Nigeria TV Info – FG Moves to Enforce Minimum Capital Requirement for Discos Ahead of 2028 License Renewal

Lagos, Nigeria – The Federal Government has announced plans to introduce a minimum capital adequacy requirement for Electricity Distribution Companies (Discos) as part of the terms for the renewal of their operational licenses, which are due to expire in 2028.

Minister of Power, Adebayo Adelabu, made the disclosure on Tuesday in Lagos during a Leadership Seminar at the ongoing Nigeria Energy Exhibition and Conference, themed “Powering Nigeria through Investment, Innovation, and Partnership.”

Adelabu expressed concern that the Nigerian power sector continues to struggle with chronic financial weaknesses, citing under-capitalisation and a mounting debt burden across several Discos. These challenges, he noted, have significantly limited their ability to improve service delivery and achieve sustainable operational performance.