FG could suspend the distribution of four million free meters

Phase 1 of the federally funded National Mass Counting Program, NMMP, slated to begin in August, appears to have been mired in uncertainty as The PUNCHhas learned that it has been put on hold following allegations of fraud by the Central Bank of Nigeria against some of the meter asset providers, MAP.

A source, who argued for the identity to be protected due to the sensitivity of the issue, told The PUNCH that there was no indication that distribution of Phase 1 meters would begin this month, as electricity distribution companies were not yet equipped with meters.

The NMMP is an initiative of the Nigerian Electricity Regulatory Commission, NERC, in conjunction with the Presidential Power Task Force. The initiative was launched in August 2020 to allow the CBN to finance the acquisition of meters on behalf of DisCos by paying directly to MAPs. The free counter program started with phase 0 where one million counters were supposed to have been distributed.

However, on July 20, the CBN requested the Federal High Court in Lokoja, Kogi State, to freeze accounts belonging to 157 MAP for allegedly misappropriating funds intended for the purchase of prepaid meters.

Apex bank in lawsuit asked commercial banks to restrict account of 10 companies that received power sector intervention funds under NMMP for 180 days pending the outcome of his investigation.

Following the ongoing trial, The PUNCH on Sunday learned that the Free Mass program had also been suspended until further notice.

A source told our correspondent that DisCos had accused some MAPs of not providing them with enough meters during recent CBN visits to DisCos offices.

“The CBN visited the DisCos to check their books and see what they were using the response funds allocated to them. It was during the visits that it was discovered that some of the MAPs had not provided enough meters for the distribution. Prior to the start of the NMMP; what the MAPs told us was that they had enough local capacity to meet the demands. But after CBN signed the contract with them and paid them the money, they failed to achieve their goal. They saw free money," one of our sources hinted.

The CBN in the lawsuit said: "The Central Bank of Nigeria investigated the activities of 12 Meter Asset Providers (MAPs), including the defendants, who allegedly misappropriated the Central Bank of Nigeria intervention in the power sector.funds under the National Mass Metering Program (NMMP).

"The examination sought to determine the flow of funds made available to MAPs, covering the period from January 1, 2020 to March 15, 2022. Preliminary examination found that the defendants misappropriated a a substantial portion of the funds for other uses through related entities and individuals/companies related to the Electricity Distribution Companies (DisCos) and the now defunct Power Holding Company of Nigeria (PHCN),” says partly the pursuit.

The Central Bank of Nigeria has invested heavily in the power sector through its intervention support programs. According to the bank, it has disbursed over N254.4 billion through its Nigeria Power Market Stabilization Facility - Phase 2, NEMSF-2.

At the last meeting of the Central Bank's Monetary Policy Committee, Governor Godwin Emefiele disclosed that he had shelled out around N47.8 billion for around 865,956 meters across the country .

"Under the National Mass Metering Program (NMMP), the Bank disbursed N47.82 billion for the purchase and installation of 865,956 meters across the country. "

CBN spokesperson Osita Nwanisobi declined to comment on the matter when contacted.

NERC, for its part, said it created the initiative in response to President Buhari's order that Nigerians be measured. "The President has directed that there be a nationwide mass metering program in an effort by the federal government to put an end to estimated and arbitrary electricity billing."

The Commission recently spoke about the success of phase 0 and revealed that it had shortlisted 45 companies for the next phase. He added that; “We hope that before the end of August we will start to see meters from our local manufacturers go to electricity distribution companies and then to end customers.”

Calls and messages to the Managing Director/Head of Public Affairs Department, NERC, Usman Abba Arabi, have not been answered at the time of filing of this report.

One ​​of the accused MAPs, Mojec Meter Asset Management Company Ltd, told The PUNCH that it had fully met its obligations to manufacture, supply and installation of...