Senate Committee Issues Ultimatum To Finance Minister Over Gas Project

The Senate Committee on Gas has issued a firm seven-day ultimatum to the Minister of Finance, Wale Edun, demanding detailed information regarding the allocation and disbursement of over N100 billion designated for the Presidential Compressed Natural Gas projects.

The committee’s decisive action comes on the heels of mounting concerns surrounding the purported misuse of funds and potential violations of the Public Procurement Act 2017. This move underscores the Senate’s commitment to upholding fiscal responsibility and safeguarding taxpayers’ interests.

The demand for transparency was prompted by recent revelations indicating the intention of the Presidential Compressed Natural Gas Initiative to allocate an additional N130 billion to unspecified companies. Despite prior warnings by the Gas Committee against such actions, the initiative appears poised to proceed with its plans, raising red flags about the lack of oversight and adherence to procurement regulations.

The committee’s decision to escalate the matter follows a fresh petition lodged by the “Good Governance and Transparency Front,” alleging irregularities in the disbursement of funds by the Steering Committee of the Presidential CNG Initiative. The petition specifically accuses the committee of favoritism and bypassing due process in awarding contracts to select individuals.

Chairman Jarigbe Agom, in a letter dated January 9 and addressed to the finance minister, outlined the committee’s urgent request for comprehensive documentation pertaining to the allocation and utilization of the N100 billion fund. The letter emphasized the need for clarity on the selection criteria, bidding process, and contractual agreements with the companies involved in the gas infrastructure development projects.

Moreover, the committee expressed keen interest in examining the effectiveness of the funded initiatives in promoting the use of Compressed Natural Gas (CNG) as an alternative energy source. It emphasized the critical role of transparency and adherence to due process in ensuring public trust and confidence in government-led initiatives.