By Gloria Ikibah
The House of Representatives Public Accounts Committee has approved sweeping financial reliefs and a long-term debt restructuring plan for three electricity distribution companies, in a move aimed at stabilising Nigeria’s troubled power sector.
The decision grants Kano, Jos and Ikeja DisCos a 10-year window to restructure liabilities running into hundreds of billions of naira, following mounting concerns over the sector’s financial sustainability. 
At the heart of the intervention is a combined debt burden of over N248 billion, made up of more than N120 billion in historical obligations and about N128 billion in accumulated interest spanning a decade.
The resolution followed the adoption of a technical subcommittee report linked to findings from the Auditor-General, which highlighted rising debts across eleven distribution companies and growing pressure on the electricity market.
Chairman of the Technical subcommittee, Rep, Mark Chidi Obetta, said the move is part of broader legislative efforts to restore stability and address legacy financial challenges within the industry. He noted that the liabilities of the affected companies form a significant portion of the sector’s overall debt profile.
According to the report, total indebtedness across the eleven DisCos climbed from roughly N1 trillion at the end of 2024 to about N1.3 trillion by September 2025, driven largely by accumulating interest and unpaid obligations.
The committee said its investigation sought to verify these figures, establish the true extent of the debts and understand why the companies have struggled to meet payment commitments.
It confirmed that the liabilities had surged due to continued accruals, while also identifying disputes over interest charges as a major sticking point, particularly among the affected DisCos.
In response, the Nigerian Electricity Regulatory Commission NERC,, directed that interest should not be applied to outstanding invoices between 2015 and 2020, while allowing such charges from 2021 onwards. It also instructed that interest linked to delays involving a financial intermediary be excluded.
As part of the restructuring framework, the report stated, “Based on appearance, submissions and request, the Committee established that Jos and Kano Electricity Distribution Companies remain significantly indebted to NBET. The interest component and accrued debt during government receivership period form a substantial part of Kano Disco’s liabilities.”
It further recommended that, “NBET and NERC should allow Kano Electricity Distribution company (KEDCO), Jos Electricity Distribution Company and Ikeja Electricity Distribution company, with significant legacy obligations to restructure and repay their historical debts totaling N120,061,898,737… over an extended period of not more than 10 years.”
The report also proposed that certain liabilities incurred during periods of government intervention be transferred to a designated liability management body, while calling for a waiver of all accrued interest within the specified period.
Explaining the rationale, it added that the current market structure limits the ability of DisCos to recover costs, noting that revenue collection arrangements prioritise settlement of market obligations before operational expenses are released.
The committee stressed the need for discipline going forward, stating that, “All DisCos should ensure strict compliance with their current market obligations going forward to prevent further accumulation of liabilities.”
Chairman of the committee, Bamidele Salam, cautioned that without decisive restructuring and stronger regulatory oversight, the long-term viability of Nigeria’s electricity distribution system could remain under serious threat.
