Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized on Monday that liquidity is a critical requirement for the power sector to achieve optimal performance. This statement was made during his submission to the Senate Committee on Power, which is currently investigating the controversial Make-up Gas (MUG) Reprocessing Deal involving the Ministry of Finance, Niger Delta Power Holding Company (NDPHC), Calabar Power Generation Company Limited, and ACUGAS Limited.
Represented by his Special Assistant, Mallam Dahiru Moyi, Edun clarified that the gas supply agreements between NDPHC and ACUGAS Limited were inherited by former President Muhammadu Buhari’s administration in 2015, having been signed in 2011 during President Goodluck Jonathan’s tenure.
“The Ministry of Finance, like the Ministry of Justice, was not initially involved in this contract agreement. However, recognizing the continuity of government, the Ministry of Finance later engaged to facilitate the necessary liquidity,” Edun stated. He added that the current investigation is not about restructuring the agreements but ensuring liquidity through collaboration with the Nigerian Liquefied Natural Gas (NLNG).
“NLNG pays for gas in dollars, and we are working with them to bring liquidity into the longstanding contract agreement through a Deed of Transfer,” Edun explained. He further noted that Make-up Gas (MUG) belongs to the Calabar Power Plant, which is under NDPHC, a company jointly owned by the federal and state governments with the federal government holding 52.68 percent.
NDPHC Managing Director, Mr. Chiedu Ugbo, testified that the Calabar Power Generation Company is the best-performing power plant in the country due to the gas supply agreement with ACUGAS Limited. “We are utilizing gas from three out of five units and generating power for the national grid, making it the best power plant in Nigeria,” Ugbo said. He also mentioned that NDPHC constructed an 80-kilometer gas pipeline for the Calabar and Alaoji power plants to use the Make-up Gas.
However, Ugbo noted that systemic issues related to transition, frequency, and voltage have hindered the company’s ability to achieve the desired results.
Senator Enyinnaya Abaribe (APGA, Abia South), chairman of the committee, expressed gratitude to the stakeholders for providing clarity on the issues. He confirmed that the investigation is ongoing and more insights will be gathered in the coming sessions.
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