ICPC Probes NBET Over N400m Capacity Test Amid Budget Concerns
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched an investigation into a controversial N400 million “capacity testing” exercise carried out in December 2024 by the Nigeria Bulk Electricity Trading (NBET) Plc.
The test, originally budgeted at N200 million, was allegedly not part of NBET’s approved financial plan for the year. Sources say the cost was inexplicably doubled, raising red flags within the agency and prompting a whistleblower tip-off that triggered the ICPC probe.
Notably, capacity testing is typically the responsibility of power generation companies (GenCos) under the terms of their power purchase agreements (PPAS) with NBET, not the agency itself.
Acting on the tip-off, the ICPC wrote to Johnson Akinnawo, NBET’s acting managing director and CEO, requesting a range of sensitive documents, including:
- Contracts for the December 2024 tests
- A decade-long record of capacity tests and the consultants involved
- Historical reports and procedures on NBET’s capacity testing since 2010
- All relevant procurement files, payment vouchers, and financial records from November 2024 onward
- NBET’s approved budgets and implementation reports dating back to 2010
According to internal NBET correspondence, the testing was ordered by Adebayo Adelabu, the Minister of Power. The purpose was to determine the maximum output capacity of power plants within NBET’s portfolio.
“The Honourable Minister of Power instructed NBET to carry out the capacity test… and to forward a report on the exercise to the ministry,” an NBET insider told TheCable.
Ordinarily, such tests are conducted jointly by NBET, system operators, and overseen by the National Control Centre (NCC) to ensure grid availability. The same insider expressed concern about the sudden cost spike: “NBET does not pay for capacity tests. The previous management never paid. How the budget doubled is difficult to explain.”
Sambo Abdullahi, NBET’s Chief Financial Officer, insists the agency followed regulatory protocols and blamed inflation for the inflated cost, now pegged at N404,419,600.
He explained that the test, done in collaboration with Transmission Company of Nigeria (TCN) operators, is essential to verify GenCos’ dependable capacity.
“Both the seller and the buyer can conduct the test to protect their liabilities. Either party bears their costs,” Abdullahi said. “This expenditure was drawn from approved regulatory income and endorsed by NERC.”
He further noted that the last such test was in August 2022 and cost N213 million, when the exchange rate was N417/$1. “Due to a paucity of funds, we couldn’t conduct the test in 2023,” he added.
Abdullahi said consultants were engaged properly, and “this is not the first time NBET has used independent consultants for capacity tests.” He said the ICPC’s inquiries were routine and had already been “closed out.
Contrary to NBET’s closure claim, the ICPC maintains that the investigation is ongoing.
“Yes, the probe is still on. We will inform the public of the outcome once it is concluded.
