Reps probe NBET MD, Johnson Akinowo, over N4bn spending

The House of Representatives Committee on Finance, on Thursday, questioned Mr. Johnson Akinowo, the acting managing director of Nigerian Bulk Electricity Trading Plc (NBET), over the utilization of N4.099 billion in regulatory income during the 2025 fiscal year.

The committee also suspended the consideration of the agency’s 2026 budget proposal.

Chairman of the House Committee on Finance, Mr. Abiodun Faleke, expressed concerns during the 2025 budget performance review of NBET, highlighting several expenditure items in the documents submitted to the panel.

The Lagos lawmaker cited, among other issues, N377.03 million spent on welfare packages out of an approved N377.658 million, N76.93 million spent on ‘other expenses’ from an approved N78.84 million, and other recurrent expenditures listed in the 2025 budget.

Other Committee members raised concerns over NBET’s alleged breach of a directive issued by the Chief of Staff to the President, which banned overseas travel.

They pointed out that the agency spent N470.12 million on international travel and transport for training, surpassing the approved N479.85 million.

Further scrutiny revealed that the agency had spent N111.80 million on management, staff, and board retreats; N71.38 million on board meetings and directors’ allowances; N36.31 million on professional fees; and N48.78 million on conferences, seminars, and exhibitions. Additionally, N31.86 million was spent on refreshments and meals, N9.7 million on cleaning and fumigation, N60.23 million on office and IT equipment maintenance, and N68.55 million on office stationery and computer consumables.

Also of concern were the N65.53 million spent on local travel and transport, N79.10 million on local travel for training, and a staggering N1.78 billion spent on personnel costs.

The Committee further expressed concern over the non-declaration of December 2025 revenue in the documents submitted.

In response, Akinowo said, “As a corporate responsible organisation, we are guided by all the stipulations and directives. Every funded travel you see had either an SGF or a Head of Service approval. For instance, as the MD/CEO, if I am going to travel, I require the SGF’s approval.”

He added that some of the trips were essential for Nigeria’s international financial obligations.

“For the World Bank Spring Meeting, in relation to the Partial Risk Guarantee of the Federal Government of Nigeria, our presence was required to provide clarification,” Akinowo explained. He noted that he had traveled as part of a Federal Ministry of Finance delegation, with other agencies under the ministry involved.

Akinowo also provided an update on funding for power sector reforms. He revealed that out of the N855 billion approved by the National Assembly for the programme, only N60 million had been released by the Federal Government.

Explaining NBET’s regulatory income, Akinowo said that such revenues were part of the electricity market structure.

“For the revenues of 2025, regulatory income for participants in the electricity market is provided for them to run their operations,” he said.

He added that regulatory agencies, including the Nigerian Electricity Regulatory Commission (NERC), the Transmission Company of Nigeria (TCN), and generation companies, are funded through this income.

Akinowo also addressed the non-declaration of December 2025 revenue, calling it a procedural matter.

“If you issue an invoice in December and it is not due for payment, if the contract says your invoice is due 25 days after, and that in five days is in January or in February, then that is what it is because the legislation takes care of it and is captured for transparency,” he explained.

In ruling on the matter, Faleke said the committee decided to submit an omnibus request to NBET, demanding documents to support all expenditures incurred in 2025, including approvals and waivers obtained from relevant authorities, such as the presidency.

As a result, the committee suspended consideration of NBET’s 2026 budget proposal and adjourned the hearing to Tuesday, February 10, 2026, when the Accountant-General of the Federation is expected to appear before the panel.