House of Representatives Urges DisCos to Settle Outstanding Debts for Power Sector Stability

The House of Representatives Committee on Power has called on electricity distribution companies (DisCos) to urgently settle their outstanding debts, emphasizing that improved liquidity is essential for the sustainability of Nigeria’s power sector.

In a statement released on Thursday, Committee Chairman Nwokolo Onyemaechi expressed concern over the growing market obligations of certain DisCos, particularly during a public hearing focused on the Ibadan Electricity Distribution Company (IBEDC).

Onyemaechi highlighted that the accumulation of debts poses a serious threat to the electricity market's stability and called on the affected companies to take immediate action to fulfill their financial obligations.

The committee identified several DisCos with outstanding debts, including Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), Jos Electricity Distribution Company (JEDC), and Port Harcourt Electricity Distribution Company (PHEDC), among others.

“Prolonged failure to meet these obligations could severely impact the liquidity and sustainability of the electricity market,” Onyemaechi warned, urging the indebted DisCos to comply with the regulations governing the sector.

Following the public hearing, lawmakers proceeded with oversight engagements with the Nigerian Electricity System Operator (NISO), where Managing Director Engr. Abdu Mohammed praised the committee for its supportive role in reforms within the electricity sector.

Mohammed briefed the committee on NISO’s mission since its establishment, including efforts to strengthen system operations and improve market efficiency.

He stressed the importance of collaboration between the National Assembly and NISO to address the structural and financial challenges facing Nigeria’s power sector.

The NISO chief reiterated that enhancing liquidity across the electricity market is crucial for market participants to meet their obligations and improve service delivery to consumers.

The committee’s actions come at a critical time, as the stability of the electricity sector remains a pressing concern for both the government and citizens alike. The House of Representatives aims to ensure that the necessary reforms lead to a more reliable power supply for all Nigerians.