Reps summon CBN, DisCos over $321 million electricity loans

The loans were designated for accelerated transmission and distribution interface, lines, and substation projects.

News Agency of Nigeria • November 3, 2023

DISCOS; CBN

The House of Representatives Public Accounts Committee has summoned the Central Bank of Nigeria and 11 electricity distribution companies (DisCos) in connection with alleged mismanagement of $321 million and N18.2 billion loans.

The loans were designated for accelerated transmission and distribution interface, lines, and substation projects.

Bamidele Salam, the committee chair, issued the summons during the appearance of Sule Abdulaziz, the managing director of the Transmission Company of Nigeria (TCN), before the committee in Abuja on Thursday.

The entities were asked to appear before the committee on November 8.

The investigation was prompted by a petition regarding the alleged misuse of funds, which had been disbursed to the DisCos by the CBN at the request of the TCN.

Mr Salam demanded detailed information regarding the loan disbursements, procurement processes, the involvement of DisCos in the projects, the current status of the projects, and the loan repayment structure from the beneficiaries.

Mr Salam emphasised the importance of ensuring that public institutions adhere to the law and international best practices while ensuring the judicious utilisation of funds.

Appearing before the committee, Mr Abdulaziz clarified that the funds were transferred directly to the DisCos by the CBN for the execution of various projects to repay the loans using TCN’s revenue.

However, the repayment arrangement has raised concerns.

Mr Abdulaziz explained that there was a gap in the electricity sector, leading to complaints from distribution companies regarding the inadequate supply from TCN.

The TCN boss said, consequently, the need arose to invest in critical projects to enhance the distribution of electricity to Nigerians. According to him, financial institutions and regulatory bodies, such as CBN and NERC, were involved in the financing and oversight of these projects.

Mr Abdulaziz said the TCN played a beneficiary role, while the DisCos were responsible for executing the projects. He added that loan repayments were intended to come from TCN’s revenue, amortised monthly.

(NAN)

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