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June 17, 2024

Finance Minister pushes for power sector liquidity amidst Senate probe

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The Federal Government is intensifying efforts to inject liquidity into the power sector, identifying it as the primary solution to the sector’s challenges.

This revelation came during a session in Abuja, where the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, addressed the Senate Committee on Power.

During the session, which centered on investigating the controversial Make-Up Gas (MUG) Reprocessing Deal involving various entities, Edun emphasized the government’s commitment to resolving liquidity issues in the sector.

He clarified that agreements between the Niger Delta Power Holding Company (NDPHC) and ACUGAS Limited, inherited by the administration of former President Muhammadu Buhari, were aimed at facilitating liquidity in the sector.

Edun’s Special Assistant, Mallam Dahiru Moyi, explained the Ministry’s involvement: “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.”

Highlighting the collaboration with the Nigerian Liquefied Natural Gas (NLNG), Edun detailed plans to leverage NLNG’s gas payments in dollars to address liquidity concerns through a Deed of Transfer.

Meanwhile, the Managing Director of NDPHC, Chiedu Ugbo, informed the committee that the Calabar Power Generation Company, under NDPHC’s ownership, is the best-performing power plant in the country.

Despite challenges related to systemic transition and operational issues, NDPHC has made significant strides in power generation.

Ugbo noted the utilization of MUG in Calabar and Alaoji power plants, highlighting NDPHC’s efforts to construct an 80-kilometer gas pipeline. He stressed the need for systemic improvements to achieve desired outcomes.

Committee Chairman Senator Enyinnaya Abaribe appreciated the stakeholders’ contributions, emphasizing the ongoing nature of the investigation.

As the probe continues, stakeholders remain committed to addressing challenges and enhancing the efficiency of the power sector.

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