The Nigeria Independent System Operator (NISO) has revealed that it will sanction electricity distribution companies (DisCos) over outstanding obligations owed to the Nigerian electricity market and service providers.
The development followed a four-day public hearing held from September 1 to 4, 2026, where NISO reviewed the outstanding obligations of DisCos and the payment plans proposed to settle the debts.
NISO said payment proposals presented by some of the DisCos were unacceptable, particularly because of the magnitude and age of their outstanding obligations.
The hearing was conducted by a five-member committee chaired by NISO’s Executive Director, Market Operations, Engr. Dr. Edmund Eje.
The committee expressed concern over the payment frameworks presented by some DisCos and stressed the need for the affected companies to take immediate steps to clear their outstanding balances.
The organization also noted that the Federal Government had already netted off about 97 per cent of the DisCos’ outstanding obligations for the 2015–2020 period.
It therefore stressed that the affected DisCos must now take steps to liquidate their remaining obligations.
“NISO will therefore proceed with the next steps, including the application of applicable sanctions as provided under the Market Rules,” the system operator said.
The organisation said the process would continue to be guided by constructive engagement, transparency and due process.
The organization added that the engagement was aimed at strengthening market discipline, compliance and accountability among market participants, while improving confidence in the Nigerian Electricity Market.
The system operator also said resolving the outstanding obligations was important to the effective functioning and development of the electricity market and its service providers.