Reps Panel laments lack of improved electricity supply despite huge investments
The House of Representatives ad-hoc committee investigating power sector reforms and expenditures from 2006 to 2024 has said that despite billions of naira injected into the power sector by the
The House of Representatives ad-hoc committee investigating power sector reforms and expenditures from 2006 to 2024 has said that despite billions of naira injected into the power sector by the government through the Central Bank of Nigeria and other intervention mechanisms, Nigerians are yet to see commensurate improvement in electricity supply.
The committee also expressed concern over the continued arbitrary use of estimated billings and the slow rollout of prepaid meters in the country.
The lawmakers who expressed their displeasure during an oversight visit to the headquarters of the Abuja Distribution Company also indicted the company for what it described as unfair treatment to states under its purview allocating 80 percent of power supply to the FCT alone to the detriment of Niger, Kogi and Nasarawa states.
The committee also queried AEDC over loans and intervention funds reportedly obtained from the Federal Government following the privatisation of the power sector 13 years ago.
Chairman of the Committee, Ibrahim Almustapha Aliyu criticised what it described as a discriminatory electricity distribution policy allegedly being implemented by the Abuja Electricity Distribution Company (AEDC), allocating alone 20 percent of power supply received by the company to Niger, Kogi and Nasarawa states.
Aliyu emphasised said every state within a distribution company’s coverage area deserves equitable treatment, stressing that electricity supply should not be determined solely by revenue considerations, especially in a sector that has benefitted from substantial public funding and federal intervention.
The lawmakers further instructed AEDC to reappear before the panel alongside the Transmission Company of Nigeria (TCN) to clarify issues concerning bulk power allocation, transmission constraints and the interplay between both entities in the distribution chain.
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The committee reiterated that its mandate is to ensure accountability, transparency and improved service delivery in the power sector, warning that companies found wanting will be held responsible.
Managing Director of AEDC, Chijioke Okwuokenye, denied any deliberate discriminatory intent in power distribution, but said the distribution pattern to operational and commercial realities.
These realities he said include high levels of energy theft in some states, weak structure and network limitations, Low revenue recovery rates, mounting debts owed by customers, the need to prioritise areas with stronger revenue generation to sustain operations
According to him, the Federal Capital Territory remains the company’s largest and most viable revenue base, which significantly influences allocation decisions.
He said the company is working to improve infrastructure and reduce losses in underserved areas but noted that sustainable improvements require cooperation from host communities, state governments and consumers.
He said the company has so far distributed over 300,000 prepaid meters across its coverage area. He added that estimated billing has been significantly reduced and that AEDC now operates a capping system in line with regulatory directives to prevent overbilling of unmetered customers.
Okwuokenye clarified that the current management took over the company in 2023 through a receivership arrangement. He maintained that the new investors cannot be held accountable for financial decisions or obligations incurred as far back as 2013.
He also said that the company is currently servicing inherited liabilities, including obligations to the Central Bank of Nigeria, and remains committed to clearing historical debts while stabilising operations.
