The Nigerian Bulk Electricity Trading Company (NBET) Plc has revealed that the country’s 11 electricity distribution companies (DisCos) are indebted to the Federal Government to the tune of ₦2.7 trillion for power supplied as of September 30, 2020.
The figure, which includes interest at the Nigerian Interbank Offered Rate (NIBOR) plus four per cent, was disclosed in a document submitted by NBET to the House of Representatives Committee on Public Accounts.
According to the submission, the DisCos also under-remitted about ₦166 billion, falling short of the Nigerian Electricity Regulatory Commission’s (NERC) minimum remittance threshold.
NBET Managing Director, Johnson Akinnawo, who appeared before the committee on Tuesday, said the debts were part of issues raised in the 2021 Auditor-General’s report, which flagged multiple irregularities in the power sector.
DisCos in Receivership Among Biggest Debtors
A breakdown of the debt shows Abuja Electricity Distribution Company owing ₦330.4 billion; Benin DisCo, ₦233.2 billion; Kaduna DisCo, ₦277.7 billion; Kano DisCo, ₦211.7 billion; Ibadan DisCo, ₦325.7 billion; and Ikeja DisCo, ₦310 billion. These six firms are already in receivership.
Others include:
Eko DisCo — ₦231 billion
Enugu DisCo — ₦258.3 billion
Jos DisCo — ₦161.7 billion
Port Harcourt DisCo — ₦239.7 billion
Yola DisCo — ₦107.4 billion
Other Irregularities
The Auditor-General’s report also cited other financial lapses, including:
₦100 billion paid by NBET to Generation Companies (GenCos) for power not delivered to the grid.
₦30 billion in uncollected debt by market operators.
₦26 billion owed by two foreign firms for electricity exported to Togo, Benin and Niger.
₦2.7 billion in unpaid invoices by the 11 DisCos.
Reps Move to Summon DisCos
At the investigative hearing, committee member Yahya Kusada moved a motion for all indebted DisCos to be summoned to explain their failure to settle obligations to the Federation Account.
“With the magnitude of liabilities before us, these companies must appear before the Committee to clarify their positions and outline repayment plans,” Kusada said.
The committee also resolved to invite other market operators and participants mentioned in the report. Dates for the appearances are yet to be fixed.
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