The House of Representatives, on Wednesday, decided to summon the management of 11 Electricity Distribution Companies (Discos) over the non-remittance of N2.6 trillion into the Federation Account.
The resolution was passed during an investigative hearing chaired by Rep. 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 reports from Nigerian Tribune, the NBET documents submitted to the Committee, as of 30 September 2020, the 11 Discos collectively owed N2.6 trillion.
The statistics presented showed that: Abuja Electricity Distribution Company (AEDC) owed N330.4 billion; Eko Electricity Distribution Company owed N231 billion; Benin Electricity Distribution Company owed N233.2 billion; Enugu Electricity Distribution Company owed N258.3 billion; while Ibadan Electricity Distribution Company owed N325.7 billion.
Available records further showed that: Ikeja Electricity Distribution Company owed N310 billion; Jos Electricity Distribution Company owed N161.7 billion; Kaduna Electricity Distribution Company owed N277.7 billion; Kano Electricity Distribution Company owed N211.7 billion; Port Harcourt Electricity Distribution Company owed N239.7 billion; while Yola Electricity Distribution Company owed N107.4 billion.
The Auditor-General’s 2021 report also flagged multiple irregularities in the power sector, including: N30 billion uncollected debt by NBET from market operators; 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; and N26 billion owed to Nigeria by two foreign firms for power exported to Togo, Benin and Niger.
Others included: N166 billion 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 the adoption of a motion sponsored by Hon. Yahya Kusada, the Committee directed that all 11 Discos appear 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 also resolved to invite other market operators and participants to address concerns raised in the Auditor-General’s report.
