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By Tracy Moses
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 realised as regulatory income in the 2025 fiscal year.
The interrogation took place in Abuja during the consideration of NBET’s 2025 budget performance by the House Committee on Finance, chaired by Hon. Abiodun Faleke, who expressed serious concern over what he described as questionable expenditure patterns by the agency.
Faleke queried several budget lines, including ₦377.031 million spent on welfare packages out of an approved ₦377.658 million; and ₦76.939 million expended under “other expenses” from a ₦78.838 million provision, among others.
Lawmakers also raised concerns over ₦470.122 million spent on international travels and training despite an extant directive from the Chief of Staff to the President restricting overseas trips by government officials. The amount was drawn from an approved budget of ₦479.845 million.
Documents submitted to the committee further showed that NBET spent ₦111.804 million on management, staff and board retreats; ₦71.379 million on board sittings 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 include ₦9.713 million for cleaning and fumigation; ₦60.231 million for 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.
The committee also faulted NBET for failing to declare revenue generated in December 2025 in the documents presented for scrutiny.
Responding to questions on the alleged violation of the overseas travel ban, Akinowo said NBET was fully guided by the presidential directive, noting that all international trips undertaken by the agency were duly approved by the appropriate authorities.
“We are fully aware of the directive, and as a responsible corporate organisation, we strictly comply with it. All travels undertaken had approvals either from the Secretary to the Government of the Federation or the Head of Service,” he said.
He explained that participation in events such as the World Bank Spring Meetings was necessary, particularly in relation to Nigeria’s Partial Risk Guarantee programme, adding that NBET officials attended as part of the Federal Ministry of Finance delegation alongside agencies such as the Debt Management Office (DMO), Bank of Industry (BOI) and the Central Bank of Nigeria (CBN).
On funding issues, Akinowo disclosed that out of ₦855 billion approved by the National Assembly for the power reform programme, only ₦60 million was released to NBET.
According to him, the late release of the funds prevented the agency from completing procurement processes, leaving the ₦60 million unutilised.
Explaining the structure of regulatory income in the electricity market, Akinowo said the funds were designed to cover the operational costs of market participants, noting that distribution companies receive invoices for both energy and capacity payments, as well as market administrative charges.
He said regulatory agencies such as the Nigerian Electricity Regulatory Commission (NERC), Transmission Company of Nigeria (TCN), generation companies and the Nigerian Independent System Operator rely on these revenues for operations, making them largely excluded from recurrent budgetary appropriations.
He added that NBET funds its capital expenditure strictly from allocations provided under the Appropriation Act, in line with extant regulations.
Addressing the issue of undeclared December revenue, Akinowo explained that invoices issued in December but due for payment in January or February are recorded in the following fiscal period, stressing that the process is backed by existing legislation to ensure transparency.
Ruling on the matter, Hon. Faleke said the committee resolved to make an omnibus demand for comprehensive documentary evidence of all NBET expenditures for 2025, including approvals and waivers obtained from relevant authorities and the Presidency.
Consequently, the committee suspended consideration of NBET’s 2026 budget proposal and adjourned proceedings to Tuesday, February 10, 2026, when the Accountant-General of the Federation is expected to appear before the panel.
Meanwhile, the committee also queried the proposed ₦14.325 billion 2026 budget of the Federal Ministry of Finance over alleged inconsistencies in the capital expenditure component.
A breakdown of the proposal shows ₦4.5 billion for personnel costs, ₦4.6 billion for overheads and ₦5.2 billion for capital projects. However, lawmakers questioned the accuracy of the capital allocation.
Responding, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, explained that the disputed capital figures included debt servicing entries captured by the Budget Office, which are not part of the ministry’s regular capital spending.
He said the classification gave the impression of inflated capital expenditure, whereas the bulk of the figures relate to statutory debt obligations.
Also speaking, Chairman of the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, disclosed that the commission is engaging revenue-generating agencies to resolve longstanding remittance and accountability issues.
According to him, renewed consultations are yielding positive results, with several agencies now taking steps to address compliance gaps and fiscal obligations.