By Gloria Ikibah
The House of Representatives has summoned 11 electricity Distribution Companies (Discos) to appear before it over an outstanding debt of N2.6 trillion owed to the federation account.
This was the resolution during an investigative hearing by the House Public Accounts Committee, chaired by Rep. Bamidele Salam, after a review of the 2021 Auditor General’s report, on Wednesday in Abuja. 
The Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) PLC, Johnson Akinnawo, in his submission revealed the scale of the liabilities.
According to the documents submitted by NBET documents as at September 30, 2020, the 11 Discos collectively owe N2.6 trillion. The breakdown is as follows:
- Abuja Electricity Distribution Company (AEDC) – N330.4 billion
- Eko Electricity Distribution Company – N231 billion
- Benin Electricity Distribution Company – N233.2 billion
- Enugu Electricity Distribution Company – N258.3 billion
- Ibadan Electricity Distribution Company – N325.7 billion
- Ikeja Electricity Distribution Company – N310 billion
- Jos Electricity Distribution Company – N161.7 billion
- Kaduna Electricity Distribution Company – N277.7 billion
- Kano Electricity Distribution Company – N211.7 billion
- Port Harcourt Electricity Distribution Company – N239.7 billion
- Yola Electricity Distribution Company – N107.4 billion
The Auditor General’s 2021 report, which prompted the hearing, flagged multiple irregularities in the power sector. These include:
- N30 billion in uncollected debt by NBET from market operators
- A N549 million shortfall in NBET’s 1% income from institutional charges
- N100 billion paid by NBET to Generation Companies (GENCOs) for electricity not delivered to the national grid
- N26 billion owed to Nigeria by two foreign firms for power exported to Togo, Benin, and Niger
- N166 billion in under-remittance by Discos, below the Nigerian Electricity Regulatory Commission’s (NERC) minimum threshold
- N2.7 billion in unpaid invoices by the 11 Discos
Following deliberations, a motion was moved by Rep. Yahya Kusada and seconded by Rep. Billy Osawaru, directing that all 11 Discos be summoned to explain the persistent non-settlement of their financial obligations.
“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,” Rep. Yahya Kusada said.
The Committee has also resolved to invite other market operators and participants to address concerns raised in the Auditor General’s report.
A date for the appearances will be communicated to the affected parties in due course.
