The Sisoho Oil Enterprise, owned by key NPP figure and financier Haji Baniko Sisoho, has increased the premium of Heavy Duty Oil (HFO) it supplies NAWEC by US$70 per metric ton, JollofNews has gathered.
In 2017, NAWEC floated a public tender for the supply of HFO, and Jah Oil, Tech World, the Sisoho Oil Enterprise, among others, expressed interest in the tender. Due to the competitiveness of its bid, the national water and electricity company selected the Sisoho Oil Enterprise. The entity started supplying the company HFO at the premium of US$25 per metric ton in 2017.
However, its premium increased exponentially by US$70 per metric ton sometime down the line.
Haji Baniko Sisoho’s oil outfit, which was reportedly a new entrant in the heavy oil domain, was later granted a monopoly to supply NAWEC HFO and the enterprise is enjoying that status to date.
Some insiders at NAWEC have sharply criticized the significant increase of HFO premium by the Sisoho Oil Enterprise.
“Oil constitutes 60 to 70% of electricity generation. High oil costs can lead to high electricity prices,” an insider at NAWEC explained to JollofNews, stating that the “high” HFO premium that NAWEC continues to pay could further bankrupt the company.
The monopoly given to the Sisoho Oil Enterprise is a stark reminder of how the supply of HFO to the country’s energy sector continues to be monopolized since the Jammeh era.
“Yahya Jammeh granted Muhammed Bazzi the monopoly to supply NAWEC HFO, but we have all seen the many implications of this decision of Jammeh’s to the company and consumers,” recalled one of our interlocutors.
“Why hasn’t the next contract offered to Sisoho Oil Enterprise gone through a competitive bidding process?”queried our interlocutor.
Questions have been asked as to why Sisoho Oil Enterprise was given the monopoly to supply NAWEC HFO, despite lacking the pedigree.
“The Sisoho Oil Enterprise had no track record in HFO supply, which is why it’s very difficult to understand why it won its first bid in the first place. The masses need to know how the enterprise won its first bid and why it should be subsequently granted a monopoly status,” said a government official familiar with the matter.
When JollofNews contacted Sisoho Oil 15 hours or so ago, this is the response we got: “I forwarded the questions to our lawyer but unfortunately today Sunday didn’t work but tomorrow by 12 noon will get back to you from him.”
