Federal Govt Waives 97% Of DisCos’ Debt – NISO

The Nigeria Independent System Operator (NISO) has said that the federal government has netted off approximately 97 per cent of the outstanding market obligations owed by the Nigerian Electricity Distribution Companies (DisCos) for the period 2015 to 2020, even as it insisted the affected DisCos must move swiftly to settle their remaining balances.

This disclosure came at the conclusion of a public hearing convened by NISO with the DisCos over their outstanding obligations to the Nigerian Electricity Market and service providers.

NISO said that the engagement, which ran from Tuesday, 1st to 4th September 2026, gave it the opportunity to review the DisCos’ outstanding market obligations and examine payment arrangements aimed at addressing balances that have continued to impede the effective functioning and development of the Nigerian Electricity Market.

The hearing was conducted by a five-member committee chaired by the executive director, Market Operations, Engr. Dr Edmund Eje.

Despite the scale of the government’s write-off, the Committee expressed concern about the payment frameworks proposed by some DisCos to liquidate their remaining obligations. Following extensive deliberations, the payment proposals submitted by some of the DisCos were deemed unacceptable to NISO, particularly given the magnitude and age of the outstanding obligations.

The Committee stressed that, having benefited from the federal government’s near-total waiver of their 2015–2020 debts, the affected DisCos must now take immediate steps towards liquidating what remains outstanding.

NISO said it would proceed with the next steps, including the application of applicable sanctions as provided under the Market Rules, while maintaining its commitment to constructive engagement, transparency and due process.

The engagement, NISO noted, underscores the critical importance of market discipline, compliance, and accountability among market participants, as well as continued collaboration to strengthen market confidence and ensure the sustainability and effective functioning of the Nigerian electricity market.