The Nigerian Electricity Regulatory Commission (NERC), Meristem Wealth Management Ltd, and NESI-Stabilization Strategy Ltd (NESI-SSL) are under probe over N59 billion loan for National Mass Metering Programme (NMMP).
The joint committee of the House of Representatives investigating the matter also raised questions over the approval granted to a firm to receive 0.5 percent of electricity Distribution Companies’ (Discos) annual collections until 2030.
In a statement on Saturday, Chairman of the Joint Committee, Hon. Uchenna Harris Okonkwo, explained that preliminary investigations revealed the NMMP was initiated by NERC and approved by the Federal Government in 2020 to close Nigeria’s metering gap, promote local meter manufacturing, reduce collection losses, and end estimated billing.
However, he observed that the programme had so far failed to achieve its objectives.
Okonkwo, who represents Idemili North/Idemili South Federal Constituency, noted that the Joint Committee—comprising the Committees on Banking Regulations, Power, Rural Electrification, and Housing—engaged Meristem Wealth Management Ltd, NESI-SSL, NERC, and other relevant agencies on the disbursement of N55,424,975,546.96 out of the N59,280,988,305.00 earmarked by the CBN.
He said the committee’s review uncovered “ambiguities, inconsistencies, and contradictions,” which pointed to poor management and failure to deliver the intended results.
According to him, NESI-SSL was designated by the CBN as the Special Purpose Vehicle (SPV), while Meristem Wealth Management Ltd was appointed as the fund manager/administrator.
Okonkwo added that although the companies have not been forthcoming with relevant documents, the committee will pursue a full investigation to correct anomalies in electricity distribution.
He warned that the Joint Committee would not hesitate to invoke constitutional provisions against anyone frustrating the probe.
The lawmakers also expressed concern that, despite NERC’s documentation showing that several Discos—including Abuja (AEDC), Eko (EKEDC), Enugu (EEDC), Ibadan (IBEDC), Ikeja (IKEDC), Jos (JEDC), Kano (KEDC), and Yola (YEDC)—remain indebted to the CBN for funds released for meter installation, NERC had failed to verify the actual installations carried out.
The committee further queried the rationale behind the clause allowing Meristem Wealth Management Ltd to allegedly collect 0.5 percent of Discos’ annual revenues until 2030 under the NMMP.
It has directed the management of Meristem Wealth Management Ltd, NERC, NESI-SSL, and other relevant agencies to appear at its next sitting.