Nigeria’s electricity crisis has taken another twist as eleven Distribution Companies (Discos) have been summoned by the House of Representatives over a staggering ₦2.6 trillion debt owed to the Federation Account.
The revelation came on Wednesday, August 20, when the Managing Director of the Nigerian Bulk Electricity Trading Company (NBET), Johnson Akinnawo, appeared before the Committee on Public Accounts.
According to documents submitted, the debts have piled up since September 30, 2020, raising fresh concerns about financial discipline in the power sector.
The House Committee described the situation as alarming and demanded urgent explanations from the affected Discos.
Hon. Yahya Kusada, who moved the motion for their summons, said: “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 ₦2.6 trillion liability is spread across the 11 Discos.
Abuja Electricity Distribution Company tops the list with ₦330.4 billion, followed by Ibadan Disco with ₦325.7 billion, and Ikeja Disco with ₦310 billion.
Other significant debts include Enugu Disco (₦258.3 billion), Kaduna Disco (₦277.7 billion), and Benin Disco (₦233.2 billion).
Meanwhile, Port Harcourt Disco owes ₦239.7 billion, Kano Disco ₦211.7 billion, Eko Disco ₦231 billion, Jos Disco ₦161.7 billion, and Yola Disco ₦107.4 billion.
Collectively, these unpaid sums have raised doubts about the sustainability of Nigeria’s electricity distribution system.
The hearing was triggered by the 2021 Auditor General’s report, which uncovered deep-rooted issues in the sector.
The report flagged ₦30 billion in uncollected debts by NBET from market operators, ₦549 million shortfall in institutional charges, and ₦100 billion paid to Generation Companies (GENCOs) for power not delivered to the grid.
Furthermore, ₦26 billion remains unpaid by two foreign companies for power supplied to Togo, Benin, and Niger.
The report also revealed ₦166 billion in under-remittances by the Discos, below the Nigerian Electricity Regulatory Commission (NERC) threshold, as well as ₦2.7 billion in unpaid invoices.
The House Committee has not only directed the 11 Discos to appear but also resolved to invite other market participants.
The lawmakers insisted that accountability must be enforced in order to protect the nation’s finances.
Hon. Billy Osawaru, who seconded Kusada’s motion, stressed that the sector cannot continue operating with such poor financial practices.
Meanwhile, NBET Managing Director Akinnawo assured lawmakers that the company is working closely with regulators to address the gaps.
The electricity debt crisis, now standing at ₦2.6 trillion, continues to cast doubt over the long-term stability of Nigeria’s power sector.
