Nigeria’s House of Representatives has turned its spotlight on the nation’s electricity distribution companies (Discos) after revelations that they collectively owe the federal purse a staggering N2.6 trillion.
The decision came on Wednesday during an investigative hearing of the Public Accounts Committee, chaired by Rep. Bamidele Salam.
The probe was triggered by findings in the 2021 Auditor General’s report, which raised serious questions about transparency and accountability in the power sector.
At the session, the Managing Director of the Nigerian Bulk Electricity Trading Company (NBET), Johnson Akinnawo, confirmed the depth of the financial hole.
Documents he presented showed that, as of September 30, 2020, the debts from the 11 Discos had piled up to trillions, with Ibadan (N325.7bn), Abuja (N330.4bn) and Ikeja (N310bn) topping the list of defaulters. Yola Disco, at N107.4bn, carried the lowest liability.
But the Discos’ debts were not the only red flag. The Auditor General’s findings highlighted a web of irregularities:
Over N30 billion left uncollected by NBET from market operators.
A N549 million shortfall from institutional charges.
An eyebrow-raising N100 billion paid for power never supplied to the national grid.
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N26 billion still outstanding from two foreign firms for electricity exported to neighboring Togo, Benin, and Niger.
And a further N166 billion that Discos under-remitted, falling short of regulatory requirements.
Faced with the revelations, lawmakers were visibly concerned. A motion by Rep. Yahya Kusada, seconded by Rep. Billy Osawaru, demanded that all 11 Discos appear before the committee to account for their financial obligations.
“With the magnitude of liabilities before us, these companies must clarify their positions and present repayment plans,” Kusada insisted.
The Committee also resolved to summon other players in the electricity market to shed light on their roles in the irregularities flagged by the Auditor General.
A date for the appearances is expected to be announced soon, but the message from the House is already clear: the era of looking the other way in Nigeria’s power sector may be drawing to a close.