northern Nigeria, highlighting that they fulfilled only 30 percent of the anticipated revenue last year.

 

CBN

Adelabu, addressing an audience in Ikot-Ekpene, Akwa Ibom State, during a two-day retreat hosted by the Senate Committee on Power, highlighted that the monthly subsidy deficit of N200 billion makes it “unsustainable” to keep the existing tariffs. This situation, he noted, is placing a considerable burden on public finances.

 

In a statement from Bolaji Tunji, the Special Adviser for Strategic Communication and Media Relations to the Minister, mentioned that Adelabu urged the National Assembly to pass more stringent laws to protect Nigeria’s power infrastructure from vandalism.

 

He said, “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.

 

“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.

“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.

 

“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.”

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