Furore as Senate wants Kaduna Power Plant inauguration suspended‎

Nigerian Senate Chambers
Nigerian Senate Chambers used to illustrate the story.

The Senate Joint Committee on Gas and Power, Steel Development and Metallurgy on Monday demanded the suspension of the inauguration of the 215MW Kaduna Power Plant following a disagreement with the Ministry of Power, Works and Housing over its plan to run the plant on diesel.

This decision was made at a one-day hearing on the “Urgent need to save the 215 MW Kaduna Power Plant”, chaired by Enyinnaya Abaribe.

The plant, which is already three years behind inauguration schedule, was initially designed to run on gas, when it was inaugurated in 2009; but the ministry changed the parameters to that of a diesel powered plant, PREMIUM TIMES understands.

Running the plant by diesel could cost the country N46 million on a daily basis, with the change in original design causing the cost of power to be higher.

The Permanent Secretary, Ministry of Power, Louis Edozie, who represented the Minister, Babatunde Fashola, in an attempt to defend the change in parameters of the plant from gas-powered to diesel-powered, said that the ministry would inaugurate one of the eight units in January, adding that the unit will run on diesel instead of the gas.

He said the diesel used daily is expected to cost N46 million.

The Chairman of the Committee on Gas, Albert Bassey, expressed dissatisfaction with the reasons proffered by the officials of the Ministry.

“I feel very disappointed. Please tell your minister to stop the process of inauguration because the project cannot be ready even by mid next year.

“We are insisting that it will be cheaper to run the plant with gas and gas is environmentally friendly. Let your Minister know we cannot be taken for granted”, Mr. Bassey said.

The Chairman of GreenVille LNG, Eddy Van Den Broeke, said his company signed a Memorandum of Understanding (MoU) with Kaduna Gas Plant to build storage facilities for the plant at no cost, adding that while the plant will produce a kilowatt of electricity at N79 on diesel, it will produce the same kilowatt at N37 on gas.

He further explained that his company invested$400 million on its gas plant in Roumuji, Port Harcourt, Rivers State.‎

“In 2014 when the parameters were signed, it was agreed that LNG is most competitive. We have invested $400 million after which people in the ministry decided to change the parameters.

“It will cost $200 million more to use AGO (diesel) because there is no other fuel available that can replace LNG and GreenVille. I would want the ministry to give me one cent of response on this change of theory”, he said.

He said that besides the functional gas plant, Greenville had imported 250 trucks to evacuate gas to the plant before the change of parameters by the ministry.

Mr. Abaribe insisted that the ministry should put the planned launch on hold to enable the committee embark on further physical examination of the plant.

“We have heard a lot of disturbing things and we have all seen that we have put the cart before the horse. Everyone in this hall today has now seen why we ask questions. We ask questions when things don’t seem to be going the right way.

“You see one price at N79 and the other at N35, why do you go for the higher cost which is not cost effective. If you are going to spend N46 million daily to run a plant and you said it is temporary, that is not effective. If you start one plant and the rest don’t come up in eight years, we need to save this project from becoming another white elephant project”, he said.

Speaking earlier when he declared the hearing open, the Senate President, Bukola Saraki, who was represented by the Senate Deputy Whip, Francis Alimekhena, said it was necessary to examine the cause of the shift from the use of LNG, to diesel to power the plant, adding that the use of LNG is environmentally friendly, much more sustainable and is in line with the charter of the United Nations on Free Energy and Climate Change.

“It is surprising that the Federal Ministry of Power, Works and Housing appears to have jettisoned the use of gas to power the Kaduna power plant and instead, opted for the construction of Automobile General Oil, which is 60 per cent higher in cost when compared with gas”, he lamented.

He said the advantages offered by LNG informed the decision of the federal government, through the Nigerian National Petroleum Corporation, NNPC to plan a contract for the construction of the 40x614km Ajaokuta-Abuja-Kaduna-Kano gas pipe line.


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  • Abdul Wada

    It’s hard to comprehend why this government enjoys wasting money like its paper..

    • Kareem Raji

      Reason is kwarruption

      • Abdulmojeed Nojeemdeen

        Bad blood!

    • Abdulmojeed Nojeemdeen

      How much have they wasted loser?

  • Sheikh Messi

    Hahahaha!
    APC magicians caught with their pants down..attempting to pull ‘kwarapshun’ out of their hats!
    Thank God for the senate..as tainted as they are! Since saraki out-foxed the SW APC crowd, they will have us believe the senate is worthless. Na lie! The senate has its uses! No b dem catch d grasscutter? No b dem dey follow up maina magic created by the executive? We even hear HOS advised buhari about it?? No b dem dey tackle d I.G??
    Abeg make we hear word jor! Running a power plant on AGO at 46M/day!
    A-fee-cee! Una too much ooo!
    AHAhahahaha!!!!

    • Abdulmojeed Nojeemdeen

      Wailer how far?

  • Sheikh Messi

    This is ridiculous!
    Little wonder Kay soyemi/Julius, tundemash/tunsj/manEnough, Rommel, Maria, amazing2012, abdulmojeed etc hav been on the run..especially since the mainagate kasala broke out.
    A source told me they now comment on Linda ikeji and other such sites.
    Lol! Nawa o.
    Una welldone o!
    Na una bodi go hear am!

    • Abdulmojeed Nojeemdeen

      Ignorance is a problem, you deserved to be ignored.

  • Abdulmojeed Nojeemdeen

    Few will only listen to these saboteurs and then ignorantly cite Corruption without any finding. When the animals in the Niger Delta were almost making a blackout out of our country due to the bombings of our pipe lines,where were you. If diesel will do the work for now, why not. All we want to see for now is power for the industries to thrive. Though gas is cheap,how safe and reliable is it Nigeria. Some just want to comment, however ignorant they might be on the issue. Fashola, please and please don’t listen to the e dyotz on line and in house,carry on and do the needful. They are the enemies of the state.

    • African Child

      Read the article again? It says Gas is available but the Ministry of Power dont want to use it and no where was pipeline bombing mentioned.
      They want to use diesel which the suppliers have probably put their interest in, meanwhile, the gas supplier Greenville perhaps is not offering bribes to the Ministry of Power officials to get approval to supply gas to Kaduna.

      • Abdulmojeed Nojeemdeen

        Your thoughts though. I guess the blame issue should be directed at your SL called saboteurs senators. APC js a case of “all eyes on me” and so cannot afford to go the way of bribery according to your uninformed assertion of speculation. You need a rejoinder from fashola before you start spewing your stale lava. All these nonentities you honour as senators are not better than you,so stop allowing them Deceive you.

        • Message66

          Oh my goodness. What a warped form of thinking. You read this article and this is what you can gather? The mediocrity in Nigeria and Nigerians is unbearable. For once the senators do their job and you hurl insults at them and the person who agrees with them all because you want to stand by Fashola despite the evidence before the senate? Insanity at best.

  • Kamsipapa

    Greenville investors should be encouraged by implementing the gas (LNG) supply agreement on the power plant. We cannot be looking for foreign investors and at the same time discouraging them with obnoxious policies. No one will put a penny in this economy if we continue with the policy somersault and rigmarole. $400 million apart from jobs, and economic boom (multiplier effect) should not be allowed to go down the drain. Fashola the Senate is right on this. Please listen now!

    • African Child

      Thats the point. How can we create jobs and encourage investors when we dont keep to agreements because there is a change of Govt? Would-be foreign investors would be watching keenly to know how this this whole plays out.
      Nigerians must speak out. Kudos to the Senate

  • thusspokez

    “We are insisting that it will be cheaper to run the plant with gas and gas is environmentally friendly. Let your Minister know we cannot be taken for granted”, Mr. Bassey said.

    Nigeria is the 9th (1st in Africa) country with the highest proven gas reserve in the world.

    Diesel will be a drain on currency reserves as it will be imported. If you want to know who is behind the racket, look no further than the current importers of petroleum products. Or maybe Dangote needs customers for the refinery he is building. He seems to get whatever he ask for. It was he who raised the idea of cement road. Guess who is the sole contractor for building them in Nigeria?

  • Suleiman Alatise

    It’s very important to listen to the other side before posting comments, good judgment will be arrived at if we do.

    • African Child

      Which other side do you mean?
      The side that wants to use diesel that is totally imported that creates jobs abroad with our foreign exchange or the side that wants to run the power plant with locally available gas that will create jobs in Nigeria and is cheaper because Nigeria has huge gas deposit that is being flared in the Niger Delta that instead should be deplored for power generation?

      • Suleiman Alatise

        O k, what’s your take on power outages as a result of gas pipeline vandalism?

        • African Child

          Thats a criminal action, most times by aggrieved members from the oil producing areas.
          It is part of the reason for the amnesty programme. But thats no good reason to import and use the more expensive diesel fuel to run power plants.
          Also note that some times the GENCOs shutdown their plants due to lack of payment by the DISCOs for power supplied and blame the outage on ‘gas pipeline vandalism’

  • Gary

    While paying lip service to Nigeria’s non-negotiable national unity, the discerning will notice the facts on the ground being created in the North in the eventual split of the union.
    Exploring for oil in the North has so far cost $3b and put NNPC in the red. Check.
    Billions of Naira spent on agriculture in the North. Check.
    Kaduna officially designated as an “inland port” (this means Northern-bounds imports will not be subject to Customs duties and inspections in Lagos but in Kaduna and thus deprive Lagos State of deriving that revenue.
    Check.
    Rather than depend on gas from the Niger Delta, the Kaduna POWer PLant is now refused to I de the more China the mote diesel.

  • African Child

    How can you run a power plant with Diesel that will be fully imported as against Gas that is available locally?
    How much foreign exchange will you require to import the diesel?
    Gas is environmentally more friendly and a Govt official still thinks that diesel should be used to run a plant at N46m daily.
    It seems that the ministry of power have allocated the supply of Diesel to themselves through their cronies as usual.
    Now you have an investor that has offered to supply the locally available and cheaper gas and they are preventing him.

    Chai! kwaruption is a big problem in Nigeria and the FG sat back and allowed this action by the Ministry to go on until the Senate decided to intervene.
    Nawao!

  • UYI111

    Fashola has proven what he really is and has always been his years as a governor should be crosschecked this man is a crook.

  • Gary

    Premium Times Editor/Moderator,
    WHY HAVE YOU DISABLED THE ‘EDIT” BUTTON ON COMMENTS?

    Some of us type in a hurry and care enough to correct typos or mistakes. Please restore it if you value comments written in proper grammar.

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