Reps Approve N248.64bn Debt Relief, 10-Year Restructuring for Kano, Jos, Ikeja DisCos

The House of Representatives Public Accounts Committee has approved a financial relief package and a 10-year debt restructuring plan worth N248.64 billion for three electricity distribution companies  Kano, Jos and Ikeja DisCos.

The approval, given on Thursday, is aimed at easing mounting liabilities and helping to stabilise Nigeria’s fragile power market.

The total figure consists of N128.60 billion in accrued interest on debts from 2015 to 2025 and N120.06 billion in historical principal obligations.

The committee’s decision followed the adoption of a report by a technical subcommittee that reviewed issues raised in the Auditor-General for the Federation’s 2021 report on the rising indebtedness of DisCos to the Nigerian Bulk Electricity Trading Company Plc.

Subcommittee chairman Mark Obetta said the recommendations are part of broader legislative efforts to address legacy debts and restore financial stability in the electricity market.

According to the committee’s findings, the combined indebtedness of 11 DisCos rose sharply from about N1 trillion as of December 31, 2024, to N1.3 trillion by September 25, 2025, driven largely by accumulated interest and persistent payment defaults.

A breakdown shows that Abuja DisCo owes N275.17 billion, Kaduna DisCo N303.81 billion, Kano DisCo N96.62 billion, Jos DisCo N104.38 billion, Ikeja DisCo N47.64 billion, and other DisCos varying amounts.

During the hearings, Kano, Jos and Ikeja DisCos argued that the prevailing market rules did not expressly provide for interest charges on outstanding invoices. In response, the Nigerian Electricity Regulatory Commission issued a directive in January 2026 stopping NBET from charging interest on unpaid invoices between 2015 and 2020, while permitting interest accrual from 2021 onward.

Following this directive, NBET was asked to recompute the liabilities of the affected DisCos.

The committee recommended that the three DisCos be allowed to restructure and repay their historical debts totalling N120.06 billion over a period not exceeding 10 years. It also recommended that liabilities incurred during government intervention periods, particularly N13.40 billion linked to Kano DisCo, be transferred to the Nigerian Electricity Liability Management Company.

On interest waivers, the committee called on NERC to direct NBET to waive all interest accrued from 2015 to September 2025, totalling N128.58 billion for the three DisCos.

Committee Chairman Bamidele Salam warned that without decisive restructuring and regulatory discipline, the power distribution segment could remain financially unstable.

Nigeria’s DisCos have struggled with chronic indebtedness to NBET since the power sector was privatised in 2013. Despite several government interventions, debts have continued to accumulate, with interest charges significantly inflating liabilities.