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By Tracy Moses
The House of Representatives Ad-hoc Committee investigating power sector reforms and spending from 2006 to 2024 has raised concerns over the supply and use of gas by electricity generation companies (Gencos), following revelations of alleged sharp practices in the sector.
In response, the committee has established a seven-member sub-committee mandated to conduct a forensic audit of gas supplied to power plants nationwide, with the aim of ascertaining how the gas has been deployed for electricity generation.
The decision followed the adoption of a motion sponsored by Representative Harrison Nwadike, who drew attention to the continued supply of gas to the Sapele Power Plant in Delta State, despite claims that the facility has not generated electricity for more than a year.
Nwadike explained that the issue came to light during a recent oversight visit by the committee to the plant, describing the situation as troubling and indicative of deeper accountability gaps within the power sector.
According to him, “It was alarming to discover that gas has been supplied to the Sapele Power Plant on a regular basis, yet there has been no power generation for over a year.”
He said the development raised serious questions about the destination and utilisation of the gas supplied, warning that such lapses could not be ignored. “Supplying gas to a plant that is not operational represents a grave oversight.
Someone must account for what is happening, and this committee will insist on answers,” he added.
Earlier, the Chairman of the Ad-hoc Committee, Representative Al-Mustapha Aliyu, noted that there had been persistent public complaints that gas producers were failing to provide sufficient gas to Gencos, a situation he said had further deepened Nigeria’s electricity challenges.
“Nigerians have consistently expressed concern that power plants are being starved of gas, leading to reduced electricity generation across the country,” Aliyu said. “This investigation is meant to uncover the truth behind these claims.”
However, the Managing Director of Seplat Energy Company, Mrs. Ibiada Itoto, rejected allegations that the company was undermining power generation, insisting that Seplat remained firmly aligned with the Federal Government’s power sector reform objectives.
She stated that Seplat had always prioritised the stability and expansion of Nigeria’s electricity supply, stressing that the company had no incentive to disrupt power generation.
“Our commitment has always been to make gas available for electricity production in line with our contractual obligations,” Itoto said.
In his presentation, the General Manager, Gas, at Seplat Energy, Mr. Olubukola Fasoyin, revealed that the Sapele Power Plant currently owes the company approximately ₦20 billion for gas already delivered.
Fasoyin told the committee that the outstanding debt had negatively affected operations across the gas value chain.
Despite the explanation, Nwadike argued that any company that continued to supply gas to a non-performing power plant could potentially be aiding an economic offence if the gas was being diverted.
“When gas continues to flow to a plant that is not producing electricity, it raises red flags about possible complicity,” he said.
“This could amount to an economic crime against Nigerians.”
Reacting to the allegations, Aliyu expressed concern, saying it was disappointing that a company of Seplat’s size could allegedly lack adequate internal systems to track the end use of gas supplied for power generation.
“It is worrisome that a major energy company may not be able to determine whether gas supplied for electricity is being diverted,” he said, adding that the matter required thorough scrutiny.
Aliyu assured that the forensic audit would uncover the facts, establish responsibility where necessary, and promote accountability in the management of gas resources meant for power generation.
“This committee will not jump to conclusions, but we are determined to follow the evidence wherever it leads,” he said.
The committee subsequently announced the formation of a seven-member sub-committee to carry out the forensic audit, with Representative Afam Victor Ogene named as Chairman.
Other members include Representatives Kafilat Ogbara, Salisu Magaji, Fuad Kayode Laguda, Harrison Nwadike, among others.