PAC Summons 11 Discos Over N2.6tr Debt Owed FG

The House of Representatives Public Accounts Committee, PAC, has summoned 11 electricity Distribution Companies, Discos, to appear before it over an outstanding debt of ₦2.6 trillion owed to the federation account.

The resolution followed an investigative hearing on the 2021 Auditor-General’s report.

Chairman of the Committee, Bamidele Salam, said other market operators and participants would also be invited to address concerns raised in the report.

The Managing Director of the Nigerian Bulk Electricity Trading Company, NBET, Plc, Johnson Akinnawo, who appeared before the committee, confirmed the scale of liabilities, with documents showing that as of September 30, 2020, the 11 Discos collectively owed ₦2.6 trillion.

The breakdown includes: Abuja Electricity Distribution Company (₦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 2021 report also highlighted wider irregularities in the power sector, including ₦30bn in uncollected debts by NBET, a ₦549m shortfall in NBET’s 1% institutional charge, ₦100bn paid to GENCOs for electricity not delivered to the grid, and ₦26bn owed to Nigeria by two foreign firms for power exports to Togo, Benin, and Niger.

Other flagged issues were ₦166bn in under-remittances by Discos, below the Nigerian Electricity Regulatory Commission (NERC) threshold, and ₦2.7bn in unpaid invoices by the 11 Discos.

The Committee stressed that the summons is to compel the Discos to explain to Nigerians why they have persistently failed to settle their obligations despite enjoying revenues from consumers.

Oduyemi Odumade, Edited By Grace Namiji