The House of Representatives has raised questions over how a ₦59 billion loan released by the Central Bank of Nigeria (CBN) for the National Mass Metering Programme (NMMP) was handled, particularly by the Nigerian Electricity Regulatory Commission (NERC).
At its sitting, the Joint Committee reviewing the loan’s management queried NERC for alleged failure to ensure proper use of the funds. Lawmakers also objected to a provision authorising Meristerm Wealth Management Limited to take 0.5 per cent of electricity distribution companies’ (Discos) annual collections until 2030.
The panel is composed of the House Committees on Banking Regulations, Power, Rural Electrification, and Housing.
Programme failed to meet objectives
Chairman of the committee, Uchenna Harris Okonkwo, explained that preliminary inquiries suggested the metering scheme, introduced by NERC, was meant to bridge the gap in electricity metering, promote local production of meters, curb collection losses, and eliminate estimated billing.
According to him, although the Federal Government approved the initiative in 2020, its expected impact has not materialised.
He disclosed that the committee had already engaged Meristerm Wealth Management, NESI-Stabilisation Strategy Limited (NESI-SSL), NERC, and other relevant stakeholders regarding the disbursement of ₦55.42 billion out of the ₦59.28 billion allocated by the CBN.
Okonkwo said: “The review of the management of the programme has shown a lot of ambiguities, inconsistencies and contradictions which points to the fact that the programme has not been successfully handled to achieve the desired objectives.”
Role of fund managers
Documents before the committee revealed that the CBN designated NESI-SSL as a special purpose vehicle for the scheme, while Meristerm Wealth Management Limited was appointed to manage the funds.
However, Okonkwo noted that both companies had not provided sufficient documentation to the panel. He stressed that the committee would press on with a full-scale probe to uncover gaps in the handling of electricity distribution in the country.
He further warned that the legislature would not hesitate to apply constitutional powers against any individual or organisation found to be obstructing the inquiry.
Concerns over fund utilisation
Lawmakers expressed concern that, despite records indicating that Discos still owe the CBN for loans provided to them for meter installations, NERC has not carried out verification of the meters allegedly installed.
The committee also questioned the justification for a clause granting Meristerm Wealth Management Limited 0.5 per cent of Discos’ annual collections under the NMMP until 2030.
The committee has directed Meristerm Wealth Management Limited, NESI-SSL, NERC, and other related parties to appear at its next sitting to provide clarifications.