*The House of Representatives Committee on Finance indicts the Nigeria Bulk Electricity Trading Company for ‘sheer arrogance and wickedness’ over the company鈥檚 alleged shoddy handling of Power Purchase Agreements on behalf of the country, saying the coming weeks will be more revealing and ‘explosive’

Alexander Davis | 绿帽献妻

Concerned about alleged lack of transparency in power agency’s transactions with taxpayers’ money, the 聽House of Representatives Committee on Finance, in the National Assembly (NASS), Abuja, FCT, has tackled the Nigeria Bulk Electricity Trading (NBET) Company, for dragging the West African country into Power Purchase Agreements considered to be detrimental to the interest of Nigeria.

It was learnt the House Committee on Finance Friday, August 19, 2022, also ordered Management of the Niger Delta Power Holding Company (NDPHC), to immediately commence a review of the Gas Purchase Agreement (GSA) between the Nigerian Government and a company, for the supply of gas to its Calabar power plant.

The lawmakers as well noted the Committee discovered that the said company was using the same platform to supply gas to other companies, when the country still pays the $10 million monthly commitment as contained in the initial agreement, according to report.

Hon. James Faleke , Chairman of the committee, said: 鈥淣DPHC, can you please affirm to us, that by Monday (August 22), you will review, all I want to hear from you is to review that agreement because that company now has new customers.

Faleke told Mr. Chiedu Ugbo of the company to “please come back here and tell us, that the $10 million has now dropped to $3 million.

“Nigeria can manage that.”

Ugbo agreed to act on the Committee’s directive, report stated.

About PPAs under 鈥楾ake or Pay鈥� arrangement

绿帽献妻 also gathered that the Committee was particularly angered that in about 12 of the Power Purchase Agreements (PPAs) entered into by NBET under the 鈥楾ake or Pay鈥� arrangement, Nigeria鈥檚 monthly commitment to one of them alone was about $30 million, whether the Transmission Company of Nigeria (TCN) was able to evacuate for onward delivery to the Electricity Distribution Companies (DisCos) or not.

Responding to the lawmakers’ questions in Abuja, Nnaemeka Eweluka, Chief Executive Officer (CEO) of NBET, confirmed that the said agreements were all entered into without recourse to the Federal Executive Council (FEC).

Eweluka also contented that such PPAs were not like normal procurement processes that may require such, based on the recommendation of the Bureau of Public Procurement (BPP).

The electricity trading company, he disclosed, only relied on the advice of the Attorney-General of the Federation, while the Minister for Finance, Budget and National Planning signed on behalf of the Nigerian Government.

Call for review of companies鈥� and agencies鈥� activities in power sector

However, in reacting to the latest discoveries, the House Finance Committee Chairman said: 鈥淚t is all about personal interest, pure impunity.

“If an investor comes and says he wants to invest in power, for that investor to invest in power, he must have carried out his own survey to be sure that consumers are available to consume his power.

It鈥檚 purely business. What is our responsibility in buying the power from him.”

Faleke also noted: “Let him, the investor, sell the power to the people.

鈥淣igeria initially felt that, we needed to intervene in the power sector, they provided support. We鈥檙e still where we are today. “We have millions of Nigerians, out of school but they have no jobs. It is because we have no power to provide industries.”

The Federal lawmaker stated: 鈥淎nd that鈥檚 why I asked you: are you satisfied with the value for money? When we have no power for industries to establish, why are we paying such monies.

鈥淢y expectation will be that you have provided power for let鈥檚 say Ariara market, and there, businesses are booming, or an industrial area in a particular state and industries are booming, but the power is not there. “So as operators of these agencies, you needed to carry out a review of where we are.”

He further said:

鈥淚t is interesting that the NDPHC is just saying that they read on the pages papers that a company you signed agreement with, to provide you with gas for $10 million a month, static.

鈥淭ake or pay, we pay the $10 million, and if we don鈥檛 pay, the World Bank will pay, and the moment the World Bank pays, your rating will drop; that is the meaning.”

The Chairman stressed and “a Nigerian will sit before us here (House of Representatives), and tell us that they don鈥檛 have to go to FEC or anywhere, you sit down in your office and some people will manipulate you and you just sign agreements on behalf of Nigeria and you commit Nigerians, and the same Nigerians pay you you salaries NBET.

It’s sheer arrogance, wickedness: Finance Committee

Hon. Faleke also said, 鈥渋t is sheer arrogance and wickedness.

“We are just starting, by next week, it will be more explosive, I can assure you that.”

Meanwhile, the committee which rescheduled its next sitting for next Monday, has has directed NBET to furnish it with all power purchase agreements entered into since the commencement of the programme, as well as invoices of payments so far made.

The legislators further directed the Federal Inland Revenue Service (FIRS) to provide it with records of tax compliance by the companies and agencies involved in the PPAs on behalf of Nigeria.

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