Tension Flares as Lawmakers Challenge NBET MD on Revenue Claims

A dramatic session unfolded on Tuesday at the

House of Representatives, as legislators engaged in a heated discussion with the Acting Managing Director of the Nigerian Bulk Electricity Trading PLC (NBET), Akinnawo Johnson. This confrontation transpired during a detailed oversight session focused on evaluating government revenue performance.

The session was organized by the House Committee on Finance, under the leadership of James Faleke (APC, Lagos). It forms part of ongoing dialogues with major revenue-generating agencies aimed at scrutinizing their performance alongside the implementation of fiscal policies essential for government earnings.

Tensions escalated when Mr. Johnson, in his initial remarks, asserted that NBET was, in essence, “not a revenue-generating entity.” He elaborated that the agency's funding stems from regulatory income derived from market- administrative charges included in electricity tariffs, rather than through profit-making activities.

“NBET is ipso facto not a revenue-generating entity but an entity that receives funding for its operation from the market administrative charge embedded in the electricity tariff,” he stated. He clarified that under the Multi-Year Tariff Order mandated by the regulator, distribution companies receive dual invoices each month: one from NBET covering energy and capacity charges, and another from the Nigerian Independent System Operator (NISO).

Mr. Johnson further explained that the funds NBET collects for energy and capacity payments are entirely disbursed to generation companies without retaining any margin. He emphasized that NBET’s operational expenditures are covered only by a portion of the regulatory income, while its capital projects are financed through parliamentary appropriations.

However, Mr. Faleke disputed this characterization. He firmly maintained that any inflow to a government entity qualifies as revenue and should be acknowledged as such. He questioned, “What constitutes earning? Is it an inflow or an outflow?” When Mr. Johnson indicated that “earning” signifies inflow, Mr. Faleke interrupted: “When you report to the Committee on Finance that your agency is not revenue-generating, that is inaccurate. You do generate revenue. The usage of that revenue is a separate concern.”

He reiterated that any revenue generated cannot be utilized until sanctioned by the National Assembly, reinforcing that all forms of income, regardless of its source or amount, must be transparently reported and justified.

The atmosphere intensified as Stanley Olajide (PDP, Oyo) reprimanded Mr. Johnson for interjecting the chair, citing a violation of parliamentary procedures. “We owe you a duty of care. Established procedures must be observed before you speak,” Mr. Olajide admonished.

He later proposed a motion to withdraw NBET’s attendance due to inadequate documentation, as only five copies of necessary documents had been presented to a committee comprising over 70 members.

Initially, Mr. Faleke suggested the committee intended to “educate” the NBET head, yet the matter escalated further as lawmakers began scrutinizing the agency’s claims of partial self-funding. Mr. Johnson reiterated that NBET’s recurrent costs are funded through regulatory income, while capital needs are met via legislative appropriations.

He also noted that the agency has a history of remitting operational surpluses and confirmed that previous deductions had been made from its revenue, occasionally even from the amounts meant for generation companies, although these were later reversed.

According to Mr. Johnson, the Minister of Finance had granted an exemption in December 2025, acting under powers conferred by the Fiscal Responsibility Act.

Despite this, the committee pressed on. “If deductions are made from your income, why claim you are not a revenue-generating body?” Mr. Faleke probed. Lawmakers maintained that all revenue recorded by any governmental agency is legally supported and subject to monitoring by the legislature.

Munachim Alozie (LP, Abia) openly chastised the NBET director, challenging his perceived arrogance and his understanding of accountability to the parliament. “You were appointed by the government. Who do you report to? What right do you have to come here and assert that you aren’t a revenue-generating agency?” he warned, suggesting that the committee could remove him if necessary.

The hearing shifted focus as lawmakers began reviewing documents from the Corporate Affairs Commission regarding NBET’s incorporation and ownership framework. Mr. Johnson informed the committee that the agency is owned by the Bureau of Public Enterprises and the Ministry of Finance Incorporated, clarifying that its structure was created per the approval of the Presidential Debt Recovery Committee to operate as a special-purpose vehicle insulated from bankruptcy.

Nevertheless, lawmakers expressed concerns about incorporating private individuals as shareholders in an agency funded and owned by the federal government. They questioned, “By what authority do you appoint individuals as shareholders in a government-owned company? Is this directive superior to law?”

Mr. Johnson responded that the Ministry of Finance had directed this structure in alignment with the Presidential Debt Recovery Committee's mandate. Lawmakers, however, asserted that actions taken by government bodies must comply with existing laws rather than merely administrative orders.

As emotions flared and members repeatedly demanded direct answers from Mr. Johnson, Mr. Olajide revived his proposal to suspend NBET's appearance. The committee ultimately agreed to defer further discussion on NBET's testimony to a later date.

Before adjournment, Mr. Faleke instructed NBET to provide further documentation, including a letter from the Presidential Debt Recovery Committee sanctioning the registration structure and a list of shareholders of NBET Finance Company Plc. Additionally, the committee summoned the Corporate Affairs Commission, the Director of Debt Recovery, and the Minister of Finance to appear alongside NBET next Tuesday at noon to elucidate the rationale behind listing private individuals as shareholders in a government-owned entity and address pressing issues relating to debt management and accountability.