The House of Representatives Public Accounts Committee has approved a major financial relief package and long term restructuring plan worth N248.64bn for Kano Jos and Ikeja Electricity Distribution Companies in a move aimed at ilising Nigeria power sector. The decision is part of efforts to address mounting debts and restore confidence in the fragile electricity market.
The approved figure includes N128.60bn in accrued interest covering 2015 to 2025 and N120.06bn in historical principal debt. The resolution followed a review of the Auditor General report on the rising liabilities of distribution companies to the Nigerian Bulk Electricity Trading Company.
According to the subcommittee chairman Mark Obetta the intervention forms part of broader legislative actions to resolve legacy debt challenges. Findings showed that total indebtedness across eleven DisCos rose from about N1tn in late 2024 to N1.3tn by September 2025 driven by unpaid invoices and accumulating interest.
A major issue during deliberations was the legitimacy of interest charges. In response the Nigerian Electricity Regulatory Commission directed that interest on unpaid invoices from 2015 to 2020 be cancelled while allowing charges from 2021 onward. NBET was also instructed to recalculate disputed debts.
The committee recommended a repayment period of up to ten years for the affected DisCos. It also proposed transferring certain liabilities linked to government intervention to the Nigerian Electricity Liability Management Company.
Lawmakers stressed the need for stricter compliance with market obligations to prevent further debt buildup. The move is seen as a reset for the power distribution segment which has struggled with financial inility since privatisation in 2013.
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