House of Reps probes N200 billion CBN loan to DisCos

The House of Representatives will investigate the disbursement and utilisation of the N200 billion Naira Central Bank of Nigeria loan for the National Mass Metering Programme to Electricity Distribution Companies.

The chairman of the Committee, Uchenna Okonkwo (LP-Anambra), revealed this in a statement on Wednesday, as a 19-member committee had been inaugurated for the purpose.

According to him, it is on record that NMMP was introduced in 2020 by CBN in collaboration with the Nigeria Electricity Regulatory Commission and other key stakeholders in the Nigerian Electricity Supply Industry.

He explained that the aim was to help manage conflicts between energy users and distribution companies and to facilitate the elimination of arbitrary billing, closing metering gaps, and improving network monitoring within NESI.

The lawmaker said the programme was to be implemented in three phases to reduce collection losses and improve market remittances in the industry.

“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.

“Preliminary research on the NMMP has shown that, instead of the pronounced amount of N59.280 billion 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,” said Mr Okonkwo.

He added, “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 nine per cent interest on the loan.

“This calls for explanation as to how the fund managers handled the NMMP for national interest. 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.”

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, he said.