Nigeria’s House of Representatives Committee on Public Accounts has approved financial relief arrangements and a 10-year debt restructuring framework for Kano, Jos, and Ikeja Electricity Distribution Companies, DisCos.
The framework, according to the committee covers accrued interest on debt from 2015 to September 2025, amounting to about N128.6 billion as well as historical debts totalling N120.06 billion bringing the combined outstanding liability to about N248.6 billion.
This decision follows the adoption of a technical subcommittee report, which forms part of the 2021 Auditor-General for the Federation’s report on the growing indebtedness of 11 electricity distribution companies, as escalated by the Nigeria Bulk Electricity Trading Company Plc, NBET.
Chairman of the technical subcommittee, Mark Obetta, said the recommendation forms part of legislative efforts to stabilise the electricity market and address legacy liabilities affecting the sector’s financial sustainability.
The report, which reviewed the financial obligations of 11 DisCos, showed that their cumulative indebtedness rose from N1 trillion on December 31, 2024, to N1.3 trillions on September 25, 2025, comprising both principal and interest components
The outstanding, including interest as provided by NBET shows that Abuja Electricity Distribution Company Ltd owes over N275 billion, while Benin Electricity Distribution Company owes over N82 billion, Eko Electricity Distribution Company: N16.5 billion, Enugu Electricity Distribution Company N39.1 billion, Ibadan Electricity Distribution Company: N103.4 billion, Ikeja Electricity Distribution Company N47.6 billion, and Jos Electricity Distribution Company N104.4 billion.
Others include Kaduna Electricity Distribution Company N303.8 billion, Kano Electricity Distribution Company N96.6 billion, Port Harcourt Electricity Distribution Company N88.4 billion, Yola Electricity Distribution Company (Old) N61.2 billion, Yola Electricity Distribution Company (New) N241.6 billion and Ajaokuta Electricity Distribution Company N58.6 billion amounting to a total outstanding of N1.3 trillion.
Presenting its findings, the committee confirmed that as of the end of 2024, the reconciled liability of the 11 DisCos stood at over N1 trillion covering both principal and interest, but rose to N1.3 trillion by September 2025 due to continued accruals.
Responding to the presentation, the Nigerian Electricity Regulatory Commission, NERC had issued a directive dated January 2026 that NBET should not charge interest on outstanding invoices between 2015 and 2020, but mandates NBET to charge interest on outstanding invoices from 2021 onward.
NERC also directed that any interest linked to delays involving Meristem be disregarded and instructed NBET to recompute the DisCos’ liabilities, including the N128 billion interest accrued to Jos, Kano, and Ikeja.
Chairman of the Committee, Bamidele Salam, called for strict compliance with market obligations by all DisCos to prevent further accumulation of debt, warning that without any urgent financial restructuring and regulatory intervention, the sustainability of Nigeria’s electricity distribution sector could remain at risk.
(Editor: Terverr Tyav)
