The motion sponsor said the intervention funds into the power sector, banks have taken over six of the eleven DisCos in Nigeria due to poor financial performance and management.
The House of Representatives is set to investigate the financial interventions for the power sector since privatisation in 2013.
This is even as it lamented that the sector still suffers revenue shortfalls which it attributes to high electricity tariffs despite the numerous intervention funds provided by the federal government and international agencies.
At the Plenary on Wednesday, the House instructed the Committee on Power to investigate all the financial interventions in the power sector since privatisation to determine if funds were used judiciously.
This resolution is sequel to a motion sponsored by Rep. Ademorin Kuye (APC, Lagos) on the “Need to Investigate Financial Interventions in the Power Sector Amounting to Trillions of Naira.”
In his lead debate, Kuye observed that the privatisation of Nigeria’s power sector was necessitated by the failure of the defunct Power Holding Company to attract investments.
He said the government had hoped that the privatisation would blossom and attract investors, but the industry has failed to meet expectations.
He also noted that the federal government has spent over 7 trillion on direct intervention in the sector, such as the Presidential Power Initiative – a strategic approach to address Nigeria’s unreliable and inadequate electricity supply. despite privatising the industry since November 2013,
According to him, despite funds directed to the sector, “the revenue generation and collection have been the major challenge of the power sector in that the DisCos lament over revenue shortfalls attributed to low electricity tariff or that electricity revenue may be accruing to the wrong accounts.”
Kuye further noted that “out of the eleven DisCos in Nigeria, banks have taken over six which are AEDC, KADECO, KEDCO, BEDC, IBEDC, and PHEDC due to poor financial performance and management.
“The Aggregate Technical and Commercial Collection (ATC&C) loss is an actual measure of the performance of a power distribution system as it includes both technical losses and commercial losses. It shows the gap between input energy into the system and the units for which the payment is collected.
“An improved ATC&C loss reduction would be achieved if Discos adopted a combination of other strategies that would ensure reduction in technical and commercial losses in addition to aggressive deployment of metre assets.
Kuye equally noted that the national power grid has collapsed over seven times this year, despite the huge investment in the power sector which explains the persistent electricity shortage in the country
“The Nigeria Electricity Supply Industry faces threat due to the poor performance and transparency of DISCOs and the NERC’s ability to sanction erring stakeholders.”
The lawmaker urged for a reliable electricity supply, noting that it would enhance living standards by promoting job creation and stimulating other economic sectors like commerce and industries.
The Committee on Power is to present a report on its investigation within six weeks for further legislative action.