HOUSE OF REPRESENTATIVES SUMMONS CBN, DISCOS OVER $321m, N18.2B LOANS 02-11-23
By Sadiq Aminu The House of Representatives Public Accounts Committee has summoned the Central Bank of Nigeria CBN and 11 Electricity Distribution Companies (DISCOs) over $321 million and N18.2 billion loans for the accelerated transmission distribution interface, lines and substation projects.
The Chairman of the committee Mr Bamidele Salam, issued the summons when the Managing Director of the Transmission Company of Nigeria (TCN), Engr Sule Abdulaziz appeared before the Committee.
Mr Salam said a petition was received on the lack of judicious use of the funds, which were paid to the DISCOs by the CBN on the prompting of the TCN.
He stated that the TCN should provide details of disbursement of the loans, procurement process, how many DISCOs were involved, the stage of the projects, and the structure of the repayment of the loans to the beneficiaries of the loan.
“Sometime in 2022, the then President Muhammadu Buhari granted that certain funds be made available for the purpose of enhancing the capacity of our transmission and distribution lines to be able to have a more robust power sector intervention and these funds were made available for certain projects to the distribution companies.
“It is the concern of the petitioner that the fund have not been judiciously used and that the project ought to have been delivered by now upon which we caused a letter to be written to the Transmission Company of Nigeria which also sent in a response stating the status report of the project as well as the procedure for the implementation of that loan disbursement and execution of the project by the distribution companies.
The Managing Director of the Transmission Company of Nigeria TCN Engineer Sule Abdulaziz, told the Committee that the funds were paid directly to the DISCOs by the CBN to embark on the various projects.
He said the repayment of the loans was from the revenue of the TCN.
This however did not sit well with the Committee who expressed concern over the repayment arrangement.
The TCN Market Operator Edmond Eje, explained that NERC oversaw engagement between TCN and 11 DISCOs to align on a list of critical interface projects that would significantly increase TCN’s capacity to unlock DISCOs energy demand in critical load centres.
He said a total of 125 projects were identified and agreed upon in the tripartite engagement.