The House of Representatives on Friday queried the payment of $33 million monthly as power purchase agreement with Azura Power Company by the Nigeria Bulk Electricity Trading.
The House also frowned at the claims by the Managing Director of the agency, Nnemeka Eweluka that the agency did not get the approval of the Federal Executive Council before signing the power purchase agreement with Azura.
Chairman of the House Committee on Finance, Rep. James Abiodun Faleke who spoke at an investigative hearing on plans to sell Independent Power Projects across the country said it was not in the national interest to commit the country to such a huge investment without the knowledge of the President and the Federal Executive Council.
The Committee also queried why the arbitration process for the Azura power agreement domiciled in France and not in Nigeria, while accusing the MD of expunging portions of the agreement that required the opinion of the Minister of Justice before any agreement is signed.
Responding to the duration of how such agreement has been running, Eweluka said the power purchase agreement with Azura became operational from 2018, even though the initial agreement was signed in 2013 with an addendum in 2014 and 2015.
Responding, the NBET MD said Nigerian laws would be used for the arbitration process which would take place in France, adding that that the arbitration process was based in France because Azura Power plant has about 15 international investors.
He said the decision to domicile the arbitration process in France was backed by the legal opinion of the attorney general.