The House of Representatives Committee on Public Accounts has summoned 11 electricity Distribution Companies (DisCos) to appear before it over an outstanding debt of N2.6 trillion owed to the Federation Account.
The resolution was taken on Wednesday during an investigative hearing chaired by Hon. Bamidele Salam, following a review of the 2021 report of the Auditor General of the Federation.
Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) Plc, Johnson Akinnawo, confirmed the liabilities while submitting documents that showed that as at September 30, 2020, the 11 DisCos collectively owed N2.6 trillion to the federation account.
According to the breakdown, Abuja Electricity Distribution Company tops the list with N330.4 billion, followed by Ibadan Disco with N325.7 billion, Ikeja Disco with N310 billion, and Kaduna DisCo with N277.7 billion
Others include Enugu DisCo (N258.3 billion), Port Harcourt DisCo (N239.7 billion), Benin Disco (N233.2 billion), Eko DisCo (N231 billion), Kano DisCo (N211.7 billion), Jos DisCo (N161.7 billion), and Yola DisCo (N107.4 billion).
The Auditor General’s report, which triggered the inquiry, highlighted several irregularities in the power sector.
These include N30 billion in uncollected debts by NBET from market operators, N549 million shortfall in NBET’s institutional charges, N100 billion paid to Generation Companies (GenCos) for electricity not delivered to the grid, and N26 billion owed to Nigeria by two foreign firms for electricity exported to Togo, Benin, and Niger Republic.
The report also cited N166 billion under-remitted by the Discos, below the Nigerian Electricity Regulatory Commission (NERC)’s minimum threshold, as well as N2.7 billion in unpaid invoices by the 11 firms.
Moving a motion on the matter, Hon. Yahya Kusada, seconded by Hon. Billy Osawaru, insisted that the companies must account for their failure to settle 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,” Kusada said.
The committee also resolved to summon other market operators and stakeholders in the power sector to address the issues flagged in the Auditor General’s report.
It said a date for the appearances will be communicated to the affected parties in due course.
* Media Report