Report says Federal Government may re-privatize the 11 electricity distribution companies (Discos) if the Electricity Act (Amendment) Bill, 2025, is passed, as it aims to address poor performance and a N4tn debt crisis in the sector.
Sponsored by Senator Enyinnaya Abaribe, the bill, which has passed its second reading, empowers the Nigerian Electricity Regulatory Commission (NERC) to compel core investors in Discos to inject fresh capital within 12 months or face share dilution, receivership, or re-privatization. The bill seeks to overhaul the 2023 Electricity Act by establishing a financing framework to attract long-term local currency investments, phase out subsidies, and ensure cost recovery through transparent tariffs. It also mandates federal and state governments to clarify their equity stakes in Discos within 12 months.
Meanwhile Critics, including the Forum of Commissioners of Power and Energy, warn that the bill could disrupt the decentralized electricity market, while experts and consumer groups suggest clearing subsidy debts and extending the recapitalization deadline to 24 months for feasibility.
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