… deploys Japanese International Cooperation Agency’s power sector proposal
PHEDC, JEDC may emerge as potential candidates –Advisors Reports reveals
Oredola Adeola
This was disclosed in a statement obtained by Advisors Reports through Bolaji Tunji, Special Adviser, Strategic Communications and Media Relations, on Monday, following a meeting between Power Minister Chief Adebayo Adelabu and the Japanese International Cooperation Agency (JICA).
The meeting, it was gathered, focused on JICA’s roadmap titled “Revamping of the Distribution Sector in Nigeria.”, even as the Federal Ministry of Power and NERC will finalize pilot details in the coming months, prioritizing DisCos with acute operational deficits.
Advisors Reports gathered that JICA’s proposal—developed after the Minister’s earlier visit to Japan’s energy market—emphasizes a “holistic approach” to transforming the distribution sector, anchored on proactive government-JICA collaboration and measurable milestones.
According to Bolaji Tunji, the move follows a comprehensive assessment of systemic challenges confronting the DisCos, including governance gaps, infrastructure deficits, and commercial inefficiencies.
- NERC’s factsheet on the Commercial Performance of DisCos for February 2025, showed that Port Harcourt Electricity Distribution Company recorded the lowest collection efficiency among southern DisCos in February 2025, recovering only ₦12.34 billion in revenue out of ₦19.73 billion billed—translating to a collection efficiency of 62.52 percent.
- In the northern region, Jos Electricity Distribution Company also performed poorly, with a collection efficiency of 55.79 percent, collecting ₦7.01 billion out of ₦12.56 billion billed.
- Based on NERC’s report highlighting acute operational and financial deficits, Advisors Reports projects that PH and JED—which recorded the lowest collection efficiencies in February 2025 at 62.52% and 55.79% respectively, with consistent year-long underperformance—are likely candidates for the JICA-backed pilot distribution sector overhaul.
Power Minister Chief Adebayo Adelabu, in his remarks, disclosed that the roadmap’s implementation will begin with a pilot scheme—set to run between May and August 2025—targeting one DisCo in the North and another in the South.
The Minister noted that the initiative aims to demonstrate a replicable model for operational turnaround, combining internal restructuring, external expertise, and federal oversight to deliver 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.
Emphasising the urgency of the intervention, Adelabu said, “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.”
The Minister also 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.
Key to the initiative is resolving the DisCos’ inability to invest in infrastructure upgrades, he said.
“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,” Adelabu explained.
He has therefore 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.
Takeshi Kikukawa, JICA’s Power Sector Policy Advisor to Nigeria, during the presentation said, “The goal is to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement.”
The initiative according to the Minister marks the most robust effort to date to resolve power distribution crisis, signalling a renewed push for accountability, investor confidence, and reliable electricity access.
