2020 Budget: Reps Raise Concerns Over N127bn Power Allocation

The House of Representative has raised concerns over the allocation of N127bn to the power sector in the 2020 budget presented by President Buhari.

The House Committee on Power raised the concern when its queried the Minister of Power, Mr Saleh Mamman and the Permanent Secretary, Mr Louis Edozien during the ministry’s budget defence on Thursday.

The chairman of the house committee on power, Aliyu Dau, noted that government was spending funds on the planned Mambilla Hydropower Project plant which was conceived over 40 years ago.

He revealed that the Federal government had been paying some compensations to unknown entities.

Day said “You are yet to identify the sight and we have been paying some compensation; in 2019 compensation was paid and I do not know to whom.

“I have interest, Nigerians have interest, President Buhari has interest on this Mambilla Project and we have to be able to achieve it within this next four years.

“Something has to start; we are here to ensure that we appropriate the money.”

The Permanent Secretary, Mr Louis Edozien in his defence explained that a lot of underground work had taken place before any visible result would materialized.

He said “When you say there is nothing on ground it is a fact that there is no construction ongoing but with a project of this size and this importance, a lot of things happen under the surface before you start seeing things on the ground.

“The first and most important step that must be taken is the studies that underpin the project that leads to a functional and effective contract.

“The engineering, procurement and construction (EPC) contract for the project is in place.

“The next thing is the total cost of the project is estimated at $5.73 billion; the construction cost is fixed in the EPC contract and many other cost that makes up the cost.”

He also recalled that Presidents Buhari and Xi Jinping agreed, in 2018, that the Chinese Export-Import Bank would fund 85 per cent of the estimated cost and the Nigerian Government will finance 15 per cent. Adding that, the negotiations of the Chinese government’s loan was ongoing and was being handled by the Ministry of Finance.

The Permanent Secretary also revealed that the president established the Nigerian Infrastructure Development Fund, under the auspices of the Nigerian Sovereign Investment Authority, and had “raised and set aside 200 million dollars and they have made a commitment to raise the balance”.

“But their concern is that before they start releasing funds they must receive assurance that China Exim Bank will loan the principal sum on terms favourable to the country.”

Meanwhile, a member of the committee, Rep. Sada Soli (Katsina-APC), however, suggested that the project be taken out of the ministry and given a “special purpose vehicle” if it were to be realised.

He said “My advice to you and the committee, if at all we want Mambilla to be achieved, his project must be taken out of the Ministry of Power.

“It must have a special purpose vehicle; we have to do it the way MDPDC was done and those power stations were achieved within a time without interaction from the ministry cutting all the red tapes from the bureaucrats because they are making money off this.”

The committee however, approved the power sector’s budget

Robiu Musa

A season Journalist, philanthropist and founder, Concerned Nation Builders Initiative (CNI), an NGO.

Share
Published by
Robiu Musa

Recent Posts

Kano State  Police Command Arrest 19-Year-Old Female Crime Ringleader Shamsiyya Adamu

Shamsiyya Adamu Collaborates With  Tricycle Riders, Cybercriminal To Facilitate Her Operations Six mobile phones Recovered…

1 hour ago

Governor Sanwo-Olu Mourns Late Ondo SSG, Temitayo Oluwatuyi

Temitayo Oluwatuyi had been hospitalized for about 3 weeks before his death  Sanwo-olu Symphatises With…

2 hours ago

Kano Gov’t Suspends Samha M. Inuwa from Kannywood Films, Over Indecent Dressing

Samha License was revoked Kano State Censorship Board Days Samha was repeatedly warned over her…

2 hours ago