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The House of Representatives is set to examine the allocation and use of the N200 billion Naira loan from the Central Bank of Nigeria for the National Mass Metering Programme aimed at Electricity Distribution Companies.
Uchenna Okonkwo (LP-Anambra), the chairman of the Committee, announced this on Wednesday, noting that a 19-member committee had been formed for this purpose.
He pointed out that the NMMP was launched in 2020 through a partnership between the CBN, the Nigeria Electricity Regulatory Commission, and other crucial players in the Nigerian Electricity Supply Industry.
The goal of the programme is to mitigate disputes between energy consumers and distribution firms, eliminate overbilling, bridge metering gaps, and enhance network oversight within NESI.
According to him, the initiative is to be rolled out in three phases to minimize collection losses and enhance remittances within the sector.
“During the initial phase of the programme, the CBN allocated N59.280 billion for the purchase and installation of one million meters in 2020, at an interest rate of 9 percent after a two-year grace period.
However, preliminary findings regarding the NMMP indicate that instead of the expected N59.280 billion for Phase 0, only N55.4 billion was disbursed, leading to the procurement and installation of 962,832 meters rather than the promised one million meters,” Okonkwo stated.
He further remarked, “Research also reveals that the eleven Electricity Distribution Companies, which received the N54.4 billion loan in 2020, have repaid an undisclosed amount to the CBN, excluding the nine percent interest on the loan.
This raises questions about the management of the NMMP in the interest of the nation. Additionally, there are concerns regarding Phase 1 of the NMMP, which was to be financed by CBN and Deposit Money Banks (DMBs) for 1,500,000 meters, as well as Phase 2, intended for 4,000,000 meters funded by the World Bank, which remain unaddressed.
Given the implications of this situation on the country's economic and social progress, as well as the importance of transparency and accountability in handling public funds, the House, drawing on its authority as outlined in Sections 88(1) and (2) of the 1999 Constitution, has decided to establish a Sub-Committee to investigate the allocation and usage of the N200 billion CBN loan for the NMMP directed to DISCOs, he stated.
