Nigeria’s electricity distribution companies (DisCos) are grappling with mounting debts, creating a major hurdle for new grid-scale power projects. Industry experts warn that investors are hesitant to fund projects where revenues could be affected by the financial instability of indebted DisCos.

Unclear contracts, uncertain off-take arrangements, and inconsistent state-level tariffs further complicate investment. The Electricity Act 2023 has given states greater control over electricity markets, adding regulatory complexity for projects spanning multiple regions.

Stakeholders are calling for urgent reforms, including debt resolution, clearer contracts, and streamlined regulations, to ensure that Nigeria can expand its grid and meet growing electricity demand. Visit www.jocomms.com for more news.