DisCos Demand First-Line Budget Charge for MDAs' Debts

The Association of Nigerian Electricity Distributors (ANED) has called on the Federal Government to classify unpaid electricity bills owed by Ministries, Departments, and Agencies (MDAs) as a first-line charge on approved government budgets. ANED Managing Director and Chief Executive Officer, Mr. Sunday Oduntan, expressed these concerns in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja.

He emphasized that prompt payment of electricity obligations by government agencies is crucial to reducing financial pressure on DisCos and enhancing the distribution sector's sustainability. Oduntan advocated for improved customer service, transparency in billing, and stronger accountability mechanisms for DisCos.

He noted that resolving government arrears is essential for the financial stability of the electricity distribution industry. This appeal comes amid ongoing financial challenges in the electricity market, including significant debts owed by DisCos.

The Nigerian Electricity Regulatory Commission (NERC) recently intervened in the crisis by taking control of the Kaduna Electricity Distribution Company (KAEDC) due to a debt crisis involving approximately N456.5 billion.