The House of Representatives Public Accounts Committee has approved a N248.6 billion financial relief and 10-year debt restructuring framework for the Kano, Jos and Ikeja Electricity Distribution Companies as part of efforts to stabilise Nigeria’s power sector. The resolution followed the adoption of a technical subcommittee report reviewing the 2021 Auditor-General for the Federation’s findings on the growing indebtedness of electricity distribution companies to the Nigeria Bulk Electricity Trading Company.
Chairman of the subcommittee, Mark Chidi Obetta, said the intervention targets legacy debts and accrued interest weighing down the affected DisCos. The approved relief covers N128.6 billion in accrued interest between 2015 and September 2025, alongside N120.1 billion in historical debts, bringing the total to N248.6 billion. Findings by the committee showed that the cumulative indebtedness of 11 DisCos rose from about N1 trillion as of December 2024 to N1.3 trillion by September 2025, driven largely by interest accruals and persistent non-payment of market obligations.
The audit revealed that Abuja DisCo topped the debt chart with N275.1 billion, followed by Kaduna DisCo with N303.8 billion, while Kano, Jos and Ikeja DisCos accounted for significant portions of the liabilities under review. A key issue during the probe was the legitimacy of interest charges on outstanding invoices, with the affected DisCos disputing the charges, arguing that existing market rules did not explicitly provide for them. In response, the Nigerian Electricity Regulatory Commission directed NBET in January 2026 to waive interest on invoices issued between 2015 and 2020, while allowing interest charges from 2021 onward. It also ordered the exclusion of interest linked to delays involving financial intermediary Meristem.
Following the directive, NBET was asked to recompute liabilities, including the N128 billion interest component attributed to the three DisCos. The committee further recommended that the DisCos restructure and repay their N120.1 billion legacy debts over a period not exceeding 10 years. It also proposed that liabilities incurred during government intervention in Kano DisCo, estimated at N13.39 billion, be transferred to the Nigerian Electricity Liability Management Company, in line with existing precedents.
Committee Chairman Bamidele Salam stressed the need for strict compliance with market rules going forward to prevent further debt accumulation. He warned that failure to address the sector’s financial challenges could undermine the sustainability of electricity distribution in the country. The committee directed all DisCos to meet their current obligations, noting that improved financial discipline, alongside regulatory reforms, is critical to ensuring a stable and efficient power sector.
