The House of Representatives Committee on Power has urged electricity Distribution Companies (DisCos) with outstanding market obligations to urgently clear their debts, warning that prolonged defaults could undermine liquidity and threaten the sustainability of Nigeria’s electricity market.
Chairman of the Committee, Rt. Hon. Victor Onyemaechi Nwokolo, made the call on Wednesday, September 2, 2026, during an oversight visit to the headquarters of the Nigerian Independent System Operator (NISO) in Utako, Abuja.
The lawmakers arrived as NISO was conducting a public hearing on the outstanding market obligations of the Ibadan Electricity Distribution Company (IBEDC), providing the Committee with firsthand insight into the financial and operational challenges confronting the electricity market.
Nwokolo stressed that improved liquidity was essential to keeping the electricity market functional and ensuring that operators across the power value chain could meet their obligations.
He urged IBEDC and other indebted DisCos to take immediate steps to settle their outstanding liabilities and comply with the rules governing the Nigerian Electricity Market.
The DisCos identified as having outstanding market obligations are Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), Ibadan Electricity Distribution Company (IBEDC), Jos Electricity Distribution Company (JEDC), Kaduna Electricity Distribution Company (KAEDCO), Port Harcourt Electricity Distribution Company (PHEDC) and Kano Electricity Distribution Company (KEDCO).
Nwokolo expressed concern over the accumulation of market debts, warning that continued failure by DisCos to meet their financial obligations could weaken the liquidity of the electricity market and ultimately affect the stability of the power sector.
The public hearing, chaired by NISO Executive Director, Market Operations, Engr. Dr. Edmond Eje, formed part of NISO’s ongoing engagements with selected DisCos over outstanding market obligations, Events of Default and other compliance issues.
NISO Seeks Stronger Collaboration
Following the hearing, the Committee held a formal oversight engagement with NISO management.
Welcoming the lawmakers, NISO Managing Director and Chief Executive Officer, Engr. Abdu Bello Mohammed, described the Committee’s visit as an important opportunity to strengthen collaboration between the legislature and institutions driving reforms in Nigeria’s electricity sector.
Mohammed explained that NISO emerged from the reforms introduced under the Electricity Act 2023, which provided the framework for the unbundling of the Transmission Company of Nigeria and the establishment of an independent System Operator.
He briefed the Committee on NISO’s mandate, its development since establishment and its five-year development plan, designed to strengthen system operations, improve electricity market operations, enhance system planning and improve coordination of the national power system.
The NISO chief also emphasised the importance of improved liquidity across the electricity market, saying stronger financial discipline would enable market participants to meet their obligations, sustain operations and contribute to better electricity service delivery.
Lawmakers Assure NISO of Support
Mohammed appealed for continued legislative support and constructive oversight, stressing that sustained collaboration among the National Assembly, NISO and other stakeholders remained critical to addressing the structural and financial challenges confronting the power sector.
The visit, according to the Committee, was aimed at gaining a clearer understanding of NISO’s operations and the challenges affecting the effective functioning of the electricity market.
The lawmakers also used the engagement to reaffirm the importance of financial discipline among DisCos, as efforts continue to improve liquidity, stabilise the electricity market and ultimately deliver more reliable power to Nigerians.