The Minister of Power, Adebayo Adelabu, has revealed that a private company allegedly held onto N32 billion meant for the supply of three million prepaid metres since 2003.
According to him, this has led to a prolonged delay in the project.
In a statement released by the minister’s Special Adviser, Bolaji Tunji, on Wednesday, it was disclosed that the Federal Government had entered into a tripartite agreement with Messrs Ziklagsis Network Limited and Unistar International in 2003 for the supply of three million metres to distribution companies within three years.
However, the agreement was not implemented, and the N32 billion revolving metering loan remained in the bank account of Ziklagsis, moving from Prudent Bank to Skye Bank, Polaris, and finally, Providus Bank over the years.
With the privatisation of distribution, the government proposed metering ministries, departments, and agencies (MDAs) to accurately determine their consumption and reduce accumulated debts.
Addressing reports stating that due process was not followed in the mass metering project of military formations, Adelabu clarified that the Nigerian Army, concerned about its huge electricity debt, had requested intervention from the presidency to pay off the outstanding debt and metre their formations.
In response, the Federal Government directed the Ministry of Power to utilise the N32 billion with Ziklagsis for the project.
Discussions began in November 2022, resulting in an agreement between the Nigerian Army, Ziklagsis, and De Haryor Global Services to commence metering projects in Army barracks at a cost of N12.7 billion.
Despite the agreement, the funds were not released to the service provider, leading to mounting pressure from the Minister of Power to retrieve the revolving fund from Ziklagsis.
Upon the President’s approval, N12.7 billion was to be released in tranches to De Haryor Global Services to commence the installation of already procured smart metres.
