House of Reps Forms Sub-Committee to Review Gas Supply to Power Plants

The House of Representatives' Ad-hoc Committee tasked with examining power sector reforms and related expenditures from 2006 to 2024 has announced the formation of a seven-member sub-committee to conduct a thorough audit of gas supplied to electricity generation companies (Gencos) nationwide.

This decision was made following a motion introduced by Harrison Nwadike (APC, Imo), who expressed concern about the consistent delivery of gas to the largely inactive Sapele Power Plant in Delta State, which has been producing minimal to no electricity over the past year.

Nwadike noted during a recent oversight visit to the Sapele facility that gas continues to be supplied yet no electricity generation has occurred. He questioned the reasoning behind this ongoing supply.

In a preceding statement, Al-Mustapha Aliyu (APC, Sokoto), the Chairman of the Ad-hoc Committee, highlighted public unrest regarding Seplat Energy Company, a major gas supplier, suggesting that it may not be meeting the gas supply requirements for Gencos, thereby crippling power plants and impacting national electricity generation.

In response to the allegations, Ibiada Itoto, Managing Director of Seplat Energy, refuted claims of the company sabotaging the sector, asserting that "Seplat is dedicated to supporting the federal government’s reform agenda for the power sector."

Additionally, Seplat’s Gas General Manager, Olubukola Fasoyin, revealed that the Sapele Power Plant owes the company around ₦20 billion for gas supplied.

Regardless, Nwadike accused Seplat of potentially facilitating economic crimes by redirecting gas that was intended for electricity production over the last year. To resolve these issues, the committee has instituted a seven-member sub-committee tasked with performing the audit.

Afam Ogene (LP, Enugu) will chair the sub-committee. Other members include Kafilat Ogbara (APC, Lagos), Salisu Magaji (APC, Kano), Faud Laguda (APC, Oyo), and Harrison Nwadike (APC, Imo) among others.

The sub-committee's mandate includes investigating gas supply usage across power plants, pinpointing any deficiencies or mismanagement, and compiling their findings to recommend corrective actions to promote accountability in the sector.