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Nigeria mulls power utility stake transfer to states amid chronic shortages

Nigeria’s government is exploring a strategic shift, considering relinquishing its 40% stake in 11 power distribution companies (DISCOs) to state governments in a bid to enhance oversight and combat the nation’s longstanding power deficits.

Adebayo Adelabu, Nigeria’s Minister of Power, revealed plans to potentially exchange federal shares in the DISCOs for stakes in the Niger Delta Power Holding Co, a separate jointly owned power entity involving the federal government, states, and local administrations.

“Our aim is a close partnership with state power ministries to address challenges within the distribution segment, particularly its retail-focused nature,” emphasised Adelabu in a statement.

Nigeria, home to over 200 million people, struggles to harness its installed power generation capacity of 12,500 megawatts, resulting in widespread dependence on generators among households and businesses due to insufficient electricity supply.


In a landmark move, President Bola Tinubu recently ratified new legislation granting state governments the authority to both generate and distribute power, marking a departure from the prior exclusive rights held by the federal government.

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