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The House of Representatives has launched a major investigation into the financial dealings of Nigeria’s electricity distribution companies (Discos) after revelations that they collectively owe the power sector a staggering ₦2.6 trillion.
The probe, spearheaded by the House Public Accounts Committee, was triggered by findings from the 2021 Auditor-General’s report, which flagged extensive irregularities in the country’s electricity market.
At an investigative hearing chaired by Committee Chairman Bamidele Salam, lawmakers resolved to summon all 11 Discos over their failure to remit payments owed to the Nigerian Bulk Electricity Trading Company (NBET).
The Managing Director of NBET, Johnson Akinnawo, presented documents to the committee showing that, as of September 30, 2020, the 11 Discos had failed to settle cumulative debts of ₦2.6tn.
According to the breakdown, Abuja Electricity Distribution Company tops the list with ₦330.4bn in unpaid obligations, followed by Ibadan Disco (₦325.7bn) and Ikeja Disco (₦310bn).
Others include Eko Disco (₦231bn), Benin Disco (₦233.2bn), Enugu Disco (₦258.3bn), Jos Disco (₦161.7bn), Kaduna Disco (₦277.7bn), Kano Disco (₦211.7bn), Port Harcourt Disco (₦239.7bn) and Yola Disco (₦107.4bn).
Lawmakers expressed concern that the huge debt burden posed risks not only to NBET but also to Nigeria’s struggling power sector, which continues to grapple with liquidity shortages and infrastructure deficits.
Beyond the Disco debts, the Auditor-General’s report highlighted a series of troubling financial anomalies. These include:
₦30bn in uncollected debt by NBET from market operators.
₦549m shortfall in NBET’s one percent institutional charges.
₦100bn paid by NBET to power generation companies for electricity not delivered to the national grid.
₦26bn owed to Nigeria by foreign firms for electricity exports to Togo, Benin, and Niger.
₦166bn under-remittance by Discos, below the minimum payment threshold set by the Nigerian Electricity Regulatory Commission (NERC).
₦2.7bn in unpaid invoices by the 11 Discos.
These irregularities, lawmakers argue, have further deepened the financial crisis in Nigeria’s electricity sector, raising questions about regulatory enforcement and accountability.
During deliberations, a motion was moved by Yahya Kusada and seconded by Billy Osawaru, compelling the Discos to appear before the committee.
“With the magnitude of liabilities before us, it is imperative that these companies clarify their positions and present concrete repayment plans,” Kusada said.
The committee also resolved to summon other key players in the electricity market to answer queries raised in the Auditor-General’s report.
Nigeria’s power sector, privatized in 2013, has long faced criticism for poor service delivery, inadequate investment, and rising consumer tariffs despite persistent blackouts.
The liquidity shortfall, worsened by mounting Disco debts, has left generation companies (GenCos) and gas suppliers underfunded, threatening the stability of the entire electricity value chain.
Experts warn that unless Discos are held accountable, the federal government’s intervention funds—running into hundreds of billions—will continue to yield little improvement in power supply.
Energy analyst Chijioke Eke noted:
“The Discos’ ₦2.6tn debt is a ticking time bomb. Without strict enforcement of remittances and transparency in the market, Nigeria’s power sector will remain in perpetual crisis despite reforms.”
The House probe is expected to set the stage for tougher oversight of Discos, with lawmakers hinting at possible sanctions, including licence reviews for non-performing operators.
For millions of Nigerians enduring erratic electricity supply and high estimated billing, the outcome of this probe could determine whether long-awaited reforms finally translate into improved power delivery.