Senate to investigate controversial make-up gas reprocessing agreement

The 10th Senate has resolved to conduct an investigation into the controversy surrounding the make-up Gas (MUG) reprocessing agreement between the Federal Ministry of Finance, Niger Delta Power Holding Company (NDPHC), the Calabar Generation Company Limited, and AUGAS Ltd.

This was made known today at the Senate plenary sitting.

Make-up gas (MUG), which refers to the gas that a power generation company (GenCo) has already paid for but has, for one reason or another, not utilized during the year, has continued to generate controversies in recent times.

It will be recalled that public eyebrows were raised following an alleged consultancy deal said to have been masterminded by the former Minister of Finance, Budget, and National Planning, Zainab Ahmed.

According to The Cable, the former finance minister had proposed that Nigeria could convert the MUG to liquefied natural gas (LNG) and export it to earn revenue for the federation. She sought and got the approval of former President Muhammadu Buhari.

However, there are now questions regarding her engagement with Ahmed Zakari & Co, an accounting firm, as a transaction in what is purely a bilateral agreement between Calabar Generation Company Limited (Calabar GenCo) and Accugas Ltd.

The upper chamber of the National Assembly has, however, maintained that no stone will be left unturned in ensuring that a proper investigation is carried out into the controversies surrounding the development.

The Nigerian public eagerly awaits the findings of the Senate’s investigation with the hope that it will provide clarity, accountability, and the necessary measures to prevent such controversies from arising in the future.