The House of Representatives Public Accounts Committee (PAC) has endorsed a package of financial relief measures, including a 10-year debt restructuring plan, for the Kano, Jos and Ikeja Electricity Distribution Companies (DisCos)
The decision followed the adoption of a report by a technical subcommittee reviewing findings in the 2021 Auditor-General for the Federation’s report, which flagged rising indebtedness across electricity distribution companies, as escalated by the Nigeria Bulk Electricity Trading Company (NBET).
|
|
Under the approved framework, accrued interest on debts owed by the three DisCos from 2015 to September 2025, put at N128.58 billion, will be waived, while their historical liabilities, estimated at N120.06 billion, will be restructured over a decade. This brings the total affected exposure to about N248.64 billion.
Chair of the subcommittee, Mark Obetta (AOC, Enugu), said the recommendation is part of broader legislative efforts to stabilise Nigeria’s electricity market and resolve long-standing financial obligations weighing down the sector.
|
|
|
|---|
Breakdown
The committee’s findings show that the combined indebtedness of 11 electricity distribution companies increased from about N1 trillion as of 31 December 2024 to N1.3 trillion by 25 September 2025, driven by both principal and accumulated interest.
Data presented by NBET show that Abuja Electricity Distribution Company (AEDC) recorded N275.17 billion in outstanding liabilities, while Benin Electricity Distribution Company (BEDC) owed N82.11 billion. Eko Electricity Distribution Company’s (EKDC) debt stood at N16.49 billion, and Enugu Electricity Distribution Company (EEDC) had N39.11 billion.
Ibadan Electricity Distribution Company (IEDC) recorded N103.41 billion, while Ikeja Electricity Distribution Company owed N47.64 billion. Jos Electricity Distribution Company’s liability stood at N104.38 billion, with Kaduna Electricity Distribution Company posting the highest exposure at N303.81 billion.
Kano Electricity Distribution Company recorded N96.62 billion in debt, while Port Harcourt Electricity Distribution Company owed N88.40 billion. Yola Electricity Distribution Company (old) had a balance of N61.20 billion, while the new Yola entity recorded a negative balance of N241.68 million. Ajaokuta Electricity Distribution Company’s liability stood at N58.59 billion.
Altogether, the total outstanding liability across the DisCos was put at N1.304 trillion.
The probe, according to the panel, sought to verify the Auditor-General’s claims, establish the current debt position of the companies and determine why many operators have consistently failed to meet payment obligations within the electricity market.
Dispute over interest charges
A key issue during the hearings was disagreement over the interest charged on unpaid invoices. The Kano, Jos and Ikeja DisCos argued that existing market rules did not explicitly back such charges.
Following the dispute, the Nigerian Electricity Regulatory Commission (NERC) issued a January 2026 directive requiring NBET to suspend interest charges on invoices issued between 2015 and 2020, but allowing interest to apply from 2021 onward. It also directed that any interest linked to delays involving MERISTEM be disregarded.
NBET was subsequently asked to recalculate the liabilities of the affected companies, including the disputed N128 billion interest component.
Government intervention
The report noted that Jos and Kano DisCos remain heavily indebted, with a significant portion of Kano Disco’s liabilities tied to interest accumulation and debts incurred during periods of government receivership.
READ ALSO: Power DisCos miss revenue targets amid efficiency concerns
To address this, the committee recommended that liabilities arising from government intervention in Kano Disco, estimated at N13.4 billion, be transferred to the Nigerian Electricity Liability Management Company in line with past sector practices.
It further urged regulators to formally waive all interest accrued between 2015 and September 2025 for the three DisCos, citing structural constraints within the electricity market. These include the escrow-based settlement system, which prioritises market obligations over operational costs and limits DisCos’ ability to recover costs or charge interest on unpaid bills, including those owed by government entities.
Call for compliance
Chairman of PAC, Bamidele Salam (Accord, Osun), stressed the need for strict adherence to market rules by all distribution companies to prevent further debt accumulation.
He warned that “without decisive restructuring and regulatory action, the financial viability of Nigeria’s electricity distribution sector could remain under threat.”
![The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso [PHOTO CREDIT: Central Bank of Nigeria]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2026/07/HNaxaJbWIAEcQ9u.jpg?fit=2048%2C1366&ssl=1)
