The Senate says it will probe the gas supply contract agreement awarded to a private firm, Accugas Limited, during the administration of immediate past President Muhammadu Buhari.
This followed a motion by Aniekan Bassey (PDP, Akwa Ibom) at the plenary presided over by the Deputy Senate President, Barau Jibrin, on Thursday.
Mr Bassey said in 2017, the Niger Delta Power Holding Company (NDPHC) entered into an agreement with Accugas Limited for gas supply to Calabar Generation Company Limited (Calabar Genco).
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Accugas Limited, one of the top four gas suppliers to Nigerian economy, is a subsidiary of a British headquartered Savannah Petroleum, which bought assets of Seven Energy in Nigeria. Accugas main hydrocarbon property is the Uquo Gas field in Oil Mining Lease (OML) 13 onshore eastern Niger Delta basin.
The Akwa Ibom senator revealed that the agreement on the gas supply contract was that the federal government would commit over $10 million monthly to Accugas Limited for gas supply to the Calabar Generation Company Limited.
He noted that the agreement on gas supply to the Calabar Genco was coordinated by former Minister of Finance, Budget and National Planning, Zainab Ahmed.
He said the huge sum of money had become a major concern to the public because the agreement and payment methods for the project were not transparent.
Mr Bassey, therefore, asked the senate to mandate its committee on power when constituted to probe and unravel the parties involved in the gas supply, payments made so far, the status of the gas supply agreement and interrogate all authorities involved in the project.
He also asked the senate to direct the office of the Attorney General of the Federation to ensure due diligence in the preparation and execution of transaction agreements with
The motion was seconded by Etang Williams (APC, Cross River Central).
When the motion was thrown open for debate, Aminu Abass (PDP, Adamawa Central) supported it because he said the funds involved in the project are “huge.”
Mr Abass noted that the outcome would help the senate contribute to the country’s development if the agreement could be probed.
“It is a very serious issue when you look at the take or buy agreement. It is an issue that involves a huge amount of money. If we look into it, it will help this country. $10 million is not a small amount of money,” he said.
In his contribution, Ekong Sampson Akpan (PDP, Akwa Ibom) said, “We all know the importance of the power sector in this sector, and it is very fitting that the senate has adopted a collective approach to this issue. That’s the kind of energy that we need.”
In his ruling, the Deputy Senate President, who presided over the plenary, mandated the committee on power, when constituted, to probe the gas supply agreement and ensure due diligence on the transaction of the gas supply agreement.
