Senate to probe FG’s multi-million dollar deal with Accugas

The senate on Tuesday resolved to investigate a multi-million dollar deal between the federal government and Accugas, a company supplying gas to the Calabar Generation Company Limited.

The resolution of the upper legislative chamber follows a motion sponsored by Aniekan Bassey, senator representing Akwa Ibom north-east.

In 2020, TheCable reported that Accugas issued a “notice of non-payment” to the federal government 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 gas supply agreement (GSA).

Under the GSA agreement signed in May 2017 during the administration of former President Muhammadu Buhari, Nigeria is obliged to pay Accugas over $10 million monthly with or without gas supply to the Calabar GenCo, owned by Niger Delta Power Holding Company (NDPHC) Ltd.

While moving his motion, Bassey said the agreement the federal government entered into with the company and how it would pay for the services rendered or not, was not transparent.

Contributing to the debate, Aminu Abbas, senator representing Adamawa central, said there is a need to probe the deal.

“It is a very serious issue when you look at the take or buy agreement. It is an issue that involves a huge amount of money,” Abbas said.

“If we look into it, it will help this country. The sum of $10 million is not a small amount of money.”

Thereafter, Barau Jibrin, deputy president of the senate, referred the motion to the committee of power (when constituted) to look into the matter.