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…over 300,000 prepaid meters distributed across coverage area – MD AEDC

…say estimated billing has significantly reduced

By Gloria Ikibah

A House of Representatives ad-hoc committee examining reforms and spending in the power sector from 2006 to 2024 has taken a firm stance against what it considers an inequitable electricity distribution pattern within the Abuja Electricity Distribution Company’s network.

During an oversight visit to the company’s headquarters in Abuja, lawmakers voiced unease over reports that as much as 80 per cent of available electricity is channelled to the Federal Capital Territory, leaving Kogi, Niger and Nasarawa states to share the remaining 20 per cent across the wider franchise area.

The visit formed part of the National Assembly’s broader review of power sector performance and the deployment of intervention funds since the 2005 unbundling and subsequent privatisation of the industry. Committee members warned that such an allocation model, if accurate, places an undue burden on households and businesses in the affected states, many of whom continue to grapple with prolonged blackouts, erratic supply and poor service.

Chairman of the Committee, Rep. Mustapha Ibrahim Aliyu, maintained that all states covered by a distribution company are entitled to fair access to electricity. He stressed that supply decisions should not be driven purely by commercial returns, particularly in a sector that has received significant public investment and federal support.

In response, Managing Director of AEDC, Engr. Chijioke Okwuokenye, rejected suggestions of deliberate bias but conceded that disparities in supply exist. He pointed to operational and commercial challenges as key factors shaping distribution decisions. These include widespread energy theft in certain areas, ageing infrastructure, weak network capacity, low revenue recovery, mounting customer debts and the financial pressure to sustain operations by focusing on areas with stronger income streams.

He explained that the Federal Capital Territory represents the company’s most reliable revenue base, which inevitably influences allocation patterns. Nevertheless, he indicated that efforts are under way to upgrade infrastructure and curb losses in underserved locations, adding that meaningful progress would depend on collaboration with host communities, state authorities and consumers.

The committee also turned its attention to the issue of estimated billing. Lawmakers, including Rep. Danladi Suleiman of Kogi and Rep. Ginger Obinna, highlighted persistent complaints from constituents about arbitrary charges and the slow pace of prepaid meter distribution, raising further questions about accountability and service standards within the company’s operatio

In response, Engr. Okwuokenye disclosed that the company has so far distributed over 300,000 prepaid meters across its coverage area. He added that estimated billing has been significantly reduced and that AEDC now operates a capping system in line with regulatory directives to prevent overbilling of unmetered customers.

However, some lawmakers maintained that complaints from consumers suggest that the problem has not been fully resolved.

The committee also queried AEDC over loans and intervention funds reportedly obtained from the Federal Government following the privatisation of the power sector 13 years ago.

Lawmakers expressed dissatisfaction that despite billions of naira injected into the sector through the Central Bank of Nigeria and other intervention mechanisms, Nigerians are yet to see commensurate improvement in electricity supply.

In his defence, Okwuokenye clarified that the current management took over the company in 2023 through a receivership arrangement. He maintained that the new investors cannot be held accountable for financial decisions or obligations incurred as far back as 2013.

He disclosed that the company is currently servicing inherited liabilities, including obligations to the Central Bank of Nigeria, and remains committed to clearing historical debts while stabilising operations.

At the end of the session, the committee directed AEDC to submit all relevant documents relating to power allocation, intervention funds, loan repayments and infrastructure investments to aid the ongoing investigation.

The lawmakers further instructed AEDC to reappear before the panel alongside the Transmission Company of Nigeria (TCN) to clarify issues concerning bulk power allocation, transmission constraints and the interplay between both entities in the distribution chain.

The committee reiterated that its mandate is to ensure accountability, transparency and improved service delivery in the power sector, warning that companies found wanting will be held responsible.