The Federal Government may re-privatise Nigeria’s 11 power distribution companies if a proposed amendment to the 2023 Electricity Act sails through the National Assembly.
The Electricity Act (Amendment) Bill, 2025 currently before lawmakers proposes a comprehensive reform of the power sector, including provisions that could force underperforming core investors to relinquish their stakes.
The bill, sponsored by Senator Enyinnaya Abaribe (Abia South), has already passed second reading and is undergoing further legislative scrutiny. It aims to close regulatory gaps in the 2023 Act and hold distribution companies accountable for years of inefficiency, underinvestment, and growing debts.
According to the bill, if core investors in the DisCos fail to inject fresh capital into the sector within 12 months of the bill being signed into law, they risk facing serious consequences including share dilution, receivership, or outright re-privatisation.
The proposed law will also strengthen the powers of the Nigerian Electricity Regulatory Commission (NERC) to enforce these penalties and monitor compliance.
“The days of poor service without consequence are numbered,” a National Assembly source said. “If these investors cannot perform, they will be replaced.”
The amendment comes following mounting public frustration over erratic power supply and a deepening financial crisis in the electricity value chain, worsened by high debts owed by DisCos to generation companies and gas suppliers.
