Group Demands Probe into Disbursement of $550m Power Project Grant

Wale Igbintade

A Civil Society Organisation, the Coalition of West African Investigative Journalists (COWAFIJ), has urged President Bola Tinubu to urgently set up a presidential investigation panel to probe into the spending of over $550m repayable grant by Nigeria Electrification Project (NEP).

COWAFIJ at a press conference held yesterday in Lagos, stated that NEP, a unit in Rural Electrification Agency (REA), allegedly obtained the said loan from World Bank and African Development Bank under the incumbent Managing Director of REA.

Speaking, the group’s General Secretary, Comrade Gboyega Adeoye, said since the current REA’s Managing Director, Ahmad, took over in December 2019, NEP’s repayable grants from World Bank and African Development Bank to improve access to electricity in underprivileged communities across Nigeria, which is its core mandate totaled over $550 million.

The grant usage, Adeoye alleged, had been characterised by misuse, claiming that several contacts awarded in respect of the loan are also in violation of public procurement law.

“It is worrisome that in spite of the huge sum at the disposal of NEP access to power is still a mirage in virtually all disadvantaged communities in the country.
“In fact there is no way anyone can palliate, disguise or deodorise the wasteful spending of the humongous sum that is devoid of internal review, external oversight or accountability, with violation of public procurement law a constant theme in contracts awarded in respect of the money.

“In any case, the federal government is duty-bound to repay the grant and so, it behooves it to know how it was spent, particularly when it is obvious that the money has not answered its purpose as energy poverty among the poor groups is on the rise.

“It is based on the foregoing that we call on President Tinubu to step in and do the needful by instigating probe of the over $550 million loan of which $350 million is from World Bank,” he said.

Adeoye also urged the World Bank to stay action on its plan to give NEP a fresh $750 million grant until the spending of the initial grant are accounted for.
“Some days back, we listened with surprise and sadness to announcement by World Bank Director of Strategy and Operations, Western/Central African Region, Ms. Elizabeth Huybens that this coming August another $750 million will be made available to NEP in grant.

“We entreat the bank to tarry until those currently charged with managing the affairs of NEP, particularly as regards the loan and contract awards concerning the grant and past spending are subjected to close scrutiny by relevant enforcement agencies,” the accountability journalists’ group’s General Secretary said.