TCN leadership change not condition for $174m AfDB loan – Fashola

Federal Government has said the change of leadership in the Transmission Company of Nigeria (TCN) is not a condition for the granting of $174 million to Nigeria by the African Development Bank (AfDB).
The appointment of Isman Gur Mohammed as the managing director of the TCN had generated uproar as the electricity workers’ union had petitioned the National Assembly, seeking a reversal of the decision.
However, at a meeting with the Senate and House of Representatives Joint Committees on Power on Monday, Babatunde Fashola, power minister, explained that the appointment of Mohammed in place of Atiku Abubakar did not breach any law because, according to him, the position had been vacant.
Mohammed’s appointment cannot be reversed because it was done in compliance with a Presidential directive, Fashola said, adding that the President had the prerogative of making any political appointment.
Fashola disclosed that Mohammed had previously worked in the Nigerian power sector for 17 and half years as head of finance.
“TCN is under the supervision of head of the executive arm of government who is the president. He exercises the prerogative to decide who heads that company, when and at what time. At the moment, TCN does not have a Managing Director. So, the person on whose behalf a petition has agitated this house is not a Managing Director. So, there is a vacancy.
“Let me say it on record and with every emphasis and clarity that this appointment has nothing to do with the ADB loan. ADB did not recommend its officer. We asked for him because there was institutional record on his performance in government before he took up the appointment with ADB. The terms and conditions of the ADB loans had been settled long before this matter came up. By the time I became Minister, there were existing ADB loans that had been partly disbursed and they have no connection whatsoever,” he said.
He said Muhammad would bring his wealth of experience to the transmission company.
AfDB, he said, does not usually give collateral for loans. “The conditions are inherently in our sovereign rights and in any event, all their developmental loans are often for the purpose of driving reforms and development.”
Last week, the AfDB said it had no plans of taking over the TCN. The bank also indicated that Nigeria was not discussing a fresh $174 million loan with it, contrary to recent reports.
In a statement by Fatimah Abubakar Alkali, its senior communications officer, Nigeria country office, AfDB Nigeria denied the allegations, adding that: “The African Development Bank (AfDB) approved a $155 million loan for the Economic and Power Sector Reform Programme (EPSERP) which became effective on 19th October 2012.
“The support was aimed at improving power systems and the business environment and also sustaining growth through sound macroeconomic policies and budget priorities. The amount was fully disbursed in 2 tranches on 1st March 2013 and 21st December 2015 respectively. The programme will benefit the entire population of Nigeria in terms of extended access to a more reliable supply of electricity at improved quality and reduced cost”.