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By Stella Odueme
The House of Representatives Committee on Power has urged electricity Distribution Companies (DisCos) with outstanding market obligations to take urgent steps to clear their debts, warning that persistent defaults could undermine liquidity and sustainability in Nigeria’s electricity market.
The call was made during an oversight visit by the Committee to the headquarters of the Nigerian Independent System Operator (NISO) in Utako, Abuja, on Wednesday.
The delegation, led by the Chairman of the House Committee on Power, Rt. Hon. (Barr.) Nwokolo Victor Onyemaechi, also witnessed an ongoing public hearing by NISO on the outstanding market obligations of electricity distribution companies.
The visit provided lawmakers with an opportunity to gain firsthand knowledge of NISO’s operations, its mandate within the Nigerian Electricity Supply Industry (NESI), and the challenges affecting the efficient functioning of the electricity market.
During the visit, members of the Committee joined a public hearing involving the Ibadan Electricity Distribution Company (IBEDC), which was part of NISO’s ongoing engagements with selected DisCos over outstanding market obligations, Events of Default and other compliance issues under the Nigerian Electricity Market.
The hearing was chaired by NISO’s Executive Director, Market Operations, Engr. Dr. Edmond Eje.
Speaking at the hearing, Onyemaechi stressed the need for electricity distribution companies to urgently address their outstanding financial obligations, describing improved market liquidity as essential to the stability and long-term sustainability of Nigeria’s power sector.
He expressed concern over the growing accumulation of market debts by some DisCos, noting that continued failure to meet financial obligations could have far-reaching consequences for other participants in the electricity value chain.
The affected distribution companies include the Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), Ibadan Electricity Distribution Company (IBEDC), Jos Electricity Distribution Company (JEDC), Kaduna Electricity Distribution Company (KAEDCO), Port Harcourt Electricity Distribution Company (PHEDC) and Kano Electricity Distribution Company (KEDCO).
The Committee Chairman urged IBEDC and other indebted DisCos to make concerted efforts to settle their outstanding obligations and improve compliance with the rules and regulations governing the electricity market.
According to him, addressing market defaults is critical to strengthening liquidity, sustaining operations across the electricity value chain and ultimately improving service delivery to consumers.
Following the public hearing, the lawmakers proceeded with their scheduled oversight engagement with the management of NISO.
Welcoming the delegation, the Managing Director and Chief Executive Officer of NISO, Engr. Abdu Bello Mohammed, commended the House Committee on Power for its oversight role and continued support for reforms in Nigeria’s electricity sector.
Mohammed said the establishment of NISO was one of the major outcomes of reforms introduced under the Electricity Act 2023, which provided the legal framework for the unbundling of the Transmission Company of Nigeria (TCN) and the creation of an independent system operator.
He briefed the lawmakers on NISO’s progress since its establishment, outlining the organisation’s mandate and its comprehensive five-year development plan.
According to him, the development plan is designed to strengthen system operations, improve electricity market operations, enhance system planning and support the effective coordination of Nigeria’s power system.
Mohammed also emphasised the importance of sustained collaboration between the National Assembly, NISO and other institutions within the Nigerian Electricity Supply Industry in addressing the structural and financial challenges confronting the sector.
He particularly commended the Committee for drawing attention to the issue of market defaults, noting that improved liquidity would enable market participants to meet their obligations, sustain their operations and contribute to better electricity service delivery.
The NISO MD/CEO appealed for continued support and constructive oversight from the National Assembly, stressing that stronger collaboration among institutions and stakeholders in the power sector remains vital to improving the electricity market.
He added that such cooperation would also be critical to efforts aimed at stabilising the national grid and achieving a more reliable and sustainable electricity supply across the country.
The visit underscores growing legislative attention to the financial and operational challenges facing Nigeria’s electricity sector, particularly the issue of outstanding market obligations, which continues to affect liquidity across the Nigerian Electricity Supply Industry.