NISO Moves Against DisCos Over Mounting Electricity Market Debts
Nigeria’s electricity market cannot function sustainably when key players continue to carry years-old debts, and the Nigeria Independent System Operator (NISO) is now drawing a harder line on the issue.
NISO has concluded a four-day public hearing with electricity Distribution Companies (DisCos) over their outstanding obligations to the Nigerian Electricity Market and service providers.
The hearing, held from 1 to 4 September 2026, reviewed the size and age of the debts and proposals by DisCos to settle them. However, NISO rejected some of the proposed payment plans, citing the scale of the outstanding liabilities.
The five-member committee, chaired by NISO’s Executive Director, Market Operations, Engr. Dr Edmund Eje, stressed that the Federal Government had already effectively cleared about 97 per cent of DisCos’ obligations accumulated between 2015 and 2020 through netting arrangements.
With only the remaining balances to be addressed, the committee urged affected DisCos to move quickly towards full repayment.
NISO said it would now proceed with the next steps, including applicable sanctions under the Market Rules, while keeping open the door for engagement.
The development is significant for an electricity market where liquidity, payment discipline and confidence remain critical to sustaining power supply and investment.
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