House Committee Criticizes AEDC Over Alleged Unequal Power Distribution

The Ad-hoc Committee of the House of Representatives, tasked with the examination of power sector reforms and financial activities from 2006 to 2024, has vehemently criticized what it terms as biased electricity distribution practices allegedly instituted by the Abuja Electricity Distribution Company (AEDC).

The committee raised alarms over allegations that the company devotes about 80% of its power supply to the Federal Capital Territory (FCT), while the remaining 20% is spread across Kogi, Niger, and Nasarawa states within its service area.

This position was articulated during an oversight visit to the AEDC's headquarters in Abuja, part of the National Assembly's deeper inquiry into the performance of power sector stakeholders and the management of intervention resources since the privatization and division of the sector in 2005.

Committee members characterized the reported 80–20 distribution strategy as unjust and harmful to the economies of the impacted states. They noted that residents and businesses in Kogi, Niger, and Nasarawa have repeatedly reported extended power outages and substandard service delivery.

Mustapha Aliyu, the committee's chairman, underscored the principle that every state within the operational radius of a distribution company is entitled to fair treatment. He emphasized that electricity allocation must not solely hinge on revenue metrics, particularly in an industry that has seen extensive public funding and federal support.

In response to the concerns raised by the lawmakers, Chijioke Okwuokenye, the managing director of AEDC, refuted any claims of discriminatory practices but acknowledged the existing discrepancies in electricity supply.

He explained that these distribution patterns stem from various operational challenges, including significant energy theft in certain regions, inadequate infrastructure, and low revenue recovery rates, combined with rising debts from customers. He also mentioned that areas with higher revenue generation capacity are prioritized for power supply to maintain the sustainability of operations.

Okwuokenye pointed out that the Federal Capital Territory is AEDC's most significant and profitable revenue source, which greatly influences allocation decisions. He added that the company is committed to enhancing infrastructure and minimizing losses in underserved areas but reiterated that achieving lasting improvements necessitates collaboration from community stakeholders, state governments, and consumers.