Exclusive: Document Reveals NBET Projects to Squander ₦705 Billion on Power Reform, ₦800 Million on Vehicle Purchase

Secrets Reporters

An exclusive document made available to SecretsReporters has revealed questionable financial allocations by the Nigerian Bulk Electricity Trading PLC (NBET), a key government entity responsible for bulk electricity purchases and sales in Nigeria’s power sector.

NBET is a public limited liability company incorporated under the Companies and Allied Matters Act (CAMA) 2004, with a mandate under the Electric Power Sector Reform Act (EPSRA) 2005. NBET plays a crucial role in the country’s electricity sector by managing power purchase agreements and ensuring bulk electricity transactions between generation companies and distribution companies. However, recent findings suggest that the company’s financial dealings might not be as transparent as expected.

NBET’s budget submission to the Joint Senate and House of Representatives Committee on Finance reveals staggering figures. The company projected a total revenue of ₦715.6 billion as regulatory income while expecting ₦708.4 billion in government funding from the Federal Government of Nigeria (FGN) Appropriation. The expenditure breakdown, however, raises serious concerns.

The budget document indicates that ₦705 billion has been earmarked under the category of “Power Reform Programme.” However, there is no detailed explanation regarding what this reform entails, how the funds will be utilized, or the expected outcomes. Given Nigeria’s ongoing struggles with electricity supply, stakeholders question the lack of transparency in such an enormous allocation.

Another questionable expenditure is the proposed ₦800 million for the purchase of motor vehicles. The lack of clarity regarding the necessity of such expenditure has sparked concerns. With no clear breakdown, this raises suspicions about potential financial mismanagement or misappropriation.

The Electric Power Sector Reform Act 2005 empowers NBET to act as the intermediary in Nigeria’s power sector. Sections 8, 25, and 68 of the EPSRA outline its responsibilities, which include managing power purchase agreements, ensuring the bulk procurement and resale of electricity, and guaranteeing gas supply for power generation. However, while these roles are critical to stabilizing Nigeria’s electricity supply, financial misappropriations could undermine its mission.

With Nigeria still grappling with erratic electricity supply despite massive government interventions, the lack of transparency in NBET’s budget allocations calls for urgent action. Efforts to reach the leadership of the NBET for explanation were unsuccessful at the time of filing this report.