Reps Approve N248.64bn Relief for Electricity DisCos

On Thursday, the House of Representatives' Public Accounts Committee approved a financial relief package totaling N248.64 billion and a 10-year debt restructuring plan for three electricity distribution companies: Kano, Jos, and Ikeja. This initiative aims to alleviate mounting liabilities and stabilize Nigeria's fragile power market.

The package includes N128.60 billion in accrued interest debt from 2015 to 2025 and N120.06 billion in historical principal obligations. The recommendation follows a report from a technical subcommittee that reviewed issues raised in a 2021 report by the Auditor General of the Federation, which highlighted the rising indebtedness of electricity distribution companies.

The combined debt of 11 distribution companies is projected to increase from N1 trillion as of December 31, 2024, to N1.3 trillion by September 25, 2025. The restructuring will allow these companies to repay historical debts over a decade, with specific provisions for interest waivers and management of liabilities during government intervention periods.