Eko DisCo Highlights N144 Billion Debt Owed by Government Agencies.
The Eko Electricity Distribution Company (EKEDC) is grappling with a significant financial challenge as ministries, departments, and agencies (MDAs) in its operational area owe the company a staggering N144 billion in unpaid electricity bills. This was disclosed by the acting Managing Director of EKEDC, Mrs. Rekhiat Momoh, during a visit by the House of Representatives Committee on Privatisation and Commercialisation in Lagos on Tuesday.
Mrs. Momoh revealed that the debt is primarily owed by various government bodies, including the Nigerian military, police, and other state government agencies, which have consistently failed to settle their electricity bills. This situation poses a significant hurdle for EKEDC in maintaining its operations and fulfilling its obligations.
The debt issue is not isolated to EKEDC. Recently, electricity distribution companies (DisCos) across Nigeria have voiced concerns over unpaid bills by no fewer than 20 of the 36 state governments. Many state governments have outstanding electricity bills for facilities such as government houses and secretariats.
The Executive Director of Research and Advocacy at the Association of Nigerian Electricity Distributors, Sunday Oduntan, lamented that attempts by DisCos to recover these debts often result in their offices being sealed by state authorities over alleged unpaid taxes.
Despite these challenges, Mrs. Momoh highlighted the company’s efforts to improve its performance in the power sector. EKEDC has successfully reduced its Aggregate Technical, Commercial, and Collection (ATC&C) losses from 35% in 2023 to 15.1% in 2024. Additionally, the company has made strides in metering its customers, with over 700,000 customers now metered, and plans to procure an additional 92,000 meters through the Federal Government’s Distribution Sector Recovery Programme.
The EKEDC has also made significant investments in technology, metering, and transformers. Mrs. Momoh noted that EKEDC is the only DisCo that consistently meets its monthly remittance obligations to the Nigerian Bulk Electricity Trading Company.
During the oversight visit, the Chairman of the House of Representatives Committee on Privatisation and Commercialisation, Hamisu Ibrahim, expressed the committee’s commitment to addressing electricity theft in the country through legislative action.
He emphasized the importance of collaboration between the committee and electricity companies to ensure efficient power supply and to tackle challenges such as electricity theft and the recovery of debts owed by MDAs.
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Ibrahim stressed that the committee’s visit was part of its legislative duty to oversee privatised and concessioned enterprises managed by the Bureau of Public Enterprises. He assured EKEDC of the committee’s support in finding legislative solutions to the challenges facing the power sector.
Another committee member, Decour Damnemunene, raised concerns about the categorization of customers into different payment bands, which has led to some consumers evading payment for the electricity they consume. The committee emphasized the need for a more equitable and efficient system to ensure that all consumers pay for the electricity they use.
The visit underscores the ongoing challenges in Nigeria’s power sector, particularly the financial strain on DisCos caused by unpaid debts from government agencies. The committee’s intervention may provide a pathway to resolving these issues and improving the overall efficiency of the power supply in the country.
