Despite N10.01bn Budget: Presidency, Army, 33 MDAs Still Owe Electricity Bills

An investigation has revealed that federal government workers may have been involved in a systematic diversion of public funds allocated for the payment of electricity bills, particularly between 2021 and 2023.

Official records reveal a troubling trend: over 34 ministries, departments and agencies (MDAs), including the Nigerian Army headquartered in Abuja, were encouraged to circumvent budgetary allocations. Consequently, substantial unpaid electricity bills, totaling over N10.01 billion, have accumulated despite specific provisions in the annual national budgets.

This diversion has resulted in an alarming fiscal deficit that burdens both the current administration and future ones.

Earlier this year, the Abuja Electricity Distribution Company (AEDC) took a public stand, alleging that the Presidential Villa and 85 MDAs collectively owed a staggering N47 billion for electricity supplied. It issued a stern warning of disconnection if the debts, particularly the Nigerian army’s outstanding N12 billion, remained unpaid.

This investigation obtained budgets from the Presidential Villa and 34 MDAs, shedding light on the flow of revenue allocated for electricity charges. Notably, electricity payment ranks as a first-line charge in the recurrent component of the budget.

Among the notable debtors, the Presidential Villa owes N923 million; FCT Ministry, N7.5 billion; Ministry of Finance, N5.4 billion; Niger State Governor – Abuja Liaison Office, N3.4 billion; Ministry of State Petroleum, N2.1 billion; Ministry of Education, N1.8 billion, and CBN Governor, N1.5 billion.

The debt list is extensive, including the Nigeria Police Force, N1.3 billion, the Kogi State Governor – Abuja Liaison Office, N1.3 billion; Ministry of Health, N1.1 billion, and the Clerk of National Assembly, N1.09 billion.

Notably, the investigation revealed that despite receiving substantial budgetary allocations, the Nigerian Army remains at the forefront of both funds allocation and indebtedness. For instance, Army Formations and Barracks received a staggering N4,525,362,215 billion for electricity bills alone between 2021 and 2023, yet there’s scant evidence of actual expenditure on this line item.

Similarly, the Presidential Villa, despite receiving N745,793,832 million for electricity payment over three years, failed to settle its N923 million debt to the power company accumulated over seven years. The Nigeria Police Force, with N1.3 billion in arrears, also failed despite receiving N952.975 million for electricity payments.

The Office of the National Security Adviser also got N689.854 million; Economic and Financial Crimes Commission, N385.4 million; Federal Ministry of Finance, Budget and National Planning, N367.67 million; Federal Ministry of Foreign Affairs, N207.43 million; Nigeria Correctional Service, N400,320 million, and Independent Corrupt Practices & Other Related Offences Commission, N165.75 million.

The failure to settle the electricity bills is threatening to exacerbate the already precarious financial situation of the power firms, increase their debt stock and expand fiscal deficits.

Strikingly, even entities with relatively low electricity consumption, such as the Bureau of Public Enterprises (BPE) and the headquarters of the Nigeria Immigration Service, failed to settle their bills in spite of large budgetary allocations to them, raising suspicions of possible misappropriation.

The BPE received N113.989 million to offset electricity bill in the three year period but failed to do so. It is the same story with the headquarters of the Nigeria Immigration Service which got N170.786 million but failed to pay a paltry N3.557 million debt to the electricity distribution company.

Similarly, the Federal Ministry of Justice was allocated N145.76 million for electricity payment between 2021 and 2023; National Drug Law Enforcement Agency, N40.4 million; Ministry of Transport, N132.4 million; Federal Ministry of Petroleum Resources headquarters, N93.8 million, and Ministry of Environment, N89.5 million in the same period under review. Federal Road Safety Corps got N100.2 million for electricity payment in a year alone.

Whereas the Federal Ministry of Health got N44.241 for electricity payment in the three years under review, one of the agencies under its supervision, National Agency for Food & Drugs Control (NAFDAC) was allocated N76.277 million for the same item in the same period.

The Federal Ministry of Education which budgeted N67.3 million for electricity in three years is yet to settle N1.82 billion debt outstanding to AEDC. Despite the huge allocation of N60 million and N45,187,068 respectively, the Ministry of Women Affairs and its Works and Housing counterpart are still indebted, raising the question of what happened to the appropriated funds.

The Federal Ministry of Education, with a budget allocation of N67.3 million for electricity over three years, is yet to clear its N1.82 billion debt to AEDC. Similar instances of indebtedness exist across various MDAs, sparking concerns about fund diversion.

In the same period, the Federal Ministry of Science, Technology and Innovation received N36.77 million for the same purpose; the Federal Ministry of Industry, Trade and Investment, N21.215 million; Office of the Head of Service of the Federation, N26.3 million, and Federal Ministry of Information and Culture, N39.209 million.

Others are: Federal Ministry of Water Resources, N28.5 million; National Human Rights Commission, N7.4 million; Ministry of Interior, N19.5 million; Code of Conduct Bureau, N24.4 million; National Youth Service Corps headquarters, N12.87 million; Ministry of Communications and Digital Economy, N9.3 million; Ministry of Aviation, N4.5 million, and Ministry of Power, N1.5 million.

These revelations underscore a pressing need for accountability and transparency in government expenditure.

Labour pickets NERC, DisCos  over tariff hike today

Meanwhile, Nigeria Labour Congress (NLC) has initiated a nationwide shutdown of the Nigerian Electricity Regulatory Commission (NERC) and all Distribution Companies (DISCOs) today.

The move comes as a direct action following the elapse of the ultimatum given to the commission to reverse the recent electricity tariff hike.

The NLC including the Trade Union Congress (TUC)  stand united in denouncing the increased tariff, describing it as injustice, a flagrant abuse of power and a clear violation of the trust bestowed upon the commission by Nigerian people.

The organised labour demands an immediate reversal of the hike in electricity tariff to N65/kwh, cessation of the discriminatory practice of segregating electricity consumers into arbitrary bands and restoration of the supremacy of the statutes governing the conduct of operators within the electricity industry.

However, in a memo issued  to all its affiliates, yesterday in Abuja, the labour centre called for a mass mobilisation to picket the offices of NERC and the Abuja Electricity Distribution Company (AEDC).

The memo, signed by the acting general secretary of the NLC, Chris Uyot  urged each affiliate to mobilise at least 150 members for the action in Abuja, with state councils being directed to participate effectively at the local level.

The picketing, which is part of the directives from the Central Working Committee (CWC), is set to take place today, with the Labour House in Abuja serving as the convergence point.

The NLC’s leadership also expressed optimism about the success of the picketing while emphasising their commitment to the welfare of Nigerian workers and the general populace.