The House of Representatives yesterday summoned the Managing Director, Transmission Company of Nigeria (TCN), Sule Abdulaziz, over epileptic power generation by the Azura Power Plant, after spending $33 million monthly.
This followed the dissatisfaction of the Committee members with the explanations given by the Executive Director, Transmission Service Provider, Victor Adewumi, and Director, Market Operator, Edmond Eje, regarding the deal.
The summon was part of the resolutions reached by the House Committee on Finance, investigating the proposed sale of the National Integrated Power Plant (NIPP), by the Bureau of Public Enterprises (BPE), in Abuja, to address alleged breaches of agreement and perennial power failure in the sector.
Recall that on Friday, the House had queried the $30 million per month Pull Call Option Agreement (PCOA) reached with the Azura Power Plant, and the manner the $10 million gas agreement was conducted.
Specifically, Abdulaziz is asked to appear before the Committee today, to answer questions on the PCOA, under which Nigeria is obligated to pay between $30 million and $33 million monthly to Azura for power generated, whether or not TCN transmits it through the national grid.
The House also resolved to hire the services of a consultant to analyse documents presented by the TCN officials.
Adewumi had told the Committee that the Azura Power located in Edo State, is structured to produce 450 megawatts (MW) of electricity.
He added that Azura historically produced “accumulatively 1,755.9MW. The 450MW is expected to be generated at any time. If Azura is on, it should be giveing you 460MW.”
…you said that they have not produced up to the 450 that was signed, and they have justification for not producing up to that? In that case, would you say as a Nigerian that they have not violated the agreement we signed?
Violation of agreement
But the Committee members, including Tolulope Shapide and John Dyegh insisted that explanations by the TCN representatives and documents presented left the lawmakers even more confused.
Indeed, the Chairman, James Faleke, argued that the epileptic power supply was a violation of the agreement signed.
He said: “Egbin Power Station is the largest with 1,320MW; it is private. We did not a sign take-or-pay with them. This is where I am going. If we have Egbin Power Station that is generating the highest into the national grid – 1,320, and we also have Transcorp with about 650MW and we did not sign take-or-pay with Transcorp, and I am sure we have others; what we are trying to bring out is: what is so special about Azura?
“Not only that it is special, just two or three people sat down and committed Nigerians to it. We will get there. This document you gave us, there is no month that they have met the 450MW.”
He added: “If I understand your earlier statement – you said that they have not produced up to the 450 that was signed, and they have justification for not producing up to that? In that case, would you say as a Nigerian that they have not violated the agreement we signed?”
He continued: “Nigerians are willing to set up industries. But there is no power. But yet they have paid huge sums of money. This is just an issue; not witch-hunting. It is not about TCN but Nigeria.
“So, all the questions I have for TCN, I will have to reserve it for your MD. There are questions that this Committee will like to ask when the MD is seated.
“Whatever positions we find ourselves in, we are just opportune among 200 million Nigerians.”
