Senators have decided to exempt the former Minister of Finance, Zainab Ahmed, from an investigation into the controversial Make up Gas (Mug) Reprocessing Deal.
The deal involved a monthly payment of $10 million and has raised questions about transparency and the utilization of public funds.
At plenary session, Senator Aniekan Bassey from Akwa Ibom Northeast sponsored a motion calling for an investigation into the Make up Gas (Mug) Reprocessing Deal.
This deal has come under scrutiny due to a monthly payment of $10 million, which has sparked concerns about the proper utilization of public funds.
The deal involved the Federal Ministry of Finance, the Niger Delta Power Holding Company (NDPHC), Calabar Generation Company Limited, and ACUGAS Ltd.
However, the immediate past Minister of Finance, Zainab Ahmed, has been exempted from the investigation by the senators.
The NDPHC, a company jointly owned by the Federal, State, and Local Governments in Nigeria, is responsible for managing Nigeria’s Independent Power Projects.
In 2017, the NDPHC entered into a Gas Supply Agreement (CSA) with Acugas Limited, which aimed to supply gas to the subsidiary company Calabar Generation Company Ltd (Calabar Genco).
Under the Gas Supply Agreement, the Federal Government of Nigeria committed to paying over $10 million each month to Acugas Limited. This payment was secured with a “take or pay” clause, meaning that the government had to fulfill the monthly obligation regardless of whether Calabar Genco received or utilized the gas.
This arrangement has become a significant concern for Nigerians as it puts a substantial burden on the public treasury, with large sums of money being paid to Acugas even when gas is not utilized.
To address this issue and find a solution for the gas that Nigeria has paid for but not utilized, the former Minister of Finance, Budget and National Planning, Dr. (Mrs) Zainab Ahmed, initiated a Make-up Gas (MUG) Reprocessing deal involving Calabar Genco and Acugas Ltd. However, this deal has been criticized for lacking transparency.
Allegations suggest that substantial amounts of money were paid as fees to transaction advisers, even when discussions about extending the utilization period of the MUG were ongoing between Acugas Ltd and Calabar Genco, without the involvement of paid consultants or transaction advisers.
The Call For Investigation
Recognizing the potential implications of the Gas Supply Agreement and the Make-up Gas Reprocessing arrangement, Senator Bassey urged the Senate to mandate the Committee on Power, once constituted, to investigate the circumstances surrounding these agreements.
The proposed investigation aims to delve into the execution of the Gas Supply Agreement, the Make-up Gas Reprocessing arrangement, the parties involved, the payments made to date, and the current status of implementation.
All stakeholders, including the former Minister of Finance, Budget and Economic Planning, the Niger Delta Power Holding Company (NDPHC), and Senators Mohammed Tahir Monguno (Borno North) and Sani Musa (Niger East), would be invited to provide insights.
Defence Of Zainab Ahmed
However, Senators Mohammed Tahir Monguno and Sani Musa came to the defense of Zainab Ahmed, stating that her involvement in the deal was due to her position as a minister at the time. They argued that she should be exempted from the investigation now that she is no longer serving as the Minister of Finance.
Ensuring Due Diligence
In addition to the investigation, Senator Bassey called upon the Federal Government, particularly the Office of the Attorney General of the Federation, to exercise due diligence in preparing and executing transaction agreements with companies and investors. This cautionary measure aims to prevent the recurrence of similar scenarios under the Gas Supply Agreement with Acugas Limited and other entities.
To further support the motion, Senator Monguno proposed that Zainab Ahmed’s name be removed from the investigation. He emphasized that since she is no longer the Minister of Finance, her involvement in the deal was solely due to her ministerial role at the time. Senator Sani Musa seconded this motion, stating that Zainab Ahmed’s name should indeed be removed from the investigation.
The senators’ decision to exempt Zainab Ahmed from the investigation has sparked discussions and debates among the public. While some argue that her role as the former Minister of Finance warrants scrutiny, others maintain that her involvement was a result of her official capacity and, therefore, should not be subject to investigation now that she is no longer serving as a minister.
It is essential to ensure transparency and accountability in government transactions, especially when significant sums of public funds are involved. The Senate’s decision not to include Zainab Ahmed in the investigation raises questions about the extent of accountability and the potential impact on future government dealings.
The controversial Make up Gas Reprocessing Deal, entailing a monthly payment of $10 million, has caught the attention of senators and the public alike. The motion to investigate the deal, sponsored by Senator Bassey, seeks to shed light on the circumstances surrounding the Gas Supply Agreement and the Make-up Gas Reprocessing arrangement.
However, senators have decided to exempt Zainab Ahmed, the former Minister of Finance, from the investigation. This decision has generated varying opinions regarding accountability and the need for transparency in government transactions.
As discussions continue, it remains crucial to uphold the principles of good governance and ensure the judicious use of public funds in Nigeria.
