CBN sues 157 companies over ‘diversion of funds for prepaid meters’
The Central Bank of Nigeria (CBN) has asked a Federal High Court in Lokoja, Kogi State for an order to freeze 157 accounts of Meter Asset Providers (MAPs) for allegedly diverting intervention funds meant under the National Mass Metering Programmme (NMMP) between January 1, 2020 to March 15, 2022.
According to an exclusive court document seen by BusinessDay, the apex bank requested 15 commercial banks and the Bank of Industry (BOI) to freeze the accounts of the 157 companies for 180 days pending the outcome of its investigation.
The companies identified by the CBN include Mojec Meter Asset Management Company Limited, Integrated Power Nigeria Limited, Holley Metering Limited, Protogy Global Services Limited and Turbo Energy Limited.
Other companies include G Unit Engineering Limited, Koby Global Engineering Services Limited, FLT Energy Systems Limited, Smart Meters Asset Provider Company Limited and Cresthill Engineering Limited.
“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 apex bank said.
The CBN noted that the diversion of the power sector intervention funds under the 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 CBN says 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 banks involved include Sterling Bank, Keystone Bank Limited, Unity Bank, First Bank Nigeria Limited, Zenith Bank, Polaris Bank, Access Bank of Nigeria, Jaiz Bank, Fidelity Bank, First City Monument Bank, United Bank of Africa, Stanbic IBTC, Guaranty Trust Bank, EcoBank Nigeria and Taj Bank
“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,” CBN said.
All efforts to reach MOJEC to respond to this report proved abortive as she did not respond to calls and messages.
In January, the CBN Governor, Godwin Emefiele, revealed that so far out of the N60 billion funding it has already disbursed the sum of N47.83 billion for the procurement and installation of 856,026 electricity meters across the country under the National Mass Metering Programme (NMMP) in the scheme’s first phase.
According to data obtained from the electricity distribution companies, DISCOs, out of about 10 million registered customers 4.7 million or 47 per cent were metered as at the fourth quarter 2021.
“At the end of 2021, over 10 million customers are registered, with approximately 47 per cent metered”, the Association of Nigeria Electricity Distributors, ANED, said in their latest Commercial KPIs, Q4/2021 report, meaning that about 4.7 million registered power consumers use pre-paid meters while over 5.3 million are still unmetered.
