The Public Accounts Committee of the House of Representatives has issued a summons for 11 electricity distribution companies (Discos) to appear regarding their alleged failure to remit an outstanding debt totaling N2.6 trillion to the government, as administered through the Nigerian Bulk Electricity Trading Company (NBET).
This resolution was agreed upon during an investigative session led by Committee Chairman, Mr. Bamidele Salam, after an analysis of the Auditor-General’s 2021 report.
Present at the hearing was Johnson Akinnawo, Managing Director of NBET, who provided an account of the outstanding liabilities. According to the documentation provided to the committee by NBET, as of September 30, 2020, the cumulative financial obligations of these 11 Discos amounted to N2.6 trillion.
A detailed breakdown indicates that the Abuja Electricity Distribution Company is indebted by N330.4 billion, while the Eko Electricity Distribution Company has obligations of N231 billion. Additional debts include Benin Electricity Distribution Company (N233.2 billion), Enugu Electricity Distribution Company (N258.3 billion), Ibadan Electricity Distribution Company (N325.7 billion), and Ikeja Electricity Distribution Company (N310 billion).
Also among those listed are Jos Electricity Distribution Company (N161.7 billion), Kaduna Electricity Distribution Company (N277.7 billion), Kano Electricity Distribution Company (N211.7 billion), Port Harcourt Electricity Distribution Company (N239.7 billion), and Yola Electricity Distribution Company (N107.4 billion).
The 2021 Auditor-General’s report, which was fundamental to initiating this hearing, highlighted various discrepancies within the power sector. These included N30 billion in receivables that NBET has not collected from market participants, a shortfall of N549 million in NBET’s expected one percent income from institutional charges, and N100 billion disbursed by NBET to generation companies for electricity not supplied to the national grid.
Moreover, the report notes the N26 billion owed to Nigeria by two international firms for electricity exported to Togo, Benin, and Niger; N166 billion in under-remittance by Discos below the minimum thresholds established by the Nigerian Electricity Regulatory Commission; and N2.7 billion in unpaid invoices from the 11 Discos.
Following thorough discussions, a motion was proposed by Yahya Kusada and supported by Billy Osawaru, directing the summons of all 11 Discos to account for the ongoing non-fulfillment of their financial responsibilities.
“With the scale of liabilities presented, it is crucial for these firms to come before the committee to articulate their positions and outline their repayment strategies,” stated Kusada. The committee has resolved to extend invitations to other market operators and stakeholders to address the issues raised in the Auditor-General’s report.
