NISO Rejects DisCos' Debt Proposals, Warns of Sanctions

The Nigerian Independent System Operator (NISO) has rejected payment proposals submitted by several electricity distribution companies (DisCos) to address their outstanding debts to the Nigerian Electricity Market and service providers. This decision was announced in a statement from NISO's management in Abuja on Sunday, following a four-day public hearing held from September 1 to September 4.

The hearing aimed to review the DisCos' financial obligations and evaluate their proposed arrangements for settling these debts. The process was overseen by a five-member committee chaired by NISO’s Executive Director of Market Operations, Edmund Eje.

NISO found many of the proposals unacceptable, particularly given the significant size and age of the debts. Despite this, NISO expressed its commitment to constructive engagement and transparency in resolving these obligations.

The hearing underscored concerns regarding market discipline and the failure of some market participants to meet their financial responsibilities, which has been a major issue for both the regulator and the operator in the power sector.