The House of Representatives Committee on Finance has expressed strong criticism towards the representatives of the Transmission Company of Nigeria (TCN) regarding their written presentation, which inadequately addressed essential questions related to a take-or-pay agreement with Azura Power West Africa Limited. During an investigative hearing held in Abuja on Monday, committee members interrogated several TCN officials, including Victor Adewunmi, Executive Director of the Transmission Service Provider; Edmund Eje, Market Operator; Benedict Ogbu, Director of Agreements; and the General Manager of Corporate Planning and Strategy.
Committee member Taiwo Oluga pointed out the confusion caused by the documents presented. He stated, “The representative of the chief executive, I will want to put it to you that with this document, you are confusing the House. If it is your document and we are arguing on it, whether it is megawatts or it is in kilowatts, an agreement has been signed on behalf of Nigerians in megawatts. Now, you are presenting documents to the House in kilowatts/hour.” Oluga further emphasized the need for clarity, suggesting that the documents should be re-presented and that the chief executive should explain why the country is obligated to pay $33 million monthly to Azura, despite the lack of power supply. He questioned the legitimacy of such agreements, stating, “In developed countries, can we go into such an agreement on behalf of Nigerians without signing it? Even while signing it, we are not getting the power that is signed for.”
Chairman of the committee, James Faleke, lamented that the Nigerian Bulk Electricity Trading Plc had failed to formalize agreements with various power companies while signing a take-or-pay agreement solely with Azura. This arrangement obligates the country to pay the firm $33 million each month, regardless of power supply. Faleke remarked, “The issue of $33 million is just for one power company. Why the House has interest in this, TCN, is because we have concessioned other power stations. Egbin power station is the largest with 1,320 megawatts. It is private. We did not sign a take-or-pay deal with them.” He questioned the uniqueness of Azura’s agreement, noting that other power stations, such as Egbin and Transcorp, which generates about 650 megawatts, do not have similar arrangements.
Another committee member, Shaba Ibrahim, echoed concerns about the clarity of TCN’s presentation. He expressed his confusion, stating, “To avoid this fluidity and roaming whenever people come in here for this investigative hearing, I want to suggest that, first, they should adopt their documents so that we can hold them to account. Mr. Chairman, I am more confused than when I came in here – more confused now. I really don’t understand the language in which this presentation is denominated.” Ibrahim supported the idea that TCN should reconsider their approach to ensure a more productive discussion in future sessions.
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