Electricity: FG approves payment of N26bn owed DISCOs

The Federal Executive Council yesterday approved the payment of N25.9 billion owed electricity distribution companies by Ministries, Departments and Agencies. The Minister of Power, Works and Housing, Babatunde Fashola disclosed this to State House correspondents after the FEC meeting presided over by President Muhammadu Buhari.

Fashola said since the inception of Buhari’s administration, claims of debts owed by government to DISCOS had been a matter of concern, especially in the light of liquidity issues.

He said “We have concluded the verification and we now ask council to approve the verified sum of N25 .994 billion owed by MDAs of the Federal Government to be paid to the DISCOS out of the claims of N67.41 billion.

“So, there is a differential of about N 41 billion. That differential arises first because some of the claims do not belong to the Federal Government. Some are owed by states and local governments. Also, some belong to public international organisations and were classified as government debts.

“Government has also approved that this amount that has been quantified be set off against the amount owed by the DISCOS to Nigerian Bulk Electricity Trader, a 100 percent Federal Governmentowned subsidiary company.

“They (DISCOs) also owe government for their unremitted collections for energy they have taken and have not remitted. They are owing about N500 billion,” the minister stated.