How We Are Pursuing States and MDA Debts - Musa Manu
MU: The Military, Federal Agencies and the four states Government are owing the Company 42,877,101,819.30 naira as at September 2023 of outstanding electricity bills, this is not only making it difficult for the Company to meet its market obligations, but is also denying the Company of needed funds for sufficient investment in network maintenance and expansion.
CCD: What is the MD Unit doing to ensure appreciable recovery of these outstandings?
MU: We are establishing a corridor whereby all our customers would be made to have confidence and acceptance on integrity of our bills production by ensuring 100% customer metering and full pledge customers engagement.
We have reconciled and fully enumerate 3 state government accounts, namely Kebbi, Zamfara and Kaduna state, this harmonious approach has already led to settlements from Kebbi and Kaduna State, with Zamfara on track to clear its outstanding debt within six months. Sokoto is currently undergoing the same process, with expectations of resolution by the end of October 2023. This approach has transformed the narrative of sporadic payments and significantly enhanced operational efficiency.
In collaboration with the Nigerian Electricity Regulatory Commission (NERC), the Ministry of Finance and Budget Planning MD Unit is actively working on ensuring that payment of electricity from institutions such as the Army, Police, Navy, and Air Force is deducted directly at the source. This approach holds the promise of effectively addressing uncollectable payments.
CCD: Going forward, what strategy are you putting in place to ensure that MDAs settle their bills as at when due?
MU: We have established a strong relationship with our MDA customers. We conduct an account validation and reconciliation process after each validation/reconciliation, during which we secure their commitment to settling outstanding balances, resulting in successful collections. Additionally, we are currently enhancing our metering infrastructure by transitioning from old meters to remote meters for all MDA customers within our franchise to assure them that our billing is accurate.
Furthermore, we initiate the process of sending debt recovery letters to MDA customers who do not require reconciliation. These letters invite them to a meeting where we will discuss how they can structure the repayment of their outstanding debts, separate from their current charges. This approach has proven to be effective in yielding positive results for debt recovery and collections as a whole
The MD Units proactive and comprehensive approach is expected to have a far-reaching impact, not only on reducing outstanding debts but also on creating a more efficient and reliable system for government agencies to settle their bills. These measures aim to bring about financial stability and predictability in electricity payments from government entities.
Kudos Sir Musa Manu. We believe in your track record. More successes and elevations
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