From David Onuoja, Abuja
The Nigeria Independent System Operator (NISO), has concluded plans to sanction the affected indebted Distribution Company of Nigeria (Discos), in Nigeria over their overdue debt incurred to electricity service provider.
This came after a significant long week public hearing with the Nigerian DisCos on their outstanding obligations to the Nigerian Electricity Market and service providers.
The engagement, which began on Tuesday, 1st September, and ended on 4th September, 2026; provided an opportunity for NISO to review the outstanding market obligations of the DisCos and examine payment arrangements aimed at addressing balances that have continued to impede the effective functioning and development of the Nigerian Electricity Market.
Following this extensive deliberations, the payment proposals presented by some of the DisCos were considered unacceptable to NISO at the hearing, particularly in view of the magnitude and age of the outstanding obligations.
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The hearing, conducted by a five-member committee chaired by the Executive Director, Market Operations, Engineer Edmund Eje, expressed concern over the proposed payment frameworks presented by some DisCos for the liquidation of their outstanding market obligations.
The Committee noted that the Federal Government had magnanimously netted off approximately 97 per cent of the DisCos’ outstanding obligations for the period 2015–2020, and consequently stressed the need for the affected DisCos to take immediate steps towards liquidating their remaining balances.
NISO will therefore proceed with the next steps, which include the application of applicable sanctions as provided under the Market Rules, while maintaining its commitment to constructive engagement, transparency and due process.
The engagement underscores the critical importance of market discipline, compliance and accountability among market participants, as well as continued collaboration in strengthening market confidence and ensuring the sustainability and effective functioning of the Nigerian electricity market.
The affected DisCos are Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), Ibadan Electricity Distribution Company (IBEDC), Jos Electricity Distribution Company (JEDC), Kaduna Electricity Distribution Company (KAEDCO), Port Harcourt Electricity Distribution Company (PHEDC) and Kano Electricity Distribution Company (KEDCO).
