Reps aghast $33m paid to Azura whether or not it produces power
By Jeph Ajobaju, Chief Copy Editor
Lawmakers have expressed shock at discovering another $33 million paid monthly to a power firm “whether or not” it feeds the national grid, with the Transmission Company of Nigeria (TCN) even unable to confirm megawatts (mw) produced.
Abuja already has contracts with other gas and electricity firms to supply power, which cost taxpayers $40 million monthly without them getting the supply. And a new $1 billion deal is being planned for additional power the grid cannot take up.
House of Representatives members expressed fury as they picked holes in the $33 million paid monthly to Azura Power Company in Edo, alleging two or three persons might have colluded to commit Nigeria to the agreement without value for money.
They expressed their views in Abuja at the hearing on the proposed sale of the National Integrated Power Plant (NIPP) by the Bureau of Public Procurement (BPP).
House Finance Committee members were upset TCN officials could not give satisfactory answers to questions raised about persistent epileptic supply despite huge sums paid to power generation companies (GenCos).
Three TCN officials – Victor Adewumi (Executive Director, Transmission Service Provider Executive Director), Edmond Eje (Market Operator Director), and Ogwu Benedict (Agreements Director) – appeared before the panel to give explanation.
But the lawmakers said they could not come to terms with how TCN signed an agreement with Azura on take-or-pay to commit $33 million monthly on 450 megawatts (mw), whether generated or not.
Committee Chairman James Faleke vowed lawmakers will unravel the mystery because it is hard to accept such an amount was paid to one company.
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Disappointment with TCN officials
Faleke expressed disappointment with the TCN officials, especially Eje, and ruled in favour of a motion to summon TCN Managing Director Sule Abdulaziz, according to reporting by Vanguard.
Faleke said: “I am not confused. Transmission Company of Nigeria, first your MD took permission, according to you, to see the Minister, rather than coming to explain to Nigerians and to clarify issues.
“Market Operator [Eje], if I understood your earlier statement that they [Azura] have not been producing up to the 450 megawatts that was signed and they have justification for not producing up to that, in that case, will you say as a Nigerian that they have violated the agreement they signed?
“What you are telling Nigerians generally is that from the position you hold and being paid by taxpayers, you are not representing Nigerians and that your seat is already in danger.
“That is what you are telling Nigerians because you cannot even take an informed decision when it is necessary to take decisions on behalf of Nigerians.
“That is exactly what you have just exhibited. Why you are here before us was because you evacuate the power produced by generating companies, not only Azura.
“NBET was here on Friday [19 August] and they will still be here tomorrow or so. So, it is not closed. We are only asking you from your own function as an evacuator of power.
“What power have you been evacuating from a 450 megawatts generation company? We have not gone into other power generation companies. We have just picked one.’’