Five years after, Reps probe N39bn loan to DisCos

House of Representatives, on Thursday, unveiled plans to investigate the N39 billion settlement loan granted to Ziglaks by the Defunct Federal Ministry of Power, Works and Housing for the supply of meters to electricity Distribution Companies (DisCos).

The resolution was passed sequel to the adoption of a motion sponsored by Chairman, House Committee on Finance, Hon. James Abiodun Faleke.

In his lead debate, Hon. Faleke observed that in July 2018, the Federal Ministry of Power, Works, and Housing, by Presidential approval, converted the N119 billion judgment debt against the Federal Government into an N39 billion loan, which was granted to Ziglaks Company to supply metres.

According to him, the loan was for a term of about seven years, and Ziglaks was to repay the entire N39 billion, which will lapse in 2025.

“The House is aware that the Ministry of Power directed the Nigerian Electricity Regulatory Commission (NERC)
to issue a regulation that facilitated the signing of metre supply agreements between the Federal Ministry of Power, Works, and Housing with Ziglaks and other metre asset providers.

“The House is concerned that update, there has been no evidence of supply of metres by Ziglaks Nigeria Limited,
since 2018, when the agreement was signed and payment of N39 billion naira made.

“The House is also concerned that apart from Ziglaks Nigeria Limited, the Central Bank of Nigeria also intervened in the funding of metre manufacturers to provide metres and ameliorate the suffering of the people’s underestimated billings, but this action is yet to be felt by the people.

“The House is disturbed that the World Bank is currently supporting Nigeria with a loan to supply 1.2 million metres, which is expected to kick-start the programme the Federal Government wants to use to reduce the metering gap.

“The House is disturbed that the World Bank is currently supporting Nigeria with a loan to supply 1.2 million meters to kick-start the Federal Government programme aimed at reducing the metering gap.

“The House is worried that despite the huge sums of money provided to close the metering gap, Nigerians are still complaining about lack of metres and receive crazy estimated bills from the DisCos.

“The House is also worried that DisCos have failed to meet post-privatisation conditions of closing the metering gap, thus, making millions of consumers receive estimated billing despite a potentially pending contract agreement.

“The House regret that the new Electricity Act, 2023 which is aimed at protecting Nigeria’s interests by ensuring accurate charges for electricity, may be undermined if the N39 billion contract for Ziglaks Company and Central Bank of Nigeria funds is not investigated.”

To this end, the House mandated the joint Committees of Finance and Power to investigate and determine the performance of the loan and the utilisation of funds disbursed by the Central Bank of Nigeria for metering purposes.

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