Reps raise concerns over N59bn national metering fund mismanaged by NERC

The Joint Committee of the House of Representatives investigating the disbursement and utilization of a N59bn loan from the Central Bank of Nigeria for the National Mass Metering Programme (NMMP) has directed pointed questions to the Nigerian Electricity Regulatory Commission (NERC).

Meristem Wealth Management Limited and NESI-SSL have also been scrutinized for sanctioning a firm to collect 0.5% of annual revenues from electricity distribution companies until 2030.

In a statement from the committee’s Chairman, Uchenna Okonkwo, it was revealed that early investigations indicated the NMMP was established by the NERC to address critical issues such as closing the metering gap, encouraging local meter production, and reducing collection losses and estimated billing.

Despite receiving federal approval in 2020, Okonkwo noted, “The programme has failed to yield expected results.”

The joint committee, consisting of members from various committees including Banking Regulations, Power, Rural Electrification, and Housing, has engaged with Meristem, NESI-SSL, and NERC to assess the disbursement of ₦55.42bn from the initial ₦59.28bn earmarked for national metering by the Central Bank.

Okonkwo commented, “The review of the management of the programme has shown a lot of ambiguities, inconsistencies, and contradictions which point to the fact that the programme has not been successfully handled to achieve the desired objectives.”

Details revealed that NESI-Stabilisation Strategy Ltd was appointed as the special purpose vehicle for the project, while Meristem was designated as the fund manager.

Despite the lack of cooperation in providing necessary documentation, Okonkwo emphasized that “The committee has decided to carry out a full investigation to address several anomalies in electricity distribution in the country.”

With serious concerns raised about the substantial debts owed by various electricity distribution companies to the CBN for meter installations, the committee has demanded that NERC verify the installations in question.

Okonkwo expressed particular unease regarding the clause granting Meristem Wealth Management 0.5% of annual collections from distribution companies through 2030 for the NMMP.

In the next session, the committee has summoned representatives from Meristem Wealth Management Ltd, NERC, NESI-SSL, and other relevant stakeholders to provide clarity on these issues.

Source: PUNCH