The Federal Government of Nigeria has allocated N15 billion for the settlement of electricity bill debt for ministries, departments, and agencies, according to the proposed 2025 budget.
Nairametrics cannot confirm if this allocation is for a full or partial settlement of the debts.
Electricity Distribution Companies often complain of mounting debts owed by government agencies and ministries at state and federal levels.
Nigerian Government reportedly owed N100 billion
Nairametrics reported earlier this year that MDAs owed about N100 billion in electricity outstanding debts, according to the Executive Director of the Association of Nigerian Electricity Distributors, Sunday Oduntan.
- Mr Oduntan said this in February 2024 in an interview with Arise News.
- He made the claim weeks after President Bola Tinubu reportedly ordered the immediate clearance of the outstanding electricity bill the villa owed the electricity distribution company.
- The presidency put the figure at N342.3 million after the State House Management and AEDC met for account reconciliation.
- Mr Oduntan said debts stifle the growth of the electricity sector, and stressed that government agencies should not be found wanting in this regard.
“I said all of us need to pay our part. On the part of the government, always try to create an enabling environment for businesses to strive. Always play your part by paying your bill,” he said.
“We’ve been saying this for a long time. They didn’t start owing from May 2023. So there is no politics or mischief here. We are talking facts and how we can solve problems,” he added.
MDAs owed over N47 billion – AEDC
However, months after the reported clearance of debt by the Presidency, the Abuja Electricity Distribution Company (AEDC) disclosed that the Presidential villa, MDAs, and the Nigerian Army headquarters owed the company over N47 billion in outstanding electricity bills.
The company gave a 10-day notice to 86 government ministries, departments, and agencies (MDAs) to pay up their debts or risk disconnection.
According to the public announcement published by the AEDC in June 2024, the Nigerian Army owed N12 billion while the Nigerian Police Force owed N1.3 billion. It added that the Presidential Villa had an outstanding of N923 million.
Details of the debts owed by some other MDAs are as follows:
- FCT Ministry – N7.5 billion
- Ministry of Finance – 5.4 billion
- Ministry of State Petroleum – N2.1 billion
- Ministry of Education – N1.8 billion
- CBN Governor – N1.5 billion.
- Ministry of Health – N1.1 billion
- Clerk of National Assembly – N1.09 billion
- Niger State Governor – Abuja Liaison Office, N3.4 billion
- Kogi State Governor – Abuja Liaison Office, N1.3 billion.