Under the agreement, Nigeria is obligated to pay between $30 million and $33 million monthly to Azura for power generated, whether TCN transmits it or not.
The House of Representatives Committee on Finance has summoned the Managing Director of the Transmission Company of Nigeria (TCN), Sule Abdulaziz, over the controversial Azura power plant agreement.
The committee issued the summon on Monday at the ongoing investigation into the proposed sales of power assets under the National Integrated Power Project (NIPP).
Although the Executive Director, Transmission Service Provider, Victor Adewumi, and Director Market Operator, Edmond Eje, appeared before the committee, it, however, said it was not satisfied with the explanations they gave on the matter.
Consequently, Mr Abdulaziz was asked to appear on Tuesday to answer questions on the Pull Call Option Agreement (PCOA).
Under the PCOA deal, Nigeria is obligated to pay between $30 million and $33 million monthly to Azura for power generated, whether TCN transmits it or not through the national grid.
Last week, the Committee issued a query on the deal when the Nigeria Bulk Electricity Trading Company (NBET) appeared before it.
Speaking on optimisation of the plant, Mr Eje said most times, Azura is unable to meet the target of generating 450MW as provided in the deal, adding that there is a justification for not doing that.
He did not, however, state the reason for not optimising the capacity of the plant despite the agreement.
The Chairman of the Committee, James Faleke (APC, Lagos), noted that other power plants like Egbin with generating capacity of 1,320MW and Transcorp Power Plant with generating capacity of 920MW do not have PCOA.
He then sought to know what makes Azura special to warrant the agreement by the federal government.
"Egbin power station is the largest with 1,320 megawatts. It is private. We did not sign take-or-pay with them. This is where I am going. If we have Egbin power station that is generating the highest into the national grid - 1,320, and we also have Transcorp with about 650 megawatts and we did not sign take-or-pay with Transcorp, and I am sure we have others, what we are trying to bring out is that what is so special about Azura? Not only that it is special, just two or three people sat down and committed Nigerians to it. We will get there.
"This document you gave us, there is no month that they have met 450MW," Mr Faleke said.
He added "If I understand your earlier statement, can you say that they have not produced up to 450 that was signed and they have justification for not producing up to that? In that case, would you say as a Nigerian that they have violated the agreement we signed?" Mr Faleke asked.
In response, the operator said only NBET could answer questions on the agreement.
You're confusing us, lawmakers lament
The members of the committee were left confused on the monthly generating capacity of the power plant as Messrs Adewumi and Eje failed to clearly explain the daily generating capacity of the power plant to them.
Tolulope Shapide (APC, Oyo) said the representatives of TCN failed to clarify some of the issues, but instead left the members confused.
"The representative of the chief executive, I will want to put it to you that this document, you are confusing the House. If it is your document and we are arguing on it, whether it is megawatts or it is in kilowatts, and agreement has been signed on behalf of Nigerians in megawatts," she said.
Another member, John Dyegh (PDP, Benue), also admitted that the document submitted by TCN had left members confused. He, therefore, moved a motion for the House to get consultants to help the committee.
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"I agree that we are more confused. But more than that is that between this Azuragate and the fuel 'subsidygate', Nigeria is bleeding badly.
"I want to suggest that we tender this... we submit this to a consultant, who will do a proper analysis and get back to us. There is no point arguing and arguing because they are getting us more confused," Mr Dyegh said.
In his closing remarks, Mr Faleke said the members should reserve all questions regarding the power plant for Tuesday.
"So, all the questions that I have for TCN, I have to reserve them until your MD is here. There are other vital questions that this committee will want to ask. When the MD is seated, we will ask. Whatever position we have found ourselves, we are just opportune amongst 200 million people," Mr Faleke said.
