Reps Probe CBN’s N59bn Meter Loan Disbursement To DisCos
The House of Representatives has initiated an investigation into how the N59 billion loan from the Central Bank of Nigeria (CBN), designated for the National Mass Metering Programme (NMMP) for Electricity Distribution Companies (DisCos), was disbursed and utilised.
Chairman House Committee on Public Assets, Rep. Uchenna Okonkwo, disclosed this through a statement on Wednesday in Abuja.
Okonkwo confirmed that a 19-member subcommittee including Rep. Obed Shehu, Rep. Ali Shettima, Rep. Abel Fuah, Rep. Salisu Koko, Rep. Ahmed Munir, Rep. Sani Umar Bala, Rep. Gbefwi Jonathan, Rep. Abdulmaleek Danga, Rep. Chinedu Obika, and Rep. Okunlola Lanre had been inaugurated to probe the matter thoroughly.
Other members of the committee include Rep. Abass Adekunle, Rep. Akinosi Akanni, Rep. Obuzor Victor, Rep. Peter Akpanke, Rep. Ngozi Lawrence, Rep. Ogah Amobi Godwin, and Rep. Ikeagwuonu Onyinye.
The chairman noted that 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 naira for the phase, what was released was N55.4 billion for procurement and installation of 962,832 meters instead of one million meters pronounced by CBN,” he noted.
Concerns were also raised regarding repayment. The committee noted discrepancies in the repayment of the funds by the DisCos.
Okonkwo said, “Research has also shown that what the eleven Electricity Distribution Companies who received the loan have paid back to CBN as refund for the N54.4 billion they received in 2020 without mentioning the 9 per cent interest on the loan.”
He added that the subsequent phases of the programme, which were expected to expand metering across the country significantly, have stalled.
Phase 1, which was to be funded by the CBN and Deposit Money Banks (DMBs) for 1.5 million meters, and Phase 2, expected to be financed by the World Bank for four million meters, have yet to take off.
He said that the House, exercising its constitutional powers under Sections 88(1) and (2) of the 1999 Constitution, resolved to investigate the matter to safeguard the public interest.
The subcommittee is expected to scrutinise all aspects of the NMMP funding, from disbursement and meter procurement to distribution and repayment mechanisms.
Initiated in 2020, the NMMP was designed to provide free electricity meters to Nigerian consumers through the Licensed Electricity Distribution Companies (DisCos).
The programme was a joint initiative of the CBN, the Nigerian Electricity Regulatory Commission (NERC), and other stakeholders in the Nigerian Electricity Supply Industry (NESI).
It aimed to eliminate estimated billing, improve transparency in energy usage, and enhance customer satisfaction.
