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National AssemblyGreen ChamberNDPHC Power Plants: Reps summon Finance Minister, BPE over planned sale

NDPHC Power Plants: Reps summon Finance Minister, BPE over planned sale


House Committee on Finance faults planned sale of five power plants on grounds of due process and departure from the economic policy for which they were established


The House of Representatives has summoned the Minister of Finance, Budget, and National Planning, as well as the Minister of Power over the planned sale of five power plants belonging to the three tiers of government.

The Director-General for the Bureau for Public Enterprise (BPE) and the Managing Directors of the Niger Delta Power Holding Company (NDPHC) and Nigeria Bulk Electricity Trading Company (NBET) were also summoned by the parliament.

Chairman of the House Committee on Finance, James Abiodun Faleke (APC, Lagos) in separate letters to the agencies, informed them that the process initiated for the sale of the power plants was unconstitutional and a disservice to the nation’s development as well as sharing equity among the three tiers of government.

“The House of Representatives has observed with grave concern the proposed sale of the 5 National Integrated Power Plants (NIPP) namely Benin Generation Company Limited, Calabar Generation Company Limited, Geregu Generation Company Limited, Olorunsogo Generation Company Limited, and Omotoso Generation Company Limited by the Bureau for Public Enterprise (BPE) without due regard to constitutional principles and economic policy that informed the establishment of those power plants,” the letter read in part.

The committee decried the proposed sale as unconstitutional and a disservice to all known principles of national development and the sharing equity among the three tiers of government.

“Considering the critical role your agency is playing in sustainable energy sector in the country, you are please requested to stop all further processes regarding this transaction and to submit the following information for the committee’s determination of the way forward,” it added.

READ ALSO: Reps direct BPE to halt sale of 5 NDPHC power generation plants 

The committee is demanding from the Nigeria Bulk Electricity Trading Company (NBET); a breakdown of the capacity and monthly income of all the power plants, a full disclosure of all the power plants that have taken or paid agreements, as well as electricity consumed and not consumed from inception.

The lawmakers are also requesting information on all agreements with the power plants on ‘take or pay’ basis, approvals needed by the Nigeria Bulk Electricity Trading Company Board, the Federal Executive Council, the Attorney General of the Federation and Minister of Justice, the Bureau for Public Enterprise with regard to the ‘take or pay’ basis and copy of the power purchase agreement to the Niger Delta Power Holding Company already earmarked for sale by the Bureau for Public Enterprise (BPE).

They are requesting data on each of the power plants earmarked for sales including the capacity of each plant, staff strength, and remuneration from the Niger Delta Power Holding Company (NDPHC), as well as a comprehensive revenue and expenditure profile of each plant since inception.

The NDPHC is to provide evidence of compliance with relevant extant procurement and Bureau of Public Enterprise Act, details of the agreement between Calabar Power plant and Seven Energy Limited in addition to Federal Executive Council, Bureau for Public Procurement appraisal as well as the Attorney General’s advice on the subject.

The Ministry of Finance is to supply a copy of the legal advice from the Attorney-General and Minister of Justice issued in respect of the sovereign guarantee on behalf of the Federal government to Seven Energy Limited for gas supply to Calabar Power generation Company Limited, a copy of the Federal Executive Council memo and the approval to Nigeria Bulk Electricity Trading Company Plc on the said transaction.

Breakdown of payments made by the Ministry on behalf of the Niger Delta Power Holding Company (NDPHC) to Seven Energy Ltd since the signing of the agreement and repayment so far.

In addition, the BPE is expected to provide the House with a list of the power plants earmarked for sale; a proposed time frame for the privatisation exercise; a Technical Adviser appointed for the exercise and process for hiring their services; bid processes, and criteria for selection disclosing the list of qualified bidders and their profile in the power sector.

On his part, the Minister of Power is to provide a copy of the Federal Executive Council memo/approval for the sum of N701B paid to Nigeria Bulk Electricity Trading PLC for the power plants and a breakdown of the monthly payment approved by your ministry to Nigeria Bulk Electricity Trading PLC for the power plants.

Lizzy Chirkpi
Lizzy Chirkpi
Lizzy Chirkpi has a BA in French and is a senior reporter at OrderPaper. She has keen interest in photojournalism and video documentary. She's also a writer and author of a book, "Pourquoi Le Francais." She likes reading, traveling and watching movies.
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