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FG to Discos: Pay Up Your Market Obligations After 97% Debt Relief
• NISO threatens sanctions over outstanding obligations
•Discos’ June revenue collection falls 7.82% to N191.86bn
Emmanuel Addeh in Abuja
The Nigeria Independent System Operator (NISO) has directed electricity Distribution Companies (Discos) to immediately commence the settlement of their outstanding obligations to the Nigerian Electricity Market and service providers.
The organisation, in a statement, stressed that the federal government had already netted off approximately 97 per cent of their debts accumulated between 2015 and 2020, and demanded a viable payment from the electricity distributors.
The system operator, which concluded a four-day public hearing with the Discos, said payment proposals submitted by some of the electricity distribution companies were unacceptable, particularly considering the magnitude and age of the outstanding obligations.
The engagement was convened to review the outstanding market obligations of the Discos and examine payment arrangements for balances that have continued to hamper the effective functioning and development of the Nigerian Electricity Market.
A five-member committee, chaired by NISO’s Executive Director, Market Operations, Dr. Edmund Eje, expressed concern over the frameworks proposed by some of the Discos for liquidating their outstanding market debts.
The committee noted that the federal government had substantially intervened by netting off about 97 per cent of the Discos’ outstanding obligations for the 2015 to 2020 period, maintaining that the affected companies could no longer justify delays in clearing the balances that remained.
Following extensive deliberations, NISO stressed the need for the Discos to take immediate and concrete steps towards liquidating their outstanding obligations, warning that it would proceed with further actions against defaulting market participants.
“NISO will therefore proceed with the next steps, including the application of applicable sanctions as provided under the market rules, while maintaining its commitment to constructive engagement, transparency and due process,” the system operator said.
The hearing comes amid continuing concerns over the huge indebtedness of operators in the Nigerian Electricity Supply Industry (NESI), with unpaid market obligations remaining a major constraint on the liquidity and sustainability of the sector.
NISO stated that the engagement was intended to reinforce market discipline, compliance and accountability among participants, while also ensuring continued collaboration in rebuilding confidence in the electricity market.
The operator added that ensuring Discos meet their obligations to service providers was critical to strengthening the financial sustainability of the market and improving the overall functioning of the Nigerian electricity supply chain.
Meanwhile, Discos collected N191.86 billion from electricity consumers in June 2026, representing a 7.82 per cent decline from the previous month, according to the latest data released by the Nigerian Electricity Regulatory Commission (NERC).
The NERC June 2026 factsheet showed that the distributors generated total electricity bills of N240.71 billion during the month, leaving N48.85 billion uncollected.
Consequently, the Discos’ overall collection efficiency fell to 79.71 per cent in June, compared with the previous month, although performance varied significantly across the 11 distribution companies.
Benin Disco recorded the highest collection efficiency at 94 per cent, followed by Ikeja at 89 per cent, Eko at 88.64 per cent and Port Harcourt at 87.74 per cent. Ibadan Disco recorded a collection efficiency of 83.44 per cent, while Abuja and Enugu recorded 80.27 per cent and 78.49 per cent respectively.
At the lower end of the scale, Jos Disco recorded 55.18 per cent collection efficiency, followed by Yola at 68.58 per cent, Kaduna at 46.13 per cent and Kano at 42.16 per cent.
The June figures also showed that the sector received 315.73 billion kWh of electricity during the month, of which 240.71 billion kWh was billed, translating to a billing efficiency of 76.24 per cent.
The commission reported that the allowed average tariff across the Discos stood at N130.15 per kWh, while the actual average collection was N96.63 per kWh. This resulted in an overall revenue recovery efficiency of 74.24 per cent for the month.
The revenue recovery performance showed wide disparities among the Discos, with Eko recording the highest recovery efficiency at 87.04 per cent, followed by Port Harcourt at 86.33 per cent and Benin at 82.23 per cent.
Ikeja posted 80.08 per cent, while Enugu recorded 78.09 per cent and Abuja 73.98 per cent.
Kaduna and Kano recorded the weakest recovery performances at 37.03 per cent and 44.04 per cent respectively, while Jos posted 51.33 per cent and Yola 65.80 per cent, the NERC data stressed.
