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🇳🇬 Nigeria /Energy & Infrastructure

House panel orders electricity distributors to clear outstanding debts

From The Punch · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement Ongoing story
  • Nigeria’s House Committee on Power urged seven indebted electricity distribution companies to urgently settle outstanding market obligations.
  • The committee said prolonged non-payment could weaken liquidity and threaten the sustainability of the electricity market.
  • The call came during a public hearing involving Ibadan Electricity Distribution Company and the Nigerian Independent System Operator.

Nigeria’s House Committee on Power has told electricity distribution companies with unpaid market obligations to settle their debts urgently, warning that the sector cannot remain sustainable without improved liquidity.

The committee, led by Chairman Nwokolo Onyemaechi, made the call in a statement issued on Thursday. It also attended a public hearing on the outstanding obligations of the Ibadan Electricity Distribution Company, held as part of the Nigerian Independent System Operator’s engagements with selected distributors.

The hearing covered unpaid market obligations, events of default and other compliance issues under Nigeria’s electricity market rules. The companies identified as affected were 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 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).

· Nwokolo OnyemaechiThe committee chairman identified the distribution companies with outstanding market obligations.

Onyemaechi said the accumulation of market debts raised concern and urged Ibadan Electricity Distribution Company and the other affected firms to make every effort to meet their obligations. He said compliance with electricity-market rules was necessary to strengthen the sector.

Following the hearing, lawmakers continued their scheduled oversight engagement with NISO management. NISO Managing Director and Chief Executive Officer Abdu Mohammed welcomed the committee and praised its oversight role and support for reforms in Nigeria’s electricity sector.

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.

· Nwokolo OnyemaechiThe statement explained why the committee is pressing the companies to pay their debts.
About this summary

Originally published by The Punch in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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