The House of Representatives has subjected the acting Managing Director of Nigerian Bulk Electricity Trading (NBET) Plc, Johnson Akinowo, to intense scrutiny over the spending of N4.099 billion generated as regulatory income during the 2025 fiscal year.
The interrogation took place on Thursday during NBET’s appearance before the House Committee on Finance to defend its 2025 budget performance.
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Raising concerns, the Committee Chairperson, James Faleke (APC, Lagos), questioned what he described as disproportionately high recurrent spending by the power sector agency.
He drew attention to several expenditure items, including N377.031 million spent on staff welfare out of an approved N377.658 million, and N76.939 million expended on miscellaneous expenses from a N78.838 million budgetary provision.
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Lawmakers were particularly critical of NBET’s spending on travel-related items, amid an existing presidential directive restricting foreign trips by government officials.
Documents submitted to the committee showed that the company expended N470.122 million on international travels and training, nearly exhausting the N479.845 million approved for the purpose.
Further breakdown of NBET’s 2025 spending revealed N111.804 million spent on management, staff and board retreats; N71.379 million on board sittings and directors’ allowances; N36.313 million on professional fees; N48.779 million on conferences, seminars and exhibitions; and N31.858 million on refreshments and meals.
Other cost items queried by lawmakers included N9.713 million for cleaning and fumigation, N60.231 million for office and IT equipment maintenance, N68.552 million for office stationery and computer consumables, N65.530 million for local travel and transport, and an additional M79.103 million for local travel related to training. Personnel costs alone accounted for N1.780 billion.
The committee also faulted NBET for failing to declare revenue generated in December 2025 in the documents submitted for review.
Responding to questions on overseas travel, Mr Akinowo said the company complied strictly with the directive issued by the Chief of Staff to the President. He explained that all foreign trips undertaken by NBET officials received approvals from either the Secretary to the Government of the Federation or the Head of the Civil Service of the Federation.
“Every and all travels that you see that was funded there had either an SGF or Head of Service approval,” he said.
He cited NBET’s participation in the World Bank Spring Meetings as an example, noting that the engagement was linked to Nigeria’s Partial Risk Guarantee programme managed by NBET. According to him, the meetings required the agency’s presence to provide technical clarification on Nigeria’s power sector portfolio.
Mr Akinowo added that he attended the meetings as part of the Federal Ministry of Finance delegation, alongside officials from other agencies including the Debt Management Office, Bank of Industry and the Central Bank of Nigeria, whom he described as key stakeholders in defending Nigeria’s position.
On capital funding, the NBET chief disclosed that although the National Assembly approved N855 billion for power reform programmes, only N60 million was released to the agency. He said the late release of the funds made it impossible to complete procurement processes, leaving the amount unutilised.
He also clarified the structure of regulatory revenues in the electricity market, explaining that such income is designed to fund the operations of market institutions rather than being paid into the Consolidated Revenue Fund.
According to him, electricity distribution companies receive separate invoices for energy and capacity payments, which NBET passes on to generation companies, and for market administrative charges, which fund the operations of regulatory agencies such as the Nigerian Electricity Regulatory Commission, Transmission Company of Nigeria and the Nigerian Independent System Operator.
“Distribution companies get two invoices. One is for energy and capacity which they pay to embed and embed pays to the GENCOs. The other one is for market administrative charge, which is supposed to cover the operations of the agencies of government that provide the service in the electricity market,” he explained.
Mr Akinowo said these regulatory revenues, as approved periodically by NERC, exclude the agencies from recurrent appropriations, leaving capital expenditure to be funded through the Appropriation Act.
Addressing concerns over undeclared December 2025 revenue, he explained that invoices issued late in the year but not yet due for payment were captured in line with contractual timelines and existing financial regulations, to ensure transparency.
“If you issue an invoice in December and it is not due for payment, if the contract says your invoice is due 25 days after, and that in five days is in January or in February, then that is what it is, because the legislation takes care of it and is captured for transparency,” he said.
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In his closing remarks, Mr Faleke said the committee would request comprehensive documentation covering all NBET expenditures in 2025, including approvals and waivers obtained from relevant authorities and the Presidency.
He announced the suspension of consideration of NBET’s 2026 budget proposal pending submission and verification of the requested documents. The committee adjourned proceedings to next Tuesday, 10 February, when the Accountant-General of the Federation is expected to appear.
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