Settle Outstanding Debts To Boost Electricity Market Liquidity, Reps Task DisCos

The House of Representatives Committee on Power has called on indebted Electricity Distribution Companies (DisCos) to urgently clear their outstanding market obligations, warning that persistent defaults threaten liquidity and the long-term sustainability of Nigeria’s power sector.

The directive was issued on Wednesday, during an oversight visit by the committee to the headquarters of the Nigerian Independent System Operator (NISO) in Utako, Abuja.

During the visit, lawmakers also witnessed an ongoing public hearing on the outstanding market obligations of electricity Distribution Companies (DisCos).

The Committee members arrived to find NISO conducting a public hearing on the market obligations of the Ibadan Electricity Distribution Company (IBEDC).

The hearing, chaired by NISO’s executive director, Market Operations, Dr Edmond Eje, formed part of the company’s ongoing engagements with selected DisCos over outstanding market obligations, Events of Default and other compliance matters under the Nigerian Electricity Market.

NISO, on Thursday stated that while addressing the hearing, Onyemaechi expressed concern over the accumulation of market debts by affected DisCos, warning that prolonged failure to meet financial obligations could adversely affect the liquidity and sustainability of the electricity market.

The DisCos with outstanding obligations include Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), IBEDC, Jos Electricity Distribution Company (JEDC), Kaduna Electricity Distribution Company (KAEDCO), Port Harcourt Electricity Distribution Company (PHEDC) and Kano Electricity Distribution Company (KEDCO).

He called on IBEDC and other indebted DisCos to make every effort within their capacity to settle their obligations and strengthen compliance with market rules.

Following the public hearing, the Committee proceeded with its scheduled oversight engagement with NISO management.

Welcoming the lawmakers, NISO’s managing director/chief executive officer, Abdu Bello Mohammed, commended the Committee for its oversight role and continued support for reforms in Nigeria’s electricity sector.

He noted that NISO’s establishment was a key outcome of reforms under the Electricity Act, 2023, which provided the framework for unbundling the Transmission Company of Nigeria and creating an independent System Operator.

Engr. Mohammed briefed the Committee on NISO’s journey since its establishment, its mandate, and its five-year development plan aimed at strengthening system operations, improving market operations, enhancing system planning and supporting effective coordination of Nigeria’s power system.

He also highlighted the importance of collaboration between the National Assembly, NISO and other industry institutions in tackling the sector’s structural and financial challenges, stressing that improved liquidity would strengthen market participants’ capacity to meet obligations and improve service delivery to consumers.

He appealed for continued support and constructive oversight from the National Assembly, noting that sustained collaboration remains critical to stabilising the national grid and advancing a more reliable electricity supply in Nigeria.