Reps grill NERC, firms over alleged mismanagement of N59bn metering fund

The House of Representatives Joint Committee investigating the disbursement and utilisation of the ₦59 billion Central Bank of Nigeria (CBN) loan for the National Mass Metering Programme (NMMP) has queried the Nigerian Electricity Regulatory Commission (NERC), Meristem Wealth Management Ltd, and NESI Stabilization Strategy Ltd (NESI-SSL) over alleged non-utilisation of the funds and questionable contract arrangements.

Chairman of the Joint Committee, Hon. Uchenna Harris Okonkwo, in a statement on Saturday, disclosed that preliminary findings revealed serious gaps in the implementation of the programme, which was initiated by NERC and approved by the Federal Government in 2020 to close Nigeria’s metering gap, encourage local meter production, reduce collection losses, and eliminate estimated billing.

“Our review has uncovered ambiguities, inconsistencies, and contradictions, pointing to poor management and failure to achieve the objectives for which this programme was conceived,” Okonkwo said.

He noted that the committee, which comprises members of the Committees on Banking Regulations, Power, Rural Electrification, and Housing, has engaged key stakeholders including Meristem, NESI-SSL, and NERC on how ₦55.42 billion out of the total ₦59.28 billion was disbursed by the CBN.

The lawmakers also raised questions over the approval granted to a private firm to receive 0.5 percent of electricity Distribution Companies’ (DisCos) annual collections until 2030, describing the arrangement as suspicious and contrary to the spirit of the metering initiative.

According to Okonkwo, NESI-SSL was designated as the Special Purpose Vehicle (SPV) for the programme by the CBN, while Meristem Wealth Management Ltd was appointed as the fund manager/administrator. However, he expressed concern that the companies have not provided adequate documentation to account for the funds released.

“We will conduct a full-scale investigation to ensure transparency and accountability in the entire process and to address anomalies in electricity distribution,” he assured.

The NMMP, launched to tackle Nigeria’s chronic metering deficit, has faced widespread criticism for failing to deliver prepaid meters to millions of electricity consumers despite the huge financial outlay.