Eleven electricity distribution companies (Discos) in Nigeria collectively owe the Federation Account a staggering ₦2.6 trillion, the Nigerian Bulk Electricity Trading Company (NBET) has revealed. The disclosure came from NBET Managing Director, Johnson Akinnawo, during a briefing before the House of Representatives Committee on Public Accounts on Wednesday, August 20.
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According to documents submitted to the committee, the outstanding liabilities as of September 30, 2020, were distributed across the Discos as follows: Abuja Electricity Distribution Company (₦330.4 billion), Eko Electricity Distribution Company (₦231 billion), Benin Electricity Distribution Company (₦233.2 billion), Enugu Electricity Distribution Company (₦258.3 billion), Ibadan Electricity Distribution Company (₦325.7 billion), Ikeja Electricity Distribution Company (₦310 billion), Jos Electricity Distribution Company (₦161.7 billion), Kaduna Electricity Distribution Company (₦277.7 billion), Kano Electricity Distribution Company (₦211.7 billion), Port Harcourt Electricity Distribution Company (₦239.7 billion), and Yola Electricity Distribution Company (₦107.4 billion).
The 2021 Auditor General’s report, which triggered the committee’s hearing, highlighted significant irregularities in the power sector, including N30 billion in uncollected debts by NBET from market operators, N549 million shortfall from institutional charges, N100 billion paid for undelivered electricity, and N166 billion under-remitted by Discos below NERC’s minimum threshold.
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During the hearing, lawmaker Yahya Kusada emphasized the urgency for the Discos to explain the persistent non-settlement of their debts. “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,” he said. Other market operators and participants are also expected to appear to address the Auditor General’s concerns.
The committee is yet to announce a date for the appearances, but the summons underscores the growing scrutiny on Nigeria’s power distribution sector and the urgent need for transparency in debt management.
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