By John Umeh
The Federal Government has disclosed that Nigeria’s 11 electricity distribution companies (DisCos) are indebted to the Federation Account to the tune of ₦2.6 trillion in unremitted revenues.
According to the report presented at a government briefing, the debts stem from years of non-remittance of funds generated from electricity sales, as well as poor collection efficiency and financial leakages within the power distribution chain.
Officials explained that the withheld funds represent revenues meant to be shared among the three tiers of government—federal, state, and local—through the Federation Account. The huge debt burden has further compounded the nation’s fiscal challenges at a time when revenue mobilization is critical.
The government expressed concern that despite several interventions and bailouts provided to the power sector, the DisCos have continued to default on remittance obligations. The situation, it said, undermines transparency, accountability, and the financial sustainability of Nigeria’s electricity supply industry.
“It is unacceptable that these companies continue to hold back such a huge sum, especially at a time when states and local governments are struggling to meet pressing developmental and salary obligations,” a senior official stated.
The disclosure has reignited debates about the viability of the current power sector structure, with calls for stricter enforcement of remittance rules and possible sanctions for defaulting DisCos.
Meanwhile, stakeholders have urged the Federal Government to consider deeper reforms in the power sector, including a review of concession agreements, improved regulatory oversight, and the introduction of performance-based penalties to hold operators accountable.
As Nigerians continue to grapple with poor electricity supply, rising tariffs, and erratic billing, the revelation of a ₦2.6 trillion debt has further heightened concerns about the mismanagement and inefficiency plaguing the sector.
