FG Takes 40% of Azura Plant Monthly Earnings

  • The Federal Government now takes 40% of the Azura Power Plant.
  • Roughly $10 million of the money is made to Seplat and NPDC for gas.

The Federal Government of Nigeria now receives 40% of the $30 million paid monthly to the Azura-Edo Power Plant for 452MW energy and capacity charges returns through the Central Bank of Nigeria (CBN), Nigerian Gas Company and the Nigerian Petroleum Development Company (NPDC).

The Managing Director, Azura Power West Africa Limited, Mr Edu Okeke, explained to the reporters that the nature of the 20-year take or pay gas agreement has necessitated the payment of the $ 30 million.

According to the managing director, the government has always had custody of the gas left over from the contract and has never been lost by the NPDC.

He noted that the undelivered gas benefitted Azura for the first two years. After that, the Take or Pay policy was in effect, but finally, the supplier, NPDC, the senior partner in a joint venture with Seplat, acquired it.

There is little doubt that the company earns its $30 million monthly payment, even though it occasionally may be less. He claimed that roughly $10 million of the money is made to Seplat and NPDC for gas.

Leave a Reply

Your email address will not be published. Required fields are marked *