The House of Representatives Committee on Power has called on electricity distribution companies (DisCos) with outstanding obligations in the Nigerian Electricity Market to urgently clear their debts, warning that persistent defaults could undermine the liquidity and long-term sustainability of the power sector.

The committee, chaired by Nwokolo Onyemaechi, made the appeal on Thursday while also observing a public hearing involving the Ibadan Electricity Distribution Company over outstanding market obligations, Events of Default and other compliance issues. The hearing, chaired by the Executive Director, Market Operations of NISO, Edmond Eje, formed part of ongoing engagements with selected DisCos over their financial and regulatory responsibilities within the electricity market.

According to the committee, the affected distribution companies include Benin Electricity Distribution Company, Enugu Electricity Distribution Company, Ibadan Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electricity Distribution Company, Port Harcourt Electricity Distribution Company and Kano Electricity Distribution Company. The statement said, “The affected DisCos are 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).”

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Expressing concern over the growing debts, the committee stressed that prolonged failure to meet market obligations could have serious consequences for the entire electricity value chain. “He expressed concern over the accumulation of market debts by the affected DisCos, noting that prolonged failure to meet financial obligations could adversely affect the liquidity and sustainability of the electricity market. He, therefore, called on IBEDC and other indebted DisCos to make every effort within their capacity to settle their outstanding obligations and strengthen compliance with the rules governing the electricity market,” the statement read.

Following the hearing, members of the House Committee proceeded on an oversight visit to the management of the Nigerian Independent System Operator. The Managing Director and Chief Executive Officer of NISO, Engr Abdu Mohammed, welcomed the lawmakers and described the organisation as a key outcome of reforms introduced under the Electricity Act, 2023.

Mohammed said NISO had developed a five-year plan aimed at strengthening system operations, improving electricity market activities, enhancing system planning and supporting the efficient coordination of Nigeria’s power network. He also called for sustained cooperation among the National Assembly, NISO and other stakeholders in addressing the structural and financial challenges confronting the Nigerian Electricity Supply Industry.

While commending the lawmakers for drawing attention to the issue of market defaults, Mohammed said stronger liquidity would improve the ability of operators across the sector to meet their obligations and sustain their operations.

He appealed for continued legislative support and constructive oversight, maintaining that collaboration among key institutions remained essential to stabilising the national grid and advancing efforts towards a more reliable and sustainable electricity supply for Nigerians.

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