Reps launch a forensic audit of gas supply to gencos after concerns over Sapele plant and Seplat’s role in Nigeria’s power sector chain

The Chairman of the House of Representatives Ad-hoc Committee on Power Sector Reforms, Al-Mustapha Aliyu, on Tuesday announced the constitution of a seven-member sub-committee to conduct a forensic audit of gas supply to electricity generation companies across Nigeria following troubling findings at the Sapele Power Plant in Delta State.

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The sub-committee is chaired by Afam Ogene and includes Kafilat Ogbara, Salisu Magaji, Faud Laguda and Harrison Nwadike among its members.

The decision followed the adoption of a motion moved by Nwadike after the committee’s recent oversight visit to Sapele revealed that the plant had continued to receive gas supplies for over a year without generating electricity.

Nwadike disclosed that the discovery was made during the visit to the facility in Delta State, raising questions about the utilisation of gas intended for power generation.

Aliyu, in his opening remarks at the National Assembly Complex, said Nigerians had expressed widespread concern that Seplat Energy Company might not be supplying adequate gas to generation companies as required, thereby strangulating power plants and short-changing the country.

Responding to the allegations, the Managing Director of Seplat Energy, Ibiada Itoto, dismissed the claims and insisted that the company remained committed to supporting the Federal Government’s power sector reform agenda.

Itoto said Seplat’s primary objective had always been to ensure the sustainability and growth of Nigeria’s electricity sector rather than undermine it.

The General Manager, Gas, Seplat Energy Company, Olubukola Fasoyin, told the committee that the Sapele Power Plant currently owed Seplat about ₦20bn for gas already supplied.

Unimpressed by the explanations, Nwadike pressed for the forensic audit, arguing that Seplat might be culpable of an economic offence if the company knowingly continued to supply gas to a plant allegedly diverting it away from electricity generation.

Aliyu expressed dismay that a company of Seplat’s standing allegedly lacked the internal mechanisms to detect irregularities in the use of gas supplied to power plants.

The Ad-hoc Committee was inaugurated by the leadership of the House to unravel long-standing challenges in Nigeria’s electricity sector, including persistent outages, weak generation capacity and the vast public funds committed to reforms with limited results.

Between 2006 and 2024, the Federal Government undertook several reform programmes, including the unbundling and privatisation of the Power Holding Company of Nigeria, the creation of generation and distribution companies, and repeated financial interventions running into trillions of naira.

Despite these measures, electricity supply has remained unstable, with generation frequently constrained by gas shortages, infrastructure deficits and mounting debts within the power value chain.

The committee’s mandate includes reviewing expenditures, contractual arrangements, regulatory oversight and compliance by key operators, with a view to identifying leakages, enforcing accountability and recommending legislative or administrative remedies.

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The newly constituted panel is expected to focus specifically on the supply, utilisation and monitoring of gas provided to generation companies and submit its findings to the main committee for further legislative action.