Contractors and consultants involved in Nigeria's programme of National Integrated Power Projects (NIPP) have gone to court to try to stop the house of representatives from deliberating on the report and recommendations of the house committee on power.

One of the arguments that the contractors and consultants will use is that the committee did not understand how letters of credit (L/Cs) work.

Power probe

Earlier this year the committee probed NIPP contracts awarded by the Olusegun Obasanjo administration, which lost power in 2007.

In May, the committee produced a report that has since proved controversial. It alleges corruption, poor site inspections on the part of officials and an overall inability of the NIPP to deliver the electricity Nigeria so badly needs.

Confusion

There is confusion over the amount of money actually spent on power projects.

Some officials say 16 billion naira (N16 billion) was spent, but others say that this is the value of L/Cs issued.

Lack of understanding

The contractors say that since some of the L/Cs remain uncashed, the total amount spent does not exceed N6 billion.

According to the contractors, members of the committee did not understand that the value of L/Cs issued was not the same as the value of cash drawn from the NIPP budget.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.