NERC To Explain N39bn Payment To Ziglasis For Unexecuted Metering Contract

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The Committee on Finance in the House of Representatives has demanded explanation from the Nigeria Electricity Regulatory Commission (NERC) over N39 billion paid to Ziglasis for an unexecuted metering contract.

Chairman of the committee, James Faleke said NERC registered a company without capacity to deliver but was given N39 billion to supply prepaid meters for distribution to consumers.

Faleke said a company, Ziglasis, was contracted by the Federal Ministry of Power and paid N39 billion to supply prepaid meters, but failed to do so after collecting the money for the project.

The Committee queried the electricity regulator for licensing the company which has not delivered on the contract if signed and collected tax payers money.

He asked the Vice Chairman of NERC, Musiliu Oseni to bring the Managing Director of Ziglasis and officials of the Ministry of Power before the House to explain why the company had not delivered on the contract.

Responding, the commission said the contract for the supply of the meters was not awarded by the Ministry.

The Committee however insisted that since they gave the license to the company that qualified them for the contract, the commission should produce the management of the company.

The House also queried the agreement entered into between the Nigeria Bulk Electricity Company and Azura power company in the table or pay agreement which committed the country to a $30 million power purchase agreement.

Faleke said the agreement with Azura is such that whether or not the company supplies power to turn off the national grid, the country must pay them $30 million monthly, adding that the agreement has a World Bank guarantee.

The House also urged the Nigeria Communications Commission to explain within 72 hours why it failed to remit about N291 billion revenue to the Consolidated Revenue Fund of the Federation between January 2022 and September 2023.

The NCC said the money was spent on broadband connections in public places such as markets.

The House committee also asked the Nigerian Communications Commission (NCC) to explain how it spent N291 billion in 2022 on broadband when the money was supposed to have been paid into the CRF.

The Committee Chairman said the NCC should also provide the House with details of the broadband, the location of three projects and other necessary information on how the money was spent.