The House of Representatives Committee on Power has urged Electricity Distribution Companies (DisCos) indebted to the electricity market to urgently settle their outstanding obligations.
The Nigerian Independent System Operator (NISO) disclosed this in a statement made available to the news reporters on Thursday in Abuja.
According to the statement, the Chairman of the committee, Rep. Victor Nwokolo, made the call earlier on Wednesday during an oversight visit by the committee to the NISO headquarters.
The lawmakers, who visited NISO to assess its operations and performance, also witnessed a public hearing on the outstanding market obligations of the Ibadan Electricity Distribution Company (IBEDC).
The hearing, chaired by NISO’s Executive Director, Market Operations, Mr Edmond Eje, was part of the operator’s engagements with selected DisCos over outstanding market obligations, events of default and other compliance issues in the Nigerian Electricity Market.
Nwokolo expressed concern over the accumulation of debts by some DisCos, stressing that improved liquidity was necessary to strengthen the electricity market and ensure the sustainability of the power sector.
He urged IBEDC and other indebted DisCos to make every effort to settle their outstanding obligations and comply with the rules governing the electricity market.
The DisCos identified as having outstanding market obligations are Benin, Enugu, Ibadan, Jos, Kaduna, Port Harcourt and Kano.
The statement said the oversight visit also enabled the lawmakers to gain firsthand knowledge of NISO’s operations, its role in the Nigerian Electricity Supply Industry (NESI) and challenges affecting the effective functioning of the electricity market.
Welcoming the committee, NISO’s Managing Director, Abdu Mohammed, commended the lawmakers for their oversight role and support for reforms in the electricity sector.
Mohammed said the establishment of NISO was one of the major outcomes of the reforms introduced under the Electricity Act, 2023.
He said the Act provided the framework for the unbundling of the Transmission Company of Nigeria (TCN) and the establishment of an independent System Operator.
The NISO chief executive briefed the lawmakers on the organisation’s development, statutory mandate and five-year development plan aimed at strengthening system operations, improving electricity market operations and enhancing system planning.
He said the plan would also support effective coordination of Nigeria’s power system.
Mohammed stressed the need for stronger collaboration among the National Assembly, NISO and other stakeholders in NESI to address the structural and financial challenges confronting the sector.
He commended the committee for highlighting market defaults by DisCos, saying improved liquidity would enable market participants to meet their financial obligations.
According to him, improved liquidity would sustain operations and ultimately lead to better service delivery to electricity consumers.
Mohammed appealed to the National Assembly for continued support and constructive oversight, saying sustained collaboration among stakeholders was critical to strengthening the electricity market.
He said the collaboration would also help stabilise the national grid and support efforts toward achieving a more reliable and sustainable electricity supply in Nigeria.