The House of Representatives Committee on Finance on Tuesday directed the Nigerian Bulk Electricity Trading (NBET) Plc to immediately begin the process of deregistering the NBET Finance Company Plc, describing the registration process as irregular.
The directive was sequel to explanations by the Managing Director of NBET, Mr. Johnson Akinnawo, during the committee’s resumed revenue monitoring exercise covering 2023 to 2025.
He told lawmakers that the company was incorporated as a Special Purpose Vehicle (SPV) based on policy directives from the Federal Ministry of Finance.
According to him, the SPV was created to enable the Federal Government raise funds from the capital market through a company with no existing liabilities.
He explained that the arrangement was designed to allow the government raise bonds to settle debts owed to electricity Generation Companies (GENCOs).
The NBET Managing Director further disclosed that the Federal Government had guaranteed a N4 trillion power sector debt programme intended to settle verified unpaid invoices owed to GENCOs between February 2015 and March 2025.
He revealed that two lawyers engaged to handle the incorporation of the company were listed as the only shareholders of the newly registered entity.
According to him, one of the lawyers, identified as Chidiebere, holds the largest shareholding, while another individual holds the remaining portion.
He added that the registration of the company had earlier received approval from the Federal Executive Council (FEC).
The explanation, however, did not satisfy members of the committee.
The lawmakers demanded all approvals, correspondence and documentation relating to the registration of the company.
They argued that if the company was meant to serve a public purpose, the shares should have been held by recognised government representatives such as officials from the Ministry of Finance Incorporated (MOFI) or the Bureau of Public Enterprises (BPE).
Chairman of the Committee, Hon.James Abiodun Faleke, also criticised the Corporate Affairs Commission (CAC) for allegedly failing to carry out adequate due diligence before registering a public entity in the names of private individuals.
He further recalled a similar situation involving the Nigerian Postal Service (NIPOST), where a company registered on behalf of the agency was later controlled by private shareholders who demanded accountability from the agency’s management.
The committee directed NBET to immediately commence the process of deregistering the company pending proper restructuring in line with public sector regulations.
Meanwhile, the Committee has directed the Federal Airports Authority of Nigeria (FAAN) to recover over N18.98 billion owed by foreign airlines operating in the country within two weeks.
The directive was issued by the Chairman of the Committee, Hon. James Abiodun Faleke, when the Managing Director of FAAN, Olubunmi Kuku, appeared before the panel alongside other officials during an ongoing revenue monitoring exercise involving Ministries, Departments and Agencies (MDAs).
During the session, lawmakers expressed concern over the increasing volume of unpaid service charges owed by international airlines, warning that the situation was unacceptable and detrimental to government revenue.
Faleke noted that despite clearly defined payment timelines, several foreign carriers had continued to accumulate debts for airport services.
In her presentation to the committee, Kuku explained that airlines are expected to settle airport service charges within two weeks, but acknowledged that a number of operators had exceeded the deadline.
According to her, some of the debts have remained unpaid for over 30 days, 90 days and in certain cases more than a year. She provided a breakdown of the outstanding liabilities owed by several international carriers operating in Nigeria.
Among those listed were Qatar Airways, Lufthansa, British Airways, Virgin Atlantic, KLM, EgyptAir, Ethiopian Airlines, Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines.
Kuku told the lawmakers that the figures represent service charges processed through the International Air Transport Association (IATA) clearing system, a global platform used by airlines for financial settlements.
She noted that airline debts are often treated as rolling balances, meaning that new service charges may be added while previous obligations are still being settled.
Giving further details, the FAAN Managing Director disclosed that Qatar Airways currently owes about N1.5 billion, while Lufthansa also has an outstanding debt of about N1.5 billion.
She added that Virgin Atlantic owes approximately N1.35 billion, while KLM, EgyptAir and Ethiopian Airlines each have debts exceeding N1 billion in various categories of outstanding and current payments.
Other airlines listed in the debt profile include Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines, with liabilities ranging from N700 million to about N1 billion.
According to her, the total outstanding debt owed by foreign airlines currently stands at N18.98 billion.
However, members of the committee questioned why FAAN allowed airlines to accumulate such debts despite the existing two-week payment policy.
One of the lawmakers asked why airlines that default beyond the stipulated period are not penalised or prevented from operating within Nigerian airports. “Why should an airline continue operating when it has failed to clear its obligations within the two weeks allowed?” the lawmaker asked.
The committee also sought clarification on whether defaulting airlines are made to pay additional charges such as interest when payments are delayed.
The lawmakers further expressed concern that some airlines had been allowed to continue operations despite debts extending beyond 90 days and even one year, warning that such practices could weaken revenue enforcement.
Responding to the concerns, Kuku explained that international airline payments are largely processed through a global financial settlement system managed by IATA, which sometimes leads to delays. She said the platform serves as a centralised clearing system used worldwide for airline ticketing and financial transactions.
According to her, FAAN closely monitors the ageing of debts and begins more aggressive engagement with airlines once liabilities exceed 30 days, while debts that remain unpaid for more than 90 days attract stricter follow-up measures.
She also disclosed that FAAN had previously grounded some airlines that failed to meet their payment obligations, particularly domestic carriers that do not operate under the same international credit structure. Despite the explanation, the committee insisted that stronger enforcement measures must be put in place to prevent airlines from accumulating large debts.
The lawmakers subsequently directed FAAN to provide detailed records and addresses of all the airlines listed as debtors. They added that the airlines would be invited to appear before the House if they fail to settle the outstanding debts within the stipulated timeframe.
