Senate to Probe FG’s Gas Supply Contract Agreement Awarded to Private Firm

Sunday Aborisade in Abuja

The Senate on Thursday initiated an investigation into the gas supply contract agreement awarded to a private firm, Acugas Limited, during the administration of former President Muhammadu Buhari.

This was sequel to a motion moved by Aniekan Bassey (PDP, Akwa Ibom) at the plenary presided over by Deputy Senate President, Barau Jibrin.

Bassey’s motion claimed that in 2017, the Niger Delta Power Holding Company (NDPHC) entered into agreement with Acugas Limited for supply of gas to Calabar Generation Company Limited (Calabar Genco).

The Akwa Ibom senator revealed that the agreement on the gas supply contract was that the federal government will commit over $10 million monthly to Acugas Limited for supply of gas to the Calabar Generation Company Limited.

The senator noted that the agreement on gas supply to the Calabar Genco was coordinated by former Minister of Finance, Budget and National Planning, Zainab Ahmed.

He said the huge sum of money committed to the supply of gas to the Calabar Genco has become a major concern to the public because the agreement and payment methods for the project were not transparent.

Bassey therefore urged the Senate to mandate its Committee on Power, when constituted, to probe and unravel the parties involved in the gas supply, payments made so far, status of the gas supply agreement and interrogate all authorities involved in the project.

He also prayed the Senate to urge the office of Attorney General of the Federation to ensure due diligence in the preparation and execution of transaction agreements with companies and stakeholders involved in the gas supply agreement.

The Deputy Senate President, who presided over the plenary, granted the prayers of the motion to mandate the Senate Committee on Power, when constituted, to probe the gas supply agreement and ensure due diligence on transaction of the gas supply agreement.

However, the Senate, in a unanimous decision, kicked against the invitation of the former finance minister on the excuse that she did not act on her own authorities.

The red chamber said whoever emerges as the finance minister in the Bola Tinubu administration should be summoned since government is a continuum.