The House of Representatives Public Accounts Committee has ordered 11 electricity Distribution Companies (Discos) to appear before it over a combined debt of �2.6 trillion owed to the federation.
Open in WhatsApp The directive was issued on Wednesday at an investigative conducted by the committee after its members reviewed the 2021 Auditor-Generals report, which raised serious concerns about financial management in the power sector.
The committee is chaired by Bamidele Salam (PDP, Osun).
At the session, the Managing Director of the Nigerian Bulk Electricity Trading Company ( NBET ) Plc, Johnson Akinnawo, confirmed that as of 30 September 2020, the Discos had accumulated liabilities totalling �2.6 trillion.
According to him, Abuja Disco owes �330.4 billion, Eko Disco �231 billion, Benin Disco �233.2 billion, Enugu Disco �258.3 billion, Ibadan Disco �325.7 billion, and Ikeja Disco �310 billion,
Others are Jos Disco �161.7 billion, Kaduna Disco �277.7 billion, Kano Disco �211.7 billion, Port Harcourt Disco �239.7 billion, while Yola Disco is indebted to the tune of �107.4 billion.
Beyond this huge debt burden, the Auditor-Generals report also flagged other irregularities in the electricity market.
It noted that NBET failed to collect �30 billion owed by market operators and recorded a shortfall of �549 million in its statutory one per cent income from institutional charges.
The report also revealed that �100 billion was paid to Generation Companies for electricity not delivered to the grid, while Nigeria is still owed �26 billion by two foreign firms for power exported to Togo, Benin and Niger.
In addition, the Discos were found to have under-remitted �166 billion below the threshold set by the Nigerian Electricity Regulatory Commission (NERC), and had also failed to settle invoices amounting to �2.7 billion.
Following deliberations, Yahaya Kusada (APC, Katsina) moved a motion seconded by Billy Osawaru (APC, Edo) asking all Discos to appear before the Committee to explain their failure to remit funds and to present clear repayment plans.
With the magnitude of liabilities before us, it is imperative that these companies appear before the committee to clarify their positions and outline plans for repayment, Mr Kusada said.
The committee also resolved to summon other market operators and stakeholders identified in the Auditor-Generals report. Dates for the appearances will be communicated to the affected parties in due course.
The concerns over the Discos financial obligations come despite recent disclosures by the Nigerian Electricity Regulatory Commission. Earlier in July, NERC reported that the Discos collected a total revenue of �553.63 billion in the first quarter of 2025 from customer billings worth �744.27 billion.
While three of the Discos recorded improvements in collection efficiency compared to the last quarter of 2024, eight of them posted declines. Port Harcourt Disco recorded the sharpest fall with -15.11 percentage points, followed by Kaduna with -7.12 points and Eko with -5.21 points.
Coverage areas of Discos
Nigerias electricity market is structured around 11 distribution companies (DisCos), each assigned to specific states, with Lagos being the only state served by two separate companies.
These DisCos are responsible for delivering power to households and businesses across the country.
The Benin Electricity Distribution Company (BEDC) supplies electricity to Delta, Edo, Ekiti, and Ondo states, while the Kaduna Electricity Distribution Company (KEDC) covers Kaduna, Kebbi, Sokoto, and Zamfara.
Kano Electricity Distribution Company (KEDC) is responsible for Kano, Katsina, and Jigawa states, whereas the Yola Electricity Distribution Company (YEDC) handles Adamawa, Borno, Taraba, and Yobe. The Jos Electricity Distribution Company (JEDC) supplies Bauchi, Benue, Gombe, and Plateau states.
In the central region, the Abuja Electricity Distribution Company (AEDC) covers the Federal Capital Territory alongside Kogi, Nasarawa, and Niger states.
The Ibadan Electricity Distribution Company (IBEDC) oversees Kwara, Ogun, Osun, and Oyo states.
Lagos is split between the Ikeja Electricity Distribution Company (IEDC) and the Eko Electricity Distribution Company (EKEDC).
The Port Harcourt Electricity Distribution Company (PHEDC) serves Akwa Ibom, Bayelsa, Cross River, and Rivers states.
In the South-east, the Enugu Electricity Distribution Company (EEDC) supplies Abia, Anambra, Ebonyi, Enugu, and Imo states.
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