How Power Ministry under develops Nigeria (II)

BUT when that company was ready to deliver, officials of the Ministry of Power changed the policy from gas to diesel. They also chose to commit N386 million to build storage tanks for diesel, even though Eddy Van Den Broeke and his GreenVille LNG team had offered to build the storage tanks free as part of the MOU they earlier signed.

The GreenVille Chairman had said: “In 2014 when the parametres were signed it was agreed that LNG is most competitive. We have invested $400million after which people in the Ministry decided to change the parametres.

“It will cost $200 million more to use AGO (diesel) because there is no other fuel available that can replace LNG and GreenVille. I would want the Ministry to give me one cent of response on this change of theory.”

Why would a Power Ministry supposedly desperate to end nationwide darkness get involved in activities that would prolong the tenure of darkness?

To produce power through diesel, the sitting was told, Nigerians would pay N79 per kilowatt, while gas would produce the same kilowatt at between N35 and N37.  To power one of the eight units of the Kaduna Plant, the country would need 180,000 litres of diesel per day and at least N46 million. Diesel is imported into Nigeria, it will put pressure on foreign reserves, while gas is locally and environmentally friendly. In an era when foreign exchange is an issue, forcing the Central Bank to ban application of forex on items that can be sourced locally, why would a government Ministry prefer imported goods (diesel) to gas that is readily produced locally? Even now, as the ministry plans to commission one of the eight units in January, it only has 30,000 litres of diesel in stock.

The Permanent Secretary, Ministry of Power, Mr. Louis Edozie, who was at the hearing, impressed no one with his half-hearted responses. His answers to questions gave out the intention of the ministry to milk the economy. He told the Committee he was yet to visit the facility of GreenVille LNG to ascertain its preparedness to supply gas to the plant, but he backed the switch over to diesel. He said the ministry received lots of proposals from gas companies wishing to supply the plant. He also said in another breathe the ministry has not jettisoned the MOU with GreenVille.

His responses left looping gaps in the actions of his Ministry. When the facts on ground overwhelmed his submissions and importantly showcased the lack of patriotism in the actions of his Ministry, he declared that starting on diesel was “temporary.”

The unanswered questions include, if you need N46 million daily to power one unit a plant daily that will produce 26 MW, how much gain have you brought to the economy? Who pays the price that will certainly go overboard? Why abandon the gas projection for the Plant and further delay its take off by shifting to diesel?

The Kaduna Power Plant was started in 2009, with a 2012 completion date. Its delivery date was altered due to change of location and put at 2014. Delays in clearing some accessories at the Onne Port forced the shift to 2015 and now the introduction of diesel has put off the completion indefinitely. Even as we speak, some 19 Containers conveying accessories to complete the plant have been locked up by the Nigerian Ports Authority at the Onne, Rivers State since 2015. The Senate Committee on Power, which visited the Plant in May was told about this and you wonder why the Ministry cannot resolve a purely administrative challenge.

It would look to me that the containers were detained in Onne just for fun or at best by a cartel working to keep Nigeria in darkness.  Some 92 containers conveying items to complete the Kaduna Plant were imported under the previous government. The then government granted waivers to the importers apparently based on the need to fast track the project. Many of the containers were allowed into the country but those that came in after the change of government in 2015 got caught up by a change in policy. The Port authorities insisted on payment of import duties, claiming not to be aware of the waivers granted by the Goodluck Jonathan government.

The ministry officials claimed some interventions led to the release of a number of the containers on payment of some undisclosed duties. 19 of them carrying the accessories are however still trapped at Onne Ports.

The Senators at the Investigative hearing tried what they could to redeem what is left of Nigerian patriotism. Chairman, Committee on Power, Senator Enyinnaya Abaribe, had this to say: “We have heard a lot of disturbing things and we have all seen that we have put the Cart before the Horse. Everyone in this hall today has now seen why we ask questions. We ask questions when things don’t seem to be going the right way.

“You see one price at N79 and the other at N35, why do you go for the higher cost which is not cost effective. If you are going to spend N46 million daily to run a plant and you said it is temporary, that is not effective. If you start one plant and the rest don’t come up in eight years, we need to save this project from becoming another white elephant project.”

With the above scenario unfolding, you don’t need to go far in search of answers to why Nigeria is still in darkness regardless of statistics from government quarters.