The House Committee on Finance has raised concern over NBET’s utilisation of N4.099 billion generated from regulatory income in the 2025 fiscal year
The House of Representatives on Thursday grilled the Acting Managing Director of the Nigerian Bulk Electricity Trading (NBET) Plc, Mr Johnson Akinowo, over the utilisation of ₦4.099 billion generated from regulatory income in the 2025 fiscal year.
The scrutiny took place in Abuja during the review of NBET’s 2025 budget performance by the House Committee on Finance, chaired by Rep. Abiodun James Faleke.
Expressing concern over NBET’s spending pattern, Faleke highlighted several expenditure lines that nearly exhausted their approved budgets, including ₦377.031 million spent on welfare packages out of an approved ₦377.658 million, and ₦76.939 million on “other expenses” from an approved ₦78.838 million.
Other lawmakers raised questions over NBET’s compliance with a directive issued by the Chief of Staff to the President banning overseas travel, citing ₦470.122 million spent on international travel and transport, as well as training, out of an approved ₦479.845 million.
Documents submitted to the committee also showed that NBET spent ₦111.804 million on management, staff and board retreats; ₦71.379 million on board sitting and directors’ allowances; ₦36.313 million on professional fees; ₦48.779 million on conferences, seminars and exhibitions; and ₦31.858 million on refreshments and meals.
Other expenditures listed included ₦9.713 million on cleaning and fumigation; ₦60.231 million on maintenance of office and IT equipment; ₦68.552 million on office stationery and computer consumables; ₦65.530 million on local travel and transport (others); ₦79.103 million on local travel and transport for training; and ₦1.780 billion on personnel costs.
Lawmakers also faulted NBET for failing to declare revenue generated in December 2025 in the documents submitted for the budget performance review.
Responding, Akinowo said NBET was fully aware of the presidential directive on international travel and insisted that all foreign trips undertaken during the period received the necessary approvals.
“Yes, we are very aware of it and, as a corporate responsible organisation, we are guided by all the stipulations of that directive. Every travel funded had either approval from the Secretary to the Government of the Federation or the Head of Service,” he said.
He cited Nigeria’s participation in the World Bank Spring Meetings as an example, explaining that NBET’s presence was required due to engagements related to the Federal Government’s Partial Risk Guarantee programme.
“For instance, for the World Bank Spring Meeting, in relation to the Partial Risk Guarantee of the Federal Government of Nigeria that NBET manages, the World Bank required our presence to provide clarification and engage on their portfolio in Nigeria,” he explained.
Akinowo noted that he was part of the Federal Ministry of Finance delegation alongside agencies such as the Debt Management Office, the Bank of Industry and the Central Bank of Nigeria.
On funding for the power reform programme, the NBET acting MD disclosed that although the National Assembly approved ₦855 billion, only ₦60 million was released by the Federal Government.
He said the funds remained unutilised due to late release, which prevented the completion of the procurement process.
Explaining the source and use of regulatory income, Akinowo said such revenue is generated through the structure of the electricity market and is meant to fund the operations of market participants.
“Distribution companies get two invoices. One is for energy and capacity, which they pay to NBET and NBET pays to the GENCOs. The other is for market administrative charges, which cover the operations of government agencies providing services in the electricity market,” he said.
According to him, beneficiary agencies include the Nigerian Electricity Regulatory Commission (NERC), the Transmission Company of Nigeria (TCN), generation companies for wheeling charges, and the Nigerian Independent System Operator.
He added that regulatory revenues are used to fund recurrent expenditure, while capital projects are funded through appropriations in line with extant rules.
Addressing concerns over the non-declaration of December 2025 revenue, Akinowo explained that invoices issued in December but not yet due for payment are captured in subsequent financial periods in accordance with applicable laws.
“If an invoice is issued in December and the contract stipulates payment 25 days after issuance, and that falls in January or February, then it is accounted for accordingly for transparency,” he said.
Ruling after the session, Rep. Faleke said the committee resolved to request comprehensive documentary evidence of all expenditures incurred by NBET in 2025, including approvals and waivers obtained from relevant authorities.
He announced the suspension of consideration of NBET’s 2026 budget proposal and adjourned the hearing to Tuesday, February 10, 2026, when the Accountant-General of the Federation is expected to appear before the committee.
Meanwhile, the House Committee on Finance also queried the proposed ₦14.325 billion 2026 budget of the Federal Ministry of Finance during a separate budget defence session.
A breakdown of the proposal showed ₦4.5 billion for personnel costs, ₦4.6 billion for overheads, and ₦5.2 billion for capital expenditure. Lawmakers, however, raised concerns over what they described as discrepancies in the capital component.
Responding, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, explained that the disputed figures included debt servicing obligations captured by the Budget Office, which are not part of the ministry’s regular capital expenditure.
Also speaking, Chairman of the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC), Mr Mohammed Shehu, disclosed that the commission is engaging revenue-generating agencies to resolve outstanding fiscal and remittance issues.
He said ongoing consultations were yielding results, with agencies increasingly approaching the commission to address concerns related to revenue accountability and compliance.
