The House of Representatives Committee on Power has directed electricity distribution companies owing market debts to take urgent steps to settle their outstanding obligations.
The committee said clearing the debts would improve liquidity and help strengthen the country’s electricity market.
The Chairman of the committee, Nwokolo Onyemaechi, gave the directive during the committee’s oversight activities involving the Nigerian Independent System Operator, NISO.
The lawmakers also observed a public hearing on the outstanding market obligations of the Ibadan Electricity Distribution Company, IBEDC.
The hearing, chaired by NISO’s Executive Director of Market Operations, Edmond Eje, focused on outstanding debts, default-related issues and compliance with regulations governing the Nigerian Electricity Market.
Onyemaechi expressed concern about the growing financial obligations of some distribution companies, warning that prolonged defaults could undermine the stability of the electricity sector.
He said, “Improved liquidity is essential to strengthening the electricity market and ensuring the sustainability of the power sector.”
The committee chairman urged IBEDC and other indebted DisCos to make efforts to clear their debts and comply with the rules of the electricity market.
The affected companies 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.
On his part, the Managing Director and Chief Executive Officer of NISO, Abdu Mohammed, said stronger cooperation among key stakeholders was necessary to address the financial and structural challenges affecting the power sector.
Mohammed said NISO’s establishment followed reforms introduced by the Electricity Act 2023, which provided for the unbundling of the Transmission Company of Nigeria and the creation of an independent System Operator.
He also highlighted NISO’s five-year development plan, which he said was aimed at improving system operations, electricity market management and planning, as well as coordination of the national power system.
The NISO chief further said improved liquidity would enable market participants to meet their financial obligations, sustain operations and ultimately improve electricity supply to consumers.
He appealed to the National Assembly for continued support and constructive oversight, saying collaboration among stakeholders would be vital to stabilising the national grid and achieving a more reliable electricity supply.
