Post by Henry Emeka (@Emekus)

Can these private companies GenCos/DisCos be removed?
Short answer yes, but it’s messy and dangerous if done blindly.

Options the government has

Regulate harder:
Set strict performance targets—if a Disco fails repeatedly, revoke its license.

Buy back shares:
Government (or states) can buy controlling stakes in failing DisCos, then re-privatize properly.

Break up monopolies:
Allow competition inside Disco territories over time.

Why you can’t just cancel them overnight

They signed legal contracts when the sector was privatized.

Sudden cancellation = lawsuits, arbitration, investor flight, and even worse power problems.

Banks that lent them money could collapse if the assets are wiped out.

So the smarter move is:

Regulate, restructure, replace—step by step, not emotional demolition.

What should change in the structure?
Keep private participation, but fix the rules

Performance-based licenses:
Meet 100% supply, 0% loss reduction, or you’re out.

Open the market gradually:
Let big customers industries, estates buy directly from GenCos.

Strengthen TCN or unbundle it

TCN is still government-owned and is a weak link.

Either reform it deeply or concession parts of it to serious operators.

Put 240 million Nigerians, not companies, at the center

Transparent tariffs, clear service levels, and real complaint mechanisms.

Public dashboards: show each Disco’s performance monthly.

https://theheraldghana.com/nigerian-ex-power-minister-saleh-mamman-jailed-75-years-for-corruption-and-money-laundering/?utm_source=copilot.com

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