DisCos: 20 states have unpaid electricity bills.

Nigeria's electricity distribution companies report that 20 out of 36 state governments have refused to pay their bills, with some owing bills consumed by state houses or secretariats.
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In a phone interview with our correspondent on Monday, Sunday Oduntan, the Executive Director of Research and Advocacy at the Association of Nigerian Electricity Distributors, stated that the majority of government agencies were accustomed to providing free electricity prior to the sector’s privatization and that they have refused to change since then.

The Discos’ spokesperson, Oduntan, recalled that before President Bola Tinubu issued the order to pay the power bills, the Aso Rock residence was in arrears.

“However, is it necessary for the President to receive this information before employees are aware that they must pay their bills?” The state government, the state house, a ministry, a department, or an agency shouldn’t have to be threatened with disconnection, he said.

“Looking at all of our states right now, at least 20 are seen to be owing electricity bills in either the government house or MDAs,” Oduntan declared.

Oduntan was sorry that the Discos would have their offices sealed over allegations of unpaid taxes to the states when they tried to collect the debts from the state governments.

He said, “The government agents will go and seal off the Discos’ offices the next day, saying they’re owing them some taxes,” when the Discos now go to demand money to be paid.

The spokesperson cautioned against states becoming malicious while advising discos to always pay their taxes.

“The states shouldn’t be naughty and blackmail the Discos every time we demand payment from them; the Discos should pay their taxes.”

A certain state governor has a reputation for doing such a thing. I also hope to be able to approach him directly one day and tell him, “Your Excellency, you have not been excellent.” You should be aware that paying your bill is important since using a generator at your government residence would result in far higher expenses, the speaker claimed.

Although he would not name the governor, he pledged to release the list of states in debt as soon as feasible.

“I don’t want to bring up the state or that governor. However, I will receive unpaid bills from every state. I’ll have to obtain the data from the discos. I won’t waste my time on it,” he declared.

He said that while some states do not postpone paying their electrical bills, others have significant debts.

The only way the industry could change, he pleaded with the states and all Nigerians, was if they paid their bills on time.

“We have numerous problems paying for our electricity. Compared to before, things are improving now. However, I’m still pleading with the states and Nigerians as a whole to prioritize the country,” he implored.

When the Kaduna Disco stopped the electricity supply to the Kaduna State Government House and other state government buildings due to outstanding debts of N2.9 billion, our correspondent recalled that the company had to shut its headquarters. The Kaduna Internal Revenue Service blocked access to the Kaduna Electric headquarters because of alleged unpaid taxes totaling more than N600 million.

Similarly, just one month after the AEDC last disclosed the FIRS as one of its debtors, the Federal Inland Revenue Service closed the Abuja Electricity Distribution Company’s headquarters in July. As of January, its debt was estimated to be N362 million.

The Ibadan Disco unplugged the Oyo State Government’s headquarters in 2022 due to an N450 million debt. In retaliation, the government closed down IBEDC offices, claiming the electricity provider owed N400 million in arrears, which included N122.59 million for infrastructure, N139.44 million for harmonized bills, N116.51 million for tax audit bills, and N22 million for signage bills.

The Oyo State Government locked down the Ayede transmission station, according to the IBEDC, last month, which affected the station’s capacity to provide electricity to some parts of the state.

The Enugu State Government sealed off the Enugu Disco’s corporate headquarters and offices in June, a few days after the company delivered disconnection notifications for outstanding electrical arrears. Out of the N1.8 billion in outstanding energy debt in the area, the EEDC said that the Enugu government alone owed it N1 billion.

In a letter to the EEDC, the State Government Secretary, Chidiebere Onyia, stated that the corporation had previously sent out a notice of disconnection and had subsequently cut off power to several government offices and institutions inside the state.

Professor Onyia charged that the EEDC was using estimated billing rather than meter billing, characterizing this as “unlawful, malicious, callous, and vexatious.”

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