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updated 10:20 AM UTC, Dec 13, 2023

Find Alternative Sources Of Power, DISCOs Tell Historical Debtors

Leadership / Nigeria: Electricity distribution companies (Discos) across the country have asked all historic debtors, including residential, commercial, industrial and government establishments across the three tiers of government to find alternative means of electricity supply until the debt owed them is resolved.

This follows weekend’s mass disconnection of historic debtors by the 11 Discos to protest the huge unpaid electricity bills by this class of consumers.

Executive director, Association of Nigeria Electricity Distributors, (ANED), Sunday Oduntan, confirmed this to journalists yesterday. He said, the firms had to carry out its threat when it became obvious that the debtors were unwilling to pay despite notices put up in national newspapers where all historic debtors were given deadlines within which to pay their debts or have their electricity supply disconnected.

Oduntan said as at last calculation, government establishments, including the military and security agencies owe the distribution companies about 93 billion, with the figure comprising of 39.1 billion pre-privatisation debt and 39.5 post-privatisation debt.

He further disclosed that the debt profile comprise of an outstanding interest of 15 billion which the Nigeria Bulk Electricity Trading Company (NBET) charges Discos for late payment of electricity allocated to them, a situation that occurred as a result of non-settlement of electricity bills as at when due.

“Although we appreciate the efforts of the Vice President, Prof. Yemi Osinbajo, and the Minister of Power, Works and Housing, Babatunde Fashola, but the stark reality is that there is nothing concrete to hold on to. No allowance for MDAs debt to Discos in the budget, even though we started discussion before the budget was passed,” Oduntan said.

Noting that the indebtedness has become so huge that the Discos are worried about how government agencies would resolve it without a budgetary allocation, he however, pointed out that the current mass disconnection is not an exercise targeted at MDAs alone but all historic debtors.

“So, if you don’t pay and you accumulate debt, what you are looking at is a possible total collapse of the entire power sector. That is what we seek to avert by this action. We need this fund to energise the power sector, to ensure electricity supply and to grow the sector,” Oduntan said.

LEADERSHIP reported last week the debt owed the various Discos as follows;  Abuja Disco N18.6 billion,  Eko N8.6 billion, Kaduna N8.2 billion, Enugu N7.2 billion, Ibadan N6.8 billion, Ikeja N5.9 billion, Port Harcourt N6.8 billion, Benin N5.8 billion, Jos N6.5 billion, Yola N2.4 billion and Kano N1.2 billion.

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