Adelabu calls for critical review of DisCos licenses over investment shortfalls

Adebayo Adelabu, Nigeria’s former minister of Power has expressed concern that the electricity Distribution companies (DisCos) have largely failed to meet their investment obligations since the 2013 privatisation, urging the government to critically review their licences when due.

Adelabu stated this during a valedictory meeting with heads of departments and agencies under the ministry.

He urged sustained commitment to ongoing reforms in Nigeria’s power sector, stressing the need for continuity and consistency in policies designed to reposition the industry. He also noted that while some of the reforms may appear unpopular, they are necessary to guarantee stable, efficient, and affordable electricity supply for Nigerians.

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Adelabu charged top civil servants to ensure that the incoming minister builds on the existing foundation, in line with President Bola Ahmed Tinubu’s vision of delivering reliable power as a critical component of his administration’s agenda.

According to him, “Years of inadequate attention by successive governments contributed to the sector’s challenges, and addressing them required deliberate and strategic planning. Sustaining the reforms would require courage from both technocrats and political leaders to firmly establish the power sector value chain on a sound footing.

“These reforms are a journey, not an immediate destination. If the process is disrupted, it could derail progress. Civil servants and technocrats must therefore guide the incoming leadership to sustain and build on what has been achieved.

“Our achievements may not yet be obvious to Nigerians, but as the next leadership builds on them, their impact will become clear.”

He highlighted key milestones achieved during his tenure in office to include the signing of the Electricity Act 2023, which decentralised and liberalised the sector, enabling sub-national participation. He disclosed that 16 states have already keyed into the evolving power market with increased private sector involvement through Generation Companies (GenCos) and Distribution Companies (DisCos).

Adelabu defended the introduction of the Cost Reflective Tariff (CRT), acknowledging its initial resistance but noting that it was essential for the sector’s sustainability.

Read also: Adelabu resigns as Minister of Power,  recommends creation of Coordinating Ministry for energy

“DisCos have largely failed to meet their investment obligations since the 2013 privatisation, urging the government to critically review their licences when due.

“Reforms are often unpopular, but we must move beyond the status quo if we are to develop as a nation,” he said, adding that he carried out his duties with a clear conscience and in the national interest.

The former minister also confirmed that he resigned with the approval of President Tinubu to pursue his governorship ambition in Oyo State. He recalled a similar move in 2019 when he resigned as Deputy Governor of the Central Bank of Nigeria (CBN) to contest the same position.

“My commitment to the welfare and development of my people remains strong. This ambition is not a do-or-die affair, but I am confident that this time, we will succeed,” he said.