Eleven electricity distribution companies in Nigeria have been reported to owe the Federation Account a huge sum of ₦2.6 trillion, according to the Nigerian Bulk Electricity Trading Company (NBET) PLC.
The revelation was made by NBET’s Managing Director, Johnson Akinnawo, when he appeared before the House of Representatives Committee on Public Accounts on August 20.
The lawmakers have now summoned all eleven companies, popularly known as Discos, to appear before the Committee and explain why they have failed to settle their debts.
According to documents submitted by NBET, the debt had already reached ₦2.6 trillion as far back as September 30, 2020.
A breakdown of the debts shows Abuja Disco owing ₦330.4 billion, Eko Disco ₦231 billion, Benin Disco ₦233.2 billion, Enugu Disco ₦258.3 billion, Ibadan Disco ₦325.7 billion, Ikeja Disco ₦310 billion, Jos Disco ₦161.7 billion, Kaduna Disco ₦277.7 billion, Kano Disco ₦211.7 billion, Port Harcourt Disco ₦239.7 billion, and Yola Disco ₦107.4 billion.
The matter came to light after the 2021 Auditor General’s report exposed several irregularities in the power sector.
The report flagged ₦30 billion in unpaid debts from market operators, ₦549 million shortfall in NBET’s charges, and ₦100 billion that was paid to power generating companies for electricity that never reached the national grid.
It also highlighted ₦26 billion owed by two foreign companies for power supplied to Togo, Benin, and Niger, ₦166 billion underpaid by Discos below the threshold set by the Nigerian Electricity Regulatory Commission (NERC), and ₦2.7 billion in outstanding invoices.
During the hearing, Hon. Yahya Kusada moved a motion insisting that the Discos must be held accountable for their failure to meet their obligations.
He argued that with such massive debts hanging over the sector, the companies must clarify their positions and present realistic repayment plans. The motion was supported by Hon. Billy Osawaru.
The Committee also resolved to summon other operators and stakeholders mentioned in the Auditor General’s report to give their own explanations. The dates for these appearances will be announced in due course.
