House of Reps Summons 11 DisCos Over ₦2.6 Trillion Debt
House of Reps Summons 11 DisCos Over ₦2.6 Trillion Debt
The Public Accounts Committee of the House of Representatives has urged 11 electricity Distribution Companies (Discos) to explain a ₦2.6 trillion debt still owed to the federation account.
The decision was made on Wednesday at an investigative hearing led by Rep. Bamidele Salam. This action comes after an examination of the 2021 Auditor-General’s report, which identified major financial discrepancies in the power sector.
Mr. Johnson Akinnawo, the Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) Plc, appeared before the committee and confirmed the liabilities. His statement was backed by NBET documents that detailed the debt profile as of September 30, 2020.
The debts are distributed as follows: Abuja Disco – ₦330.4 billion; Eko Disco – ₦231 billion; Benin Disco – ₦233.2 billion; Enugu Disco – ₦258.3 billion; Ibadan Disco – ₦325.7 billion; Ikeja Disco – ₦310 billion; Jos Disco – ₦161.7 billion; Kaduna Disco –-₃277.billion, Kano–Disco—211.discountillions; Port Harcourt)isco&ndash289 billions Yola—
The Auditor-General’s report highlighted additional irregularities in the power sector, such as a ₦30 billion uncollected debt by NBET from market operators and a ₦549 million shortfall in NBET’s 1% income from institutional charges. It also found that Generation Companies (GENCOs) received ₦100 billion for electricity not delivered to the national grid, while two foreign companies owe Nigeria ₦26 billion for exported electricity. Additionally, Discos under-remitted by ₦166 billion below NERC’s minimum threshold, with unpaid invoices totaling₠2.7billion across all 11 Discos.
After discussions, Hon. Yahya Kusada proposed a motion, which was seconded by Hon. Billy Osawaru, mandating that all 11 Discos appear before the committee to explain their debts.
“In light of the substantial liabilities we face, it is crucial for these companies to testify before the Committee to explain their circumstances and present their repayment strategies,” Kusada stated.
The Committee additionally decided to extend invitations to other market operators and participants mentioned in the Auditor-General’s report. A date for their appearances will be announced at a later time.
