The Nigerian House of Representatives has launched an investigation into the Nigerian Electricity Regulatory Commission’s (NERC) management of a N59 billion loan from the Central Bank of Nigeria (CBN). The loan was disbursed to electricity distribution companies (Discos) as part of the National Mass Metering Programme (NMMP), aimed at closing Nigeria’s metering gap.
Honorable Uchenna Okonkwo, chairman of the House Joint Committee investigating the loan’s disbursement and utilisation, disclosed in a statement that the committee has found several irregularities. The programme, initially approved by the Federal Government in 2020 and initiated by NERC to reduce estimated billing, encourage local meter manufacturing, and close the metering gap, has failed to meet its objectives.
Key concerns raised include the involvement of Meristem Wealth Management Limited and NESI-Stabilisation Strategy Limited (NESI-SSL), who approved a firm to receive 0.5 percent of annual collections from Discos up to 2030—an arrangement questioned by the committee. Despite funds being disbursed, NERC has not verified whether the meters were actually installed by the distribution companies, several of which remain indebted to the CBN for the metering funds.
Electricity distribution companies such as Abuja, Ikeja, Eko, Enugu, Kano, and Jos Discos owe the CBN repayments. Yet, documentation and confirmations from NERC about meter installations are lacking, raising further doubts about the programme’s transparency and efficiency.
The committee vowed to invoke relevant constitutional powers against anyone found obstructing the investigation. Okonkwo highlighted ambiguities, inconsistencies, and contradictions in the programme’s management, signaling poor handling and failure to achieve the intended outcomes.
The House Committee has also summoned representatives of Meristem Wealth Management Limited, NERC, NESI-SSL, and other relevant bodies for further scrutiny as it seeks to address these anomalies and hold accountable those responsible for the programme’s shortcomings.
As of the end of 2024, Nigeria’s metering gap was reported at 7.2 million, with only 46.57 percent of electricity customers registered with Discos. The investigation aims to ensure better accountability and efficiency in tackling this persistent infrastructure challenge.