Energy Expert Raises Questions over NERC’s Spending, Seeks Probe

An energy expert is questioning the Nigerian Electricity Regulatory Commission's (NERC) financial transparency, accusing the agency of operating a "black-box" system. Odion Omonfoman, CEO of New Hampshire Capital Limited, stated that while NERC mandates detailed financial reporting from electricity distribution companies (Discos), its own financial statements are not publicly available.

Omonfoman urged the Minister of Power, Joseph Tegbe, to compel NERC to upload its audited financial statements for 2023, 2024, and prior years onto its website. He noted that NERC's meticulous quarterly and annual reports cover Discos' billing efficiency, collection rates, and technical, commercial, and collection losses. However, these reports omit NERC's own Internally Generated Revenues (IGR), operational costs, executive remuneration, and net surpluses.

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In my opinion, NERC’s internal finances can be best described as a black-box to the public.

Referencing the Electricity Act 2023, Omonfoman highlighted NERC's funding sources, which include fees from licensees, National Assembly allocations, and grants from development finance institutions. He pointed out that despite claims of presenting audited accounts in its annual reports, the downloadable public versions lack essential documents. These include the independent auditor's report, statements of financial position and performance, cash flow statements, accounting policies, and notes explaining NERC's revenues, expenses, and assets.

"Financial transparency in the Nigerian Electricity Supply Industry (NESI) cannot be a one-way street," Omonfoman argued, emphasizing that NERC enforces open-book accounting on operators while its own finances remain opaque. NERC did not respond to these allegations at the time of reporting.

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NERC enforces open-book accounting on operators while its own finances remain opaque.