11 DISCOs Owe FG N2.6 Trillion, Says NBET

Eleven Electricity Distribution Companies are said to be currently indebted to the Federation Account to the sum of ₦2.6 trillion, as reported by the Nigerian Bulk Electricity Trading Company (NBET) PLC.
Johnson Akinnawo, the Managing Director of NBET, revealed the extent of these liabilities during a session with the House of Representatives Committee on Public Accounts on Wednesday.
The Committee has consequently summoned these 11 electricity Distribution Companies (Discos) to address the outstanding debt.
According to documents submitted by NBET, as of September 30, 2020, the cumulative debt of the 11 Discos amounts to ₦2.6 trillion.
The Discos include 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); and Ibadan Electricity Distribution Company (₦325.7 billion).
The remaining are 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 initiated the hearing, also highlighted numerous irregularities within the power sector.
The Auditor General cited ₦30 billion in uncollected debt by NBET from market operators, a ₦549 million shortfall in NBET’s 1% income from institutional charges, ₦100 billion disbursed by NBET to Generation Companies (GENCOs) for electricity that was not delivered to the national grid, ₦26 billion owed to Nigeria by two foreign firms for power exported to Togo, Benin, and Niger, ₦166 billion in under-remittance by Discos, falling below the Nigerian Electricity Regulatory Commission’s (NERC) minimum threshold, and ₦2.7 billion in unpaid invoices by the 11 Discos.
During the investigative hearing, Yahya Kusada proposed a motion, seconded by Billy Osawaru, to summon all 11 Discos to elucidate their persistent failure to fulfill their financial commitments to the Federation Account.
“With the enormity of the liabilities before us, it is essential that these companies present themselves before the Committee to clarify their positions and delineate plans for repayment,” stated Hon. Yahya Kusada.
The Committee has also resolved to invite other market operators and stakeholders to address issues raised in the Auditor General’s report.
A date for these appearances will be communicated to the concerned parties in due course.