Reps Urge DisCos to Settle Outstanding Market Debts

The House of Representatives Committee on Power, chaired by Nwokolo Onyemaechi, has called on electricity distribution companies (DisCos) in Nigeria to urgently clear their outstanding market obligations. This appeal was made during a public hearing on Thursday involving the Ibadan Electricity Distribution Company, addressing issues of Events of Default and compliance.

The committee expressed concern that persistent defaults by DisCos, including Benin Electricity Distribution Company, Enugu Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electricity Distribution Company, Port Harcourt Electricity Distribution Company, and Kano Electricity Distribution Company, could undermine the liquidity and long-term sustainability of the power sector. The committee emphasized that failure to meet financial obligations could adversely affect the entire electricity value chain.

Following the hearing, the committee conducted an oversight visit to the Nigerian Independent System Operator, where its Managing Director, Engr Abdu Mohammed, discussed a five-year plan aimed at improving system operations and market activities in Nigeria's power network.