DisCos lament delayed payment of ₦100bn debt owed by FG, MDAs

Electricity distributors have advised the Federal government to look into the lingering debt of about ₦100 billion owed to DisCos by government ministries, departments and agencies (MDAs).

This was disclosed by the Executive Director of the Association of Nigerian Electricity Distributors, Sunday Oduntan, during an interview with Arise TV recently.

Oduntan, while reiterating the need for the FG to provide an enabling environment for energy distributors in the country, appealed to the FG to clear the outstanding debt of ₦100 billion owed to electricity distribution companies.

Checks have shown that the ₦100 billion debt now referred to as the ‘Legacy Debt’ of the FG to the 11 distribution companies (DisCos) has been a serious challenge, with no decisive action in sight for some time.

DisCos have lamented that they are currently engrossed in debts of over ₦2.6 trillion to gas suppliers and generation companies due to the drop in revenue collection and remittances from customers.

Recall the Abuja Electricity Distribution Company (AEDC) recently issued a 10-day notice to 86 government MDAs threatening to disconnect them over a ₦47.1 billion electricity bills debt.

The Presidency (Aso Rock) was also not left out of the debt list as the seat of power was also handed a disconnection notice over its nearly ₦1 billion electricity debt.

Aso Rock officials while shedding light on the bill however, debunked AEDC’s initial claim of ₦923 million debt as the Permanent Secretary on February 14, 2024, revealed that the real outstanding amount is ₦342,352,217.46.

DisCos have lamented that the multiple debts in the sector has given rise to the inefficiency and losses in the system.

Oduntan added that for the DisCos to be efficient in their service, customers and the government alike need to play a good part by paying their bills and also creating an enabling environment for businesses to strive.