The House of Representatives joint committee investigating disbursement and utilisation of N59 billion Central Bank of Nigeria (CBN) loan for the implementation of the National Mass Metering Programme has queried Nigerian Electricity Regulatory Commission (NERC).
The panel also queried Meristem Wealth Management Llimited and NESI – SSL for giving approval to a firm to receive 0.5% of annual collection from electricity distribution companies to 2030.
Chairman of the Committee, Hon. Uchenna Okonkwo, in a statement on Saturday, said its initial probe revealed that the Programme was initiated by the NERC for the purpose of “closing metering gap, encourage local meters manufacturers, stop collection losses and estimated billing.”
The panel noted that while the programme was approved by the Federal Government in 2020, “it has failed to yield expected results.”
Okonkwo said the joint committee comprising, committees on Banking Regulations, Power, Rural Electrification, and Housing in the course of investigation engaged Meristerm Wealth Management Ltd, NESI-SSL, NERC and other relevant bodies on the disbursement of ₦55. 42bn out of the initial N59. 28bn earmarked for national metering by the apex bank.
“The review of the management of the programme has shown a lot of ambiguities, inconsistencies and contradictions which points to the fact that the programme has not been successfully handled to achieve the desired objectives,” Okonwho said.
He added that the committee also uncovered that NESI-Stabilisation Strategy Ltd was chosen as special purpose vehicle by the CBN while Meristerm Wealth Management Limited was appointed as the fund manager and administrator.
He said although the companies were not forthcoming with relevant submission, “the committee has decided to carry out full investigation with the view to address several anomalies in the electricity distribution in the country.”
The committee vowed to invoke relevant constitutional provisions on anyone found to be frustrating the investigation.
It expressed concern, that despite documents from NERC showing that the electricity distribution companies comprising Abuja Electricity Distribution Company, Eko Electricity Distribution Company, Enugu Electricity Distribution Company, Ibadan Electricity Distribution Company, Ikeja Electricity Distribution Company, Jos Electricity Distribution Company, Kano Electricity Distribution Company, and Yola Electricity Distribution Company were owing the CBN for disbursements made to them to install meters, “NERC has not verified the installations of those meters.”
The chairman expressed concern over the clause stating that Meristerm Wealth Management Limited should receive 0.5% of annual collection of Disco up to 2030 for National Mass Metering Programme.
The committee subsequently directed the management of Meristem Wealth Management Ltd, NERC, NESI-SSL and other relevant bodies to appear in its next sitting.
