The House of Representatives has queried the Nigerian Electricity Regulatory Commission (NERC) over the ₦59bn Central Bank of Nigeria loan for the execution of the National Mass Metering Programme (NMMP) for failing on impact.
The Joint Committee of the House investigating the disbursement and utilisation of the loan also queried Meristem Wealth Management Limited and NESI–SSL for approving a firm to receive 0.5% of annual collections from electricity distribution companies until 2030.
Uchenna Okonkwo, chairman of the committee disclosed that its initial investigation revealed that the NMMP was initiated by NERC to close the metering gap, encourage local meter manufacturers, reduce collection losses and eliminate estimated billing.
The committee noted that although the programme was approved by the Federal Government in 2020, it has failed to deliver the expected results. “The review of the management of the programme has shown a lot of ambiguities, inconsistencies and contradictions which point to the fact that the programme has not been successfully handled to achieve the desired objectives”, Okonkwo stated.
According to him, NESI–Stabilisation Strategy Ltd was chosen by the CBN as the special purpose vehicle, while Meristem Wealth Management Limited was appointed as the fund manager and administrator.
He added that although the companies were not forthcoming with relevant submissions, “the committee has decided to carry out a full investigation with a view to addressing several anomalies in the electricity distribution sector”.
The committee pledged to invoke relevant constitutional provisions against anyone found frustrating the investigation.
It expressed concern that despite documents from NERC showing that electricity distribution companies — including Abuja Electricity Distribution Company, Eko Electricity Distribution Company, Enugu Electricity Distribution Company, Ibadan Electricity Distribution Company, Ikeja Electricity Distribution Company, Jos Electricity Distribution Company, Kano Electricity Distribution Company and Yola Electricity Distribution Company are indebted to the CBN for disbursements made to them to install meters, but NERC has not verified the installations of those meters.
The committee directed the management of Meristem Wealth Management Ltd, NERC, NESI–SSL and other relevant bodies to appear at its next sitting.
