Power Supply Threatened as NISO Moves to Sanction Electricity DisCos Over N1.5tn Debt
- NISO may sanction electricity distribution companies (DisCos) over more than N1.5 trillion in outstanding obligations to Nigeria’s electricity market
- The system operator rejected some repayment proposals after a four-day hearing, saying the debts were too large and had remained unpaid for too long
- The debt crisis has persisted for years, with several DisCos owing billions of naira amid accumulated interest and payment defaults
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Electricity distribution companies (DisCos) may face sanctions over more than N1.5 trillion in unpaid obligations to Nigeria’s electricity market after the Nigeria Independent System Operator (NISO) rejected repayment plans submitted by some of the companies.
NISO disclosed this in a statement shared on its social media platforms on Tuesday, September 7, 2026, following a four-day hearing involving the DisCos over their outstanding debts to the Nigerian Electricity Market and service providers.
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NISO rejects some repayment plans
The hearing, which took place from September 1 to September 4, was organised to examine the DisCos’ accumulated liabilities and assess proposals for clearing the debts.
However, NISO said some of the repayment plans submitted by the distribution companies were unacceptable, citing the size and age of the debts.
The system operator said it held extensive discussions during the hearing before deciding on the proposals.
The development highlights the growing financial pressure within Nigeria’s electricity distribution sector, where unpaid obligations have continued to weigh on the wider power market.
DisCos’ debt rises above N1.5tn
Data cited in an April report by The PUNCH showed that the combined liabilities of the country’s 11 DisCos had increased to about N1.3 trillion as of September 25, 2025, compared with roughly N1 trillion recorded at the end of 2024.
The increase was attributed largely to accumulated interest and continued defaults in payments.
Among the companies, Kaduna DisCo recorded the highest liability at N303.81 billion, followed by Abuja DisCo with N275.17 billion.
Jos DisCo owed N104.38 billion, while Ibadan had outstanding obligations of N103.41 billion. Kano owed N96.62 billion, Port Harcourt N88.40 billion and Benin N82.11 billion.
The old Yola DisCo had N61.20 billion in liabilities, while Ajaokuta, Ikeja and Enugu owed N58.59 billion, N47.64 billion and N39.11 billion, respectively. Eko DisCo’s liability stood at N16.49 billion, while the new Yola entity had N241.68 billion.
The latest dispute is part of a long-running debt crisis that has affected Nigeria’s electricity market for years.
Lagos grants 14 electricity licences to new firms
Meanwhile, Legit.ng earlier reported that LASERC issued 14 new electricity licences to boost competition in the sector.
Major firms like Axxela and Isolo Power Gen received approvals for significant power generation projects across Lagos.
LASERC plans new zonal offices to enhance customer service and simplify regulatory access for electricity consumers.
Source: Legit.ng
