Reps summon Discos over N2.6trn debt to federation account

The House of Representatives Public Accounts Committee has directed 11 electricity Distribution Companies (Discos) to explain an outstanding ₦2.6 trillion debt owed to the federation account.

The decision was reached on Wednesday during an investigative hearing led by Rep. Bamidele Salam, chairman of the committee. The inquiry stems from the 2021 Auditor-General’s report, which flagged major financial irregularities in the power sector.

The Managing Director of the Nigerian Bulk Electricity Trading Company (NBET) Plc, Mr. Johnson Akinnawo, who appeared before the committee, confirmed the liabilities, supported by NBET documents showing the debt profile as of September 30, 2020.

The breakdown of the debts is as follows: Abuja Disco – ₦330.4bn; Eko Disco – ₦231bn; Benin Disco – ₦233.2bn; Enugu Disco – ₦258.3bn; Ibadan Disco – ₦325.7bn; Ikeja Disco – ₦310bn; Jos Disco – ₦161.7bn; Kaduna Disco – ₦277.7bn; Kano Disco – ₦211.7bn; Port Harcourt Disco – ₦239.7bn; and Yola Disco – ₦107.4bn.

The Auditor-General’s report also flagged other irregularities in the power sector, including ₦30bn uncollected debt by NBET from market operators, a ₦549m shortfall in NBET’s 1% income from institutional charges, ₦100bn paid to Generation Companies (GENCOs) for electricity not delivered to the national grid, ₦26bn owed Nigeria by two foreign firms for electricity exports, ₦166bn under-remittance by Discos below NERC’s minimum threshold, and ₦2.7bn in unpaid invoices by the 11 Discos.

Following deliberations, Hon. Yahya Kusada moved a motion, seconded by Hon. Billy Osawaru, directing that all 11 Discos appear before the committee to account for their indebtedness.

“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,” Kusada said.

The Committee also resolved to invite other market operators and participants cited in the Auditor-General’s report. A date for the appearances will be communicated in due course.