Nigeria’s Finance Minister and Customs CG Summoned Over Delayed Power Projects
The House of Representatives Public Accounts Committee has taken a significant step by summoning the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Comptroller General of Nigeria Customs Service, Adewale Adeniyi, to provide an explanation regarding the delay of several power projects across the country.
Led by Bamidele Salam, the committee has also decided to invite both men to the resumed hearing on the procurement contracts related to the capital projects for various electricity distribution companies. This includes the accelerated transmission and distribution interface project where power projects worth $231,004,002.8 and N18,264,411,235.66 have been affected.
During the opening of the investigative hearing, Salam mentioned that the committee’s focus will be on the procedure for the disbursement of loans and access to funds by the contractors. The repayment pattern for the loans received by the distribution companies from the Central Bank of Nigeria will also be investigated.
The contractors involved in these projects, such as AAKS & Bros Ventures, Laga Cepower Limited, and Elektron Petroleum Energy and Mining Limited, pointed out that the failure to give them a waiver resulted in their equipment being stuck at the seaport for an extended period and accumulating demurrage. This has significantly impacted the progress and cost of the projects.
Zakaria Nyampa, a member of the Committee, expressed his disapproval of the contractors’ challenges and proposed to summon the Nigeria Customs and the Minister of Finance to clarify the situation. This motion was unanimously adopted by the committee members.
The committee also heard from companies like Bussdor Group and Inlaks Power Solutions Limited, which were able to borrow money and even mortgage personal belongings to execute the project. These companies were commended for their sacrifices to contribute to the country’s development.
Furthermore, the committee has made it clear that only Chief Executive Officers and the accounting officers of banking institutions are qualified to appear before them. This is due to the critical issues involved in the delayed power projects and the role of financial institutions in the process.
The decision made by the House of Representatives Public Accounts Committee to summon the Minister of Finance and the Comptroller General of Nigeria Customs Service is crucial in shedding light on the delay of power projects across the country. The investigative hearing will provide an opportunity for all parties involved, including the contractors and financial institutions, to address the challenges and find a way forward for these vital projects.
