The House of Representatives Committee on Public Accounts has summoned 11 electricity Distribution Companies (DisCos) to appear before it over N2.6 trillion debt owed to the federation account.
This decision was arrived during an investigative session on Wednesday chaired by Honourable Bamidele Salam.
During the hearing, Mr. Johnson Akinnawo, Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) PLC, appeared before the lawmakers and presented detailed records outlining the debt owed by the DisCos.
According to the company’s report, as of September 30, 2020, the combined debt from the 11 distribution companies stood at N2.6 trillion.
He gave the breakdown of the debt as follows: Abuja Electricity Distribution Company (N330.4 billion), Eko (N231 billion), Benin (N233.2 billion), Enugu (N258.3 billion), Ibadan (N325.7 billion), Ikeja (N310 billion), Jos (N161.7 billion), Kaduna (N277.7 billion), Kano (N211.7 billion), Port Harcourt (N239.7 billion), and Yola Electricity Distribution Company (N107.4 billion).
The audit report by the Auditor General flagged numerous financial discrepancies and systemic lapses within the power sector.
Among these were N30 billion in outstanding payments NBET failed to recover from market participants and a N549 million shortfall in NBET’s 1% institutional earnings.
The report also revealed that NBET disbursed N100 billion to Generation Companies (GENCOs) for electricity that was never supplied to the national grid.
Other concerns include N26 billion owed to Nigeria by two international firms for electricity exports to neighbouring countries, Togo, Benin, and Niger.
Besides, DisCos under-remitted N166 billion, falling short of remittance thresholds set by the Nigerian Electricity Regulatory Commission (NERC), while unsettled invoices by the 11 DisCos amounted to N2.7 billion.
Honourable Yahya Kusada moved a motion and seconded by Hon. Billy Osawaru—calling for the immediate appearance of the 11 DisCos before the Committee.
“With such significant debts hanging over the sector, it’s critical these companies come before us to account for their liabilities and propose a roadmap for repayment,” Kusada added
Other key stakeholders and players in the electricity market would be invited by the committee to address additional concerns raised in the audit report.
