DisCos to refund N55.4 billion metering loan
The House of Representatives has given the 11 Electricity Distribution Companies (DisCos) in the country till November to refund the over N55.424 billion loan granted them by the Central Bank
The House of Representatives has given the 11 Electricity Distribution Companies (DisCos) in the country till November to refund the over N55.424 billion loan granted them by the Central Bank of Nigeria(CBN) for the implementation of the National Mass Metering Programme (NMMP).
This followed the consideration and adoption of a report of the Joint Committee on Banking Regulations, Power, Rural Electrification, Housing and Habitat that investigated the implementation of the programme by the administration of the late President Muhammadu Buhari.
Chairman of the committee, Uchenna Okonkwo, said that the concept, initiated in 2020 by the Nigeria Electricity Regulatory Commission(NERC) to close the metering gap, encourage local meter manufacturers and end estimated billing, had failed to yield expected results.
According to him, in the course of the investigation, the committee engaged the Central Bank of Nigeria, Meristerm Wealth Management Ltd, NESI-SSL, NERC and other relevant stakeholders on the disbursement of N55,424,975,546.96 out of the initial N59,280,988,305 projected by the CBN for disbursement.
The report, which was considered by the Committee of the Whole, indicates that the apex bank failed to monitor and evaluate the scheme as required.
According to the report, it was found that the CBN had no evaluation report to show the amount of money the meters funded by the loan generated through vending to justify the 10-year payback period.
The report explained that “some DisCos that received a loan of N4.6 billion generated up to N28 billion in three years. This means that CBN needed to review the guidelines for the scheme to recover the loans early without waiting for 10 years, which will be 2030.”
It also said that there were no documents that confirmed the approval of Buhari for the commencement of NMMP implementation
The report also expressed reservations over a clause which states that Meristerm Wealth Management Limited should receive 0.5 per cent of the annual collection of DisCos up to 2030.
It frowned at the N450 million so far paid to Meristerm for its ‘services’ and requested that the company be made to provide its profile, organogram and level of the work it carried out to justify the paid sum.
