The House of Representatives Public Accounts Committee has summoned 11 electricity Distribution Companies (Discos) to explain an outstanding debt of โฆ2.6 trillion owed to the federation account.
The resolution was reached on Wednesday during an investigative hearing chaired by Rep. Bamidele Salam, following a review of the 2021 Auditor-Generalโs report.
The Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) Plc, Mr. Johnson Akinnawo, who appeared before the committee, confirmed the liabilities, supported by NBET documents showing the debt profile as of September 30, 2020.
The breakdown of the debts is as follows: Abuja Disco โ โฆ330.4bn; Eko Disco โ โฆ231bn; Benin Disco โ โฆ233.2bn; Enugu Disco โ โฆ258.3bn; Ibadan Disco โ โฆ325.7bn; Ikeja Disco โ โฆ310bn; Jos Disco โ โฆ161.7bn; Kaduna Disco โ โฆ277.7bn; Kano Disco โ โฆ211.7bn; Port Harcourt Disco โ โฆ239.7bn; and Yola Disco โ โฆ107.4bn.
The Auditor-Generalโs report also flagged other irregularities in the power sector, including โฆ30bn uncollected debt by NBET from market operators, a โฆ549m shortfall in NBETโs 1% income from institutional charges, โฆ100bn paid to Generation Companies (GENCOs) for electricity not delivered to the national grid, โฆ26bn owed Nigeria by two foreign firms for electricity exports, โฆ166bn under-remittance by Discos below NERCโs minimum threshold, and โฆ2.7bn in unpaid invoices by the 11 Discos.
Following deliberations, Hon. Yahya Kusada moved a motion, seconded by Hon. Billy Osawaru, directing that all 11 Discos appear before the committee to account for their indebtedness.
โWith 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,โ Kusada said.
The Committee also resolved to invite other market operators and participants cited in the Auditor-Generalโs report. A date for the appearances will be communicated in due course.
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