House Approves N248.6bn Relief for Electricity Discos

The House of Representatives approved a financial relief package of N248.6 billion and a 10-year debt restructuring framework for Kano, Jos, and Ikeja electricity distribution companies (Discos). This decision follows the adoption of a report by the House Public Accounts Committee, which is part of the 2021 Auditor General's report.

The report revealed that the cumulative indebtedness of eleven Discos had risen to over N1 trillion as of December 31, 2024, with projections indicating it could reach N1.3 trillion by September 25, 2025. The committee, chaired by Hon.

Bamidel Salam, emphasized the need for strict compliance with market obligations to prevent further debt accumulation. The financial framework includes historical debts totaling N120,061,898,737 and accrued interest from 2015 to September 2025.

The Nigerian Electricity Regulatory Commission (NERC) has directed that no interest be charged on outstanding invoices from 2015 to 2020, while interest will apply to invoices from 2021 onward. The report also recommended that the Nigerian Bulk Electricity Trading Company (NBET) allow the restructuring of significant legacy obligations for the affected Discos.