By Onu Okorie
House of Representatives Committee on Power has called on electricity distribution companies (DisCos) with outstanding market obligations to urgently settle their debts, warning that continued defaults could threaten the liquidity and sustainability of Nigeria’s electricity market.
The call was made during an oversight visit by the Committee to the headquarters of the Nigerian Independent System Operator (NISO) in Utako, Abuja, led by the Committee Chairman, Rt. Hon. (Barr.) Nwokolo Victor Onyemaechi. Members of the Committee also observed an ongoing public hearing on outstanding market obligations owed by distribution companies.
The visit provided lawmakers with an opportunity 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 visit, the lawmakers attended a public hearing on the market obligations of Ibadan Electricity Distribution Company (IBEDC), chaired by NISO’s Executive Director, Market Operations, Engr. Dr. Edmond Eje. The hearing was part of NISO’s engagements with selected DisCos over outstanding debts, events of default, and compliance issues within the Nigerian Electricity Market.
Addressing participants at the hearing, Onyemaechi urged indebted DisCos to take immediate steps to clear their outstanding obligations, stressing that improved liquidity remains essential for strengthening the electricity market and ensuring the long-term viability of the power sector.
The affected distribution companies include 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).
The Committee Chairman expressed concern over the growing debt profile of the affected DisCos, noting that persistent non-compliance with financial obligations could undermine the stability of the electricity market. He urged the companies to strengthen compliance with market rules and settle their debts.
Following the public hearing, the Committee proceeded with its scheduled engagement with NISO management. Welcoming the lawmakers, NISO Managing Director and Chief Executive Officer, Engr. Abdu Bello Mohammed, commended the Committee for its oversight efforts and support for ongoing reforms in the power sector.
Mohammed said the creation of NISO was one of the key outcomes of 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.
He briefed the lawmakers on NISO’s mandate, achievements since its establishment, and a five-year development plan aimed at strengthening system operations, improving electricity market performance, enhancing planning, and supporting better coordination of Nigeria’s power system.
The NISO chief also emphasised the importance of collaboration among the National Assembly, NISO, and other stakeholders in addressing the structural and financial challenges facing the power sector. He noted that improved market liquidity would enable participants to meet their obligations, sustain operations, and enhance service delivery to electricity consumers.
Mohammed further appealed for continued legislative support and constructive oversight, describing sustained collaboration as critical to strengthening the electricity market, stabilising the national grid, and advancing a more reliable electricity supply across the country.