The Federal Government has initiated a pilot scheme to overhaul Nigeria’s electricity distribution sector, starting with two underperforming Distribution Companies (DisCos).

Mr. Bolaji Tunji, Special Adviser on Strategic Communications to the Minister of Power, disclosed this in a statement issued in Abuja on Monday.

He quoted the Minister of Power, Adebayo Adelabu, as unveiling the plan following a meeting with the Japanese International Cooperation Agency (JICA), which presented a roadmap titled ‘Revamping the Distribution Sector in Nigeria’.

The proposal, based on insights from Adelabu’s recent visit to Japan’s energy market, promotes a holistic reform model centred on public-private collaboration and measurable milestones.

Adelabu said the pilot programme – scheduled to begin between May and August – will involve one DisCo in the North and another in the South. He explained that the initiative is a response to systemic issues such as governance lapses, infrastructure decay, and commercial inefficiencies.

“The idea is to create a replicable model of operational turnaround by integrating external expertise, enforcing regulatory compliance, and demonstrating quick wins in service delivery,” he said.

He stressed the government’s commitment to intervening decisively in the power sector, noting that underperforming DisCos will be compelled to cooperate. “This pilot is not optional. If necessary, we will use regulatory authority to restructure them.”

Adelabu also acknowledged past resistance to reforms but expressed determination to address common challenges like vandalism, as well as regional issues, including cultural barriers.

He pointed out that a key challenge is the lack of investment incentives for DisCos. “Returns on infrastructure investment are poor, making it crucial to attract credible investors and franchise both viable and less-viable areas to competent operators,” he said.

The minister directed the Nigerian Electricity Regulatory Commission (NERC) to enforce franchising rules and ensure DisCos’ cooperation. “NERC must secure buy-in this time; we will act intentionally and decisively,” he said.

Adelabu also called for greater public education about the distinct roles of generation, transmission, and distribution companies, adding that consumer awareness is vital for public trust.

The Ministry of Power and NERC are expected to finalise details of the pilot in the coming months, prioritising DisCos with the worst operational records.

According to the minister, this initiative represents the most comprehensive effort yet to reform Nigeria’s electricity distribution sector and improve access, accountability, and investor confidence.

Mr. Takeshi Kikukawa, JICA’s Power Sector Policy Advisor to Nigeria, said the goal is to achieve tangible results in the pilot areas while laying a foundation for nationwide transformation.