The Nigerian Independent System Operator (NISO) has rejected the debt payment proposals submitted by several electricity distribution companies (DisCos), declaring their plans inadequate to settle long-standing obligations to the Nigerian Electricity Market and service providers.
In a statement on Sunday, NISO management revealed that the proposals were deemed unacceptable given the sheer scale and duration of the unpaid debts.
The decision followed a four-day public hearing in Abuja from Sept. 1 to Sept. 4, convened to evaluate the DisCos’ market liabilities and examine their liquidation plans.
The hearing was led by a five-member committee chaired by NISO’s Executive Director of Market Operations, Mr. Edmund Eje.
The panel expressed deep concern over the payment frameworks offered by the affected DisCos, noting that their plans failed to address the severity of the financial deficit.
NISO highlighted that the Federal Government had previously intervened to relieve the utilities of a significant financial strain by netting off roughly 97 percent of their accumulated liabilities from 2015 to 2020. The committee emphasized that affected DisCos must now take immediate, decisive steps to clear the remaining balances.
Following the unsatisfactory outcomes of the hearing, NISO announced it will move forward with the next stage of regulatory enforcement, including invoking sanctions outlined in the Market Rules.
However, the system operator reiterated its commitment to transparency, due process, and constructive engagement to reach a resolution.
The statement underscored growing anxiety over poor market discipline and financial non-compliance within the Nigerian Electricity Market, a persistent problem that continues to cripple service providers and undermine power sector sustainability.
NISO stressed that enforcing strict compliance and accountability across all market participants remains essential to restoring sector confidence and securing a sustainable power supply for the nation.
