The Public Accounts Committee of the House of Representatives, Abuja has summoned 11 electricity Distribution Companies (Discos) to appear before it over an outstanding debt of N2.6 trillion owed to the federation account.
The resolution was reached on Wednesday during an investigative hearing chaired by Representative Bamidele Salam, following a review of the 2021 Auditor General’s report.
The session featured an appearance by the Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) PLC, Mr. Johnson Akinnawo, who disclosed the scale of the liabilities.
According to NBET documents submitted to the Committee, as at September 30, 2020, the 11 Discos collectively owe N2.6 trillion. The breakdown is as follows:
* Abuja Electricity Distribution Company (AEDC) – N330.4 billion
* Eko Electricity Distribution Company – N231 billion
* Benin Electricity Distribution Company – N233.2 billion
* Enugu Electricity Distribution Company – N258.3 billion
* Ibadan Electricity Distribution Company – N325.7 billion
* Ikeja Electricity Distribution Company – N310 billion
* 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
* Yola Electricity Distribution Company – N107.4 billion
The Auditor General’s 2021 report, which prompted the hearing, flagged multiple irregularities in the power sector. These include:
* N30 billion in uncollected debt by NBET from market operators
* A N549 million shortfall in NBET’s 1% income from institutional charges
* N100 billion paid by NBET to Generation Companies (GENCOs) for electricity not delivered to the national grid
* N26 billion owed to Nigeria by two foreign firms for power exported to Togo, Benin, and Niger
* N166 billion in under-remittance by Discos, below the Nigerian Electricity Regulatory Commission’s (NERC) minimum threshold
* N2.7 billion in unpaid invoices by the 11 Discos
Following deliberations, a motion was moved by Hon. Yahya Kusada and seconded by Hon. 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,” Hon. Yahya Kusada said.
The Committee has also resolved to invite other market operators and participants to address concerns raised in the Auditor General’s report.
