A total of N2.740 trillion was spent on the country’s epileptic power sector between 1999 and 2015, the Senate was told Tuesday.
This was the submission of the Permanent Secretary, Ministry of Power, Ambassador Godknows Igali, at the Senate two day investigative hearing on Power Sector.
The investigative hearing was inaugurated by the upper chamber to unearth alleged unwholesome practices in the power sector between 1999 to 2015.
The Senate mandated an ad-hoc committee on the Power Sector headed by Senator Abubakar Kyari (Borno North) to conduct a comprehensive hearing to expose corrupt practices and establish how much the Federal Government has spent on the sector between 1999 and 2015.
Igali told the committee that out of a total appropriation of N1.6 trillion since 1999, the sum of N948 billion was actually released to the Ministry of Power and its agencies within the period.
The Permanent Secretary added that sum of N155 billion was also released to the ministry to cushion the effects of the shortfalls in expenditure for the power sector within the same period.
He noted that power sector is at the centre of the country’s development insisting that everything must be done to get the sector right.
Igali said that at the inception of democracy in 1999, the government inherited a sector where everything was dormant with no new generating units built except the one built in the 60s.
He stressed the need for consistent investment in the sector.
He noted that for over 100 years when the first electric power came to Lagos, power remained in the hand of government because there was no law allowing individuals to invest in the sector.
He said, “It is a heavy capital intensive industry but if you get it right people are ready to pay.We have not been consistent with our investment. From 1999, despite the interest of government to infuse money in the sector, government has not been able to meet what the sector requires.
Igali also told the committee that the country’s electricity generation had risen to about 4600 megawatts from 3500 megawatts in 2013.
He attributed the rise in generation capacity to the reduction in the degree of vandalisation of power equipment in parts of the country.
The permanent Secretary also said that the NIPP is currently the greatest contributor of power to the National Grid.
He noted that post privatization era, vandalism of power equipment has gone down.
Igali said that from his evaluation “things will be better in the sector very soon.”
On the disengaged staff of the Power Holding Company of Nigeria (PHCN) Igali said that only 2000 had not been verified and paid their severance allowances.
He explained that most of those involved who claimed to be former staff of PHCN have no valid document to back up their claim.
He however said that final verification would soon be conducted to determine the veracity of the claimants.
The Permanent Secretary told the committee that proceeds of privatisation was used to settle labour claims of over 46000 workers by the Bureau for Public Enterprises (BPE) through the office of the Accountant General of the Federation and Pension Commission.
The Managing Director of the Niger Delta Power Holding Company, Mr. James Olotu, on his part told the committee that the National Independent Power Projects (NIPP) received $8.23 billion.
The $8.23 billion which came from the excess crude account translates to about N1.640 trillion the NIPP used for its activities.
The committee wondered why the local government tier of government was not represented in the governing board of the NIPP even when the tier is one of the sponsors of the NIPP projects.
Olotu explained that the framers of the NIPP law might have thought the bringing in local government chairmen as board members of the NIPP would make the board unwieldy considering the number of local governments in the country.
He said that governors in the board are representing local governments in their geo-political zones.
The committee also mandated Igali to submit audited accounts of the ministry of power and its agencies to it.
Chairman of the committee said that audited account of the Ministry of Power and its agencies would enable the committee to know what was actually released to the ministry.
The committee was also not comfortable with what a member described as notable contradictions and discrepancies in the presentations and submissions of those who appeared before the committee.
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