By Mercy Aikoye
The House of Representatives Public Accounts Committee has called in 11 electricity Distribution Companies (Discos) to appear before it. The reason is an outstanding debt of N2.6 trillion owed to the federation account.
The resolution was reached on Wednesday during an investigative hearing chaired by Hon. Bamidele Salam. This followed a review of the 2021 Auditor General’s report.
The Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) PLC, Mr. Johnson Akinnawo, disclosed the scale of the liabilities during the session. NBET documents submitted to the Committee showed the debts as of September 30, 2020.
The 11 Discos collectively owe N2.6 trillion. The breakdown includes debts like Abuja Electricity Distribution Company (AEDC) – N330.4 billion, Eko Electricity Distribution Company – N231 billion, and others.
The Auditor General’s 2021 report flagged multiple irregularities in the power sector. These include N30 billion in uncollected debt by NBET, a N549 million shortfall in NBET’s income, and other issues.
Following deliberations, a motion was moved by Hon. Yahya Kusada and seconded by Hon. Billy Osawaru. It directed 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,” Hon. Yahya Kusada said.
The Committee has 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.
