The House of Representatives has suspended the planned sale of five National Integrated Power Plants (NIPP) approved for sale by the National Council on Privatization (NCP).
NCP, a fortnight ago had approved for sale, Benin Generation Company Limited, Calabar Generation Company Limited, Geregu Generation Company Limited, Olorunsogo Generation Company Limited and Omotoso Generation Company Limited which the Bureau for Public Enterprises (BPE) has begun the sale process
As a follow up to the suspension, the federal lawmakers are now making a move to investigate the N701 billion approved by the Federal Executive Council (FEC) for Nigeria Bulk Electricity Trading PLC for the power plants.
Consequently, its Committee on Finance, chaired by Hon James Abiodun Faleke has summoned the Ministers of Finance, Budget and National Planning and Minister of Power over controversies trailing the Federal Government’s unilateral decision to sell the five power plants belonging to the three tiers of government.
Faleke, frowned at the development, having observed that the process for the sale of the power plants was unconstitutional and a disservice to the nation’s development and sharing equity among the three tiers of government.
As a follow up, the Minister of Power has been asked to come with a copy of the Federal Executive Council memo/approval for the sum of N701 billion paid to Nigeria Bulk Electricity Trading PLC for the power plants and a breakdown of the monthly payment approved by the ministry to Nigeria Bulk Electricity Trading PLC for the power plants.
Also invited by the committee are the Director General of the Bureau for Public Enterprise (BPE), managing directors of Niger Delta Power Holding Company (NDPHC) and Nigeria Bulk Electricity Trading Company (NBET).
The committee in a letter referenced NASS/9HR/CT.41/BGT/2022/119 dated 18th July 2022 also directed NBET Managing Director/CEO to submit relevant documents detailing the breakdown of the capacity and monthly income of all the power plants.
“A full disclosure of all the power plants that have taken or pay agreements as well as electricity consumed and not consumed from inception; all agreement with the power plants on take or pay basis, approvals needed by the Nigeria Bulk Electricity Trading Company Board, Federal Executive Council, the Attorney General of the Federation and Minister of Justice, the Bureau for Public Enterprise with regard to the take or pay basis and copy of the power purchase agreement to the Niger Delta Power Holding Company already earmarked for sale by the Bureau for Public Enterprise.”
The House decried the planned sale of the power plants which it said did not follow due process against the economic policy for which the plants were established.
The letter sent to the Minister of Finance, Budget and National Planning is referenced NASS/9HR/CT.41/BGT/2022/116 dated July 18, 2022, read in part: “The House of Representatives has observed with grave concern the proposed sale of the five National Integrated Power Plants (NIPP) namely Benin Generation Company Limited, Calabar Generation Company Limited, Geregu Generation Company Limited, Olorunsogo Generation Company Limited and Omotoso Generation Company Limited by the Bureau for Public Enterprise (BPE) without due regard to constitutional principles and economic policy that informed the establishment of those power plants.
It added: “The Committee decried the proposed sale as unconstitutional and a disservice to all known principles of national development and the sharing equity among the three tiers of government.
“Considering the critical role your agency is playing in the sustainable energy sector in the country, you are requested to stop all further processes regarding this transaction and to submit the following information for the committee’s determination of the way forward.”
The Ministry of Finance according to the letter with Reference No: NASS/9HR/CT.41/BGT/2022/115 dated July 18, 2022, is to supply a copy of the legal advice from the Attorney General and Minister of Justice issued in respect of the Sovereign Guarantee on behalf of the Federal Government to Seven Energy Limited for gas supply to Calabar Power generation Company Limited, a copy of the Federal Executive Council memo and the approval to Nigeria Bulk Electricity Trading Company Plc on the said transaction as well as breakdown of payments made by the Ministry on behalf of the Niger Delta Power Holding Company to even Energy Ltd since the signing of the agreement and repayment so far.”
In the same vein, the lawmakers also mandated the Minister of Power via a letter with Reference No: NASS/9HR/CT.41/BGT/2022/117 dated 18th July 2022 urged Federal Government to: “stop all further processes regarding this transaction and to submit the following information for the Committee’s determination on the way forward: A copy of the Federal Executive Council memo/approval for the sum of N701 billion paid to Nigeria Bulk Electricity Trading PLC for the power plants; Breakdown of the monthly payment approved by your ministry to Nigeria Bulk Electricity Trading PLC for the power plants.”
The committee via a letter with Reference No: NASS/9HR/CT.41/BGT/2022/119 dated 18th July 2022 also directed NBET Managing Director/CEO to submit relevant documents detailing the “breakdown of the capacity and monthly income of all the power plants, a full disclosure of all the power plants that have taken or pay agreements as well as electricity consumed and not consumed from inception; all agreement with the power plants on take or pay basis, approvals needed by the Nigeria Bulk Electricity Trading Company Board, Federal Executive Council, the Attorney General of the Federation and Minister of Justice, the Bureau for Public Enterprise with regard to the take or pay basis and copy of the power purchase agreement to the Niger Delta Power Holding Company already earmarked for sale by the Bureau for Public Enterprise.”
