The federal government and the Senate yesterday moved to block plans to increase the funding of the Hydro-Electric Power Producing Areas Development Commission (HYPPADEC) by 30 percent.
Senator Awaisu Kuta (PDP, Niger) who sponsored the original bill had sought the increase which was meant to adequately compensate host communities producing hydro-electricity with 30 percent commission of the earnings of any company or authority operating in the areas.
However, the motion suffered a major setback as most senators kicked against it, though the bill scaled through the crucial second reading.??
The presidency in kicking against the bill described the allocation of 30 per cent as “highly ambitious.”
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Consequently, the Presidency has refused to release N350 million allocated for the Commission as its take-off grant in the 2011 budget and has returned it to the National Assembly for further amendment. Specifically they asked the lawmakers to drastically reduce the proposed 30 percent to the barest minimum.
Leading debate on the amendment bill, Senator Kuta said that after considering the corporate social responsibility of the said company or authority to the host communities with hydro dams, and “after careful consideration and consultations, we have reduced the said 30 percent to 10 percent of the net profit accruing to the company or authority.” generating electricity in this region.”