The House of Representatives Public Accounts Committee has summoned eleven electricity distribution companies (DisCos) to explain and resolve an outstanding ₦2.6 trillion debt owed to the federation account.
Committee chairman, Hon. Bamidele Salam, announced the resolution during an investigative hearing prompted by a review of the 2021 Auditor General’s report.
The session featured testimony from the Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) Plc, Mr Johnson Akinnawo, who revealed the scale of the liabilities. According to NBET documents submitted to the Committee, the 11 DisCos collectively owed ₦2.6 trillion as of 30 September 2020.
The breakdown of the debt is as follows:
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Abuja Electricity Distribution Company (AEDC) – ₦330.4 billion
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Eko Electricity Distribution Company – ₦231 billion
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Benin Electricity Distribution Company – ₦233.2 billion
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Enugu Electricity Distribution Company – ₦258.3 billion
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Ibadan Electricity Distribution Company – ₦325.7 billion
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Ikeja Electricity Distribution Company – ₦310 billion
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Jos Electricity Distribution Company – ₦161.7 billion
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Kaduna Electricity Distribution Company – ₦277.7 billion
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Kano Electricity Distribution Company – ₦211.7 billion
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Port Harcourt Electricity Distribution Company – ₦239.7 billion
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Yola Electricity Distribution Company – ₦107.4 billion
The Auditor General’s 2021 report identified several lapses in the power sector, including:
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₦30 billion in uncollected debt by NBET from market operators
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A ₦549 million shortfall in NBET’s 1% income from institutional charges
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₦100 billion paid by NBET to Generation Companies (GenCos) for electricity not delivered to the national grid
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₦26 billion owed to Nigeria by two foreign firms for power exports to Togo, Benin and Niger
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₦166 billion in under-remittance by DisCos, below the Nigerian Electricity Regulatory Commission (NERC) threshold
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₦2.7 billion in unpaid invoices by the 11 DisCos
Following deliberations, a motion moved by Hon. Yahaya Kusada and seconded by Hon. Billy Osawaru directed that all 11 DisCos must appear before the Committee to explain their persistent non-settlement of 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 further resolved to invite other market operators and participants to address the issues raised in the Auditor General’s report. A date for the appearances will be communicated to the affected parties in due course.
