The Committee on Privatisation and Commercialisation of the House of Representatives has renewed legislative action to tackle energy theft within the and federal government debt to the Nigeria’s power sector.
The committee also pledged to support the distribution companies (DisCos) in recovering huge outstanding debts owed by the federal government, states, Ministries, Departments and Agencies (MDAs) and local government areas (LGAs) to strengthen sector’s liquidity.
The Chairman of the Committee, Hamisu Ibrahim, gave the assurance during an oversight visit to the Ibadan Electricity Distribution Company Plc (IBEDC), recently.
Ibrahim disclosed that the National Assembly is accelerating work on a bill designed to combat energy theft through stricter penalties, improved enforcement, and greater protection of electricity assets.
“Energy theft has become a major obstacle to efficient electricity distribution in Nigeria. We are working on a robust legal framework that will decisively address this menace and safeguard infrastructure investments,” said the committee chair.
He assured that the Committee would work with the DisCos to ensure settlement of the debts, which he noted is essential for strengthening liquidity across the power sector. “I want to assure the DisCos that this Committee is going to stand firm to ensure these debts are recovered.”
The assurance followed an appeal by IBEDC’s Managing Director/Chief Executive Officer, Francis Agoha, who called for National Assembly intervention in addressing the twin challenges of energy theft and unpaid debts by government institutions.
Agoha said these issues have significantly weakened market liquidity, limiting IBEDC’s ability to expand and reinforce its distribution infrastructure. He outlined the company’s progress in network expansion, metering, safety, customer service delivery, investments made since the 2013 privatisation exercise, strategic growth plans, and ongoing operational constraints.
“We have significantly expanded and rehabilitated our distribution network, but the challenges of energy theft, vandalism, and outstanding government debts continue to undermine our service delivery. We appreciate the National Assembly’s willingness to intervene,” Agoha said.
The committee also inspected the distribution of critical infrastructure by IBEDC as part of its mandate to assess power sector performance, identify operational difficulties, and review compliance with regulatory standards since privatisation.
Other members of the Committee present at the visit included Ganiyu Adele, representing Alimosho Federal Constituency, Lagos; Donatus M. Kuzalio, representing Kaura Federal Constituency, Kaduna; Omirin Olusanya, representing Atakunmosa East/Atakunmosa West/Ilesa East/Ilesa West Federal Constituency; as well as representatives from the Bureau of Public Enterprises.