The Nigeria Independent System Operator (NISO) has rejected payment proposals submitted by Electricity Distribution Companies (DisCos) to liquidate their long-standing debts to the electricity market, signaling potential enforcement of regulatory sanctions.
The decision followed a four-day public hearing that concluded on September 4, 2026, aimed at resolving chronic liquidity issues that continue to undermine the Nigerian Electricity Supply Industry (NESI).
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The hearing, conducted by a five-member committee chaired by Edmund Eje, Executive Director, Market Operations, expressed concern over the proposed payment frameworks presented by some DisCos for the liquidation of their outstanding market obligations.
The Committee noted that the Federal Government had magnanimously netted off approximately 97 per cent of the DisCos’ outstanding obligations for the period 2015–2020, and consequently stressed the need for the affected DisCos to take immediate steps towards liquidating their remaining balances.
