Electricity Distribution: Loss Levels Exceed Regulatory Limits, Adelabu Laments

The Minister of Power,  Adebayo Adelabu, has raised serious concerns about ongoing challenges in the country’s electricity distribution sector, emphasising that power loss levels remain above regulatory limits.

This is as the minister said that Nigerians will experience uninterrupted electricity supply before President Bola Tinubu tenure ends.

Speaking at the inauguration of the Kwaru 1X15 MVA Injection Substation in the Ikotun-Egbe area of Lagos on August 1, 2025, Adelabu underscored that those persistent losses, coupled with inadequate market remittances and frequent customer complaints, continued to hamper the goal of a reliable power supply nationwide.

According to the minister, the distribution segment remains the weak link in Nigeria’s power sector despite significant generation and transmission capacity advancements under President Bola Ahmed Tinubu’s administration. “Loss levels exceed regulatory limits, market remittances fall short, and customer complaints about service disruptions persist,” Adelabu said, outlining the critical operational gaps that need urgent attention.

While Nigeria’s generation capacity has increased from 13GW to 14GW and transmission has been strengthened by the Siemens Project, which added over 700 MW of capacity, these improvements have yet to translate fully into stable electricity at the consumer level. The Minister highlighted that many Distribution Companies (DisCos) were still grappling with outdated infrastructure, financial shortfalls, and systemic inefficiencies that lead to excessive energy losses and unreliable service.

Adelabu praised Ikeja Electric for completing the new substation project within 12 months and for its commendable operational standards, calling it a model for other DisCos to emulate. However, he stressed that comprehensive sector-wide reforms, investment injection, and stronger partnerships between the government and DisCos were essential to reducing losses, improving revenue collection, and enhancing customer satisfaction.

The Minister reiterated the Federal Ministry of Power’s commitment to decisively collaborating with distribution companies to tackle these issues. “We remain fully committed to working with DisCos to address these challenges and ensure energy security nationwide,” Adelabu affirmed.

This comes amid ongoing efforts by the government to expand electricity access across Nigeria, with investments surpassing $2 billion and regulatory reforms through the Electricity Act 2023.

However, stakeholders believe that until distribution inefficiencies are resolved, many Nigerians will continue to face unreliable power supply and resort to costly alternatives such as private generators.