Reps Halt Planned Sale Of NIPP Plants, Pending Resolution Of Ownership Interest By State, LGAs

The House of Representatives, on Thursday, called on Federal
Government to suspend the planned sale of the National Integrated
Power Projects (NIPP) power plants pending the resolution of the
lingering crisis trailing the ownership of Niger Delta Power
Holding Company (NDPHC).

The resolution was passed sequel to the adoption of a motion of
urgent public importance sponsored by Hon. Kolawole Musibau.

In his lead debate, Hon. Musibau observed that Niger Delta Power
Holding Company (NDPHC) was incorporated under the Companies and
Allied Matters Act as a private limited liability company with
shareholding fully subscribed to by the Federal, State and Local
Governments with a mandate to manage the National Integrated Power
Projects (NIPP).

He said the National Council of State and the National Assembly
approved initial funding of $25 billion for NIPP from the Excess
Crude Oil Account (ECOA) which statutorily belongs to the Federal,
State and Local Governments.

According to him, Federal Government had in 2013 announced the
proposed privatization of some NIPP power plants which are owned by
the NDPHC, with a plan to reinvest the proceeds in developing
renewable power generation projects, adding that hybrid of
challenges that bedevilled the power sector militated against the
initiative.

He however noted that the NDPHC Board of Directors had in April
2021 agreed to resolve all issues militating against the sale of
the assets and considered a special budgetary intervention of $100
million for improved off-take of the state of NDPHC’s stranded
power.

He said that the Bureau for Public Enterprise (BPE) recently
announced the proposed sale of 5 NIPP assets in Cross River, Edo,
Ondo, Ogun and Kogi States with the aim of using the proceeds to
fund the Federal Government budget deficit, adding that the assets
under consideration do not belong exclusively to the Federal
Government but the three tiers of government.

While calling for the House intervention, Hon. Musibau alleged
that Federal Government did not take some vital issues into
consideration such as the applicable policy, and the appropriate
legal framework or legislation under which the transactions will be
implemented, as well as the laws relating to procurement or
disposal of shares and assets, given the shareholding of the States
and Local Governments.

“The House is concerned that the Federal Government did not take
some vital issues into consideration such as the applicable policy
and the appropriate legal framework or legislation under which the
transactions will be implemented as well as the laws relating to
procurement or disposal of shares and assets given the shareholding
of the States and Local Governments.

“The House is also concerned that the joint transaction Board
(JTB) which was created to handle the share sale transaction of
NIPP power plants did not approve the sale of five power
plants.

“The House is cognizant that the BPE, being a statutory body can
only act in accordance with its enabling legislation, the
Privatisation Act, and considering that State Governments assets
can only be disposed of, in accordance to State law, the State
Governments cannot validly accede to the application of federal
legislation to the divestment of their ownership interest in the
NIPP assets,” he noted.

The House of Representatives, on Thursday, called on Federal
Government to suspend the planned sale of the National Integrated
Power Projects (NIPP) power plants pending the resolution of the
lingering crisis trailing the ownership of Niger Delta Power
Holding Company (NDPHC).

The resolution was passed sequel to the adoption of a motion of
urgent public importance sponsored by Hon. Kolawole Musibau.

In his lead debate, Hon. Musibau observed that Niger Delta Power
Holding Company (NDPHC) was incorporated under the Companies and
Allied Matters Act as a private limited liability company with
shareholding fully subscribed to by the Federal, State and Local
Governments with a mandate to manage the National Integrated Power
Projects (NIPP).

He said the National Council of State and the National Assembly
approved initial funding of $25 billion for NIPP from the Excess
Crude Oil Account (ECOA) which statutorily belongs to the Federal,
State and Local Governments.

According to him, Federal Government had in 2013 announced the
proposed privatization of some NIPP power plants which are owned by
the NDPHC, with a plan to reinvest the proceeds in developing
renewable power generation projects, adding that hybrid of
challenges that bedevilled the power sector militated against the
initiative.

He however noted that the NDPHC Board of Directors had in April
2021 agreed to resolve all issues militating against the sale of
the assets and considered a special budgetary intervention of $100
million for improved off-take of the state of NDPHC’s stranded
power.

He said that the Bureau for Public Enterprise (BPE) recently
announced the proposed sale of 5 NIPP assets in Cross River, Edo,
Ondo, Ogun and Kogi States with the aim of using the proceeds to
fund the Federal Government budget deficit, adding that the assets
under consideration do not belong exclusively to the Federal
Government but the three tiers of government.

While calling for the House intervention, Hon. Musibau alleged
that Federal Government did not take some vital issues into
consideration such as the applicable policy, and the appropriate
legal framework or legislation under which the transactions will be
implemented, as well as the laws relating to procurement or
disposal of shares and assets, given the shareholding of the States
and Local Governments.

“The House is concerned that the Federal Government did not take
some vital issues into consideration such as the applicable policy
and the appropriate legal framework or legislation under which the
transactions will be implemented as well as the laws relating to
procurement or disposal of shares and assets given the shareholding
of the States and Local Governments.

“The House is also concerned that the joint transaction Board
(JTB) which was created to handle the share sale transaction of
NIPP power plants did not approve the sale of five power
plants.

“The House is cognizant that the BPE, being a statutory body can
only act in accordance with its enabling legislation, the
Privatisation Act, and considering that State Governments assets
can only be disposed of, in accordance to State law, the State
Governments cannot validly accede to the application of federal
legislation to the divestment of their ownership interest in the
NIPP assets,” he noted.