By Erewunmi Peace

The Federal Government may be on track to sell or re-privatize Nigeria’s 11 power distribution companies (DisCos) if a new amendment to the Electricity Act is passed into law.

The Electricity Act (Amendment) Bill, 2025, which recently passed its second reading at the National Assembly, seeks to empower the Nigerian Electricity Regulatory Commission (NERC) to take firm action against underperforming DisCos, including the option of transferring ownership to new investors.

The bill, sponsored by Senator Enyinnaya Abaribe (Abia South), mandates that existing DisCos must inject fresh capital into their operations within 12 months of the bill’s passage—or risk share dilution, receivership, or outright sale.“The goal of this amendment is not to reverse privatization but to enforce accountability, improve service delivery, and ensure that companies holding critical national infrastructure are financially capable and operationally effective,” said Abaribe during plenary.

Background

The proposed amendment comes amid rising complaints from Nigerians over poor electricity supply, estimated billing, and failing infrastructure. Since the 2013 privatization of the power sector, the DisCos have struggled with massive debt, technical losses, and widespread customer dissatisfaction.

According to industry analysts, Nigeria’s power sector debts now exceed ₦4 trillion, raising urgent questions about the effectiveness of existing power operators.

Key Provisions of the Amendment Bill:

12-month deadline for DisCos to recapitalize

NERC authorization to enforce sanctions for non-compliance

Possible share dilution or asset takeover

Opportunity for new, credible investors to take over failing DisCos

While the bill has received praise from energy reform advocates, some stakeholders have expressed concern. Critics argue that the move could re-centralize power and disrupt recent decentralization gains under the 2023 Electricity Act, which allowed state governments more control over power generation and regulation.

Nevertheless, supporters maintain that the proposed amendment targets only non-performing licensees, ensuring Nigerians benefit from stable, reliable electricity supply.