Reps probe N701bn by FEC for NBET, power plants

The House of Representatives has unveiled plans to investigate the N701 billion approved by Federal Executive Council (FEC) for Nigeria Bulk Electricity Trading PLC for the power plants.

To this end, the House through its Committee on Finance, chaired by Hon James Abiodun Faleke, 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.

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).

To this end, the Minister of Power is expected to provide 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 your ministry to Nigeria Bulk Electricity Trading PLC for the power plants.

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.

Hon. Faleke who frowned at the development observed that the process initiated 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.

The letter sent to the Minister of Finance, Budget and National Planning with Reference No: 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 5 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.

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“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 please 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.”

The lawmakers also requested “data on each of the power plants earmarked for sale including the capacity of each plant, staff strength and remuneration from the Niger Delta Power Holding Company, as well as a comprehensive revenue and expenditure profile of each plant since inception.”

In the same vein, the Committee via a letter with Reference No: NASS/9HR/CT.41/BGT/2022/115 dated 18th July 2022 directed the NDPHC Managing Director to provide evidence of compliance with relevant extant procurement and Bureau of Public Enterprise Act, details of the agreement between Calabar Power plant and Seven Energy Limited in addition to Federal Executive Council, Bureau for Public Procurement appraisal as well as the Attorney General’s advice on the subject.

In addition, the lawmakers via a letter with Reference No: NASS/9HR/CT.41/BGT/2022/118 dated 18th July 2022 directed the BPE Director General to provide the House with a list of the power plants earmarked for sale; proposed time frame for the privatisation exercise; Technical Adviser appointed for the exercise and process for hiring their services; bid processes and criteria for selection disclosing the list of qualified bidders their profile in the power sector.

Recall that the House via a resolution passed after the debate on the motion sponsored by Hon Magaji Aliyu, during the Thursday plenary, directed all relevant MDAs to halt the planned sale of the five power plants.

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