Fashola accuses GENCOs of blackmail

Minister of Power, Works and Housing, Babatunde Fashola, yesterday said he was not afraid of going to the law court over allegations of preferential treatment offered two power generating companies.
Fashola made this known at the 25th monthly meeting with operators in the power sector, hosted by Ibom Power at the Ibom hall, IBB Way, Uyo, Akwa Ibom state yesterday.
The minister was reacting to suit filed by the power generating companies (GENCOs) last week.
GENCOs had on March 6 sued the Nigerian government for alleged discriminatory treatment of the companies and their gas suppliers with intent to harm their business interests.
The GENCOs, in their suit, also accused the government of conferring preferential treatment on Azura Power West Africa Limited and Accugas Limited to the detriment of the Nigerian Electricity Supply Industry and the power sector as a whole.
Azura Power West Africa Limited is the operator of Azura-Edo, Nigeria’s largest independent power plant (IPP) exposed for suspicious use of offshore funds in the infamous Paradise Papers global investigation.
The suit filed at the Federal High Court, Abuja, has the GENCOs represented by Mainstream Energy Solutions Limited (“Mainstream”), Transcorp Power Limited (“Transcorp Power”), Egbin Power Plc (“Egbin”) and Northsouth Power Company Limited (“Northsouth”) as the plaintiffs in the suit.
The defendants were named as the Federal Government of Nigeria (1st defendant), Central Bank of Nigeria (2nd defendant), Minister of Power, Works & Housing (3rd defendant), Nigeria Bulk Electricity Trading Plc, NBET, (4th defendant), Azura Power West Africa Limited (5th defendant) and Accugas Limited (6th defendant).
Yesterday, Fashola said while they have the right to go to court, GENCOs should be concerned about the court of public opinion.
“Lately, I have read reports that some Generation Companies (GenCos) (not Ibom Power) have gone to court, filing claims against the government.
That is their right and their prerogative.
It is better than self-help, and it is consistent with the rule of law, which underpins our democracy,” he said.