NISO and DisCos begin talks on outstanding market obligations to service providers

NISO and DisCos begin talks on outstanding market obligations to service providers

From our journalist

Abuja (Core Reporters) Nigeria’s Independent System Operator (NISO) has concluded an important public hearing with Nigerian Electricity Distribution Companies (DisCos) on their outstanding obligations to the Nigerian electricity market and service providers.

The engagement, which began on Tuesday, September 1 and ends on September 4, 2026, provided NISO with the opportunity to review the DisCos’ outstanding market obligations and examine payment agreements aimed at addressing balances that have continued to impede the effective operation and development of the Nigerian electricity market.

After an extensive debate, at the hearing the NISO considered the payment proposals presented by some DisCos unacceptable, especially in consideration of the extent and seniority of the pending obligations.

The hearing, conducted by a five-member panel chaired by the Executive Director of Market Management, Engr. Dr. Edmund Eje expressed concern over the proposed payment schemes presented by some DisCos for the settlement of their outstanding market obligations.

The Committee noted that the federal government has generously cleared about 97% of the outstanding liabilities of the DisCos for the period 2015–2020 and therefore emphasized the need for the affected Discos to take immediate steps to liquidate their remaining balances.

NISO will then proceed with subsequent steps, including the application of applicable sanctions as provided in the Market Rules, while maintaining its commitment to constructive engagement, transparency and due process.

The commitment highlights the critical importance of market discipline, compliance and accountability among market participants, as well as continued collaboration to strengthen market trust and ensure the sustainability and effective functioning of the Nigerian electricity market.