Molly Ayala
Former Nigerian President Olusegun Obasanjo has been accused of spending $16 billion on failed power projects, with critics alleging that he “bragged about the expenditure without anything to show for it. Obasanjo has denied these allegations, claiming that they are unsubstantiated. The controversy has sparked calls for investigations into alleged corruption and mismanagement, with the anti-corruption organization Socio-Economic Rights and Accountability Project (SERAP) requesting an independent inquiry. This incident highlights the challenges faced by Nigeria in ensuring effective governance and accountability, particularly in the power sector, and has led to increased scrutiny of public officials' conduct ahead of the 2019 general elections.
| Characteristics | Values |
|---|---|
| Name of the person who spent the money | Former President Olusegun Obasanjo |
| Amount spent | $16 billion |
| What was the money spent on? | Power projects, electricity |
| Time period | Between June 1999 and May 2007 |
| Result | No commensurate result, inadequate electricity supply |
| Obasanjo's response | Allegations are unsubstantiated, challenged President Buhari to set up a panel to investigate |
| Buhari's response | Alleged that Obasanjo was bragging about the spending, claimed that there was nothing to show for the expenditure |
| Book for reference | My Watch by Olusegun Obasanjo |
Explore related products
What You'll Learn
- Obasanjo's administration allegedly spent $16 billion on power projects
- Obasanjo denied the allegation, calling it unsubstantiated
- The Economic and Financial Crimes Commission (EFCC) investigated the allegations
- Obasanjo challenged President Buhari to set up an independent panel to investigate the allegations
- Inadequate electricity supply has negatively impacted Nigerians' access to clean water and agricultural productivity
Obasanjo's administration allegedly spent $16 billion on power projects
Former Nigerian President Olusegun Obasanjo has been accused of wasting or blowing $16 billion on power projects. President Muhammadu Buhari accused Obasanjo of "bragging" about spending such an amount on the power sector without anything to show for it. Obasanjo has denied the allegation, describing it as "unsubstantiated". He challenged Buhari to set up an independent panel to investigate the matter and urged him to read his book, 'My Watch', for insights and perspectives on the power sector and what transpired when the allegation was previously made.
The anti-corruption organisation, Socio-Economic Rights and Accountability Project (SERAP), has also called for an independent investigation into the alleged corruption in the spending of $16 billion on power projects between 1999 and 2007 by the Obasanjo administration. SERAP's request is based on relevant legislation and the constitution, which prohibit the exploitation of the country's resources for anything other than the collective interest. Inadequate electricity supply has negatively impacted Nigerians' access to clean water, agriculture, food supplies, and employment opportunities.
A parliamentary hearing in 2008 revealed that Mr Bernerd Mensen, CEO of German firm Lameyer, was paid N370 million for a feasibility study on a power station, despite never having visited the site. Additionally, N200 million of the collected funds was spent on building a bungalow to create the impression of progress, but the project was later abandoned. The hearing also disclosed that contracts awarded for several power stations were never executed, and there were about nine such contracts with a total value of $142 million.
Obasanjo's administration spent the $16 billion on seven National Integrated Power Projects and eighteen gas turbines. However, his successor, who originally made the allegation, did not clear the turbines from the ports for over a year, hindering the progress of the power projects. Obasanjo has encouraged anyone who doubts the efficacy of the EFCC report and the ad-hoc committee's findings to set up another enquiry.
Ice Cream Before Electricity: Hand-Cranked Deliciousness
You may want to see also
Explore related products
Obasanjo denied the allegation, calling it unsubstantiated
Former Nigerian President Olusegun Obasanjo denied allegations that his administration blew $16 billion on failed power projects, describing them as "unsubstantiated." Obasanjo claimed that he had addressed these allegations on multiple occasions and platforms, including in his book, 'My Watch,' where he presented facts and reproduced reports by the Economic and Financial Crimes Commission (EFCC) and the Ad-Hoc Committee. These reports investigated the allegations and examined how the large sums of money were spent on power generation, transmission, and distribution during his tenure.
Obasanjo's administration faced accusations of corruption and mismanagement of funds in the power sector. In response, Obasanjo challenged anyone doubting the EFCC report's findings to set up another inquiry. He also encouraged the public to refer to specific chapters in his book for insights and perspectives on the power sector and the allegations.
The allegations against Obasanjo's administration centered around the lack of visible results in power generation despite the significant expenditure. It was alleged that Obasanjo bragged about spending $16 billion on power, but the expected improvements in electricity supply were not realized. The power generated was intended for the seven National Integrated Power Projects and eighteen gas turbines. However, Obasanjo's successor, who originally made the allegation, failed to clear the civil works done on the sites from the ports for over a year.
The power sector in Nigeria has faced challenges due to a history of mismanagement and corruption allegations. Various committees and probes have been launched to investigate the management of funds and irregularities within the sector. One notable example is the Senate Ad-hoc Committee, which probed the power sector from 1999 onwards, revealing that the National Integrated Power Projects (NIPPs) gulped about $8.23 billion or N1.64 trillion funded from the Excess Crude Account.
Despite the significant investments, Nigeria continues to face challenges in power supply. The lack of results has led to further inquiries and a push for transparency in the sector. Obasanjo's administration was not the only one under scrutiny, as subsequent administrations also faced criticism for their handling of the power sector and the lack of tangible improvements in electricity supply for Nigerians.
The Green Way to Dispose of E-Scooters
You may want to see also
Explore related products
The Economic and Financial Crimes Commission (EFCC) investigated the allegations
The investigation revealed that numerous firms secured lucrative contracts under the power project but failed to deliver on their obligations. Specifically, it was found that these companies collected substantial sums in naira and dollars yet failed to complete even 30% of their assigned projects before abandoning them. Rockson, one of the contractors, received over $2 billion in various tranches and an additional $11 million and N150 million through questionable payments. Despite these substantial funds allocated for power generation, Rockson only managed to execute a fraction of the construction work.
The EFCC also scrutinized the role of the Niger Delta Power Holding Company (NDPHC), which was responsible for managing the power project. NDPHC officials were detained by the EFCC due to their alleged involvement in bogus payments and the diversion of compensation funds meant for communities where the power projects were sited. Investigators uncovered serious issues pertaining to the payment of compensation to these communities, amounting to about N850 million.
Furthermore, the EFCC investigation extended to alleged lapses by some top officials of the Central Bank of Nigeria (CBN). The commission probed regulatory flaws and a lack of due diligence in the transactions related to the power projects. The EFCC's inquiry also encompassed the role of various government tiers, including the federal government, state governments, and local governments, which were all stakeholders in the power projects through their association with the NDPHC.
The EFCC's investigation resulted in recommendations for further action. The committee suggested the termination of 13 contracts and the review of 10 projects. Additionally, approximately 15 contracting and consulting companies were referred to the appropriate agencies for further investigation, indicating the potential involvement of a broader network of entities in the alleged mismanagement of funds.
Get an Electricity Connection in Bihar: A Guide
You may want to see also
Explore related products
Obasanjo challenged President Buhari to set up an independent panel to investigate the allegations
Former Nigerian president Olusegun Obasanjo has challenged President Muhammadu Buhari to set up an independent panel to investigate allegations that his administration spent $16 billion on failed power projects. Obasanjo described the allegation as "unsubstantiated" and encouraged anyone in doubt to set up another inquiry.
The allegation of $16 billion in power expenditure was first made by Chief Obasanjo's successor and not by Obasanjo himself. In response to the allegation, Obasanjo stated that the power is in the seven National Integrated Power Projects and eighteen gas turbines that his successor failed to clear from the ports for over a year, as well as the civil works done on the sites.
Obasanjo has addressed the issues of the power sector and the allegations against him on many occasions, including in his widely publicised book, 'My Watch'. In the book, he exhaustively stated the facts and reproduced various reports by both the Economic and Financial Crimes Commission (EFCC) and the Ad-Hoc Committee on the Review of the Recommendations in the Report of the Committee on Power. These reports investigated how the huge sums of money were spent on power generation, transmission, and distribution between June 1999 and May 2007 without commensurate results.
Despite Obasanjo's challenges for an independent inquiry and his references to existing reports, it is unclear if President Buhari has taken up this challenge. Obasanjo has a history of criticising sitting presidents and offering advice, as seen in his letters to President Goodluck Jonathan and President Buhari highlighting their areas of weakness.
Hand Luggage Electricals: What's Allowed and What's Not
You may want to see also
Explore related products
$13.99 $19.95
Inadequate electricity supply has negatively impacted Nigerians' access to clean water and agricultural productivity
Former Nigerian President Olusegun Obasanjo was accused of spending $16 billion on failed power projects. Obasanjo described the allegation as "unsubstantiated". However, it is clear that inadequate electricity supply has negatively impacted Nigerians' access to clean water and agricultural productivity.
In 2019, approximately 60 million Nigerians lacked access to basic drinking water due to inadequate infrastructure, poor investment, and a lack of required human capital. This issue is particularly prevalent in rural areas, where 39% of households lack access to basic water supply. The lack of access to clean water has far-reaching consequences, including increased disease prevalence and reduced educational opportunities.
Inadequate electricity supply has also impacted agricultural productivity in Nigeria. The industrial sector, which includes agriculture, accounts for about 20.1% of electricity demand. Irregular power supply has caused small agricultural companies to cease operations, while larger companies have become more reliant on private means of energy production. This has contributed to a decrease in agricultural productivity, which is crucial for the overall development of the nation.
To address these issues, the Nigerian government has implemented various initiatives. For example, the Nigeria Sustainable Urban and Rural Water Supply, Sanitation, and Hygiene (SURWASH) Program aims to expand access to clean water and improve sanitation facilities. Additionally, the government has financed additional power stations with assistance from Chinese business partners.
Golf Cart Range: How Far Can You Go?
You may want to see also
Frequently asked questions
It is alleged that Obasanjo spent $16 billion on power projects without commensurate results.
Obasanjo has denied the allegation, stating that it is "unsubstantiated". He has also challenged anyone in doubt to set up another inquiry, in addition to the EFCC investigation and the Hon. Aminu Tambuwal-led ad-hoc committee that cleared him.
The $16 billion allegedly spent by Obasanjo was earned from the sale of crude oil when the Peoples Democratic Party (PDP) was in power.
The EFCC conducted a clinical investigation into the allegations and found no evidence of corruption or misconduct by Obasanjo.
