NISO rejects DisCos’ debt repayment plans, threatens sanctions
The Nigerian Independent System Operator has rejected payment proposals submitted by some electricity distribution companies over their outstanding obligations to the Nigerian Electricity Market and service providers, warning that sanctions could follow.
The development came after a four-day public hearing between NISO and the DisCos, which ended on September 4, 2026.
The hearing provided an opportunity for the system operator to review the outstanding market obligations of the distribution companies and examine proposals aimed at liquidating debts that have continued to affect the effective functioning and development of the Nigerian Electricity Market.
NISO, in a statement issued and signed by its Management, said some of the repayment proposals presented by the DisCos were unacceptable, particularly considering the magnitude and age of the outstanding obligations.
The hearing was conducted by a five-member committee chaired by NISO’s Executive Director, Market Operations, Engr. Dr Edmund Eje.
The committee expressed concern over the payment frameworks proposed by some of the DisCos, describing the plans as inadequate for addressing their outstanding market obligations.
According to NISO, the Federal Government had already netted off about 97 per cent of the DisCos’ outstanding obligations incurred between 2015 and 2020.
The committee, therefore, stressed the need for the affected distribution companies to take immediate steps to clear their remaining balances.
NISO said it would proceed with the next stage of the process, including the application of sanctions provided under the Market Rules.
The system operator, however, said it remained committed to constructive engagement, transparency and due process in resolving the outstanding obligations.
The development highlights growing concerns over market discipline and the failure of some participants in the Nigerian Electricity Market to meet their financial obligations, a situation that has continued to affect service providers and the sustainability of the power sector.
NISO said stronger compliance and accountability among market participants were critical to restoring confidence and ensuring the effective and sustainable operation of the Nigerian electricity market.
