Electricity distribution companies in Nigeria have expressed concern that at least 20 out of the 36 state governments have not settled their electricity bills. These debts often stem from electricity consumed by state houses or secretariats, creating a significant financial burden on the Discos.
According to Sunday Oduntan, the Executive Director of Research and Advocacy at the Association of Nigerian Electricity Distributors, many government agencies have become accustomed to receiving free electricity prior to the sector’s privatization. Since then, they have struggled to adapt to the new payment requirements.
Oduntan pointed out that even the Aso Rock villa had outstanding electricity bills until President Bola Tinubu intervened and ordered payment. He questioned why it should take a presidential directive for government officials to recognize their obligation to pay for services rendered.
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He emphasized that it should not reach a point where threats of disconnection are necessary to prompt state governments or agencies to fulfill their financial responsibilities. Oduntan noted that currently, at least 20 states are in arrears regarding electricity bills related to either the government house or various ministries, departments, and agencies.
When the Discos attempt to recover these debts, they often face retaliation, with state agents sealing their offices under claims of unpaid taxes. This creates a challenging environment for the Discos as they seek to collect what is owed to them.
While Oduntan advised the Discos to ensure they meet their tax obligations, he also cautioned against states using their power to intimidate the Discos when payment requests are made. He highlighted the need for fair dealings between the two parties.
Furthermore, he mentioned that there is a particular state governor known for such tactics, expressing a hope to confront him directly about his actions. Oduntan’s remarks underscore the ongoing struggle between state governments and electricity distributors in Nigeria, highlighting the need for accountability and cooperation.
