House of Representatives approves N248.64bn relief and 10-year debt restructuring for Kano, Jos, and Ikeja DisCos

The House of Representatives Public Accounts Committee has approved a financial relief package and a 10-year debt restructuring plan totaling N248.64bn for Kano, Jos, and Ikeja electricity distribution companies. This initiative aims to address mounting liabilities and stabilize Nigeria’s power market. The package includes N128.60bn in accrued interest from 2015 to 2025 and N120.06bn in historical principal obligations. This decision follows a review of the Auditor-General for the Federation's 2021 report on the rising indebtedness of DisCos to the Nigerian Bulk Electricity Trading Company Plc. The committee found that the combined indebtedness of 11 DisCos sharply increased from N1tn as of December 31, 2024, to N1.3tn by September 25, 2025. A key point of contention was the legitimacy of interest charges, with Kano, Jos, and Ikeja DisCos arguing that market rules did not explicitly provide for such charges. In response, the Nigerian Electricity Regulatory Commission issued a directive in January 2026, stopping NBET from charging interest on unpaid invoices between 2015 and 2020, while allowing interest accrual from 2021 onward. The committee recommended that the three DisCos be allowed to restructure and repay their historical debts over a period not exceeding 10 years. It also recommended that liabilities incurred during periods of government intervention, such as the N13.40bn linked to Kano DisCo, be transferred to the Nigerian Electricity Liability Management Company. Fur