Electricity distribution companies (DisCos) in Nigeria have raised concerns over unpaid electricity bills, revealing that at least 20 of the 36 state governments have failed to settle their accounts.
The outstanding debts reportedly include bills from government houses, secretariats, and various ministries, departments, and agencies (MDAs).
Speaking on the matter, the Executive Director of Research and Advocacy for the Association of Nigerian Electricity Distributors, Sunday Oduntan, expressed frustration during a telephone conversation on Monday. He pointed out that many government agencies were accustomed to receiving free electricity before the sector’s privatisation and have struggled to adjust to the new system.
READ ALSO: Kaduna Electric disconnects power to state government over unpaid debt
Oduntan highlighted a previous situation involving the Aso Rock Villa, which had accumulated unpaid bills until President Bola Tinubu intervened. “But does it have to get to the President for people that work there to know that they have to pay their bill? We shouldn’t get to the point where we have to threaten a state government or a state house, a ministry, a department or an agency with disconnection,” Oduntan remarked.
He further disclosed that efforts to recover these debts have often been met with retaliatory actions from state governments, such as sealing off Discos’ offices over alleged unpaid taxes. “When the Discos now go to demand for money to be paid, the next day they (government agents) will go and seal off the DisCos’ offices, saying they’re owing them some taxes,” he noted.
Oduntan advised DisCos to ensure they pay their taxes but warned state governments against using such tactics as a form of blackmail. “The DisCos should pay their taxes, but the states should not be mischievous and be blackmailing the DisCos every time we ask them to pay us,” he stated.
While Oduntan refrained from naming specific governors or states, he promised to soon publish a list of all indebted states. He acknowledged that while some states owe substantial amounts, others have been more diligent in settling their electricity bills. He urged all states and Nigerians to pay their bills regularly, emphasizing that this is essential for the transformation of the electricity sector.
“We have a lot of issues when it comes to paying for electricity. Things are getting better now than they were in the past. But I’m still appealing to the states and Nigerians in general to please put the nation first,” Oduntan pleaded.
In recent years, disputes over unpaid electricity bills have led to confrontations between state governments and DisCos. For instance, the Kaduna DisCo’s office was sealed after it disconnected the power supply to the Kaduna State Government House and other state offices over unpaid bills totaling N2.9 billion. Similarly, the Federal Inland Revenue Service sealed the headquarters of the Abuja Electricity Distribution Company (AEDC) in July, citing unpaid taxes of N600 million.
In 2022, the Ibadan DisCo disconnected the Oyo State Government’s offices over a N450 million debt, leading the government to retaliate by sealing off IBEDC offices, alleging the company owed N400 million in various taxes and bills. A similar incident occurred in June when the Enugu State Government sealed the corporate headquarters of the Enugu DisCo after it disconnected power supply to some government offices due to a N1 billion debt.
