A Review of the Nigerian Energy Industry

Reps to probe alleged loss of N2bn, $3.8m interests in PHCN sale

*House of Representatives.

Oscarline Onwuemenyi

07 March 2018, Sweetcrude, Abuja – The House of Representatives has begun investigation into the alleged loss of N2 billion and $3.8 million through banks’ non-payment of interests on the proceeds of the sale of Power Holding Company of Nigeria (PHCN) successor companies.

The decision followed the unanimous adoption of a motion by Rep. Chukwuka Onyema (Anambra-PDP) at the plenary on Tuesday, during a session was presided over by the Speaker, Hon. Yakubu Dogara.

The house resolved to set up an ad hoc committee to carry out the probe and to report back to the house within six weeks for further legislative action.

Onyema had said that the Electric Power Sector Reform Act of 2005 unbundled the Power Holding Company of Nigeria into 18 successor companies.

He said the companies were six generation companies, and 12 distribution companies covering the 36 states of the federation as well as national Power Transmission Company.

Onyema said following the divestiture of Federal Government from PHCN through privatisation, the company was divided into separate companies known as the local Electricity Distribution Companies.

He said the successor companies made payment to the Federal Government through Standard Chartered Bank, Fidelity Bank, Stanbic IBTC, Access Bank, FCMB, Skye Bank, Sterling Bank, Zenith Bank and Unity Bank.

“The accrued interests due to the Federal Government to the tune of N2 billion and $3.8 million were alleged to have been diverted by those banks in collaboration with officials of the Central Bank of Nigeria,” Onyema said.

He pointed out that the Nigerian Constitution empowers the House to conduct investigations for the purpose of exposing corruption, inefficiency or waste in the execution or administration of laws and management of funds.

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