By Paul Effiong, Abuja
House of Representatives Public Accounts Committee, PAC, has summoned 11 electricity Distribution Companies, DisCos to immediately appear before it over an outstanding debt of N2.6 trillion owed to the federation account.
The decision was taken yesterday at an investigative hearing organised by the Reps Committee investigating the debt owed by the DisCos and held at the National Assembly Complex, Abuja.
Speaking at the hearing, the chairman of the committee, Honourable Bamidele Salam informed that companies involve have since 2021 refused to complied based on the Auditor General’s report.
At the hearing , the Managing Director of the Nigerian Bulk Electricity Trading Company, NBET, Plc, Johnson Akinnawo lamented over the situation emphasising that the liabilities has hindered activities of his agency.
According to NBET’s submission, as of September 30, 2020, the 11 DisCos collectively owed N2.6 trillion, with Ibadan DisCo topping the list at N325.7bn, followed by Abuja DisCo with N330.4 billion and Ikeja DisCo with N310 billion.
The Auditor General’s 2021 report flagged several irregularities within the power sector.
These include N30 billion in uncollected debt from market operators, a N549 million shortfall in NBET’s statutory charges, N100b paid to Generation Companies, GenCos, for undelivered electricity, and N26 billion outstanding from two foreign firms for power exports to Togo, Benin, and Niger.
The report also cited N166 billion in under-remittances by the DisCos and N2.7b in unpaid invoices.
During the hearing, a motion was moved by Hon. Yahya Kusada and seconded by Hon. Billy Osawaru which mandated that all the 11 DisCos be summoned to explain their persistent failure to settle financial obligations.
“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”.
The Committee also resolved to invite other market operators and stakeholders cited in the Auditor General’s report for further clarifications.
It was gathered that dates for the appearances are expected to be communicated to the affected companies and participants in the coming days.
