- Finance Minister Edun stressed liquidity is crucial for power sector performance.
- NDPHC’s Ugbo stated Calabar Power Plant is top-performing despite issues.
- Senator Abaribe noted the MUG deal investigation continues.
On June 10, Nigeria’s Finance Minister Wale Edun stressed that liquidity is crucial for improving power sector performance. He addressed the Senate Committee on Power about the Makeup Gas (MUG) Reprocessing Deal involving the Ministry of Finance, NDPHC, Calabar Power Generation Company, and ACUGAS Limited.
In a speech read by his Special Assistant, Mallam Dahiru Moyi, Edun traced the gas supply agreements to 2011 under President Goodluck Jonathan. The Buhari administration inherited these in 2015. Although initially uninvolved, the Finance Ministry later joined to ensure necessary liquidity.
“The Ministry of Finance, initially unaware of the contract, now facilitates liquidity through collaboration with Nigerian Liquefied Natural Gas (NLNG),” Edun said. This partnership aims to inject liquidity into the contract through a Deed of Transfer since NLNG pays for gas in dollars.
“Makeup Gas belongs to Calabar Power Plant, owned by NDPHC, with the federal government holding a 52.68% stake,” he added.
NDPHC Managing Director Chiedu Ugbo praised Calabar Power Generation Company’s performance before the committee. He said the Calabar plant, using gas from ACUGAS Limited, operates three of its five units and supplies power to the national grid, making it Nigeria’s best.
Ugbo also noted that NDPHC built an 80-kilometre pipeline to use MUG for Calabar and Alaoji plants. However, systemic issues like frequency and voltage fluctuations have hampered optimal results.
Committee Chairman Senator Enyinnaya Abaribe (APGA, Abia South) appreciated the clarification from stakeholders and stated that the investigation continues.