The Nigerian Sovereign Investment Authority (NSIA) has said the $350 million it is managing for the Nigerian Electricity Bulk Trading Company (NBET) has grown to $384 million.
Uche Orji, Managing Director/Chief Executive Officer of the Authority insisted that the fund which it is managing on behalf of NBET is safe.
This comes as the Minister of Finance, Kemi Adeosun and her counterpart in Power, Works and Housing, Babatunde Fashola, have denied alleged diversion of $350 million from the NSIA.
The trio appeared before the Joint Committee on Senate Public Accounts Committee and Power, Steel Development and Metallurgy on Tuesday in Abuja.
The amount is part of the $1 billion Eurobond facility obtained in 2013.
Speaking before the Matthew Urhoghide-led committee, Orji said the fund has increased by $34 million.
Although he explained that $397.5 million was initially realised, deduction of $13.5 million to service the interest of the amount, reduced the funds to $384 million.
“The NBET funds are intact with the NSIA. As of our September statement, it has grown from $350 million to $397.5 million. $13.5 million was recalled by NBET to service the interest. So what we have at the moment is $384 million. So the funds are with us and they are safe,” he said.
The MD said the Authority will meet in April this year where the statement of account would be updated and adopted.
On her part, Adeosun explained that contrary to the motion on the floor of the Senate, no fund was missing.
She, however, pointed out that part of the proceeds of the Eurobond was deposited in NSIA, following the inability of the Nigerian National Petroleum Corporation (NNPC) to utilise the money for the specified projects.
But lawmakers like Urhoghide, Godswill Akpabio, Suleiman Hunkuyi, Albert Bassey wondered why the proceeds of the Eurobond was diverted for a different purpose other than that prescribed by the Seventh National Assembly when the Federal Government sought approval for the facility in 2013.
At this point, Adeosun asked the panel to contact her predecessor, Ngozi Okonjo-Iweala since the facility was obtained during her time as Minister of Finance and Coordinating Minister of the Economy.
She said: “These decisions were made by my predecessor. And I am working on the memos I have access to. For a fuller discussion, you might need to have some discussions with her. But from what I can read from her memo to the then President (Goodluck Jonathan), NNPC was not ready for the $450 million and therefore they amended the uses of the fund and notified Mr President then. Why that situation arose, of course, I am not privy to the rationale”.
Her request to have her predecessor invited, was however, rebuffed by Urhoghide who insisted that since government is a continuum, she was bound to defend policies that preceded her.
In his presentation, Fashola debunked allegations of fraud and diversion of $350 million levelled against the ministry.
On Afam fast power project, he said: “It was an investment by the General Electric, a globally reputed Original Equipment Manufacturer (OEM), to invest in our country and support our effort to get good quick power under our roadmap of incremental, steady and uninterrupted power.
“They offered to do this by providing Nigeria with mobile turbines of 600MW if we could find a location with gas and transmission evacuation infrastructure. The Afam power station fitted because it had transmission and evacuation facilities but all its turbines had been virtually run down.
“The investment was contingent on paying 27.9 million dollars, which was 15 percent of 8 units of 30MW turbines each totalling 240MW valued at about 186.6 million dollars.
“This payment of 27.9 million dollars was made without breaching any law.“
He further said that the turbines have arrived Nigeria and currently at the Onne Port.
OWEDE AGBAJILEKE, Abuja
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