NISO rejects payment proposal by DisCos, threatens sanction

The Nigerian Independent System Operator (NISO) has rejected payment proposals submitted by some electricity distribution companies (DisCos) for settling their outstanding obligations to the Nigerian Electricity Market and service providers.

NISO, in a statement issued on Sunday, September 6, 2026,‌⁠⁠‌‍⁠⁠‌‍‍ ‍‍‌‌said the proposals were considered unacceptable, particularly given the magnitude and age of the outstanding debts, following a four-day public hearing with the DisCos in Abuja.

The hearing, which began on September 1 and ended on September 4, was convened to review the outstanding market obligations of the distribution companies and examine proposed arrangements for settling the balances.

The hearing was conducted by a five-member committee chaired by NISO’s Executive Director, Market Operations, Edmund Eje.

The committee also expressed concern over the payment frameworks proposed by some of the DisCos, describing the plans as inadequate in addressing their outstanding market obligations.

NISO said the federal government had already netted off about 97 per cent of the DisCos’ outstanding obligations incurred between 2015 and 2020.

It said the committee stressed the need for the affected DisCos to take immediate steps to clear their remaining balances.

The system operator stated that it would proceed with the next stage of the process, including the application of sanctions provided under the Market Rules.

NISO added that it remained committed to constructive engagement, transparency and due process in resolving the outstanding obligations.

NISO noted that the hearing provided an opportunity for it to review the outstanding market obligations of the distribution companies.

It said the hearing also examined DisCos proposals aimed at liquidating debts that have continued to affect the effective functioning and development of the Nigerian Electricity Market.

The operator stated: “At the hearing, highlights of the growing concerns over market discipline and the failure of some participants in the Nigerian Electricity Market to meet their financial obligations.

“This is a situation that has continued to affect service providers and the sustainability of the power sector.”