Despite Huge Budgetary Allocation For Electricity, MDAs Owe Power Firms Over N90bn

The electricity debt owed by Ministries, Department and Agencies of governnment have remained huge despite annual budgetary allocation for electricity charges.

A close look at the annual budget of some MDAs showed that a huge amount was repeatedly allocated for electricity charge but not meeting its purpose.

The Nigerian Electricity Regulatory Commission, had last week called on its debtors to pay up the debt to avoid possible disconnection by electricity distribution companies.

“All electricity customers including Ministries, Departments and Agencies of government are advised to clear their electricity debts to avoid disconnections,” the Commission had said.

The Chairman, Nigerian Electricity Regulatory Commission, Prof James Momoh in a recent report decried that the MDAs do not pay for the electricity they consume.

“Overall it’s billions of dollars that is out there. We are asking the government to take the money upfront from the MDAs and pay directly to the Discos.

“Even state governments, local governments they are not paying, they are all owing and they expect miracles to happen,” he stated.

Findings showed that the Federal Ministry of Agriculture and Rural Development in the last four years covering 2017 to 2020 allocated a total of N72.87m for electricity charges.

The Ministry of Defence, Ministry of Education, Ministry of Environment as well as Budget and National Planning in the last four years allocated a total of N214.44m, N140.76m, N139.98m, and N177.16m respectively for electricity charges.

The Executive Director of Association of Nigerian Electricity Distributors, Sunday Oduntan, in a chat with THE WHISTLER confirmed that the distribution company is being owed over N90bn particularly by the MDAs, and the Military.

He said resolving the huge debts has been an issue that is being discussed between the affected agencies and the power firms.

He said, “Resolving this huge debt is an ongoing issue, and the Federal government is negotiating and making sure the issues are resolved.”

He said that military barracks across the country do not pay electricity Bills since the private DISCOs took over from the Power Holding Company of Nigeria.

Meanwhile the Association which consist of 11 DISCOs, had earlier announced that failure of the Federal Government to address the financial crisis in the power sector, would lead to disconnection of power supply to all debtors, including MDAs.