By Faith Anisiobi, The Sight News
The Nigeria 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.
The decision followed a four-day public hearing held from September 1 to 4, 2026, to review the DisCos’ outstanding market obligations and assess proposed payment arrangements for settling the debts.
The hearing was conducted by a five-member committee chaired by the Executive Director, Market Operations, Engr. Dr. Edmund Eje.
NISO said some of the payment proposals presented by the DisCos were unacceptable, particularly considering the magnitude and age of the outstanding obligations.
The committee expressed concern over the proposed payment frameworks and stressed the need for affected DisCos to take immediate steps to liquidate their outstanding balances.
It noted that the Federal Government had already netted off approximately 97 per cent of the DisCos’ outstanding obligations for the 2015–2020 period, describing the development as a significant intervention in addressing legacy debts in the electricity market.
The committee therefore urged the affected DisCos to meet their remaining financial obligations, warning that NISO would proceed with the next steps, including the application of applicable sanctions under the Market Rules.
Despite the development, NISO said it remained committed to constructive engagement, transparency and due process in resolving the outstanding obligations.
The system operator stressed that compliance, accountability and market discipline among participants were critical to strengthening confidence and ensuring the sustainability and effective functioning of the Nigerian electricity market.
