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Electricity Act (Amendment) Bill: FG may sell 11 Discos to new investors

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12 months ago

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The Federal Government may sell the 11 power distribution companies through a re-privatisation process if the Electricity Act (Amendment) Bill, 2025, currently before the National Assembly, becomes law.

The National Assembly has already initiated a legislative process to enforce sweeping reforms that could see core investors in electricity distribution companies lose their stakes if they fail to improve their investment.

The amendment bill, sponsored by Senator Enyinnaya Abaribe (Abia South), seeks to overhaul the 2023 Electricity Act by addressing regulatory gaps, as it warned that investors risk losing their stakes through share dilution, receivership, or outright re-privatisation if fresh capital is not injected into the sector within 12 months, following years of poor performance and a worsening debt crisis.

This clause comes into effect immediately after an assent is granted to the ongoing amendment of the Electricity Act 2023. The bill has passed its second reading and is currently undergoing further legislative action and discussions.

If passed into an Act, it will empower the Nigerian Electricity Regulatory Commission to compel core investors in the 11 successor Discos to inject fresh capital or face stiff regulatory action, including share dilution, receivership, or outright re-privatisation.

This was disclosed in the draft amendment to the Principal Act, seen by The PUNCH, on Monday. The proposed Electricity Act (Amendment) Bill, 2025, has already attracted condemnation from the Forum of Commissioners of Power and Energy, warning that the bill poses a serious threat to the country’s newly decentralised electricity market and could reverse key reforms achieved under the landmark Electricity Act of 2023.

The bill also gives the commission powers to impose sanctions, including dilution of shares or re-privatisation, on defaulting Discos, particularly those under receivership or financial distress.

The PUNCH reports that there are 11 Discos in Nigeria that service different regions across the country. They include Abuja Electricity Distribution Company, Benin Electricity Distribution Company, Eko Electricity Distribution Company, Enugu Electricity Distribution Company, and Ibadan Electricity Distribution Company.

Others are Ikeja Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electricity Distribution Company, Kano Electricity Distribution Company, Port Harcourt Electricity Distribution Company, and Yola Electricity Distribution Company.

Under the new law, a comprehensive framework must be developed within 12 months to overhaul the financial structure of the Nigerian Electricity Supply Industry, with a strong focus on attracting long-term local currency investments and phasing out what the bill describes as “unstructured and regressive subsidies.”

According to Sections 228J and 228K of the amended Act, the Minister of Power, in consultation with NERC, is required to develop and implement a robust financing framework aimed at de-risking investments across the power value chain and resolving the sector’s chronic debt overhang, estimated at over N4tn.

However, power sector experts and consumer advocacy groups have argued that the proposed law, if passed, can only be effectively implemented if the long-standing subsidy debts crippling the sector are first cleared.

They also recommend extending the recapitalisation deadline to 24 months, similar to the approach adopted during the banking sector recapitalisation, to allow for a more realistic and structured transition.

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A copy of the amended act read, “Financing of Projects in the NESI: The Federal Government shall, through the minister and in consultation with the Nigerian Electricity Regulatory Commission, establish a comprehensive framework for financing of projects in the NESI within 12 months from the commencement of this Bill.

“The framework referred to under subsection(1) of this section shall give regard to the extant National Electricity Policy and Strategic Implementation Plan and aim to attract and de-risk investments across the power value chain from generation, transmission, distribution, reduce diesel and petrol-based self-generation and address crippling financial crisis and debt overhang in the Nigerian power sector.”

The proposed Act stipulates that the new financing framework must prioritise long-term local currency financing for gas-to-power and distributed energy projects, a transparent and predictable tariff regime that guarantees cost recovery, the recapitalisation of Discos under NERC’s supervision, a clear determination of federal and state equity stakes in the Discos, and the provision of fiscal and tax incentives to attract investment and avert a sector collapse.

It noted, “The framework established under section 228I of this Bill shall include, but not limited to the following: long-term local currency capital financing for gas-to-power optimisation projects; distributed energy projects, etc, to mitigate foreign exchange risks for investors;

“Commitment to a transparent and predictable tariff regime that allows for cost recovery for efficient operators, progressively phasing out regressive and unstructured subsidies.

“Concession of certain power plants under the portfolio of the Niger Delta Power Holding, as well as commencement and completion of successor Discos’ recapitalisation to be implemented through the directive and supervision of the Nigerian Electricity Regulatory Commission.”

It further stated that the regulatory commission shall have the power to direct the core investors in the 11 successor distribution companies, including those under receivership, to recapitalise their respective equity holdings within such a time frame not exceeding 12 months from the commencement of this bill, and in deserving circumstances impose appropriate sanctions for non-compliance with its directive under this subsection, including an order for dilution of such shares held by core investors or re-privatisation.

It added, “A determination of Federal Government equity stakes in the 11 successor distribution companies with a clear timeframe of not later than 12 months from the commencement of this bill, for both the federal and state governments to make their respective contributions reflective of their equity holdings in the 11 successor distribution companies; and

“Such other mechanisms, such as fiscal and tax incentives to prevent the collapse of the NESI. Without prejudice to the provisions of subsection (2)(c) of this Section, the commission shall have the power to direct the core investors in the 11 successor distribution companies, including those under receivership, to recapitalise their respective equity holdings within such a time frame not exceeding 12 months from the commencement of this bill, and in deserving circumstances impose appropriate sanctions for non-compliance with its directive under this subsection, including an order for dilution of such shares held by core investors or re-privatisation.

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“The commission shall consult widely and take such measures as are necessary to ensure that the implementation of any order or directive on recapitalisation under sub-section (3) of this section neither disrupts continuity of service nor undermines investor confidence in the NESI.”

The government’s tough stance follows years of poor performance by the Discos, which continue to deliver erratic power supply despite multiple interventions, including debt forgiveness, financial bailouts, and tariff adjustments.

In May, the Federal Government openly expressed disappointment in the Discos, accusing them of frustrating ongoing reforms. At a media briefing in Abuja, the Minister of Power, Adebayo Adelabu, lamented that despite trillions of naira sunk into the sector, many Nigerians remain in darkness.

“The performance of the Discos has been grossly underwhelming,” Adelabu declared. “We can no longer tolerate excuses. If you can’t invest, give way to those who can.”

“We need to get tough with the Discos, as they can easily frustrate all the gains we have made. They have disappointed us in performance expectations. Whatever we do in generation does not mean anything to consumers if it is frustrated at the distribution points”.

A May 2025 report by the Bureau of Public Enterprises showed that more than 70 per cent of Discos have failed to meet key performance benchmarks set at the time of privatisation in 2013.

Reacting to the proposed timeline and pending directive, an official of power distribution companies dismissed concerns over the impact of the recently amended Electricity Act on Discos, saying the law is binding when assented to, and must be implemented by all stakeholders.

Reacting to industry debates surrounding the new legal provisions, the official, who spoke on condition of anonymity due to the lack of authorisation to speak on the matter, told The PUNCH that the focus should be on compliance and collaboration rather than resistance.

“It is totally irrelevant to say the law affects Discos. When the National Assembly makes laws, it is binding on all of us. What we should all do is to collectively implement and follow the law,” the official said.

The source noted that the amendments strengthen the powers of the Nigerian Electricity Regulatory Commission, a move the Discos are prepared to support.

“The regulatory commission has its powers, and when there is an amendment that further enhances that power, we are all for it. We believe in the wisdom of the National Assembly to amend the law, and we are ready to work with all stakeholders to ensure that the laws are implemented,” he added.

An electricity market expert, Chinedu Amah, says that the electricity sector challenges are not due to a lack of policies, but rather a failure to implement existing frameworks effectively.

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The expert noted in an interview on Tuesday that Nigeria is already saturated with policies and proposals, stressing that “policy overload” has become a recurring problem in the sector.

“We have policies on everything in Nigeria. So I don’t think it is a policy problem. Yes, there are policy gaps, but maybe we should just remove all the subsidies, flatten the tariff regime, and allow the market to drive investments,” the source said.

He added that while distribution companies have a responsibility to expand the grid and invest in infrastructure, the conversation must go beyond mere obligations.

“I don’t think it’s enough to say Discos need to make investments. You can’t force them to grow their business. But if there’s a critical infrastructure gap, it must be solved, whether by government, the private sector or through partnerships,” the official said.

However, another Power sector analyst, Habu Sadiek, called for key preconditions to ensure the initiative’s success. Reacting to provisions in the recently amended Electricity Act, Sadiek welcomed the plan but stressed the need for the government to first address pending financial issues within the sector.

“I think it’s a good thing,” he said. “But the government needs to do two things before initiating a recapitalisation programme: settle all outstanding subsidy payments and allow cost-reflective tariffs to prevail.” According to him, without resolving these issues, recapitalisation may not achieve its intended objectives.

He also criticised the 12-month window proposed for Discos to recapitalise, suggesting it was too short and unrealistic given current economic pressures. “Giving the current Disco owners 24 months, rather than 12, would have been better, similar to the Central Bank of Nigeria’s recapitalisation programme,” Sadiek added.

Additional efforts to get comments from the NERC on the issue proved abortive as the phone number of the Director, Public Affairs, Usman Arabi, was unreachable.

Meanwhile, the Minister of Power, Adebayo Adelabu, confirmed ongoing efforts to deploy special teams to underperforming power distribution companies as part of a broader restructuring programme.

Recall that in May 2025, the ministry announced a major overhaul of the power distribution sector, beginning with a pilot reform programme targeting two underperforming electricity distribution companies.

The pilot, scheduled to commence between May and August 2025, will involve one Disco each from the Northern and Southern parts of the country. The plan to restructure the companies came after a meeting with the Japanese International Cooperation Agency, which presented a roadmap titled “Revamping of the Distribution Sector in Nigeria”.

But giving an update on the process which is scheduled to end next month, the Special Adviser, Strategic Communications and Media Relations to the minister, Bolaji Tunji, on Monday, said the process is still ongoing. “It is an ongoing thing and we will brief you at the appropriate time,” he simply stated.

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Nigerian soldiers should not earn less than N250,000 monthly — Enenche

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49 minutes ago

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July 26, 2026

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A former Director of Defence Information, Major General John Enenche, retired, has called on the Federal Government to review Nigerian soldiers’ welfare.

Speaking during an interview on Arise Television on Saturday, Enenche said Nigerian army’s personnel should not earn less than N250,000 a month.

“For me, a Nigerian soldier from the base, shouldn’t be paid anything less than N250,000 per month,” he said.

According to him, the amount was a modest benchmark considering the rising cost of living.

Enenche argued that military personnel make sacrifices that distinguish them from other public servants.

The retired Army general stressed that soldiers remain on duty round the clock and are required to respond whenever called upon, even after retirement.

“No soldier is ever off-duty, even as I’m retired now,” adding that a senior officer calls him now, ‘General Enenche, sir, we want you to…’ I would do it, even in retirement.”

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PHOTOS: Senior ISWAP finance operative surrenders to troops with his two sons in Borno

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1 hour ago

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July 26, 2026

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A senior finance operative of the Islamic State West Africa Province (ISWAP), identified as Musa Usman, has surrendered to troops of Operation HADIN KAI in Borno State.

Acting Military Information Officer

Headquarters Joint Task Force(North East) Operates HADIN KAI, Captain Mohammed Goni, who disclosed this in a statement on Saturday, July 25, 2026 said the development marks another significant blow to the terrorist group’s financial and logistics network.

According to the statement, troops of 24 Task Force Brigade to the planned surrender of the high-profile ISWAP member along the Ladari–Jegarawaji–Tunokalia corridor on the Gamboru–Wulgo Main Supply Route.

Acting on the intelligence, troops of 3 Battalion (Mechanised), in conjunction with members of the Civilian Joint Task Force (CJTF) and Hybrid Forces, mobilised and intercepted the terrorist at about 6:45 a.m. on July 25.

The surrendered insurgent arrived with his two sons, Abubakar Musa, 10, and Awwali Musa, 15.

Preliminary interrogation revealed that Musa Usman served as the Chief Finance Officer of the ISWAP enclave at Jubillaram, where he was responsible for overseeing the group’s financial operations, logistics and resource management.

Items recovered from him include one AK-47 rifle, four AK-47 magazines, 101 rounds of 7.62mm special ammunition, one motorcycle, and N40,000 in cash.

“Troops of Operation HADIN KAI (OPHK) have recorded another major operational breakthrough with the surrender of a senior Islamic State West Africa Province (ISWAP) finance operative, underscoring the sustained impact of ongoing kinetic and intelligence-driven operations across the North East,” the statement read.

“The development comes amid a growing wave of terrorist surrenders, with approximately 46 terrorists and their family members voluntarily surrendering to troops in recent days, further highlighting the mounting pressure on terrorist strongholds.

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“The terrorist surrendered to troops of 3 Battalion under 24 Task Force Brigade at about 6:45 a.m. on 25 July 2026 along the Ladari–Jegarawa–Tunokalia axis on the Gamboru–Wulgo Main Supply Route.

“His decision to lay down his arms follows the recent series of coordinated and decisive land and air offensives conducted by Operation HADIN KAI against terrorist enclaves.

“Preliminary profiling indicates that the terrorist served as the Chief finance operative of the ISWAP enclave at Jubillaram, where he was responsible for managing the group’s financial activities and logistics. He surrendered alongside two male children.

“Items recovered from the terrorist include one AK-47 rifle, four magazines, 101 rounds of 7.62 mm special ammunition, one motorcycle, and the sum of N40,000.

“The individual is currently undergoing detailed profiling and interrogation to exploit actionable intelligence that will support ongoing operations and facilitate the targeting of remaining terrorist elements across the Theatre.

“The surrender of such a key finance operative represents another significant setback for ISWAP, reflecting the growing erosion of the group’s command structure, operational capability, and sustainment network under the relentless pressure of Operation HADIN KAI.

“Coupled with the increasing number of recent surrenders, this development confirms deepening disillusionment within terrorist ranks and points to an accelerating wave of defections from terrorist camps.

“Operation HADIN KAI remains steadfast in its mission to restore enduring peace, security, and stability across the North East.

“The Theatre Command therefore calls on all remaining terrorists to take advantage of the Federal Government’s non-kinetic initiatives by laying down their arms before it is too late.

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“The Command also urges members of the public to continue supporting security agencies by providing timely and credible information that will enhance ongoing counter-terrorism operations.”

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Alleged Coup: Document Reveals People Assigned To Attack Aso Rock, Service Chiefs’ Residences, Airports

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21 hours ago

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July 25, 2026

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Fresh details have emerged on how officers and civilians accused of involvement in an alleged plot to overthrow President Bola Tinubu’s administration were assigned specific roles targeting strategic locations across Abuja and other parts of the country.

According to Premium Times, investigative documents reportedly showed that participants were given responsibilities ranging from securing the Presidential Villa and Radio House to taking control of military facilities, airports and the residences of senior military officers.

The prosecution has also presented additional details of the alleged plan before the Federal High Court in Abuja, where some of the accused persons are standing trial.

According to the documents, one of the suspects, Mr Usman, was allegedly assigned to lead the operation at the Presidential Villa after conducting reconnaissance of the complex with the assistance of insiders, including a police officer identified as Ahmed Ibrahim.

During proceedings in May, the prosecution played a video exhibit in which one of the defendants, Zekeri Umoru, reportedly told investigators that the alleged planners considered cutting electricity supply to the Presidential Villa at the point of execution.

Umoru, an employee of Julius Berger Nigeria Plc attached to the Maintenance Department at the Villa, however, said he warned that an abrupt power outage would immediately attract scrutiny and could lead to workers on duty being detained and questioned.

He also claimed that the alleged planners intended to recruit between 18 and 19 persons from among soldiers, State Security Service operatives and Julius Berger employees working within the Villa.

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According to his account, after he raised concerns about the proposed blackout, the alleged leader of the plot considered using force to enter the Villa if insiders failed to cooperate.

Umoru and other defendants have challenged the admissibility of the video exhibits and their extra-judicial statements, citing the circumstances in which they were obtained.

Radio House, Military Residences Targeted

The documents also outlined assignments allegedly given to other participants.

Lieutenant-Colonel Shamsuddeen Bappah was reportedly assigned to take control of 102 Battalion in Zuma, Niger State.

Major Abdulkarim Ibrahim was initially said to have been tasked with securing the Armed Forces Headquarters complex before his responsibility was changed to Radio House in Abuja, where he was allegedly expected to read a nationwide broadcast announcing the takeover.

Ibrahim reportedly told investigators that Bappah was initially designated to make the announcement before the responsibility was reassigned to him.

A Nigerian Air Force squadron leader identified as S.B. Adamu was allegedly assigned to seize Air House.

Major Muhammad Jiddah was reportedly tasked with taking control of the residence of the then Chief of Army Staff, Olufemi Oluyede, while Major Daniel Yusuf was allegedly assigned to the residence of the then Chief of Defence Staff, Christopher Musa.

Captain Akinwale Yusuf, who was in Lagos, was allegedly expected to take control of a divisional headquarters in the state.

A retired colonel, M.M. Adamu, whom authorities said remained at large, was allegedly expected to coordinate activities from the entrance of Niger Barracks in Abuja.

Airports Marked As Key Targets

The documents further indicated that airports were considered crucial to the success of the alleged operation.

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Ibrahim reportedly told investigators that the conspirators believed the takeover could be undermined if aircraft continued operating normally.

According to his statement, the plan allegedly included positioning a gun truck on an Abuja airport runway to disrupt flight operations during the operation.

Lieutenant Sunday Felix also reportedly told investigators that he was assigned to survey the Lagos airport, gather operational information and help disrupt flight activities on the execution day.

“I knew the airport’s security arrangements due to my role in traffic control during visits of VIPs,” Felix reportedly told investigators.

Troops, Vehicles Allegedly Mapped Out

Investigative records also reportedly showed that the alleged conspirators planned to mobilise personnel, vehicles, weapons and ammunition from several military formations.

Colonel Mohammed Ma’aji allegedly told investigators that Usman would source resources from the 45 Special Forces Battalion in Bida.

Lieutenant-Colonel Ponfa Dangnap was reportedly expected to mobilise troops and equipment from 134 Battalion in the North-East, while Ibrahim was allegedly tasked with sourcing resources from 198 Battalion.

Ma’aji also reportedly claimed that Dangnap and Lieutenant-Colonel Abulrahman Hayatu had assured him they had access to sufficient troops, vehicles, ammunition and weapons, although no final execution date had been communicated to them.

Ibrahim reportedly told investigators that Dangnap was expected to provide four gun trucks, while Hayatu would allegedly contribute two gun trucks and accompanying soldiers.

Another suspect, Bayawo Abdullahi, was said to have been assigned to mobilise personnel from a naval unit under his command.

He reportedly told investigators that he had about 14 personnel and access to three operational Hilux vehicles.

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Officers Disagreed Over Bloodshed

The documents also contained differing accounts about how senior military officers were to be treated if the alleged takeover succeeded.

Ibrahim reportedly told investigators that he warned Ma’aji against bloodshed, arguing that successful military takeovers historically depended more on securing the cooperation of senior officers than killing them.

Hayatu was also said to have opposed killing anyone. According to Ibrahim, the response from the alleged plot leader was that service chiefs and other designated individuals would instead be arrested.

However, another accused officer, Major A.D. Dauda, reportedly gave a different account.

Dauda allegedly told investigators that Ma’aji had said the former Chief of Defence Staff would have to be arrested or killed to prevent him from frustrating the operation.

Dauda reportedly said the conversation made him distance himself from the alleged conspiracy.

According to the investigative documents, some of the alleged operational assignments included:

Presidential Villa: Usman

Radio House: Abdulkarim Ibrahim

Air House: S.B. Adamu

Chief of Army Staff residence: Muhammad Jiddah

Chief of Defence Staff residence: Daniel Yusuf

102 Battalion, Zuma: Shamsuddeen Bappah

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