Categories: Local

Senate To Probe FG’s Multi-Million Dollar Gas Deal With Accugas

 

The Senate, on Thursday, said it will investigate a gas processing deal involving the Ministry of Finance, the Niger Delta Power Holding Company, Calabar Generation Company Limited and Accugas Limited.

According to the sponsor of the motion, Senator Aniekan Bassey (from PDP, Akwa Ibom), the gas supply agreement is disadvantageous for Nigeria but the process of getting the country out of the agreement further plunged the nation into another problem.

The upper chamber urged the Federal Government to ensure due diligence in the preparation and execution of transaction agreements with investors to avoid the scenario the government is facing under the Gas Supply Agreement (GSA) with Accugas and several other entities.

The lawmakers said the deal which involved the sum of $10 million is not a small amount of money.

The Deputy Senate President, Barau Jibrin, subsequently referred the motion to the Committee of Power (when constituted) to look into the matter.

In 2020, Accugas issued a “notice of non-payment” to the then administration of ex-President Muhammadu Buhari over outstanding invoices to the tune of $15.8 million.

This is the first step in activating the World Bank partial risk guarantee (PRG) signed by the Federal Government under the GSA.

Kayode Oyero

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Kayode Oyero

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