Reps to probe N200bn CBN loan disbursed to DisCos for metering
The house of representatives has launched a probe into the disbursement and utilisation of the N200 billion loan provided by the Central Bank of Nigeria (CBN) for the national mass metering programme (NMMP) to electricity distribution companies (DisCos).
Uchenna Okonkwo, Chairman of the House Committee on Power, disclosed this in a statement on Wednesday in Abuja, announcing the inauguration of a 19-member subcommittee to carry out the investigation.
He said the committee’s main goal is to investigate the programme launched in 2020 to enable licensed electricity distribution companies to provide free meters to Nigerian consumers.
According to the chairman, the NMMP was initiated by CBN in partnership with the Nigerian Electricity Regulatory Commission (NERC) and other major stakeholders in the Nigerian Electricity Supply Industry (NESI)
Okonkwo said the initiative was designed to reduce disputes between electricity consumers and distribution companies, eliminate estimated billing, close metering gaps, and enhance network monitoring within NESI.
The lawmaker added that the programme was structured to run in three phases to curb revenue losses and boost financial remittances across the sector.
“Under the pilot phase of the programme’s implementation, CBN commenced with the sum of N59.280 billion for procurement and installation of one million meters in 2020 at an interest rate of 9 per cent after a two-year moratorium,” Okonkwo said.
“Preliminary research on the NMMP has shown that instead of the pronounced amount of N59.280 billion naira for the phase 0, what was released was N55.4 billion for procurement and installation of 962,832 meters instead of one million meters pronounced by CBN.
“Research has also shown that what the eleven Electricity Distribution Companies who received the loan has paid back to CBN as refund for the N54.4 billion they received in 2020 without mentioning the 9 percent interest on the loan.
“This calls for explanation as to how the fund managers handled the NMMP for national interest.”
He also expressed concerns about the status of phase one of the NMMP — which was expected to be funded by CBN and deposit money banks (DMBs) for the installation of 1.5 million meters — and phase two, which was to be financed by the World Bank to deploy four million meters.
“Also of concern the phase 1 of the NMMP which CBN and Deposit Money Banks (DMBS) were to fund for procurement and installation of 1,500,000 meters, as well as, the phase 2 of NMMP which the World Bank was to fund for procurement and installation of 4,000,000 meters has not been addressed,” the lawmaker said.
“Having considered the effect of the above situation on the nation’s economic and social development, as well as transparency and accountability in the management of public funds, the house relying on its powers contained in Sections 88(1) and (2) of the 1999 Constitution, decided to set up Sub – Committee to investigate the disbursement and utilisation of the N200 billion naira CBN loan for NMMP to DISCOs.”
The subcommittee includes Obed Shehu, Ali Shettima, Abel Fuah, Salisu Koko, Ahmed Munir, Sani Umar Bala, Gbefwi Jonathan, Abdulmaleek Danga, Chinedu Obika, and Okunlola Lanre.
Others are Abass Adekunle, Akinosi Akanni, Obuzor Victor, Peter Akpanke, Ngozi Lawrence, Ogah Amobi Godwin, and Ikeagwuonu Onyinye.
On February 29, 2024, the House of Representatives asked CBN to provide details of loans disbursed to the licensed DisCos under The National Mass Metering Programme.
