Central Bank of Nigeria asks court to freeze 157 accounts of companies for diversion of power sector intervention funds

The Central Bank of Nigeria (CBN) has moved to freeze 157 accounts of companies that are Meter Asset Providers (MAPs) for allegedly diverting funds meant for the procurement of prepaid meters.

The apex bank in a suit filed at the Federal High Court in Lokoja, Kogi State, on July 20, requested commercial banks to restrict the account of 10 companies that received power sector intervention funds under the National Mass Metering Programme (NMMP) for 180 days pending the outcome of its investigation.

List of companies involved

According to TheCable, the companies listed by the CBN as being involved in the diversion include Mojec Meter Asset Management Company Limited, Integrated Power Nigeria Limited, Holley Metering Limited, Protogy Global Services Limited and Turbo Energy Limited.

Others are G Unit Engineering Limited, Koby Global Engineering Services Limited, FLT Energy Systems Limited, Smart Meters Asset Provider Company Limited and Cresthill Engineering Limited.

What the CBN is saying

The CBN in the suit said, “The Central Bank of Nigeria reviewed the activities of twelve (12) including the defendants herein Meter Asset Providers (MAPs) alleged to have diverted the Central Bank of Nigeria’s power sector intervention funds under the National Mass Metering Programme (NMMP).

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  • “The review was aimed at ascertaining the flow of the funds made available to the MAPs, covering the period between January 1, 2020, to March 15, 2022. The preliminary review revealed that the defendants diverted a substantial portion of the funds for other uses through related entities and individuals/companies connected to the electricity distribution companies (DisCos) and the defunct Power Holding Company of Nigeria (PHCN).
  • The diversion of the power sector intervention funds under the National Mass Metering Programme (NMMP) provided by the applicant’s banks, has further occasioned grave instability in the power sector and sustained the estimated billing regime which the federal government is making frantic efforts to make a thing of the past.
  • “The diversion of the said funds through the bank accounts of the defendants has continually undermined the applicant’s bank intervention system of supporting various sectors of the Nigerian economy.
  • The diversion of the said funds and sustained instability in the power sector is capable of causing significant economic and financial loss to investors, as well as the entire systems and the Nigerian economy in general, if not curtailed.”

What you should know

  • Recall that on April 3, 2018, the Nigerian Electricity Regulatory Commission (NERC) introduced the MAP regulation to new investors to fast-track the rollout of meters through the engagement of third-party investors.
  • Despite the initial challenges with the initiative occasioned by a late start over lack of cooperation by DisCos as regards engaging licensed firms, the meter asset firms were issued permits to commence the rollout of new meters by May 1, 2019.
  • The federal government as part of efforts to boost the new policy, it provided a grant of N37 billion for the supply of the meters.
  • In October 2020, the federal government flagged off the National Mass Metering Programme to close the metering gap in the Nigeria Electricity Supply Industry (NESI) by December 2021 and ensure that consumers are billed appropriately for the electricity they consume by installing meters free of charge in households and business premises.
  • In June, the NERC said it will begin the second phase of the National Mass Metering Programme (NMMP) in August 2022.

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