The Nigerian government is proposing major reforms that could lead to new owners taking over the country’s 11 electricity distribution companies (Discos). A new bill before the National Assembly – the Electricity Act (Amendment) Bill, 2025 – gives these power firms a 12-month deadline to either:
- Invest More Money – Bring fresh capital to improve infrastructure
- Face Consequences – Risk losing their businesses through:
• Having their shares reduced (dilution)
• Being placed under government control (receivership)
• Complete sale to new investors (re-privatization)
The changes come after years of poor performance where many Discos failed to provide reliable electricity despite holding monopoly rights in their regions. The bill also plans to:
• Gradually remove controversial electricity subsidies
• Attract more Nigerian investors using local currency (naira) financing
• Clean up the sector’s N4 trillion debt problem
Sponsored by Senator Enyinnaya Abaribe, this proposed law has already passed initial voting stages in parliament. However, some state power commissioners warn it might disrupt recent progress in decentralizing Nigeria’s electricity market.
Why This Matters Now:
With frequent blackouts and over 90 million Nigerians lacking reliable power, this could be the biggest shakeup of the electricity sector since privatization in 2013. Success could mean better service, but failure might deepen the power crisis.
Affected Discos
- Abuja Disco
- Benin Disco
- Eko Disco
- Enugu Disco
- Ibadan Disco
- Ikeja Disco
- Jos Disco
- Kaduna Disco
- Kano Disco
- Port Harcourt Disco
- Yola Disco
What Next?
→ Legislative Process: Bill enters committee stage
→ Investor Decisions: Discos must choose recapitalization or exit
→ Market Shift: Potential entry of new power investors
