Nigeria’s Electricity Discos Lament Unpaid Bills from State Governments

Nigeria’s electricity distribution companies (Discos) have voiced frustration over the refusal of more than 20 state governments to settle their electricity bills. According to the Discos, many of these states owe significant sums for electricity consumed by state houses and secretariats, highlighting a growing financial strain on the power sector.

Sunday Oduntan, Executive Director of Research and Advocacy for the Association of Nigerian Electricity Distributors (ANED), disclosed the troubling situation on Monday. He explained that many government agencies have struggled to adapt to the realities of paying for electricity since the sector’s privatisation, having grown accustomed to receiving free power.

Oduntan pointed out that even Nigeria’s presidential residence, Aso Rock, had outstanding electricity bills until President Bola Tinubu intervened and ordered payment. “But does it have to get to the President for those working there to realise they need to pay their bills?” Oduntan queried, expressing dismay that it might come to the point of threatening state governments with disconnection.

“At least 20 states are currently owing electricity bills for either their government houses or ministries, departments, and agencies (MDAs),” he stated, underlining the widespread nature of the problem.

Oduntan also lamented that when Discos attempt to recover these debts, they are often met with retaliation. State governments, he said, frequently seal off Disco offices under the guise of unpaid taxes, a tactic he described as a form of blackmail.

“The Discos should pay their taxes, but states should not be mischievous and resort to blackmail whenever we ask for payment,” Oduntan asserted. He stopped short of naming the states involved but hinted that the list of indebted states might soon be made public.

He appealed to both state governments and the general public to prioritise the payment of electricity bills as a means of sustaining and improving the sector. “We have made progress, but the responsibility lies with all Nigerians to keep the momentum going by paying their bills,” he urged.

The issue of unpaid electricity bills by government entities has led to a series of confrontations between Discos and state governments. In Kaduna, the local Disco’s office was sealed off after it disconnected the power supply to government buildings over unpaid bills amounting to N2.9 billion. Similar incidents have occurred in Abuja, Oyo, and Enugu, where disputes over unpaid debts have led to office closures and disruptions in power supply.

Oduntan warned that the situation could worsen if state governments continue to default on their electricity payments, emphasising the need for transparency and cooperation to avoid further conflicts and ensure the stability of Nigeria’s power sector.