By Prevail Inegbenose
The Nigeria Independent System Operator (NISO) has rejected payment proposals submitted by some Electricity Distribution Companies (DisCos) for the settlement of their outstanding obligations to the Nigerian Electricity Market and service providers.
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NISO made its position known during a four-day public hearing with the DisCos, which began on Tuesday, September 1, and ended on Friday, September 4, 2026, to review their outstanding market obligations and proposed payment arrangements.
The hearing focused on finding workable solutions to the accumulated debts, which NISO said have continued to undermine the effective functioning and development of the Nigerian Electricity Market.
However, following extensive deliberations, NISO found the payment proposals presented by some of the DisCos unacceptable, particularly considering the magnitude and age of the outstanding obligations.
The hearing was conducted by a five-member committee chaired by the Executive Director, Market Operations, Engr. Dr. Edmund Eje.
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The committee expressed concern over the payment frameworks proposed by some DisCos for liquidating their outstanding market obligations and stressed the need for immediate action to settle the debts.
According to the committee, the Federal Government had already netted off approximately 97 per cent of the DisCos’ outstanding obligations covering the 2015–2020 period.
It therefore urged the affected DisCos to take immediate steps to liquidate their remaining balances, noting that continued accumulation of unpaid obligations could undermine market discipline and confidence.
NISO said it would now proceed with the next steps, including the application of applicable sanctions under the Market Rules.
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The system operator, however, said it remained committed to constructive engagement, transparency and due process in addressing the outstanding obligations.
The development highlights the growing importance of financial discipline, compliance and accountability among participants in the Nigerian electricity market, particularly as stakeholders seek to strengthen market confidence and ensure the sustainability of the sector.