Reps Committee Summons 11 DisCos Over N2.6trn Debt To Federation – Independent Newspaper Nigeria

The House of Representatives Committee on Public Accounts has summoned 11 electricity Distribution Companies (DisCos) to appear before it over a staggering N2.6 trillion debt owed to the federation account.

This decision was reached on Wednesday during an investigative session chaired by Hon. Bamidele Salam. The session forms part of the Committee’s ongoing review of the 2021 report submitted by the Auditor General for the Federation.

During the hearing, Mr. Johnson Akinnawo, Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) PLC, appeared before the lawmakers and presented detailed records outlining the debt accrued by the DisCos. According to the NBET report, as of September 30, 2020, the combined debt from the 11 companies stood at N2.6 trillion.

The company-specific figures are alarming: Abuja Electricity Distribution Company (N330.4 billion), Eko (N231 billion), Benin (N233.2 billion), Enugu (N258.3 billion), Ibadan (N325.7 billion), Ikeja (N310 billion), Jos (N161.7 billion), Kaduna (N277.7 billion), Kano (N211.7 billion), Port Harcourt (N239.7 billion), and Yola Electricity Distribution Company (N107.4 billion).

The audit report by the Auditor General flagged numerous financial discrepancies and systemic lapses within the power sector. Among these were N30 billion in outstanding payments NBET failed to recover from market participants and a N549 million shortfall in NBET’s 1% institutional earnings. The report also revealed that NBET disbursed N100 billion to Generation Companies (GENCOs) for electricity that was never supplied to the national grid.

Further concerns include N26 billion owed to Nigeria by two international firms for electricity exports to neighbouring countries, Togo, Benin, and Niger. Additionally, DisCos under-remitted N166 billion, falling short of remittance thresholds set by the Nigerian Electricity Regulatory Commission (NERC), while unsettled invoices by the 11 DisCos amounted to N2.7 billion.

In response to these revelations, Hon. Yahya Kusada moved a motion—seconded by Hon. Billy Osawaru—calling for the immediate appearance of the 11 DisCos before the Committee. “With such significant debts hanging over the sector, it’s critical these companies come before us to account for their liabilities and propose a roadmap for repayment,” Kusada stated.

The Committee also resolved to invite other key stakeholders and players in the electricity market to address additional concerns raised in the audit report. Dates for the hearings will be announced and communicated to the concerned entities in due course.