The House of Representatives on Thursday grilled the acting Managing Director of Nigerian Bulk Electricity Trading (NBET) Plc, Johnson Akinowo, over the handling of N4.099 billion generated as regulatory income in the 2025 fiscal year.
The scrutiny came during a session on the company’s 2025 budget performance in Abuja, where Chairman of the House Committee on Finance, Abiodun James Faleke, raised concerns about several expenditure items recorded by the agency.
Faleke highlighted welfare spending of N377.031 million out of an approved N377.658 million, alongside N76.939 million classified as other expenses from a budgeted N78.838 million, among additional cost lines that lawmakers described as troubling.
Members of the committee also demanded clarification over overseas travel expenses, citing an existing directive from the Chief of Staff to the President restricting foreign trips. Records reviewed by the panel showed N470.122 million spent on international travel and training from an approved N479.845 million.
Documents submitted to lawmakers indicated further spending that included N111.804 million on management and staff retreats, N71.379 million for board sitting allowances, N36.313 million in professional fees, and N48.779 million for conferences and seminars. Additional expenses listed were N31.858 million on refreshments, N9.713 million on cleaning services, N60.231 million for maintenance of office and IT equipment, N65.530 million on local travel, and N79.103 million for local training-related transport. Personnel costs were put at N1.780 billion.
The committee also questioned the absence of declared revenue for December 2025 in the financial records presented.
Responding, Akinowo said the company complied with federal travel restrictions and that all international trips were backed by approvals from the Office of the Secretary to the Government of the Federation or the Head of Service. He cited participation in World Bank Spring Meetings tied to Nigeria’s power sector guarantees as an example of engagements requiring NBET’s presence, noting that he travelled as part of a broader Finance Ministry delegation that included other key agencies.
He further explained that of the N855 billion approved for power sector reform, only N60 million had been released to NBET, and the funds remained unused because procurement processes could not be completed before the close of the fiscal window.
On revenue structure, Akinowo said regulatory income in the electricity market is designed to fund operational activities of sector institutions, including the Nigerian Electricity Regulatory Commission, Transmission Company of Nigeria and the system operator. He added that these agencies rely on approved regulatory charges for recurrent spending, while capital components are funded through appropriation.
Addressing the December revenue issue, he said invoices issued late in the year may only become payable in the following year depending on contract terms, and are accounted for in line with financial regulations.
In his ruling, Faleke said the committee would make a comprehensive request for documentary evidence covering all 2025 expenditures, including approvals and waivers obtained from relevant authorities. Lawmakers consequently suspended consideration of NBET’s 2026 budget proposal and adjourned the session to February 10, 2026, when the Accountant General of the Federation is expected to appear.
