MDAs’ unpaid electricity bills exceed N100bn, DisCos cry out

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Electricity distribution companies have decried the failure of Federal Government ministries, departments, and agencies to pay for the power they consume. The DisCos lamented that they were being owed hundreds of billions of naira by various MDAs across the country, with no payment plans in sight.

It was gathered that the Eko Electricity Distribution Company alone is owed N66bn by Federal Government MDAs within its franchise area. The Chief Executive Officer of the Association of Nigerian Electricity Distributors, Sunday Oduntan, confirmed to our correspondent that the MDAs owe power distributors over N100bn as of November 2025.

Speaking recently at a power roundtable organised by PwC in Lagos, the Managing Director of the Eko Electricity Distribution Company, Mrs Rekhiat Momoh, lamented that DisCos were battling huge debts accumulated by the MDAs. According to her, Eko is one of the DisCos with the highest MDA debts because Lagos was the nation’s capital before it was moved to Abuja.

“The other major problem is the MDA debt. In Eko alone, MDAs owe us a lot of money, and across the DisCos, most of the MDAs are not paying. I happen to be one of the highest with MDA debts, knowing that Lagos was the headquarters before they were moved to Abuja. So, we have a lot of money that is being owed to us by ministries, departments, and agencies,” Momoh said.

Giving the debt profile of the company, the managing director said the MDAs owe N66bn, residential customers N96bn, and businesses N20bn. “In the debt status for Eko, the MDAs’ debt alone is N66bn; residential, N96bn; then commercial and industrial, N20bn. So, the total debt for Eko at the end of last month (November) is N183bn. You can imagine if we can have 50 per cent of this, it will go a long way to help our finances,” she said.

In an interview with our correspondent, Oduntan said the MDAs owe the DisCos over N100bn, adding that appeals were being made to ensure the debts were paid. “I can confirm that the MDAs are owing us. The MDA debts are getting too much; it is over N100bn. If Eko alone is owed N66bn, you can imagine how much the entire 11 DisCos are owed. Please help us appeal to the MDAs to pay their debts to keep the lights on,” he said.

In 2024, the Eko DisCo stated that the ministries, departments, and agencies of the Federal Government, including the military, owed it N42bn as the cost of electricity consumed. The latest disclosure shows that the debt has increased over the past year.

Similarly, in 2024, the Abuja Electricity Distribution Company threatened to disconnect electricity to the Presidential Villa and 86 Federal Government ministries, departments, and agencies over N47bn outstanding debt as of December 2023. The threat by AEDC compelled the Presidency and some ministries to clear their debts.

In March, men of the Nigerian Air Force went on a rampage, attacking the corporate headquarters of Ikeja Electric in Lagos over a N4bn debt. The soldiers, who also brutalised PUNCH Energy Correspondent Dare Olawin and other journalists who were on the premises for an assignment, invaded the premises following the expiration of the ultimatum given to the DisCo to reconnect their power supply, which had been disconnected because of the N4bn debt.

PUNCH recalls that ANED once lamented that no fewer than 20 of the 36 state governments in the country had refused to pay their electricity bills. The DisCos said some states owed electricity bills consumed at the State House or the Secretariat.

“If you look at all our states right now, at least 20 states are seen to be owing electricity bills in either the government house or MDAs,” Oduntan said. He regretted that when the DisCos attempted to recover the debts from the state governments, they would have their offices sealed over claims of unpaid taxes to the states.

Despite repeated appeals from operators, the mounting debts owed by government institutions continue to threaten the liquidity of the power sector, raising fresh concerns over the ability of DisCos to sustain network investments and deliver stable electricity to homes and businesses across the country.

With the debt burden mounting and revenue gaps widening, the DisCos are again appealing to the Federal Government and state authorities to honour their obligations, warning that the growing indebtedness threatens the liquidity of the power sector and undermines efforts to improve electricity supply to Nigerians.

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