By Saint Mugaga

The House of Representatives on Thursday quizzed the acting Managing Director of the Nigerian Bulk Electricity Trading (NBET) Plc, Mr. Johnson Akinowo over the utilisation of N4.099 billion accrued from regulatory incomes in 2025 fiscal year.

Chairman, House Committee on Finance, Hon. Abiodun James Faleke who spoke in Abuja during the 2025 budget performance, expressed grave concern over series of expenditures incurred by the Company including the sums of: N377.031 million spent on welfare packages out of N377.658 million approved budget; Other expenses worth N76.939 million out of N78.838 million approved budget; among others.

Other lawmakers who spoke during the review of the 2025 budget performance, demanded explanation on the directive issued by the Chief of Staff to the President, banning overseas travels, N470.122 million spent on international travels and transport: training out of N479.845 million approved budget.

According to the documents submitted to the Committee, NBET also spent the sums of N111.804 million on management/staff/board retreat; N71.379 million on board sitting/Directors allowance; NN36.313 million on professional fees; N48.779 million on conferences, seminar and exhibition; N31.858 million on refreshment and meals; N9.713 million on cleaning and fumigation expenses; N60.231 million on maintenance of office/IT equipment; N68.552 billion on office stationeries/computer consumables; N65.530 million on Local travel and transport -others and additional sum of N79.103 million on Local travel and transport: training, as well as N1.780 billion spent on personne cost, among others.

The lawmakers also expressed concern over the non-declaration of revenue generated in December 2025 in the document submitted to the Committee.

While responding to allegation bothering on the ban on international travel, he said: “yes, we are very aware of it and as a corporate responsible organization, we are guided by all the stipulations of that directive.

“So, every and all travels that you see that was funded there had either an SGF or Head of Service approval. For instance, at an MD/CE, if I am going to travel, I require that SGF approval…

“I’ll give you an example. For the World Bank Spring Meeting, in relation to the Partial Risk Guarantee of the Federal Government of Nigeria that Embed manages, they meagre the insurance and of the World Bank during the Spring Meetings, require our presence to provide clarification and to engage on their portfolio in Nigeria.”

While noting that he was part of Federal Ministry of Finance delegation, he maintained that other MDAs under the Ministry incmuding Debt Management Office, Bank of Industry (BOI), Central Bank of Nigeria (CBN), among others were part of the “critical parties that can speak to the items in details when they come and defend Nigeria’s position.”

Mr. Akinowo explained that out of total sum of N855 billion approved by the National Assembly for power reform programme, Federal Government released the sum of N60 million.

He however noted that becUse of the time the money was released, the Agency could not complete the procurement process, hence the N60 million remain unutilized till date.

“For the revenues of 2025, regulatory income for participants in the electricity market are provided for them to run their operations. And I listed the agencies, that was why I tried to give that introductory background when I was speaking to the revenues. They are provided, it is the design of the electricity market that provides the revenue distribution. Distribution companies get two invoices.

“One is for energy and capacity which they pay to embed and embed pays to the GENCOs. The other one is for market administrative charge, which is supposed to cover the operations of the agencies of government that provide the service in the electricity market,” he explained.

According to him, the regulatory agencies include: the regulator, Nigerian Electricity Regulatory Commission (NERC), Transmission Company of Nigeria (TCN), and GENCO of Nigeria to cover wheeling charges for wheeling the electricity as well as Nigerian Independent System Operator, which is comprised of the system operator and the micro operator to cover their operations.

He added that the regulatory revenue to cover their operations now makes them to be excluded from appropriation for the current. So we typically get capital from appropriation while we are supposed to run the operations from the recurrent from the regulatory revenue as approved by NERC, the regulator from time to time.

He explained that, the actual n line with extant rules, NBET funds the capital component of the annual budget from Appropriation Act.

While clarifying issues bothering on non-declaration of revenue accrued in December 2025, the NBET helmsman further explained that: “if you issue an invoice in December and it is not due for payment, if the contract says your invoice is due 25 days after, and that in five days is in January or in February, then that is what it is, because the legislation takes care of it and is captured for transparency.”

While ruling, Hon. Faleke said that the Committee resolved to make omnibus request from NBET, hence demanded for documentary evidences of all the expenditures incurred throughout 2025, as well as approvals and waivers obtained from relevant authorities including the Presidency.

To this end, the Committee resolved to suspend the consideration of the 2026 budget proposal, and adjourned to Tuesday, 10th February, 2026 during which Accountant General of the Federation is expected to appear.

‎The House Committee also queried the proposed 2026 budget of ₦14.325 billion for the Federal Ministry of Finance, with lawmakers raising concerns over discrepancies in the capital expenditure component during a budget defence session at the National Assembly.
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‎A breakdown of the proposal shows ₦4.5 billion allocated for personnel costs, ₦4.6 billion for overheads, and ₦5.2 billion earmarked for capital projects. However, members of the committee questioned the composition of the capital vote, with Hon. James Faleke specifically demanding clarification over figures he described as inconsistent with standard capital budget projections.
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‎Responding, the Minister of Finance and Coordinating Minister of the Economy Wale Edun explained that the disputed capital figure was captured by the Budget Office and includes debt servicing obligations, which he stressed are not part of the ministry’s regular capital expenditure.
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‎According to the minister, the classification created the appearance of an inflated capital allocation, whereas the bulk relates to statutory debt service entries.
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‎Also speaking at the session, Chairman of the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, disclosed that the commission is currently engaging several revenue-generating agencies to resolve long-standing fiscal and remittance issues.

‎He noted that renewed consultations are already yielding progress, with agencies increasingly approaching the commission to address lingering concerns around revenue accountability and framework compliance.
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