FG Contracts Japanese Agency For Solutions To Nation’s Power Distribution Problems, Cites Challenges

In search of solutions to the protracted challenges of the power distribution companies (DisCos) in Nigeria, the federal government has contracted the Japanese International Cooperation Agency (JICA), to proffer lasting overhaul of the distribution chain.

The federal government had observed DisCos’ inability to invest in infrastructure upgrades.

Minister of power, Adebayo Adelabu, however rationalized the problem, saying “Their lack of investment is not solely due to unwillingness but also a lack of incentives. Returns on infrastructure spending are not commensurate, so we must attract investors and franchise viable and the not so viable areas to capable operators, so we can have a mix.”

The Special Adviser to the Minister on
Strategic Communications and Media Relations, Bolaji Tunji, disclosed that the federal government has adopted
proposal presented by the International Cooperation Agency (JICA) on ‘Revamping of the Distribution Sector in Nigeria’.

He explained that this followed a meeting between the power Minister and JICA during which the proposal presentation was made.

However, according to him in a statement, the implementation would be done in phases with the first phase/pilot scheme slated to commence between May and August 2025, beginning with one DisCo in the North and another in the South.

It aims to demonstrate a replicable model for operational turnaround, combining internal restructuring, external expertise, and federal oversight to achieve rapid improvements in service delivery.

JICA’s proposal emphasizes reforming DisCos “from within” by integrating outside experts, strengthening leadership, and aligning government support with short-term results in pilot zones to lay the groundwork for long-term sector-wide transformation.

Adelabu stressed the urgency of the intervention, stating: “We can no longer fold our hands and watch the inadequacies of DisCos whose performances fall short of expectations. This pilot is not optional—we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”

He acknowledged persistent resistance to past reforms but vowed to address both universal challenges—such as vandalism and governance—and region-specific issues, including cultural barriers hindering operations.

He directed the Nigeria Electricity Regulatory Commission (NERC) to enforce franchising opportunities and ensure DisCos’ cooperation, noting: “NERC must secure their buy-in. Past efforts failed due to resistance, but this time, we will be intentional and decisive.”

The Minister also highlighted the need for public education to clarify the roles of generation, transmission, and distribution entities.

“Many Nigerians still view the sector as a single entity. Educating consumers is critical to building trust and support for these reforms, “he added.

JICA’s proposal was developed after the Minister’s earlier visit to Japan’s energy market.

The Federal Ministry of Power and NERC will finalize pilot details in the coming months, prioritizing DisCos with acute operational deficits.