House to Probe Performance of Loans Disbursed by CBN for Metering

Juliet Akoje in Abuja.

The House of Representatives has mandated its 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 (CBN) for metering purposes.

The resolution followed the adoption of a motion on the ‘Need to Investigate the N39 billion Settlement Loan granted to Ziglaks by the Defunct Ministry of Power, Works and Housing to Supply Meters to Discos,’ moved by  Hon. James Abiodun Faleke at plenary yesterday.
Faleke, noted 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 a N39 billion loan, which was granted to Ziglaks Company to supply metres.

He recalled that the loan was for a term of about seven years, and Ziglaks was to repay the entire N39 billion, which would elapse in 2025 and 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.

“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 made.
“Apart from Ziglaks Nigeria Limited, the CBN 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.”

He pointed out that the World Bank is currently supporting Nigeria with a loan to supply 1.2 million metres, which was expected to kick-start the programme the federal government wants to use to reduce the metering gap.”
The lawmaker further stressed that despite the huge sums of money provided to close the metering gap, Nigerians were still complaining about lack of metres and receive crazy estimated bills from the Discos.

“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,” he added.
He however regretted that the new Electricity Act, 2023, which aimed at protecting Nigeria’s interests by ensuring accurate charges for electricity, may be undermined if the N39 billion contract for Ziglaks Company and CBN funds were not investigated.