By Muhammed Abubakar, Reporting
THE Public Accounts Committee of the House of Representatives has approved a sweeping financial relief package and a 10-year debt restructuring framework for three embattled electricity distribution companies: Kano, Jos, and Ikeja DisCos.
The resolution, which covers accrued interest from 2015 to September 2025 totalling N128,575,190,740.54 and historical debts of N120,061,898,737, brings the combined outstanding liability for the three firms to N248,637,089,278.83.
The committee’s decision follows the adoption of a technical subcommittee report, itself part of the 2021 Auditor-General for the Federation’s findings on the mounting indebtedness of eleven DisCos, as escalated by the Nigeria Bulk Electricity Trading Company (NBET).
Presenting the report, technical subcommittee chairman Hon. Mark Chidi Obetta said the recommendations were part of broader legislative efforts to stabilise the electricity market and tackle legacy liabilities threatening the sector’s financial health.
According to the committee’s findings, the cumulative debt of all eleven DisCos ballooned from N1 trillion as of 31 December 2024 to N1.3 trillion by 25 September 2025, including both principal and interest.
The total outstanding liabilities, as provided by NBET, are as follows:
· Abuja DisCo: N275,165,755,647.45
· Benin DisCo: N82,114,660,624.99
· Eko DisCo: N16,491,581,520.79
· Enugu DisCo: N39,114,906,819.66
· Ibadan DisCo: N103,412,814,294.67
· Ikeja DisCo: N47,638,211,980.95
· Jos DisCo: N104,377,248,037.96
· Kaduna DisCo: N303,809,520,962.80
· Kano DisCo: N96,621,626,259.92
· Port Harcourt DisCo: N88,400,282,772.28
· Yola DisCo (Old): N61,195,796,813.92
· Yola DisCo (New): -N241,675,202.96
· Ajaokuta DisCo: N58,585,346,744.31
Total: N1,303,686,080,276.70
The committee noted that its investigation sought to verify the Auditor-General’s claims, establish the current debt position, and identify why DisCos persistently fail to meet payment obligations.
A flashpoint during hearings was a dispute over interest charges on outstanding invoices. Jos, Ikeja, and Kano DisCos argued that the Market Rules did not explicitly provide for such interest.
In response, the Nigerian Electricity Regulatory Commission (NERC) issued a directive in January 2026 stating that NBET should not charge interest on invoices between 2015 and 2020, but must charge interest on outstanding invoices from 2021 onward. The regulator also ordered that any interest linked to delays involving MERISTEM be disregarded.
NBET has since been instructed to recompute DisCo liabilities, including the N128 billion interest accrued to Jos, Kano, and Ikeja.
The report stated: “Based on appearance, submissions and request, the Committee established that Jos and Kano Electricity Distribution Companies remain significantly indebted to NBET. The interest component and accrued debt during government receivership form a substantial part of Kano DisCo’s liabilities.”
It added: “NBET and NERC should allow Kano, Jos, and Ikeja DisCos to restructure and repay historical debts totalling N120,061,898,737 over an extended period of not more than 10 years. Liabilities incurred during government intervention or receivership by Kano DisCo totalling N13,399,000,000 should be transferred to the Nigerian Electricity Liability Management Company (NELMCO).”
The committee further recommended that NERC direct NBET to waive all interest accrued from 2015 to September 2025 — totalling N128,575,190,740.54 for the three DisCos — citing the introduction of MERISTEM as a financial intermediary to manage liquidity challenges, and noting that DisCos cannot charge commensurate interest to their own customers, including government agencies.
Committee Chairman Hon. Bamidele Salam warned that without urgent financial restructuring and regulatory intervention, the sustainability of Nigeria’s electricity distribution sector could remain at risk.
“All DisCos must ensure strict compliance with their current market obligations going forward to prevent further accumulation of liabilities,” Salam said.
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