Reps summon 11 DisCos over N2.6trn debt to federation account
The House of Representatives Public Accounts Committee has summoned 11 electricity distribution companies (DisCos) over a debt of N2.6 trillion owed to the federation account.
The resolution was adopted on Wednesday during an investigative hearing chaired by Bamidele Salam, following a review of the 2021 Auditor-General’s report.
At the session, Johnson Akinnawo, managing director of the Nigerian Bulk Electricity Trading Company (NBET), disclosed the liabilities and presented supporting documents.
According to NBET records, as of September 30, 2020, the 11 DisCos collectively owe N2.6 trillion.
The breakdown shows that Abuja DisCo owes N330.4 billion, Eko DisCo N231 billion, Benin DisCo N233.2 billion, and Enugu DisCo N258.3 billion.
Ibadan DisCo owes N325.7 billion, Ikeja DisCo N310 billion, Jos DisCo N161.7 billion, Kaduna DisCo N277.7 billion, Kano DisCo N211.7 billion, Port Harcourt DisCo N239.7 billion, and Yola DisCo N107.4 billion.
The 2021 Auditor-General’s report, which triggered the probe, flagged several 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 percent income from institutional charges, and N100 billion paid to generation companies (GenCos) for electricity not delivered to the national grid.
The report also cited N26 billion owed to Nigeria by two foreign firms for electricity exported to Togo, Benin, and Niger, as well as N166 billion in under-remittance by DisCos below the Nigerian Electricity Regulatory Commission’s (NERC) minimum threshold. In addition, N2.7 billion remains in unpaid invoices by the 11 DisCos.
Following deliberations, Yahya Kusada moved a motion, seconded by Billy Osawaru, directing that all 11 DisCos be summoned to explain their failure to settle the debts.
The committee also resolved to invite other market operators and participants mentioned in the Auditor-General’s report. A date for the appearances will be communicated to the affected parties.
