Home 2 News 2 Exposed: How $16Bn Power Funds Were Shared Under Obasanjo

Exposed: How $16Bn Power Funds Were Shared Under Obasanjo

By Ajibola Abayomi,

May 24, 2018


No fewer than 27 companies were said to have benefitted from Obasanjo’s $16 billion power deal.

As at the time Obasanjo’s tenure ended, the contractors had been paid only N360.7 billion.

The sum of N273.65 billion was reportedly spent on Power Holding Company of Nigeria from 1999 to 2007.

President Muhammadu Buhari’s rhetorical question on where Nigeria’s power was in spite of the administration of Chief Olusegun Obasanjo spending $16 billion in the sector has raised dust.

It was reported that only N360.7 billion had been paid to the contractors as at the time Obasanjo left office.

The Obasanjo administration also spent N273.65 billion on Power Holding Company of Nigeria from 1999 to 2007.

All these figures were reportedly compiled by Ibrahim Lamorde, the then acting chairman of the Economic and Financial Crimes Commission (EFCC) and handed over to Farida Waziri when she resumed office.

Part of the report reads: “Further investigations also revealed that a National Integrated Power Project is currently apace in six zones of the country for which about N1,230,949,066,528.99 was committed by the Federal Government.

“The projects were also at different levels of completion but as at the moment of this report, N360, 714, 147, 700.03 has been paid out to contractors, leaving a balance of N870, 234, 918, 828.06 yet to be paid, pending the completion of the project.

“After an in-depth investigation and rigorous check on all documents relating to these contracts, the payments made so far, and the contractors handling the project, it is impossible to draw a nexus between the former president or any individual or companies associated with him and the proceed accruing from the contract payments.”

On the defunct Power Holding Company of Nigeria (PHCN), the report claimed that about N273.65 billion was released to the agency between 1999 and 2007 for its day-to-day activities.

Also, the PHCN separately received N22.297 billion and 162,467.57 billion; US$445.244.630.07 million; Euro 20, 105,436.31 million; and £8,987,322 million for about 27 contracts on electricity generation and transmission.

“On the issue of NEPA (now the Power Holding Company of Nigeria), investigation has revealed that between 1999 and 2007, over N273.65billion has been received by the institution and not N521 billion as alleged.

This appropriation is for its day-to-day activities, including generation of electricity, its transmission and distribution to the people of Nigeria.

“Investigations have also revealed that various contracts in relation to generation of electricity transmission were awarded which amounted to N22.297.162, 467.57 billion; US$445.244.630.07million; Euro 20, 105,436.31million; and £8,987,322 million.

All the documents relating to payments have been checked and scrutinised and there was no reference whatsoever to the former president, his relations or any front who benefited from the contracts.”

The report listed some of the 27 contracts as follows:

  1. Pivot Engineering Ltd was awarded contracts in the sum of $78,625,736.54 for the construction of Owerri-Ahoada-Yenagoa 132 KVA DC lines and substations.

It is to be noted that out of this, $73,023,521.36 has been paid to the contractor.

  1. ABB (Nig) Ltd (SAE) received a contract in the sum of $21,489,644.79million and Nl, 489,271,079.60billion for the construction of second Benin-Onitsha 330 kva SC lines.

So far, the contractors have been paid the sum of Nl, 675,225,734:40billion

  1. Siemens Ltd also benefited from a contract of Euro l5, 032,410.65million (Euros) and N200, 000,000million to provide Onitsha 150 Mva, 330/132/33 kva, T/F and 330 KV base at Onitsha and Benin.Out of this contract sum, it has received a total payment of El2, 499,567.00million( Euros)and N49, 979,258. 00 million
  2. Energovod Src was awarded a project of Alaogi-Calabar 330 kva DC lines in the sum of $42,382,351.30million and N900, 000,000 for which payments to the tune of $23,851,466.58million and N431, 056,721.00million have been made.
  3. AREYVA T/D SPR-and -MBH power-for offshore works for construction of bays got £8,987,322.00million and N600, 000,000million.

The foreign payments have been fully made while only N161, 704,254.50million on the Naka was paid. 6. Chrome Consortium was awarded contracts for the provision of Gombe-Yola-Jakngo 330kva SC lines at $74,872,154.04million.

It has been paid $50,000,000.

  1. News Engineering Ltd got a contract valued at $3,485,113.50million and N250, 000,000million for the construction of Jalingo 2×30/40 mva; 132/33kv sub-station. It received $2,670,679.36million and N100, 850,347.04million.
  2. Allaogi-Umuahia 132 kva DC line was awarded to Pivot Engineering at $4,067,940.00million; it got $3,978,676.10million and N406, 528,365million.
  3. Valenz Holdings [Nig] Ltd got the contract for Umuahia 2×30/40 mva, 132/33kv substation at $7,083,399.48 million and N489, 704,091.00million.It was not clear if the company had been paid.
  4. Kec/News Engineering handled Gombe-Damatru-Maiduguri 330kv lines at $30, 172, 772million and N2.5 billion.
  5. JKN Limited did Ado -Ekiti 132/33kva sub-station and Akure 132kva Liangbe extension at N822 million. It received N521million. 12. Kano- Dutse 132 kva DC and Dutse-Azare 132 kv SC line were done by LCEP at $50, 294, 388million.
  6. ABB did Dutse- Azare 2×30/40MVA, 132/33KV Sub -stations cost $12,500,000:00million and €1,771,582:83million. The company received $11,074,967:81million and €354,316:40million.
  7. The Egbin-Ikeja West/Benin Main 330kv DC line and sub-station was handled by Energo (Nig) Limited at $8,437,687 million and N141, 967,775:92million; it was paid $6,475,037:18 and Nl7, 488,890:06million . 15. NEPA-ACEB Power Interconnection Project (Counterpart Funding) was handled by SAE Power Lines and Areva (SIS) (Counterpart Funding on ADB Loan on senders) at Nl,194,500,000:00; Nl,043,800,000:00 was paid.
  8. News Engineering Nig Limited got the contract for the construction of lx30MVA, 132/33W substation at Keffi at N441,534,004:50; N251,700,000:00 was paid to the contractor.
  9. Continental Engineering Nig Limited was awarded Talata Mafara 2×30/40MVA, 132/33kv substation ( N453, 532, 829:20) . The company was paid N420, 323,334:57.
  10. Amukpe (Sapele) lx30/40MVA, 132/33kv sub station was handled by News Engineering Limited at $1,194,482:34 and N219,920,252:71. The company received $1,014,276:14 and N78,303,339:54.
  11. ABB Power Katempe got National Stadium 132kv DC line for N347,000,000:00; it was paid N 173,500,000:00. 20. Twenty-six companies carried out FY2000 substation reinforcement projects (N2,679,487,010:00).

They received N2.3billion, representing 90% of the contract sum. 21. ABB Nigeria Limited handled rehabilitation of Delta TV Switchyard (€2,879,811:11 and N109,899,233:00); N36,822,340 was paid. 22. Nnewi 2x60MVA 132kv sub- station was awarded to Valenz Holdings Nigeria Ltd (€4,421,811:72 and N251, 833,400:00).

It received N191, 734,122:52 . 23. CMC was awarded New 33kv substation at Omotosho ($30,325,386:00); $3,115,453:00 was paid. 24.

Steers Int’l Ltd was awarded $1,395,353:83 and Nl 52,092,929:50 for the construction of New 330kv line at Ornotosho/Benin/ Ikeja West in which a down payment of $596,137:71 and N34,465,000:00 have been made to the contractor

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