Reps order 11 DISCOs to refund N55.42bn NMMP loan over metering failures

Business, Politics

ABUJA, Nigeria (NPA) — The House of Representatives has directed 11 electricity distribution companies (DISCOs) to refund N55.42 billion obtained under the National Mass Metering Programme (NMMP), following findings that the scheme failed to achieve its intended objectives.

Lawmakers on Thursday adopted the report of the House Committee on Public Assets, giving the beneficiary companies a seven-month deadline to repay the loan to the Central Bank of Nigeria (CBN).

Presenting the report before the House, the committee chairman, Uchenna Okonkwo, said the investigation uncovered significant gaps in the implementation of the metering intervention programme introduced in 2020.

Advertisement

According to him, the NMMP was designed to bridge Nigeria’s metering deficit, reduce estimated billing, promote local meter manufacturing and curb revenue losses in the power sector.

He listed the beneficiary firms as Abuja, Eko, Enugu, Ibadan, Ikeja, Jos, Kano and Yola electricity distribution companies, among the 11 DISCOs that received disbursements under the scheme.

Okonkwo said the committee engaged the CBN, Meristem Wealth Management, NESI-SSL, the Nigerian Electricity Regulatory Commission (NERC), and other stakeholders during the probe.

“The report indicates the programme, initiated in 2020, was to be implemented in three phases.

“N59.28 billion was earmarked for the 11 companies, repayable at nine per cent interest, with six per cent to financiers and three per cent to the CBN.

“The investigation revealed DISCOs received N55.42 billion, leaving N3.85 billion unaccounted for,” he said.

The lawmaker also raised concerns over a contractual clause granting Meristem Wealth Management 0.5 per cent of DISCO collections annually until 2030.

He disclosed that the company had already received N450 million for its services under the programme, a development the committee criticised.

The committee further recommended that the firm provide its corporate profile, ownership structure and a comprehensive report detailing its role in the implementation of the metering initiative.

Following the adoption of the report, the House approved the establishment of a joint loan recovery committee comprising the CBN and NERC to recover the funds from beneficiary DISCOs before the end of 2026. (NAN).