House of Reps Summons 11 Discos Over N2.6 Trillion Debt to Federation Account

The resolution, adopted on Wednesday during an investigative hearing chaired by Rep. Bamidele Salam, follows a review of the 2021 Auditor-General’s report, which exposed significant financial irregularities in Nigeria’s power sector.

The summons was prompted by the testimony of NBET’s Managing Director, Johnson Akinnawo, who presented documents detailing the liabilities as of September 30, 2020. 

According to NBET’s breakdown, the debts are as follows: Abuja Electricity Distribution Company (AEDC) – N330.4 billion; Ibadan Electricity Distribution Company – N325.7 billion; Ikeja Electricity Distribution Company – N310 billion; Kaduna Electricity Distribution Company – N277.7 billion; Enugu Electricity Distribution Company – N258.3 billion; Port Harcourt Electricity Distribution Company – N239.7 billion; Benin Electricity Distribution Company – N233.2 billion; Eko Electricity Distribution Company – N231 billion; Kano Electricity Distribution Company – N211.7 billion; Jos Electricity Distribution Company – N161.7 billion; and Yola Electricity Distribution Company – N107.4 billion. 

The Auditor-General’s report further highlighted multiple irregularities, including N30 billion in uncollected debt by NBET from market operators, a N549 million shortfall in NBET’s 1% income from institutional charges, and N100 billion paid to Generation Companies (GENCOs) for electricity not delivered to the national grid. 

Additionally, N26 billion is owed to Nigeria by two foreign firms for power exported to Togo, Benin, and Niger, while the Discos under-remitted N166 billion below the Nigerian Electricity Regulatory Commission’s (NERC) minimum threshold and left N2.7 billion in invoices unpaid. 

Hon. Yahya Kusada, seconded by Hon. Billy Osawaru, moved a motion to summon the Discos, emphasizing the need for accountability. 

“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 stated. 

The Committee also plans to invite other market operators to address additional concerns raised in the report, with appearance dates to be communicated later. 

The summons comes amid ongoing challenges in Nigeria’s power sector, privatized in 2013, which continues to rely on interventions from the World Bank, the Federal Government, and the African Development Bank (AfDB) due to liquidity issues. 

A 2022 report by the Nigerian Electricity Consumers’ Protection Network noted that the Discos still owe N1.4 trillion from the 2013 privatization proceeds, exacerbating financial strains. 

Recent data from NERC also revealed that electricity consumers owe the Discos N348.84 billion in unpaid bills for the first nine months of 2024, further complicating the sector’s financial landscape. 

Meanwhile, the Federal Government, through the Minister of Finance, Wale Edun, announced plans to clear a N4 trillion sector debt and transition to a pay-as-you-go electricity payment model to phase out subsidies.