Nigeria: Reps Condemn $40m Expenditure on Power Sector

  • House of Representatives query NBET and NDPHC over expenses made in the sector.

The House of Representatives has questioned the Nigerian Bulk Electricity Trading (NBET) and the Niger Delta Holding Company (NDPHC) for spending over forty million dollars monthly on the power sector without results.

The Chairman of the House Committee on Finance investigating the Proposed Sale of the National Integrated Power Project NIPP, Mr James Faleke, issued the query during a public hearing in Abuja. Mr Faleke expressed dismay over how the government agencies conducted businesses without due process. He questioned the rationale behind payments by NBET to one of the power operators, the Azura power plant, to the tune of thirty-three million dollars monthly without approval from the Federal Executive Council (FEC) and ten million dollars expended by NDPHC on gas monthly through AKU gas.

The Chairman called on the agencies to review the contract agreements to reduce the burden on Nigerians.

A member representing the Jibia-Kaita Federal Constituency of Katsina state Sada Soli sought clarification on the process of the contract agreements.

Managing Director of NBET, Mr Nnaemeka Eweluka, who insisted that NBET does not require the approval of FEC for some expenditure, said Nigeria was still in the process of providing enhanced value for electricity.

The Managing Director NDPHC, Mr Chinedu Ugbo, explained that the company went into agreement to take or pay for gas to the tune of ten million dollars monthly.

The committee also directed Federal Inland Revenue Services FIRS to provide it with comprehensive tax payments for all operators of power plants in the country. The Chairman also directed NBET and NDPHC to provide the committee with all monthly invoices for payments attached to each agreement.

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