Reps order 11 Discos to refund N55.4bn over failed metering programme

The House of Representatives has directed 11 electricity distribution companies (DISCOs) to refund N55.42 billion received as loans under the National Mass Metering Programme (NMMP), citing non-compliance and poor performance. The affected DISCOs include Abuja, Eko, Enugu, Ibadan, Ikeja, Jos, Kano and Yola Electricity Distribution Companies, among others Adopting the report of its joint committee […]

The House of Representatives has directed 11 electricity distribution companies (DISCOs) to refund N55.42 billion received as loans under the National Mass Metering Programme (NMMP), citing non-compliance and poor performance.

The affected DISCOs include Abuja, Eko, Enugu, Ibadan, Ikeja, Jos, Kano and Yola Electricity Distribution Companies, among others

Adopting the report of its joint committee on Banking Regulations, Power, Rural Electrification, Housing and Habitat, the House ordered that the funds disbursed by the Central Bank of Nigeria be refunded on or before November 2026.

Presenting the report, the committee chairman, Hon. Uchenna Harris Okonkwo, said the investigation was conducted in line with the panel’s mandate to examine the disbursement and utilisation of funds under the programme.

He explained that the NMMP, initiated in 2020 by the Nigerian Electricity Regulatory Commission, was designed to close Nigeria’s metering gap, promote local meter manufacturing, and eliminate estimated billing. However, he said the programme has failed to achieve its objectives.

According to the report, a total of N55,424,975,546.96 was disbursed to DISCOs out of the N59.28 billion initially earmarked by the CBN. The committee, however, noted that the apex bank failed to adequately monitor and evaluate the scheme.

“The CBN provided the funds but did not carry out proper monitoring and evaluation. There is no report to show the revenue generated from meters funded by the loan to justify the 10-year repayment plan,” the report stated.

The lawmakers further observed that some DISCOs that received about N4.6 billion reportedly generated up to N28 billion within three years, suggesting that the repayment period could be shortened.

The committee also raised concerns over the absence of documentation confirming presidential approval for the programme under former President Muhammadu Buhari.

The NMMP was structured in three phases—Phase 0 (1 million meters funded by CBN/NESI), Phase 1 (1.5 million meters funded by CBN/DMBs), and Phase 2 (4 million meters expected to be funded by the World Bank). The programme was projected to cost about N200 billion.

Findings showed that while N59.28 billion was earmarked for 11 DISCOs at an interest rate of nine per cent, only N55.42 billion was disbursed, leaving a balance of N3.86 billion yet to be accounted for.

The committee also faulted a clause granting Meristem Wealth Management Limited 0.5 per cent of DISCOs’ annual collections until 2030, revealing that about N450 million had already been paid to the firm. It directed the company to provide details of its role, structure, and deliverables under the programme.

The report noted that the Nigerian Electricity Regulatory Commission has yet to fully verify meter installations tied to the disbursed funds.

Following the adoption of the report, the House approved the constitution of a loan recovery committee to be set up by the CBN and NERC to recover both principal and interest from the DISCOs before the 2026 deadline.

The lawmakers said the move is necessary to ensure accountability and restore confidence in government-backed interventions in the power sector.