- Twenty Nigerian states are behind on electricity bills, causing significant debt for distribution companies.
- Discos face complications in debt recovery as state governments seal their offices over tax disputes.
Electricity distribution companies (Discos) in Nigeria have revealed that around 20 of the country’s 36 state governments are in arrears for electricity bills, with some states failing to pay for services used by government houses and secretariats.
Sunday Oduntan, Executive Director of Research and Advocacy at the Association of Nigerian Electricity Distributors, highlighted the ongoing issue during a telephone conversation. He noted that many government agencies have yet to adjust to the post-privatization landscape, where they must pay for electricity, unlike before privatisation when power was often free.
Oduntan highlighted the need for intervention from the President to address debt issues, citing the Aso Rock villa’s arrears as an example. He expressed frustration that it took presidential involvement to resolve the situation, stressing that such matters should not reach that level.
“It shouldn’t come to the point where we have to threaten a state government or agency with disconnection,” he said, adding that many states are currently overdue on their electricity bills.
Attempts by Discos to recover these debts have been met with complications, including state governments sealing Disco offices over alleged unpaid taxes. Oduntan condemned this practice, accusing states of using tax claims as leverage to avoid settling their electricity bills. He urged Discos to fulfil their tax obligations but warned against states using this to avoid payment.
He refrained from naming specific governors or states but promised to release a list of indebted states shortly. Some states have paid their bills promptly, but others have accumulated significant arrears. Oduntan appealed to states and the public to consistently pay their electricity bills, asserting that this is crucial for transforming the sector.
Recent incidents include the Kaduna Disco’s office being sealed after disconnecting power to the Kaduna State Government House over a N2.9 billion debt. Similarly, the Abuja Electricity Distribution Company had its headquarters sealed by the Federal Inland Revenue Service due to an N362 million debt. In Oyo State, the Ibadan Disco faced a similar situation when its offices were sealed in response to an N450 million debt.
The Enugu Disco also experienced tension when the Enugu State Government sealed its offices, citing an outstanding debt of N1 billion out of a total of N1.8 billion owed in the region. The Enugu State Government criticised the Disco for relying on estimated billing rather than metered billing, calling the practice unlawful and vexatious.
Oduntan’s comments underscore the need for effective debt recovery processes and prompt payment to ensure the stability of Nigeria’s power sector.