The Nigerian Bulk Electricity Trading Company (NBET) PLC has disclosed that eleven Electricity Distribution Companies (DisCos) across the country owe the Federation Account a total of ₦2.6 trillion.
NBET’s Managing Director, Johnson Akinnawo, revealed the debt profile while appearing before the House of Representatives Committee on Public Accounts on Wednesday, August 20. The Committee has subsequently summoned all eleven DisCos to account for the liabilities.
According to documents submitted by NBET, as of September 30, 2020, the debts are as follows: Abuja (₦330.4bn), Eko (₦231bn), Benin (₦233.2bn), Enugu (₦258.3bn), Ibadan (₦325.7bn), Ikeja (₦310bn), Jos (₦161.7bn), Kaduna (₦277.7bn), Kano (₦211.7bn), Port Harcourt (₦239.7bn), and Yola (₦107.4bn).
The 2021 Auditor General’s report, which triggered the hearing, flagged further irregularities in the power sector, including:
₦30bn in uncollected debt by NBET from market operators,
₦549m shortfall in NBET’s 1% income from institutional charges,
₦100bn paid by NBET to Generation Companies (GenCos) for undelivered electricity,
₦26bn owed to Nigeria by foreign firms for power supplied to Togo, Benin, and Niger,
₦166bn in under-remittances by DisCos, below the Nigerian Electricity Regulatory Commission (NERC)’s threshold, and
₦2.7bn in unpaid invoices by the DisCos.
Moving a motion during the hearing, Hon. Yahya Kusada insisted the companies must appear before the Committee to explain their persistent failure to settle financial obligations. The motion was seconded by Hon. Billy Osawaru.
“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 said.
The Committee also resolved to invite other market operators and stakeholders mentioned in the Auditor General’s report. A date for their appearances will be communicated in due course.
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