The Public Accounts Committee of the House of Representatives has summoned 11 electricity distribution companies (Discos) over an outstanding debt of N2.6 trillion owed to the federation account.
This decision was made on Wednesday during an investigative hearing chaired by Rep. Bamidele Salam, following a review of the 2021 Auditor General’s report.
The hearing featured the Managing Director of the Nigerian Bulk Electricity Trading (NBET) PLC, Johnson Akinnawo, who disclosed the extent of the liabilities.
According to documents presented by NBET, as of September 30, 2020, the 11 Discos collectively owe N2.6 trillion. The breakdown is as follows:
- Abuja Disco (AEDC): N330.4 billion
- Eko Disco: N231 billion
- Benin Disco: N233.2 billion
- Enugu Disco: N258.3 billion
- Ibadan Disco: 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
- Yola Disco: N107.4 billion
The Auditor General’s 2021 report highlighted several financial irregularities in the power sector, including:
- N30 billion in unpaid debts owed to NBET by market operators
- A N549 million shortfall in NBET’s 1% revenue from institutional charges
- N100 billion paid by NBET to GENCOs for electricity not supplied to the grid
- N26 billion owed by two foreign companies for electricity exported to Togo, Benin, and Niger
- N166 billion in under-remitted funds by Discos, falling below NERC’s required threshold
- N2.7 billion in unpaid invoices from the 11 Discos
Following deliberations, Rep. Yahya Kusada moved a motion, seconded by Rep. Billy Osawaru, mandating that the 11 Discos appear before the Committee to explain their continued failure to settle the debts.
“With the size of liabilities involved, the concerned companies must come before the Committee to clarify their financial standing and present clear repayment plans,” Kusada stated.
The Committee also resolved to invite other key market players mentioned in the Auditor General’s report to respond to the identified concerns.
A date for the hearings will be communicated to the affected parties in due course.
