Fed Govt gets 40% of Azura $30m power payment

Forty percent of the $30 million paid monthly to the Azura-Edo Power Plant for 452Mw energy and capacity charges returns to the Federal Government, through the Central Bank of Nigeria (CBN), Nigerian Gas Company and the Nigerian Petroleum Development Company (NPDC).

About five power plants have their Power Purchase Agreements with the Nigerian Bulk Electricity Trading Company (NBET).

Speaking with reporters during a tour of its 461Mw plant in Ahor, Benin, Edo State, the Managing Director, Azura Power West Africa Limited, Mr. Edu Okeke, explained that it is the nature of the 20-year take or pay gas agreement that has necessitated the payment of the $30million.

The House Committee on Power had recently summoned the company over the collection that the government must pay for the capacity whether it is delivered or not.

By John Ofikhenua.

Full story at The Nation Online.