The Buhari administration awarded the contract to a private firm, Acugas Limited, in 2017 to supply gas to the Calabar Generation Company Limited (Calabar Genco).
The Senate says it will probe the gas supply contract agreement awarded to a private firm, Acugas Limited, during the administration of former President Muhammadu Buhari.
This followed a motion moved by Aniekan Bassey (PDP, Akwa Ibom) at the plenary presided over by the Deputy Senate President, Barau Jibrin, on Thursday.
Mr Bassey, while presenting his motion, said in 2017, the Niger Delta Power Holding Company (NDPHC) entered into an agreement with Acugas Limited for gas supply to Calabar Generation Company Limited (Calabar Genco).
The Akwa Ibom senator revealed that the agreement on the gas supply contract was that the federal government would commit over $10 million monthly to Acugas Limited for gas supply to the Calabar Generation Company Limited.
He noted that the agreement on gas supply to the Calabar Genco was coordinated by former Minister of Finance, Budget and National Planning, Zainab Ahmed.
He said the huge sum of money had become a major concern to the public because the agreement and payment methods for the project were not transparent.
Mr Bassey, therefore, asked the senate to mandate its committee on power when constituted to probe and unravel the parties involved in the gas supply, payments made so far, the status of the gas supply agreement and interrogate all authorities involved in the project.
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He also asked the senate to urge the office of the attorney general of the federation to ensure due diligence in the preparation and execution of transaction agreements with companies and stakeholders involved in the gas supply agreement.
The motion was seconded by Etang Williams (APC, Cross River Central).
When the motion was thrown open for debate, Aminu Abass (PDP, Adamawa Central) supported it because he said the funds involved in the project are "huge."
Mr Abass noted that the outcome would help the senate contribute to the country's development if the agreement could be probed.
"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. If we look into it, it will help this country. $10 million is not a small amount of money," he said.
In his contribution, Sampson Akpan (PDP, Akwa Ibom) said, "We all know the importance of the power sector in this sector, and it is very fitting that the senate has adopted a collective approach to this issue. That's the kind of energy that we need."
In his ruling, the deputy senate president, who presided over the plenary, mandated the committee on power, when constituted, to probe the gas supply agreement and ensure due diligence on the transaction of the gas supply agreement.
