The House of Representatives has agreed to investigate the N39 billion settlement loan granted to Ziglaks by the defunct Ministry of Power, Works and Housing to supply meters to power Distribution companies (DisCos).
The Federal Ministry of Power, Works, and Housing by Presidential approval, converted the N119 billion judgment debt against the Federal Government into an N39 billion loan, which was granted to Ziglaks Company to supply meters.
The House’s resolution to carry out the probe followed the adoption of a motion sponsored by Hon. James Faleke (APC, Lagos) at plenary on Thursday.
Moving the motion on behalf of the Finance Committee Chairman, leading the investigation, Hon. Makki Yalleman (APC, Jigawa) said the loan was for a term of about seven years, and Ziglaks was to repay the entire N39 billion, which will lapse in 2025.
According to him, the Ministry of Power had directed the Nigerian Electricity Regulatory Commission (NERC) to issue a regulation that facilitated the signing of meter supply agreements between the Ministry and Housing with Ziglaks and other meter asset providers.
Concerned that update, there has been no evidence of supply of meters by Ziglaks Nigeria Limited, since 2018, when the agreement was signed and payment of N39 billion made.
The lawmaker expressed concern that apart from Ziglaks Nigeria Limited, the Central Bank of Nigeria also intervened in the funding of meter manufacturers to provide meters and ameliorate the suffering of the people’s underestimated billings, but this action is yet to be felt by the people.
“Disturbed that the World Bank is currently supporting Nigeria with a loan to supply 1.2 million meters, which is expected to kick-start the programme the Federal Government wants to use to reduce the metering gap.
“Worried that despite the huge sums of money provided to close the metering gap, Nigerians are still complaining about lack of meters and receiving crazy estimated bills from the DisCos.
“Also worried that DisCos have failed to meet post-privatisation conditions of closing the metering gap, thus, making millions of consumers receive estimated billing despite a potentially pending contract agreement, Makki stated.
He regretted that the new Electricity Act, 2023 which is aimed at protecting Nigeria’s interests by ensuring accurate charges for electricity, may be undermined if the N39 billion contract for Ziglaks Company and CBN funds are not investigated.
Adopting the motion, the House mandated relevant committees to investigate and determine the performance of the loan and the utilisation of funds disbursed by the CBN for metering purposes.
