The Senate has opened an investigation into the disbursement of N250 billion Intervention fund to 14 companies by the Central Bank of Nigeria (CBN) for a gas expansion programme in 2020.
This was as the Ministry of Petroleum Resources said it was completely excluded in the selection process by the apex bank.
The Federal government in December 2020 rolled out the National Gas Expansion Programme aimed at deepening the use of Natural gas and making it a preferred, cleaner and cheaper source of energy.
Three years after, the Senate is worried about the state of the gas project, with Nigeria still struggling with gas supply despite the huge investment of N250 billion as intervention in the sector.
The Nigerian Upper House therefore summoned relevant stakeholders including the Ministry of Petroleum Resource and beneficiaries of the funds to provide explanations to how the monies have been utilized.
Appearing before the Senate panel, the Director of Gas at the Ministry of Petroleum Resources, Oluremi Komolafe told lawmakers that the Ministry was completely sidelined by the CBN in the selection process even though it initiated the programme.
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The Director disclosed that it received 150 applications and recommended 69 companies to the CBN.
According to the Ministry official, the CBN conducted its own screening and awarded funds to 11 companies not enlisted by the Ministry.
The Chairman of the Senate probe Panel, Jarigbe Agom Jarigbe was upset about the development and the irregularities in the disbursement of the funds.
While a few of the beneficiaries allegedly received more than the threshold of N10b, others that made the list were found not to be eligible and were not even involved in gas production
The Senate Committee resolved to pay a fact finding visit to all the beneficiary companies who said they have effectively utilised the funds.
Editor: Ken Eseni
