Reps panel orders DisCos to clear outstanding debts

The House of Representatives Committee on Power has called on electricity distribution companies with outstanding market debts to prioritize settling their obligations, highlighting the importance of improved liquidity for the sustainability of Nigeria's power sector. The committee, chaired by Nwokolo Onyemaechi, conducted a public hearing on the outstanding market obligations of the Ibadan Electricity Distribution Company (IBEDC) to address compliance issues under the Nigerian Electricity Market.

Onyemaechi expressed concern over the accumulation of market debts by several distribution companies, including Benin, Enugu, Jos, Kaduna, Port Harcourt, and Kano Electricity Distribution Companies. He emphasized that prolonged failure to meet financial obligations could negatively impact the liquidity and sustainability of the electricity market.

IBEDC and the other indebted DisCos were urged to fulfill their financial responsibilities and adhere to the rules governing the electricity market. Following the hearing, the lawmakers continued their oversight engagement with the Nigerian Inter-Agency Electricity Sector Oversight Committee (NISO). The NISO's Managing Director/Chief Executive Officer, Engr Abdu Mohammed, appreciated the committee's role in promoting reforms in Nigeria's electricity sector.

Mohammed outlined NISO's mandate, development plan, and the significance of collaboration between the National Assembly, NISO, and other institutions in addressing the challenges faced by the sector.