The Nigerian House of Representatives has launched an inquiry into the Nigerian Electricity Regulatory Commission’s (NERC) management of a 59 billion naira loan from the Central Bank of Nigeria (CBN). The loan was intended to finance the National Mass Metering Programme (NMMP), a federal government initiative aimed at addressing the country’s metering gap. According to Uchenna Okonkwo, chairman of the joint committee overseeing the investigation, the NMMP has failed to achieve its objectives since its introduction in 2020.
The committee has expressed concerns over the utilization of the loan, citing a lack of verification by NERC regarding the installation of meters by electricity distribution companies. These companies, including Abuja, Ikeja, Eko, Enugu, Kano, and Jos discos, are reportedly indebted to the CBN for disbursements made to install meters. The investigation has also raised questions about the approval of a firm to receive 0.5 percent of annual collections from electricity distribution companies until 2030, a decision made by Meristem Wealth Management Limited and NESI-SSL.
Nigeria’s metering gap remains a significant challenge, with approximately 7.2 million customers lacking meters. As of the end of 2024, only 46.57 percent of the total 13,503,342 customers were registered with distribution companies. The House of Representatives’ investigation seeks to address anomalies in the electricity distribution sector and ensure that the loan is utilized effectively. The committee has vowed to invoke relevant constitutional provisions against anyone found obstructing the investigation.
The inquiry is a significant step towards promoting transparency and accountability in the management of public funds. The outcome of the investigation is expected to provide insights into the challenges facing the NMMP and the electricity distribution sector as a whole. As the investigation unfolds, it is likely to shed light on the factors contributing to the metering gap and the measures needed to address this issue. The House of Representatives’ efforts to investigate the utilization of the loan and promote accountability in the electricity distribution sector are crucial for ensuring that the NMMP achieves its objectives and that the Nigerian public receives the services they require.
