The House of Representatives Public Accounts Committee has invited 11 electricity Distribution Companies (DisCos) to appear over an outstanding debt of N2.6 trillion owed to the federal government.
The committee extended the invitation during an investigative review of the 2021 Auditor General’s report.
During the session, Johnson Akinnawo, the managing director of the Nigerian Bulk Electricity Trading Company (NBET) PLC, informed lawmakers of the scale of the discos’ liabilities.
According to NBET documents submitted to the committee, as of September 30, 2020, the 11 Discos collectively owed the federal government 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 and Ibadan Electricity Distribution Company – N325.7 billion.
Others are: 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 and Yola Electricity Distribution Company – N107.4 billion.
The Auditor General’s 2021 report, which prompted the hearing, identified multiple irregularities in the power sector, including N30 billion in uncollected debt by NBET from market operators, N549 million shortfall in NBET’s one per cent income from institutional charges and N100 billion paid by NBET to Generation Companies (GENCOs) for electricity not delivered to the national grid.
Others are: 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 and N2.7 billion in unpaid invoices by the 11 Discos.
Following deliberations, Hon. Yahya Kusada moved a motion, seconded by Hon. Billy Osawaru, inviting all 11 Discos to appear before the committee and explain their persistent non-settlement of their financial obligations.
“With the magnitude of liabilities before us, these companies must appear before the Committee to clarify their positions and outline repayment plans,” Kusada said.
Also, the committee resolved to invite other market operators and participants to address concerns raised in the Auditor General’s report at an as-yet-unannounced date.
