The House of Representatives Public Accounts Committee (PAC) has asked the Jos Electricity Distribution Company (JEDC) to remit ₦72 billion to the federal government within 60 days.
The committee said this during a public hearing on the multi-trillion-naira debts owed by electricity distribution companies (DisCos) to the Federation Account on Wednesday.
|
|
The committee, chaired by Bamidele Salam, reviewed the 2021 report of the Auditor-General of the Federation alongside submissions from the Nigerian Bulk Electricity Trading (NBET) Plc.
The ongoing probe, which covers the financial operations of power sector companies, has uncovered massive debts owed by DisCos and generation companies (GenCos) to the government.
The committee said the debts represent a major drain on the Federation Account and have hindered the government’s capacity to sustain power sector reforms.
|
|
|
|---|
Jos DisCo’s debt profile
As of September 30, 2020, Jos DisCo owed the federal government ₦161.7 billion, according to documents provided by NBET.
In August, the Committee summoned 11 electricity distribution companies to appear before it over a combined ₦2.6 trillion debt owed to the federal government.
The committee’s earlier resolution followed findings in the Auditor-General’s report, which revealed years of non-remittance by the power firms despite continuous revenue collections from customers.
The affected companies included Abuja, Eko, Ikeja, Ibadan, Kano, Jos, Benin, Enugu, Yola, Port Harcourt, and Kaduna DisCos.
It was revealed that as of 30 September 2020, the Discos had accumulated liabilities totalling ₦2.6 trillion.
Abuja Disco owes ₦330.4 billion, Eko Disco ₦231 billion, Benin Disco ₦233.2 billion, Enugu Disco ₦258.3 billion, Ibadan Disco ₦325.7 billion, and Ikeja Disco ₦310 billion,
Others are Jos Disco ₦161.7 billion, Kaduna Disco ₦277.7 billion, Kano Disco ₦211.7 billion, Port Harcourt Disco ₦239.7 billion, while Yola Disco is indebted to the tune of ₦107.4 billion.
At the time, Mr. Salam described the situation as “a flagrant violation of fiscal responsibility and a major threat to national revenue stability.”
However, during Wednesday’s public hearing, Jos Discos, in its presentation before the committee, acknowledged that as of May 30, 2025, it owed ₦72 billion.
The representative of NBET told lawmakers that the DisCo owes a total of ₦98.7 billion as of the same period, according to its reconciled records, leaving a disputed amount of ₦26.7 billion between the two parties.
After discussions, the committee decided that the admitted ₦72 billion needed to be sent to the federal government within 60 days, and that NBET and Jos DisCo needed to reconcile the remaining ₦26.7 billion within 21 days and report back to the committee for a final decision.
Mr. Salam, the committee chair, stressed that operators who continue to withhold public funds under the pretext of operational difficulties would no longer be allowed to use this excuse, and that failure to comply with the directives would result in harsh penalties, including potential referral to anti-corruption agencies.
“This is public money belonging to the Nigerian people. This is public money, and the federal government urgently needs these funds to fulfill its responsibilities. We expect full compliance and accountability,” he stated.
KEDCO given 30 days to remit ₦40.7bn
The committee also asked the Kano Electricity Distribution Company (KEDCO) to pay ₦40.7 billion, representing 50 per cent of its verified ₦81.5 billion debt, within 30 days.
READ ALSO: Reps seek budget line for occupational safety in MDAs
KEDCO’s debt was first reported by NBET at ₦211.7 billion, but following a collaborative reconciliation procedure, the amount was lowered to ₦85.8 billion.
Hussani Sadiq, managing director of KEDCO, confirmed a reconciled debt of ₦81.5 billion during the hearing, while ₦4.3 billion remains disputed.
The committee instructed KEDCO to reconcile the disputed ₦4.3 billion with NBET within 21 days and to show proof of payment of the ₦40.7 billion within 30 days.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
