Reps Probe N2.6tn Discos Power Sector Debt
The House of Representatives Public Accounts Committee has summoned 11 electricity distribution companies to appear before it over alleged failure to pay an outstanding debt of N2.6tn owed to the government through the Nigerian Bulk Electricity Trading Company.
The resolution was reached on Wednesday during an investigative hearing chaired by the Chairman of the Committee, Mr Bamidele Salam, following a review of the 2021 Auditor-General’s report.
In attendance was the Managing Director of the Nigerian Bulk Electricity Trading Company Plc, Johnson Akinnawo, who gave the breakdown of the liabilities. According to NBET documents submitted to the committee, as of September 30, 2020, the 11 Discos collectively owe N2.6tn.
The breakdown showed that the Abuja Electricity Distribution Company owed N330.4bn while the Eko Electricity Distribution Company is indebted to the tune of N231bn. Others are the Benin Electricity Distribution Company (N233.2bn), Enugu Electricity Distribution Company (N258.3bn), Ibadan Electricity Distribution Company (N325.7bn), and the Ikeja Electricity Distribution Company (N310bn).
Also included are the Jos Electricity Distribution Company ( N161.7bn), Kaduna Electricity Distribution Company (N277.7bn), Kano Electricity Distribution Company (N211.7bn), Port Harcourt Electricity Distribution Company (N239.7bn), and the Yola Electricity Distribution Company (N107.4 bn).
The Auditor-General’s 2021 report, which elicited the hearing, identified multiple irregularities in the power sector, including “N30bn in uncollected debt by NBET from market operators, N549m shortfall in NBET’s one per cent income from institutional charges, N100bn paid by NBET to generation companies for electricity not delivered to the national grid.
There is also the “N26bn owed to Nigeria by two foreign firms for power exported to Togo, Benin, and Niger; N166bn in under-remittance by Discos, below the Nigerian Electricity Regulatory Commission’s minimum threshold, and N2.7bn in unpaid invoices by the 11 Discos.”
After an extensive deliberation, a motion was moved by Yahya Kusada and seconded by Billy Osawaru, directing that all 11 Discos be summoned to explain the persistent non-settlement of their financial obligations.
“With the magnitude of liabilities before us, it is imperative that these companies appear before the committee to clarify their positions and outline plans for repayment,” Kusada said. The committee thereafter resolved to invite other market operators and participants to address concerns raised in the Auditor-General’s report.