Nigeria DisCos Debt Restructuring Approved

The Nigeria — House of Representatives (Nigeria) Public Accounts Committee has approved a comprehensive financial relief package and a 10-year debt restructuring plan for Abuja Electricity Distribution Company, Jos Electricity Distribution Company, and Ola Electric. This intervention covers N128.58 billion in accrued interest on debts from 2015 to September 2025, which will be waived, and N120.06 billion in historical debts, which will be restructured. The total outstanding liability addressed is N248.64 billion. This decision follows a review of the 2021 Auditor-General for the Federation's report on the growing indebtedness of 11 electricity distribution companies to Nigeria — Nigerian Bulk Electricity Trading. The Nigeria — Nigerian Electricity Regulatory Commission had previously directed Nigeria — Nigerian Bulk Electricity Trading to waive interest on outstanding invoices for the period 2015-2020 and disregard interest related to MERISTEM delays. The committee also recommended transferring N13.4 billion of Abuja Electricity Distribution Company's liabilities incurred during government intervention to Nigeria — Nigerian Electricity Liability Management Company. This legislative effort aims to stabilize Nigeria's electricity market, address legacy liabilities, and ensure the sector's financial sustainability, which has been plagued by chronic indebtedness since its privatization in 2013.