{"id":118667,"date":"2025-05-12T22:19:21","date_gmt":"2025-05-12T21:19:21","guid":{"rendered":"https:\/\/pointblanknews.com\/pbn\/?p=118667"},"modified":"2025-05-12T22:19:21","modified_gmt":"2025-05-12T21:19:21","slug":"nerc-must-enforce-franchising-despite-disco-resistance-fg","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/nerc-must-enforce-franchising-despite-disco-resistance-fg\/","title":{"rendered":"NERC Must Enforce Franchising Despite DisCo Resistance \u2013 FG"},"content":{"rendered":"<div>Daniel Adaji<\/div>\n<div><\/div>\n<div>The Federal Government has directed the Nigerian Electricity Regulatory Commission (NERC) to enforce franchising in Nigeria\u2019s power distribution sector, despite longstanding resistance from Electricity Distribution Companies (DisCos).<\/div>\n<div><\/div>\n<div>Power Minister Chief Adebayo Adelabu issued the directive on Monday following a meeting in Abuja with representatives of the Japanese International Cooperation Agency (JICA), where a reform roadmap titled &#8220;Revamping of the Distribution Sector in Nigeria&#8221; was presented.<\/div>\n<div><\/div>\n<div>DisCos have historically resisted franchising initiatives, citing concerns over revenue loss and operational control. Many DisCos are technically insolvent, struggling with debt and unable to invest in infrastructure upgrades.<\/div>\n<div><\/div>\n<div>\u201cWe can no longer fold our hands and watch the inadequacies of DisCos whose performances fall short of expectations. This pilot is not optional\u2014we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary,\u201d Adelabu said.<\/div>\n<div><\/div>\n<div>The government has launched a pilot scheme to overhaul two struggling DisCos\u2014one in the North and one in the South\u2014between May and August 2025. The initiative aims to model how operational turnaround can be achieved through a mix of internal restructuring, external expertise, and firm regulatory oversight.<\/div>\n<div><\/div>\n<div>Adelabu emphasised that the franchising model is central to the plan. \u201cNERC must secure their buy-in. Past efforts failed due to resistance, but this time, we will be intentional and decisive,\u201d he said.<\/div>\n<div><\/div>\n<div>According to the Minister, poor infrastructure investment remains a major hurdle.<\/div>\n<div><\/div>\n<div>\u201cTheir lack of investment is not solely due to unwillingness but also a lack of incentives,\u201d he explained.<\/div>\n<div><\/div>\n<div>\u201cReturns 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,\u201d he added.<\/div>\n<div><\/div>\n<div>He also addressed challenges unique to certain regions.<\/div>\n<div><\/div>\n<div>\u201cWe\u2019ll tackle both universal challenges like vandalism and governance, and region-specific issues including cultural barriers hindering operations,\u201d he noted.<\/div>\n<div><\/div>\n<div>The JICA proposal, based on insights from the Minister\u2019s earlier visit to Japan\u2019s energy market, emphasises measurable improvements and a \u201cholistic approach\u201d that includes expert input and public-private collaboration.<\/div>\n<div><\/div>\n<div><\/div>\n<div>JICA advisor Takeshi Kikukawa said, \u201cThe goal is to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement.\u201d<\/div>\n<div><\/div>\n<div>Adelabu underlined the importance of consumer education in winning public trust. \u201cMany Nigerians still view the sector as a single entity. Educating consumers is critical to building trust and support for these reforms,\u201d he said.<\/div>\n<div><\/div>\n<div>Final details of the pilot will be determined in the coming months, with priority given to DisCos facing acute operational failures.<\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Daniel Adaji The Federal Government has directed the Nigerian Electricity Regulatory Commission (NERC) to enforce franchising in Nigeria\u2019s power distribution sector, despite longstanding resistance from Electricity Distribution Companies (DisCos). Power&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":118445,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-118667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>NERC Must Enforce Franchising Despite DisCo Resistance \u2013 FG - Pointblank News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pointblanknews.com\/pbn\/news\/nerc-must-enforce-franchising-despite-disco-resistance-fg\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NERC Must Enforce Franchising Despite DisCo Resistance \u2013 FG - Pointblank News\" \/>\n<meta property=\"og:description\" content=\"Daniel Adaji The Federal Government has directed the Nigerian Electricity Regulatory Commission (NERC) to enforce franchising in Nigeria\u2019s power distribution sector, despite longstanding resistance from Electricity Distribution Companies (DisCos). 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