From David Onuoja, Abuja
The House of Representatives Committee on Power, led by its Chairman, Hon. Nwokolo Victor Onyemaechi, have paid an oversight visit to the headquarters of the Nigerian Independent System Operator (NISO), in Abuja.
During the visit, members of the Committee also witnessed an ongoing public hearing on the outstanding market obligations of electricity Distribution Companies, (DisCos).
The Committee’s oversight visit also provided an opportunity for the lawmakers to gain firsthand insight into NISO’s operations, its role in the Nigerian Electricity Supply Industry and the challenges affecting the effective functioning of the electricity market.
During the public hearing on the market obligations of the Ibadan Electricity Distribution Company (IBEDC) chaired by NISO’s Executive Director, Market Operations, Engr. Dr. Edmond Eje, formed part of the Company’s ongoing engagements with selected DisCos over outstanding market obligations, Events of Default and other compliance matters under the Nigerian Electricity Market, where House of Representative Committee Members witnessed the event themselves.
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Speaking during the hearing, Chairman of the House Committee on Power, Rt. Hon. (Barr.) Nwokolo Victor Onyemaechi, charged electricity distribution companies with outstanding market obligations to take urgent steps to clear their debts, stressing that improved liquidity is critical to strengthening the electricity market and ensuring the sustainability of the power sector.
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).
Expressing further, Onyemaechi said the accumulation of market debts by the affected DisCos, is a prolonged failure to meet financial obligations which could adversely affect the liquidity and sustainability of the electricity market.
Onyemaechi therefore, called on IBEDC and other indebted DisCos to make every effort within their capacity to settle their outstanding obligations and strengthen compliance with the rules governing the electricity market.
Following the public hearing, the Committee proceeded with its scheduled oversight engagement with NISO management.
Welcoming the lawmakers to the NISO office, the Managing Director/Chief Executive Officer, Engr. Abdu Bello Mohammed, commended the Committee for its oversight role and continued support for reforms in Nigeria’s electricity sector.
He noted that the establishment of NISO was a significant outcome of the reforms introduced under the Electricity Act, 2023, which provided the framework for the unbundling of the Transmission Company of Nigeria and the establishment of an independent System Operator.
NISO MD briefed the Committee on NISO’s journey since its establishment, its mandate and its comprehensive five-year development plan, designed to guide the organisation’s efforts towards strengthening system operations, improving electricity market operations, enhancing system planning and supporting the effective coordination of Nigeria’s power system.
Mohammed appealed for collaboration between the National Assembly, NISO and other institutions within the Nigerian Electricity Supply Industry in addressing the structural and financial challenges confronting the sector.
While commending the Committee for lending its voice to the issue of market defaults by DisCos, NISO MD/CEO stressed that improved liquidity across the electricity market would strengthen the capacity of market participants to meet their obligations, sustain operations and ultimately contribute to improved service delivery to electricity consumers.
He called for continued support and constructive oversight from the National Assembly, noting that sustained collaboration among the various institutions in the sector remains critical to strengthening the electricity market, stabilising the national grid and advancing efforts towards a more reliable and sustainable electricity supply in Nigeria.
