By Adeleye Kunle
The House of Representatives Finance Committee chastised Transmission Company of Nigeria (TCN) officials yesterday for failing to explain the megawatts of electricity generated by Power Generation Companies (GenCos), particularly the Azura power company.
The committee, chaired by Hon. James Faleke (APC, Lagos), also found flaws in the $33 million paid to Azura on a monthly basis, lamenting that two or three people may have sat down to commit Nigeria to such an agreement without receiving adequate value for money.
The federal government had signed a series of agreements with Azura, including the power purchase agreement (PPA) on April 22, 2013, the put/call option agreement (PCOA) on October 22, 2014, and the PCOA “direct agreement” on December 18, 2014, all of which stated that the federal government would “take or pay” for power generated by Azura, “whether or not it is taken by the government-owned transmission company.”
At an investigative hearing last week with the Managing Director of NBET, Nnaemeka Eweluka, TCN, and the Federal Inland Revenue Service, the Committee currently investigating the proposed sale of the Nigerian Integrated Power Project (NIPP) lamented that Nigerians do not get value for the large sums of money they pay.
The lawmakers, while expressing concern about the country’s erratic power supply, lampooned the three TCN Directors, warning that their seats were in jeopardy for failing to represent Nigerians.
Faleke, who accused TCN officials of being unwilling to tell Nigerians the truth, claimed the officials were attempting to twist issues relating to power generation by Azura Power Company.
According to him, the TCN should be aware of the number of megawatts consumed per day.
“I am not perplexed,” Faleke said. Transmission Company of Nigeria, according to you, your MD first sought permission to meet with the minister rather than come to explain and clarify issues with Nigerians. If I understand your earlier statement correctly, they have not been producing up to the 450 that was signed, and they have justification for not producing up to that, will you say as a Nigerian that they have violated the agreement they signed?
“What you are telling Nigerians in general is that you are not representing Nigerians from the position you hold and are paid by taxpayers, and that your seat is already in jeopardy.”
“That’s what you’re telling Nigerians because you can’t even make an informed decision when it comes to making decisions on their behalf.” That is precisely what you have just demonstrated.
“You arrived before us because you evacuated the power generated by Generating Companies, not just Azura.” NBET was here on Friday and will be here again tomorrow or so. As a result, it is not closed.
“We are only asking you, as a power evacuator, what power you have been evacuating from a 450megawatt generation company.” We have not invested in any other power generation firms. We just chose one – not one.
“And do you know why we’re worried?” We are concerned that Nigerians are eager to establish industries, but there is no power, despite the fact that we are paying large sums of money. This is just the issue; there is no witch hunt. It has nothing to do with TCN; it is all about Nigeria. So, all of my questions for TCN will have to wait until your MD arrives.
“This committee will want to ask other critical questions.” We’ll ask when the MD is seated. Whatever position we have, we are only opportune among 200 million people.”
Another member of the Committee, Hon. Taiwo Oluga, echoed Faleke’s statement, saying, “If it is your document and we are arguing about it, whether it is in megawatts or in kilowatts, an agreement has been signed on behalf of Nigerians in megawatts.” You are now presenting documents to the House in kilowatt-hour units. So, Mr. Chairman, I’d like to suggest that these documents be re-presented while we wait for the CEO to come and explain to Nigerians why $33 million will be paid (to Azura) every month and we are not seeing results.”
Hon. John Dyegh, another lawmaker, suggested that they send the documents presented to TCN to a consultant for proper analysis.
The TCN Directors, Mr. Victor Adewumi, Executive Director, Transmission Service Provider, Engr Edmond Eje, Director Market Operations, and Mr. Ogwu Benedict, in charge of the Agreement, stated in their presentations that Azura was supposed to generate 450 Megawatts, but it usually produces less.
Faleke summoned TCN’s Managing Director, Sule Abdulaziz, to appear before the court on August 23.
