The Joint Committee of the House of Representatives investigating disbursement and utilisation of N59bn Central Bank of Nigeria loan for the execution of the National Mass Metering Programme has queried Nigerian Electricity Regulatory Commission.
Also queried are Meristem Wealth Management Llimited and NESI – SSL for giving approval to a firm to receive 0.5% of annual collection from electricity distribution companies to 2030.
In a statement issued on Saturday by its Chairman, Uchenna Okonkwo, the committee disclosed that initial investigation carried out by the committee revealed that the NNMP was initiated by the NERC for the purpose of “Closing metering gap, encourage local meters manufacturers, stop collection losses and estimated billing.”
The committee noted that while the programme was approved by the Federal Government in 2020, “It has failed to yield expected results.”
Okonkwo who represents Idemili North/ Idemili South Federal Constituency noted that the Joint Committee comprising, House Committees on Banking Regulations, Power, Rural Electrification, and Housing in the course of investigation “Engaged Meristerm Wealth Management Ltd, NESI-SSL and Nigerian Electricity Regulatory Commission and other relevant bodies on the disbursement of ₦55. 42bn out of the initial N59. 28bn earmarked for national metering by the apex bank.”
The statement quoted Okonkwo as saying, “The review of the management of the programme has shown a lot of ambiguities, inconsistencies and contradictions which points to the fact that the programme has not been successfully handled to achieve the desired objectives.”
The detail of the programme according to him, shows that NESI-Stabilisation Strategy Ltd was chosen as special purpose vehicle by the CBN while Meristerm Wealth Management Limited was appointed as the fund manager/administrator.
Okonkwo added that though the companies were not forth coming with relevant submission, “The committee has decided to carry out full investigation with the view to address several anomalies in the electricity distribution in the country.”
The committee pledged to invoke relevant constitutional provisions on anyone who found to be frustrating the investigation.
The committee expressed concern, that despite documents from NERC showing that the electricity distribution companies namely, Abuja Electricity Distribution Company, Eko Electricity Distribution Company, Enugu Electricity Distribution Company, Ibadan Electricity Distribution Company, Ikeja Electricity Distribution Company, Jos Electricity Distribution Company, Kano Electricity Distribution Company, and Yola Electricity Distribution Company, are owing the CBN for disbursements made to them to install meters, “NERC has not verified the Installations of those meters.”
He expressed worry over the clause which states that Meristerm Wealth Management Limited should receive 0.5% of annual collection of Disco up to 2030 for National Mass Metering Programme.
The committee directed the management of Meristem Wealth Management Ltd, NERC, NESI-SSL and other relevant bodies to appear in the next sitting.
