EXPOSED: How NBET budgeted N7.6bn for ‘senate’, but unable to GenCos’


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According to a report from TheCable, the Nigerian Bulk Electricity Trading (NBET) Plc has allocated a total of N7,620,840,000 for the “senate” in its 2021 budget but has curiously been unable to settle invoices from GenCos.

In the data, a key operational and financial of the industry, it indicated that between January 2019 and September 2020, NBET had a payment shortfall of N865 billion to GenCos.

A good example is the Niger Delta Power Holding Company Plc (NDPHC) which has been approaching the ministry of finance to make the payments for gas supplies from Accugas Ltd because of NBET’s liquidity crisis.

However, it is still unclear what NBET plans to do with the “senate” that will cost nearly N8 billion.

Nnaemeka Ewelukwa, NBET’s chief executive officer, did not respond to calls and messages to clarify the curious items in the budget, including the N630 million budget to buy transformers — which is not part of its core mandate.

NBET also has a budget for “electrifying communities across the country” — a mandate of the Rural Electrification Agency (REA), the federal agency tasked with the electrification of rural and unserved communities.

Unable to fulfil its core mandate, the bulk trader has several curious provisions in its approved budget, fuelling speculations of the real purpose

In the budget, the NBET said it is going to provide 500kva transformers for “Uwan and selected communities in various states” at the cost of N150 million.

Also in the budget is money earmarked to supply and install transformers in selected areas of Gombe North senatorial district at the cost of N100 million.

NBET also got approval to spend N50 million on provision of 500kva/11 and 300kva/11 at different locations in Dawakintofa/Rimin Gado/Tofa, Kano state at the cost of N50 million.

Other items approved for NBET, which are outside the agency’s mandate, include electrification of Nasarawa Toto, North Central zone at the cost of N30 million and electrification of Gudus, Nyalun, Kunkyam, Yuli and other selected communities in Plateau State at the tune of N300 million.

Curiously, a tiny item in the budget without a code number was tagged “Senate 5%” with a whopping sum of N7,620,840,000 approved for it.

The report also stated that the agency has written to the Bureau of Public Procurement (BPP) requesting approvals to award the contracts.

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