The House of Representatives Committee on Power has urged indebted electricity distribution companies to urgently settle their outstanding market obligations, warning that improved liquidity is critical to the sustainability of Nigeria’s power sector.

The committee, chaired by Nwokolo Onyemaechi, made the call during a public hearing on the outstanding obligations of the Ibadan Electricity Distribution Company, IBEDC, as part of engagements with defaulting DisCos.

The committee identified seven affected DisCos, including IBEDC, and warned that prolonged failure to meet financial obligations could weaken the electricity market. It urged the companies to comply with market rules and settle their debts to improve service delivery.