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

On Tuesday, the Senate decided to look into a lucrative agreement between the federal government and Accugas, a supplier of gas to the Calabar Generation Company Limited.

Aniekan Bassey, a senator from Akwa Ibom's northeast, sponsored a motion that led to the upper chamber's decision.

According to a 2020 TheCable report, Accugas sent the federal government a "notice of non-payment" for $15.8 million in unpaid payments.

The World Bank Partial Risk Guarantee (PRG), which the federal government signed as part of the gas supply agreement (GSA), is now being activated.

According to the GSA deal, which was signed in May 2017 while former President Muhammadu Buhari was in office, Nigeria is required to pay Accugas more than $10 million per month to the Calabar GenCo, which is owned by the Niger Delta Power Holding Company (NDPHC) Ltd., whether or not gas is supplied.

Bassey argued that the deal the federal government made with the corporation and how it would pay for the services performed or not was opaque while introducing his motion.

Aminu Abbas, a senator for Adamawa Central, weighed in on the discussion by stating that the arrangement has to be looked at.

“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.

Source