THE House of Representatives Committee on Public Accounts has summoned 11 electricity Distribution Companies (Discos) over an outstanding ₦2.6 trillion debt owed to the federation account.
News Point Nigeria gathered that the resolution followed an investigative hearing on Wednesday chaired by Hon. Bamidele Salam, after lawmakers reviewed the 2021 Auditor-General of the Federation’s report, which flagged massive irregularities in Nigeria’s power sector.
The Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) Plc, Johnson Akinnawo, confirmed the liabilities while presenting documents before the Committee.
According to NBET’s records as of September 30, 2020, the 11 Discos collectively owed ₦2.6 trillion. A breakdown shows:
Abuja Disco – ₦330.4 billion
Ibadan Disco – ₦325.7 billion
Ikeja Disco – ₦310 billion
Kaduna Disco – ₦277.7 billion
Enugu Disco – ₦258.3 billion
Port Harcourt Disco – ₦239.7 billion
Benin Disco – ₦233.2 billion
Eko Disco – ₦231 billion
Kano Disco – ₦211.7 billion
Jos Disco – ₦161.7 billion
Yola Disco – ₦107.4 billion
Audit Report Uncovers Irregularities
The Auditor-General’s report, which triggered the probe, revealed several lapses in the management of the power sector, including:
₦30 billion in uncollected debts by NBET from market operators.
₦549 million shortfall in NBET’s institutional charges.
₦100 billion paid to Generation Companies (GenCos) for electricity not delivered to the national grid.
₦26 billion owed to Nigeria by foreign firms for electricity exports to Togo, Benin, and Niger Republic.
₦166 billion under-remitted by the Discos, below the Nigerian Electricity Regulatory Commission (NERC)’s minimum threshold.
₦2.7 billion in unpaid invoices left outstanding by the 11 Discos.
During deliberations, Hon. Yahya Kusada moved a motion, seconded by Hon. Billy Osawaru, stressing the urgency of holding the Discos accountable.
“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 declared.
The Committee resolved to summon not only the Discos but also other market operators and stakeholders in the electricity value chain to provide explanations on the irregularities highlighted by the Auditor-General.
A date for the appearances is expected to be communicated soon.
The revelations add to growing concerns about the financial viability and accountability of Nigeria’s electricity industry, which has struggled since the privatisation of power assets in 2013.
Despite government interventions running into hundreds of billions of naira, the sector continues to face mounting debts, liquidity crises, and poor service delivery to consumers.