Nigeria’s electricity distribution companies (Discos) are currently indebted to the tune of N2.6 trillion within the country’s power value chain, sparking outrage in the National Assembly and prompting the House of Representatives to launch a full-scale investigation into the sector.
The development was disclosed during a hearing by the House Committee on Power, which revealed that the massive debt was owed by the 11 Discos to power generation companies (Gencos), the Nigerian Bulk Electricity Trading Company (NBET), and other key operators.
Chairman of the House Committee on Power, Hon. Victor Nwokolo, expressed concern over the sustainability of the power sector given the alarming financial shortfall and poor remittance records by the Discos.
“The current N2.6 trillion debt burden undermines the viability of the sector. We are committed to getting to the root of this financial crisis and ensuring accountability,” Nwokolo stated.
Lawmakers accused some Discos of deliberately under-remitting funds despite receiving significant federal interventions and tariff adjustments in recent years. The House resolved to summon the chief executives of the Discos, NBET, and the Nigerian Electricity Regulatory Commission (NERC) for questioning.
Energy experts have warned that if left unaddressed, the debt could collapse the already fragile power sector, discourage future investments, and prolong Nigeria’s electricity woes.
The probe comes as Nigerians continue to face erratic power supply despite multiple reforms and billions of naira spent on infrastructure. The House of Representatives assured Nigerians that the outcome of the investigation will guide future legislative action and reforms in the sector.
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