Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
Nigeria’s House of Representatives Committee on Finance has directed the Corporate Affairs Commission to deregister NBET Finance Company Plc after lawmakers raised concerns over the company’s ownership structure and the circumstances surrounding its registration. The directive followed an investigative session in Abuja during which officials of Nigerian Bulk Electricity Trading Plc appeared before the committee to answer questions regarding financial activities and the establishment of the company.
The issue surfaced during the committee’s oversight of government agencies and state-owned enterprises as part of ongoing reviews of fiscal activities covering recent budget cycles. During the session, lawmakers examined the operations of Nigerian Bulk Electricity Trading Plc and requested clarification about NBET Finance Company Plc, which had been created as a special purpose vehicle intended to facilitate financial transactions linked to Nigeria’s power sector.
According to explanations provided by NBET officials, the company was incorporated to enable the government raise funds from the capital market to address debts owed to electricity generation companies. These liabilities have long been considered a major obstacle within Nigeria’s electricity market, with generating companies frequently complaining about unpaid invoices and liquidity challenges affecting the sector. The special purpose vehicle was therefore intended to provide a financing mechanism through which bonds could be issued to settle outstanding obligations and stabilize the electricity supply chain.
However, lawmakers expressed strong reservations after learning that the company’s shares were registered in the names of two private lawyers who handled the incorporation process rather than in the name of a government institution. Members of the committee argued that a company established to support a public financial objective should have been structured under the ownership of government entities such as the Ministry of Finance Incorporated or another recognized public body. The decision to place ownership under private individuals raised questions about transparency, accountability and the legal validity of the arrangement.
During the hearing, members of the committee requested documentation relating to the formation of the company, including approvals, incorporation records and correspondence among relevant agencies. The lawmakers indicated that the available information suggested a mismatch between the company’s intended purpose and its legal ownership structure. They also questioned why the Corporate Affairs Commission approved the registration without ensuring that the ownership arrangement reflected the public nature of the project.
The committee emphasized that public-sector financial arrangements must adhere to strict legal and governance standards to prevent abuse or mismanagement of public resources. Lawmakers warned that allowing private individuals to hold shares in an entity created to manage government-backed financial instruments could expose the government to legal complications and undermine confidence in financial oversight systems.
Following deliberations, the committee directed the Corporate Affairs Commission to deregister NBET Finance Company Plc. The instruction effectively calls for the cancellation of the company’s registration until the ownership and governance structure can be reviewed and corrected in line with public-sector requirements. The committee indicated that any future arrangement intended to support government financial operations must be properly structured under recognized public institutions.
The development underscores the growing role of legislative oversight in scrutinizing financial structures linked to government programs. In recent years, the National Assembly has intensified investigations into agencies and companies connected to public finances, particularly in sectors such as power, aviation and infrastructure where large financial commitments are involved.
Analysts say the controversy surrounding NBET Finance Company Plc highlights the complex financial challenges facing Nigeria’s electricity sector. The power industry has struggled with persistent liquidity shortages since the privatization of generation and distribution companies more than a decade ago. Government agencies have repeatedly explored financial interventions and bond-backed mechanisms to address debts owed to market participants and maintain electricity supply stability.
While the committee’s directive may delay the proposed financing arrangement, lawmakers insist that transparency and proper corporate governance must take priority. The outcome of the investigation may influence how future special purpose vehicles or financial entities linked to government programs are structured and regulated.
The Corporate Affairs Commission is expected to review the committee’s directive and determine the next administrative steps regarding the company’s status. Meanwhile, NBET and other relevant authorities may be required to redesign the financing structure under a more transparent ownership framework if the government intends to proceed with similar capital-market funding strategies for the power sector.
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