Reps Committee Summons 11 Discos Over N2.6 Trillion Debt To Federal Government
The Public Accounts Committee of the House of Representatives, Abuja 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 reached on Wednesday during an investigative hearing chaired by Representative 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 NBET documents submitted to the Committee, as at September 30, 2020, the 11 Discos collectively owe 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
Ibadan Electricity Distribution Company – N325.7 billion
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
Yola Electricity Distribution Company – N107.4 billion
The Auditor General’s 2021 report, which prompted the hearing, flagged multiple 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% income from institutional charges
N100 billion paid by NBET to Generation Companies (GENCOs) for electricity not delivered to the national grid
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
N2.7 billion in unpaid invoices by the 11 Discos
Following deliberations, a motion was moved by Hon. Yahya Kusada and seconded by Hon. Billy Osawaru, directing that all 11 Discos be summoned 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 has also resolved to invite other market operators and participants to address concerns raised in the Auditor General’s report.
