Precious Anga
Lagos — The Federal Government has cleared about 97 percent of the more than ₦2.6 trillion owed by electricity distribution companies or DisCos to the federation account and participants in the Nigerian Electricity Market, with the remaining liabilities now facing enforcement measures.
The development was disclosed during an engagement between the DisCos and a five-man debt-recovery committee established by the Federal Government to address outstanding market obligations.
According to the Nigerian Independent System Operator, the engagement provided an opportunity to review the DisCos’ outstanding liabilities and examine payment proposals for obligations that have continued to affect the functioning and development of the electricity market.
However, the committee rejected some of the payment proposals submitted by the DisCos, describing them as unacceptable given the size and age of the outstanding debts.
The committee, chaired by the Executive Director, Market Operations, Edmund Eje, expressed concern over the proposed repayment frameworks and stressed that the affected DisCos must take immediate steps to clear their remaining obligations.
The committee noted that the Federal Government had already offset approximately 97 percent of the DisCos’ outstanding obligations accumulated between 2015 and 2020, leaving the companies with the responsibility of settling the balances that remain.
NISO said it would proceed with the next stage of the debt-recovery process, including the imposition of sanctions where necessary under the Market Rules, while maintaining engagement with the affected companies.
“The engagement underscores the critical importance of market discipline, compliance and accountability among market participants, as well as continued collaboration in strengthening market confidence and ensuring the sustainability and effective functioning of the Nigerian electricity market,” NISO said.
The DisCos identified as having outstanding liabilities include Benin Electricity Distribution Company, Enugu Electricity Distribution Company, Ibadan Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electricity Distribution Company, Port Harcourt Electricity Distribution Company and Kano Electricity Distribution Company.
