Power plant dispute: Nigerian firm denies owing Chinese partner

Power Transmission Substation

The management of Ossiomo Power Plant in Benin, Edo State, on Saturday, denied recent allegations questioning payments to its Chinese partner, Jiangsu Communication Clean Energy Technology Company, stating that over ₦2 billion has been paid since operations began.

The power plant, which ceased operations on September 1 due to a dispute between Nigerian stakeholders and the Chinese firm, generates 95MW of electricity, supplying government buildings, the Edo Government House, the Nigerian Union of Journalists secretariat, private organisations, and streetlights.

The initial 55MW plant started operations in 2020, followed by a 40MW unit commissioned in December 2021.

In a prior anonymous telephone interview, a CCETC representative claimed the shutdown was due to financial losses, including a $20 million investment in equipment and distribution lines, which, the Nigerian partner contests, was never acknowledged.

Representing Ossiomo Power Plant management, Festus Evbuomwan, during an interactive session with customers, said the management was not aware of the $20 million figure, insisting, “When they generate power, we sell and pay them.”

He revealed that after the shutdown, Chinese partners requested ₦185 million payment unrelated to the agreed terms, which was declined. Evbuomwan also accused the Chinese partners of trying to sideline the Nigerian partners by leveraging external influences, a move he said would not succeed. 

He further clarified, “The Chinese partners have received over ₦2 billion for the power they generate with their machines. We operate a joint account where their investments are deposited, and payments are made accordingly.”

Evbuomwan, while apologising to customers for the power outage caused by the dispute between the two partners,  said Ossiomo had started power generation, though not in full capacity, assuring that power generation would be fully restored soon.

“We have purchased turbines, and one has started working. They are working on the second one, so by the time our five turbines start working, we will be at full capacity. Even with that, those connected to the government may not be reached immediately.

“This is because the government bought the poles and contracted the wiring, and we cannot force the government to do our bidding. Also, we are making efforts to site a 33kva transformer along Airport Road and Lagos Road as soon as possible.”

He stressed that the Edo State government holds no stake in the company and appealed to the government to encourage local investment rather than oppose indigenous investors.

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