The House of Representatives Public Accounts Committee has summoned the Central Bank of Nigeria (CBN) and 11 Electricity Distribution Companies (DisCos) over the alleged mismanagement of $321 million and N18.2 billion loans.
The loans were designated for accelerated transmission and distribution of interface, lines, and substation projects.
The chairman of the committee, Bamidele Salam, issued the summon during the appearance of the Managing Director of the Transmission Company of Nigeria (TCN), Engr. Sule Abdulaziz, before the committee in Abuja on Thursday, November 2, 2023.
The CBN and the DisCos were asked to appear before the committee on November 8.
The investigation was prompted by a petition regarding the alleged misuse of funds, which had been disbursed to the DisCos by the CBN at the request of the TCN.
Salam demanded detailed information regarding the loan disbursement, procurement processes, the involvement of DisCos in the projects, the current status of the projects, and the loan repayment structure from the beneficiaries.
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The lawmaker emphasised the importance of ensuring that public institutions adhere to the law and international best practices while ensuring the judicious utilisation of funds.
Appearing before the committee, Abdulaziz said the funds were transferred directly to the DisCos by the CBN for the execution of various projects, with the intention of repaying the loans using TCN’s revenue.
However, this repayment arrangement raised concerns within the committee.
He explained that there was a gap in the electricity sector, leading to complaints from distribution companies regarding the inadequate supply from TCN.
He said, consequently, the need arose to invest in critical projects to enhance the distribution of electricity to Nigerians.
The TCN boss added that financial institutions and regulatory bodies, such as CBN and NERC, were involved in the financing and oversight of the projects.
Abdulaziz said the TCN played a beneficiary role, while the DisCos were responsible for executing the projects.
He added that loan repayments were intended to come from TCN’s revenue, amortised on a monthly basis.
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