DisCos Raise Alarm as FG MDAs Owe Over N100bn in Unpaid Electricity Bills
- Electricity distribution companies (DisCos) have said that federal government Ministries, Departments and Agencies owe them more than N100bn in unpaid power bills
- Eko DisCo claimed that federal MDAs owe it N66bn, while residential customers owe it N96bn, among others, which has pushed its total debt profile to about N183bn
- DisCos warn that rising debts threaten power sector liquidity, as they pleaded with federal and state governments to settle outstanding bills to keep the sector stable
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
Electricity distribution companies have raised concerns over the growing unpaid electricity bills owed by Federal Government ministries, departments, and agencies, saying the debts are putting significant strain on their operations.
According to the distributors, MDA liabilities have risen to hundreds of billions of naira, with no clear repayment plan in sight.
Source: Getty Images
The Association of Nigerian Electricity Distributors (ANED) confirmed the development, saying MDAs across the country owed power firms more than N100bn as of November 2025.
ANED’s Chief Executive Officer, Sunday Oduntan, disclosed this in an interview, noting that the rising debt threatens the liquidity of the power sector.
At a power roundtable organised by PwC in Lagos, the Managing Director of Eko Electricity Distribution Company (EKEDC), Mrs Rekhiat Momoh, said the company is among the hardest hit.
She explained that Eko DisCo’s exposure is higher partly because Lagos once served as the nation’s capital, leaving more federal assets within its network.
MDAs in Lagos owe N66bn
According to Momoh, federal MDAs within the Eko franchise owe N66bn, while the company is also grappling with debts from residential and commercial customers.
She added that residential customers owe N96bn, while commercial and industrial users owe N20bn.
“Altogether, our debt profile as of the end of November stands at N183bn. Recovering even half of that would significantly support our finances,” she noted.
Oduntan also appealed to government institutions to settle their outstanding bills, stressing that the accumulation of debts was becoming unsustainable.
“The MDA debts are getting too much; it is over N100bn. If Eko alone is owed N66bn, you can imagine the situation across the 11 DisCos,” he said.
The latest figures indicate a sharp increase compared to 2024, when Eko DisCo reported that federal government MDAs, including military formations, owed N42bn for electricity consumed.
Recall that the Abuja Electricity Distribution Company (AEDC) threatened to disconnect the Presidential Villa and 86 federal agencies over unpaid debts amounting to N47bn, prompting the Presidency and some MDAs to clear part of their liabilities.
Also, earlier this year, personnel of the Nigerian Air Force stormed the Ikeja Electric headquarters in Lagos after the company disconnected the Air Force facility over a N4bn debt.
Journalists on assignment at the premises were assaulted during the incident, Punch reported.
Source: Getty Images
20 of 36 states owe electricity bills
ANED has also previously stated that at least 20 out of 36 state governments owe electricity bills, either from Government Houses or state MDAs.
Oduntan noted that attempts by DisCos to enforce payment sometimes result in their offices being sealed by state authorities over alleged tax issues.
Power operators warn that the continuous accumulation of debt by government institutions (both federal and state levels) poses a major threat to the financial stability of the electricity market.
They say the situation affects the ability of DisCos to invest in infrastructure and deliver reliable power to customers.
DisCos are again urging government agencies to honour their obligations, warning that the sector’s liquidity challenges may worsen if the debts remain unsettled.
NERC says 3 countries owe Nigeria $5.7 million
Legit.ng reported earlier that the Nigerian National Electricity Regulatory Commission (NERC) said about three countries (including Togo, Benin Republic and the Niger Republic) owe Nigeria $5.7 million in electricity bills.
The commission said last year that the amount covers the bill for electricity supply for the third quarter of 2024.
The electricity regulator disclosed that market operators issued over $12 million in invoices to the affected customers in the review period.
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Source: Legit.ng
