Panel of representatives summons TCN boss over controversial $33m power deal with Azura
The House of Representatives Finance Committee has summoned the Managing Director of the Transmission Company of Nigeria (TCN), Sule Abdulaziz, over the controversial Azura Power Station deal.
The committee issued the subpoena on Monday to the ongoing investigation into proposed sales of power assets under the National Integrated Power Project (NIPP).
Although the executive director, transport service provider, Victor Adewumi, and the director of the market operator, Edmond Eje, appeared before the committee, the latter however expressed dissatisfaction with the explanations that they have data on this.
Consequently, Mr. Abdulaziz was invited to appear on Tuesday to answer questions about the call option agreement (PCOA).
Under the PCOA agreement, Nigeria is required to pay between $30 million and $33 million per month to Azura for the electricity produced, whether or not TCN transmits it through the national grid.
Last week, the Committee raised a question about the deal when the Nigeria Bulk Electricity Trading Company (NBET) appeared before it.
Speaking on plant optimization, Mr. Eje mostly said that Azura is unable to meet the 450MW production target under the deal, adding that there is justification for not doing so.
He did not, however, indicate the reason why the plant's capacity was not optimized despite the agreement.
Committee Chairman James Faleke (APC, Lagos) noted that other power stations like Egbin with a generating capacity of 1,320 MW and the Transcorp power station with a generating capacity of 920 MW do not have no PCOA.
He then went on to find out what makes Azura special to justify the federal government's agreement.
"Egbin Power Station is the largest at 1,320 megawatts. It's private. We haven't signed a take-or-pay with them. That's where I'm going. If we have the Egbin power station which generates the most in the national grid - 1,320, and we also have Transcorp with around 650 megawatts and we have not signed any plug or payment with Transcorp, and I'm sure we have others, what we're trying to bring out is what's so special about Azura? Not only is it special, but only two or three people sat down and engaged Nigerians in it. We'll get there .
“That document you gave us, no month ago they reached 450 MW,” Faleke said.
He added: "If I understand your previous statement, can you say that they have not produced until 450 that have been signed and that they have justification for not producing until then If so, would you say as a Nigerian that they violated the agreement we signed?” Mr. Faleke asked.
In response, the operator said only NBET could answer questions about the deal.
You're confusing us, lawmakers lamentCommittee members were puzzled about the power plant's monthly production capacity because Messrs. Adewumi and Eje did not clearly explain the daily production capacity of the power station.
Tolulope Shapide (APC, Oyo) said TCN representatives did not clarify some of the issues, but instead left members confused.
“Representative of the Chief Executive, I want to tell you that this document, you are confusing the House. If this is your document and we are arguing about it, let it be megawatts or kilowatts, and an agreement has been signed on behalf of Nigerians in megawatts,” she said.
READ ALSO: Representative panel questions $30 million monthly electricity deal with AzuraAnother member, John Dyegh (PDP, Benue), also admitted that the document submitted by TCN left members confused. He therefore proposed a motion asking the House to hire consultants to assist the committee.
“I agree that we are more confused. But more than that is that between this Azuragate and the fuel subsidygate, Nigeria is bleeding badly.
“I want to suggest that we submit this...we submit it to a consultant, who will do a proper analysis and come back to us. confused,” Mr. Dyegh said.
In his closing remarks, Mr. Faleke said members should reserve all questions regarding the power station for Tuesday.
"So any questions I have for TCN, I have to put aside until your MD is here. There are other vital questions that this committee will...
The House of Representatives Finance Committee has summoned the Managing Director of the Transmission Company of Nigeria (TCN), Sule Abdulaziz, over the controversial Azura Power Station deal.
The committee issued the subpoena on Monday to the ongoing investigation into proposed sales of power assets under the National Integrated Power Project (NIPP).
Although the executive director, transport service provider, Victor Adewumi, and the director of the market operator, Edmond Eje, appeared before the committee, the latter however expressed dissatisfaction with the explanations that they have data on this.
Consequently, Mr. Abdulaziz was invited to appear on Tuesday to answer questions about the call option agreement (PCOA).
Under the PCOA agreement, Nigeria is required to pay between $30 million and $33 million per month to Azura for the electricity produced, whether or not TCN transmits it through the national grid.
Last week, the Committee raised a question about the deal when the Nigeria Bulk Electricity Trading Company (NBET) appeared before it.
Speaking on plant optimization, Mr. Eje mostly said that Azura is unable to meet the 450MW production target under the deal, adding that there is justification for not doing so.
He did not, however, indicate the reason why the plant's capacity was not optimized despite the agreement.
Committee Chairman James Faleke (APC, Lagos) noted that other power stations like Egbin with a generating capacity of 1,320 MW and the Transcorp power station with a generating capacity of 920 MW do not have no PCOA.
He then went on to find out what makes Azura special to justify the federal government's agreement.
"Egbin Power Station is the largest at 1,320 megawatts. It's private. We haven't signed a take-or-pay with them. That's where I'm going. If we have the Egbin power station which generates the most in the national grid - 1,320, and we also have Transcorp with around 650 megawatts and we have not signed any plug or payment with Transcorp, and I'm sure we have others, what we're trying to bring out is what's so special about Azura? Not only is it special, but only two or three people sat down and engaged Nigerians in it. We'll get there .
“That document you gave us, no month ago they reached 450 MW,” Faleke said.
He added: "If I understand your previous statement, can you say that they have not produced until 450 that have been signed and that they have justification for not producing until then If so, would you say as a Nigerian that they violated the agreement we signed?” Mr. Faleke asked.
In response, the operator said only NBET could answer questions about the deal.
You're confusing us, lawmakers lamentCommittee members were puzzled about the power plant's monthly production capacity because Messrs. Adewumi and Eje did not clearly explain the daily production capacity of the power station.
Tolulope Shapide (APC, Oyo) said TCN representatives did not clarify some of the issues, but instead left members confused.
“Representative of the Chief Executive, I want to tell you that this document, you are confusing the House. If this is your document and we are arguing about it, let it be megawatts or kilowatts, and an agreement has been signed on behalf of Nigerians in megawatts,” she said.
READ ALSO: Representative panel questions $30 million monthly electricity deal with AzuraAnother member, John Dyegh (PDP, Benue), also admitted that the document submitted by TCN left members confused. He therefore proposed a motion asking the House to hire consultants to assist the committee.
“I agree that we are more confused. But more than that is that between this Azuragate and the fuel subsidygate, Nigeria is bleeding badly.
“I want to suggest that we submit this...we submit it to a consultant, who will do a proper analysis and come back to us. confused,” Mr. Dyegh said.
In his closing remarks, Mr. Faleke said members should reserve all questions regarding the power station for Tuesday.
"So any questions I have for TCN, I have to put aside until your MD is here. There are other vital questions that this committee will...
What's Your Reaction?
