Photo caption: House of Reps (Green Chamber)
The House of Representatives Committee on Power has urged electricity distribution companies with outstanding market obligations to urgently settle their debts, saying improved liquidity is critical to the sustainability of Nigeria’s power sector.
The committee made the call in a statement issued on Thursday.
The committee, led by its Chairman, Nwokolo Onyemaechi, also witnessed an ongoing public hearing on the outstanding market obligations of the Ibadan Electricity Distribution Company.
The hearing, chaired by NISO’s Executive Director, Market Operations, Edmond Eje, formed part of the operator’s engagements with selected DisCos over outstanding market obligations, Events of Default and other compliance matters under the Nigerian Electricity Market.
Speaking through the statement, Onyemaechi expressed concern over the accumulation of market debts by some DisCos and urged the affected companies to take urgent steps to settle their obligations.
The committee chairman said improved liquidity was essential to strengthening the electricity market and ensuring the sustainability of the power sector.
He called on IBEDC and other indebted DisCos to make every effort within their capacity to settle their outstanding obligations and strengthen compliance with the rules governing the electricity market.
According to the statement, “The affected DisCos are 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).
“He expressed concern over the accumulation of market debts by the affected DisCos, noting that prolonged failure to meet financial obligations could adversely affect the liquidity and sustainability of the electricity market.
“He, therefore, called on IBEDC and other indebted DisCos to make every effort within their capacity to settle their outstanding obligations and strengthen compliance with the rules governing the electricity market,” the statement read.
Onyemaechi warned that prolonged failure by the affected companies to meet their financial obligations could adversely affect the liquidity and sustainability of the electricity market.
Following the public hearing, the lawmakers proceeded with their scheduled oversight engagement with NISO management.
Welcoming the committee to the NISO office, the Managing Director/Chief Executive Officer, Engr Abdu Mohammed, commended the lawmakers for their oversight role and continued support for reforms in Nigeria’s electricity sector.
He said the establishment of NISO was a significant outcome of the reforms introduced under the Electricity Act, 2023, which provided the framework for the unbundling of the Transmission Company of Nigeria and the establishment of an independent System Operator.
Mohammed briefed the committee on NISO’s journey since its establishment, its mandate and its five-year development plan, designed to strengthen system operations, improve electricity market operations, enhance system planning and support the effective coordination of Nigeria’s power system.
He also stressed the importance of 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.
While commending the committee for lending its voice to the issue of market defaults by DisCos, Mohammed said improved liquidity across the electricity market would strengthen the capacity of market participants to meet their obligations, sustain operations and ultimately contribute to improved service delivery to electricity consumers.
The NISO boss appealed for continued support and constructive oversight from the National Assembly, saying sustained collaboration among the various institutions in the sector remained critical to strengthening the electricity market, stabilising the national grid and advancing efforts towards a more reliable and sustainable electricity supply in Nigeria.
