The Central Bank of Nigeria (CBN) in a suit filed before a Federal High Court in Kogi State, has requested an order to freeze 157 bank accounts belonging to Meter Asset Providers (MAP) over the alleged misappropriation of funds allocated for procurement of meters for Nigerians.
The suit, which was filed on Wednesday, July 20, 2022, seeks to place a 180-day restriction on the bank accounts of 10 companies that received intervention funds for the power sector under the National Mass Metering Programme (NMMP) pending the outcome of an investigation by the CBN.
The 10 companies who could have their accounts frozen 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, G Unit Engineering Limited, Koby Global Engineering Services Limited, FLT Energy Systems Limited, Smart Meters Asset Provider Company Limited and Cresthill Engineering Limited.
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According to the CBN, the alleged diversion of funds meant for meter procurement has caused “grave instability” in the power sector.
“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),” the apex bank said in a statement.
“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).
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“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.”