Eleven Electricity Distribution Companies (DisCos) owe the Federal Government N2, 702,485 436,151.19, the Nigerian Bulk Electricity Trading Company (NBET) Plc has revealed.
The sum, according to a document submitted by NBET to the House of Representatives Committee on Public Accounts, ought to be remitted to the federation account.
The DisCos are also said to have under-remitted N166 billion, a sum below the Nigerian Electricity Regulatory Commission’s (NERC) minimum threshold.
The N2.7 trillion unpaid sum is for power received from NBET by the DisCos as of September 30, 2020. It includes the Nigerian Interbank Offered Rate (NIBOR) +4 per cent interest.
Six of the 11 DisCos -Abuja, Benin, Kaduna, Kano, Ibadan Discos and recently, Ikeja- are already facing receivership crisis.
A breakdown of the debts showed that Abuja Electricity Distribution Company has N330.4 billion unremitted; Benin Electricity Distribution Company, N233.2 billion; Kaduna Electricity Distribution Company, N277.7 billion; Kano Electricity Distribution Company, N211.7 billion; Ibadan Electricity Distribution Company, N325.7 billion and Ikeja Electricity Distribution Company, N310 billion.
The other DisCos and their respective debts are Eko Electricity Distribution Company, N231 billion; Enugu Electricity Distribution Company, N258.3 billion; Jos Electricity Distribution Company, N161.7 billion; Port Harcourt Electricity Distribution Company, N239.7 billion; and Yola Electricity Distribution Company, N107.4 billion.
NBET Managing Director, Johnson Akinnawo, who appeared before the committee yesterday, submitted a 2021 Auditor General’s report, which contain the debt and multiple irregularities in the power sector.
The infractions include N100 billion paid by NBET to Generation Companies (GENCOs) for electricity not delivered to the national grid; N30 billion in uncollected debt by market operators, and N166 billion in under-remittance by DisCos, below the Nigerian Electricity Regulatory Commission’s (NERC) minimum threshold.
Others are N26 billion owed to Nigeria by two foreign firms for power exported to Togo, Benin, and Niger, and N2.7 billion in unpaid invoices by the 11 Discos.
At the investigative hearing, Yahya Kusada moved a motion that all the affected Discos be summoned to explain the persistent non-settlement of their financial obligations to the Federation Account.
Kusada said: “With the magnitude of liabilities before us, these companies must appear before the Committee to clarify their positions and outline repayment plans.”
The committee resolved to invite other market operators and participants to address the issues raised in the Auditor General’s report.
The dates for the appearances of the affected parties are yet to be fixed.
