The Federal Government of Nigeria may revoke and re-sell the licenses of 11 electricity distribution companies (DisCos) if the proposed Electricity Act (Amendment) Bill, 2025, becomes law. The bill is currently undergoing legislative consideration in the National Assembly and aims to restructure the power sector through stricter regulatory enforcement.
According to Punch Newspapers, the amendment bill, sponsored by Senator Enyinnaya Abaribe (Abia South), proposes a comprehensive overhaul of the 2023 Electricity Act.
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It includes provisions that mandate core investors in DisCos to inject fresh capital into the electricity sector within 12 months of the bill’s passage or risk losing their stakes.
The bill targets long-standing issues plaguing the electricity sector, including massive debt accumulation, service delivery failure, and poor infrastructure investment. It introduces new mechanisms for investor accountability, including the threat of share dilution, receivership, or outright re-privatisation of the DisCos.
“The reforms will enforce higher standards of performance and investment,” said one legislative source. “It’s not business as usual for non-performing DisCos.”
The bill has passed its second reading in the Senate and is expected to receive significant attention as lawmakers push for energy sector transformation.
If passed, this legislation could mark a major shift in Nigeria’s power landscape, opening the door for new investors to take over and potentially improve electricity delivery across the nation.
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