The Nigerian Bulk Electricity Trading Company (NBET) Plc has revealed that 11 Electricity Distribution Companies (DisCos) owe the Federal Government N2,702,485,436,151.19 in unpaid remittances for power supplied.
According to a document submitted to the House of Representatives Committee on Public Accounts, the amount should have been remitted into the federation account. In addition, the DisCos under-remitted another N166 billion, falling below the Nigerian Electricity Regulatory Commission’s (NERC) minimum remittance threshold.
NBET disclosed that the N2.7 trillion debt represents power supplied to the DisCos as of September 30, 2020, and includes charges accrued from the Nigerian Interbank Offered Rate (NIBOR) plus 4 percent interest.
Currently, six DisCos — Abuja, Benin, Kaduna, Kano, Ibadan, and Ikeja — are in receivership due to worsening financial crises.
A breakdown of the debts shows:
- Abuja Electricity Distribution Company: N330.4 billion
- Benin Electricity Distribution Company: N233.2 billion
- Kaduna Electricity Distribution Company: N277.7 billion
- Kano Electricity Distribution Company: N211.7 billion
- Ibadan Electricity Distribution Company: N325.7 billion
- Ikeja Electricity Distribution Company: N310 billion
The mounting debts highlight the sector’s liquidity crisis and raise further questions on the sustainability of Nigeria’s electricity market.
