The House of Representatives Public Accounts Committee has approved a ₦248.6 billion debt relief and restructuring arrangement for three electricity distribution companies (DisCos) as part of efforts to address long-standing financial challenges in Nigeria’s power sector.
The relief package covers Kano, Jos, and Ikeja Electricity Distribution Companies.
Under the approved framework, ₦128.6 billion in accrued interest spanning 2015 to September 2025 will be waived, while ₦120.1 billion in principal debt will be restructured for repayment over a period of up to 10 years.
The combined liability for the three DisCos under the new arrangement stands at ₦248.6 billion.
The decision followed the consideration and adoption of a technical subcommittee report established in response to concerns raised in the Auditor-General’s 2021 report regarding growing indebtedness within the electricity distribution segment.
Lawmakers noted that resolving legacy debt obligations is critical to improving liquidity in the sector and ensuring better operational efficiency.
The restructuring is expected to provide the affected DisCos with financial breathing space to meet current obligations and improve service delivery.
Stakeholders believe the intervention could strengthen investor confidence in the power sector, enhance revenue collection, and support broader reforms aimed at stabilising electricity distribution across the country.
The committee also indicated that similar restructuring measures may be extended to other distribution companies if necessary, subject to compliance with regulatory and performance standards.
The move represents one of the most significant legislative efforts in recent years to address financial instability in Nigeria’s electricity distribution market.