The House of Representatives has queried Nigeria’s $33 million monthly payment to the National Bulk Electricity Company under the Azura Power Contract.
The House Committee on Finance, chaired by James Faleke, on Friday maintained that the contentious contract did not receive approval from the Federal Executive Council.
Nigeria entered into an agreement with Azura Power Plant to procure a 450 megawatts of power plus a transmission substation and a gas pipeline station to boot.
The contract was between Azura and Nigeria’s Bulk buyer of energy, National Bulk Electricity Company.
The “Take or Pay” Contract posits that the Federal Government takes or pays for power generated as declared by Azura whether or not such power is taken by the government owned transmission company.
As it stands, Nigeria parts with $33 million every month in the Take or Pay Contract .
This House committee is concerned that Nigeria still often endures blackouts despite the contract.
The Managing Director of NBET was put on the spot as the legislators question him over the contract.
The NBET Chief Executive admitted before the committee that his threshold for contract signing as the Managing director is N2.5 million as against the N900 million Azura power contract he signed.
But while the committee insists the contract did not get FEC approval, NBET said the Finance Minister was duly aware.
The Transmission Company of Nigeria, the Ministry of Justice and the Federal Inland Revenue Service were also on hand to clarify their side of the bargain.
