Finance Minister Seeks to Inject Liquidity into Power Sector

The minister of finance and coordinating minister for the economy, Wale Edun, has called for liquidity for the power sector.

This is coming just as the managing director of Niger Delta Power Holding Company (NDPHC), Chiedu Ugbo informed the Senate Committee on Power that the Calabar Power Generation Company under its ownership, is the best performing power plant in the country.

Need for liquidity into the power sector was made by the Minister of Finance in his submission to the committee investigating the controversial Make up Gas (MUG) Reprocessing Deal Involving the Ministry of Finance , NDPHC, Calabar Generation Company Limited and ACUGAS Limited.

The minister who made the submission through his special assistant, Dahiru Moyi, said the agreements on Gas supply between NDPHC and ACUGAS Limited was inherited by former President Muhammadu Buhari in 2015 since it was signed in 2011 during President Goodluck Jonathan’s administration.
According to him,”just as the Ministry of Justice was not aware of the contract agreement, the Ministry of Finance was also not part of it from the beginning but since government is a continuum, the Ministry of Finance later came into it for the purpose of facilitating the required liquidity.

“The issues on ground about contracts agreements being investigated by the Senate Committee on Power, is not about restructuring but providing the required liquidity which the Ministry of Finance is doing through collaboration with the Nigerian Liquified Natural Gas (NLNG).

“Since NLNG pays Gas in Dollars, the Ministry is collaborating with it for a practical solution of bringing liquidity into the age long contract agreement through Deed of Transfer.

“Make Up Gas (MUG) belongs to Calabar, Calabar belongs to NDPHC and NDPHC belongs to federal and state governments with the federal government having 52.68 per cent”, he said.

In his own submission before the committee, the managing director of NDPHC, Chiedu Ugbo, said the company as a result of the Gas supply agreement with ACUGAS Limited, is taking gas from three out of five units and generating power from Calabar plant to the National Grid which according to him, is the best power plant in the entire country.