June 10, 2024

Finance Minister seeks liquidity into power sector

Wale Edun

Finance and Coordinating Minister of the Economy, Wale Edun

…as NDPHC declares Calabar as best power plant

By Henry Umoru, Abuja

The Federal Government is seeking liquidity into the power sector, saying that it forms the major solution required to address the troubled sector.

This was disclosed yesterday in Abuja by Minister of Finance and Coordinating Minister for the Economy, Wale Edun in his submission to the Senator Enyinnaya Abaribe, APGA, Abia South led Senate Committee on Power that is investigating the controversial Make up Gas ( MUG) Reprocessing Deal Involving the Ministry of Finance , NDPHC, Calabar Generation Company Limited and ACUGAS Limited.

Meanwhile, the Managing Director of Niger Delta Power Holding Company ( NDPHC), Chiedu Ugbo has informed the Senate Committee on Power that the Calabar Power Generation Company under its ownership forms the best performing power plant in the country.

Edun who was represented by his Special Assistant , Mallam Dahiru Moyi, said that the agreements on Gas supply between NPDHC and ACUGAS Limited was inherited by former President Muhammadu Buhari in 2015 since it was signed in 2011 during President Goodluck Jonathan ‘s administration.

The Finance Minister said, “just as the Ministry of Justice was not aware of the contract agreement , the Ministry of Finance was also not part of it from the beginning but since government is a continuum , Ministry of Finance later came into it for the purpose of facilitating the required liquidity.

“The issues on ground about contracts agreements being investigated by the Senate Committee on Power , is not about restructuring but providing the required liquidity which the Ministry of Finance is doing through collaboration with the Nigerian Liquified Natural Gas ( NLNG) .

“Since NLNG pays Gas in Dollars , the Ministry is collaborating with it for practical solution of bringing liquidity into the age long contract agreement through Deed of Transfer.

“Make Up Gas ( MUG) belongs to Calabar , Calabar belongs to NDPHC and NDPHC belongs to Federal and State governments with Federal Government having 52.68%.”

In his own submission, the Managing Director of NDPHC , Chiedu Ugbo who disclosed that the company as a result of the Gas supply agreement with ACUGAS Limited, was taking Gas from three out of five units and generating power from Calabar plant to the National Grid which according to him, is the best power plant in the entire country.

Ugbo who noted that NDPHC went out of its way to construct 80 kilometres gas pipeline for utilization of MUG in Calabar and Alaoji power plants, however lamented that problems relating to systemic transition, frequency and voltage issues, have not made the firm to achieve the desired results.

In his remarks , the Chairman of the Committee, Senator Enyinnaya Abaribe thanked the stakeholders for giving the committee clarity on the issue but added that is still an on going investigation.