Nigeria’s electricity distribution companies (DisCos) are facing a significant challenge: unpaid bills from Federal Government ministries, departments, and agencies (MDAs). These debts, totaling hundreds of billions of naira, are crippling the DisCos and threatening the stability of the nation’s power sector.
The Scale of the Debt Crisis
The Eko Electricity Distribution Company (EKEDC) reports that MDAs within its franchise area owe a staggering N66 billion. According to the Association of Nigerian Electricity Distributors (ANED), the total debt owed to power distributors by MDAs across the country exceeds N100 billion as of November 2025.
Rekhiat Momoh, Managing Director of EKEDC, highlighted the severity of the situation at a recent power roundtable in Lagos. She explained that EKEDC is particularly affected due to Lagos’s historical status as the nation’s capital.
“The other major problem is the MDA debt,” Momoh stated. “In Eko alone, MDAs owe us a lot of money, and across the DisCos, most of the MDAs are not paying… So, we have a lot of money that is being owed to us by ministries, departments, and agencies.”
EKEDC’s Debt Profile Breakdown
Momoh provided a detailed breakdown of EKEDC’s debt profile:
- MDAs: N66 billion
- Residential Customers: N96 billion
- Commercial and Industrial Customers: N20 billion
This brings EKEDC’s total debt to N183 billion as of the end of November. Momoh emphasized the potential impact of recovering even a portion of this debt. “You can imagine if we can have 50 percent of this, it will go a long way to help our finances,” she said.
Industry-Wide Impact
Sunday Oduntan, CEO of ANED, confirmed the widespread nature of the problem. He reiterated that MDA debts are over N100 billion, stressing the urgent need for payment.
“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,” Oduntan pleaded.
Historical Context and Escalation
The issue of MDA debt is not new. In 2024, EKEDC reported that MDAs, including the military, owed it N42 billion. The recent figures demonstrate a significant increase in debt over the past year.
Past Actions and Reactions
In 2024, the Abuja Electricity Distribution Company (AEDC) threatened to disconnect electricity to the Presidential Villa and 86 Federal Government MDAs due to an outstanding debt of N47 billion as of December 2023. This threat led to some debt clearance by the Presidency and certain ministries.
Confrontations and Consequences
The debt issue has even resulted in violent confrontations. In March, personnel from the Nigerian Air Force attacked the corporate headquarters of Ikeja Electric in Lagos over a N4 billion debt. The soldiers assaulted journalists and other individuals present after the DisCo disconnected their power supply due to non-payment.
State Government Indebtedness
ANED has also highlighted the issue of unpaid bills by state governments. According to ANED, at least 20 of the 36 state governments owe electricity bills for consumption at State Houses and secretariats.
“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 stated. He also noted that DisCos attempting to recover these debts often face retaliation, such as the sealing of their offices over alleged unpaid state taxes.
Threat to Sector Liquidity
The persistent failure of government institutions to pay their electricity bills poses a serious threat to the liquidity of the power sector. This undermines the ability of DisCos to invest in network upgrades and maintain a stable electricity supply for homes and businesses.
Calls for Action
DisCos are once again appealing to the Federal Government and state authorities to fulfill their financial obligations. They warn that the growing indebtedness jeopardizes the entire power sector and hinders efforts to improve electricity access for all Nigerians. The resolution of this debt crisis is crucial for ensuring the long-term viability and effectiveness of Nigeria’s electricity distribution network.
