Act To Make Discos Deliver On Responsibilities To Consumers, Fashola Directs NERC *Minister asks NERC to enforce DisCos meter supply contract, improvement on their distribution equipment, capacity to take more powers from GenCos *Also directs NBET to work with BPE to improve DisCos collection remittance and  pay their debts to help promote stability in the Sector *Says complaints coming to Government over metering, estimated billing and mass disconnections cannot continue *I remain convinced that privatization is way forward- FASHOLA The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, Monday directed the Nigerian Electricity Regulatory Commission (NERC) to immediately step in to ensure that Electricity Distribution Companies (DisCos) improve on their distribution equipment and increase capacity to enable them optimize the use of electrical resources by the Generation Companies (GenCos). Fashola, who spoke at a Press Briefing on the “Power Sector State of Play, Next Steps and Policy Directives”, also directed NERC to enforce the contract of DisCos to supply meters and act to ensure the urgent speedy supply and installation of meters with a view to eliminating estimated billing and promote efficient industry and market structures. The Minister, who said the improvement in their distribution equipment and increase in capacity would enable the DisCos take up the available 2,000MW difference between the generation capacity of the GenCos and the distribution capacity of the DisCos, also directed the Regulatory Commission to stop DisCos from threatening private entrepreneurs from entering the market to supply consumers whom they are unable to supply. Instead, according the Minister, such entrepreneurs should be licensed by the Commission subject to its terms and conditions “in order to promote competition and private sector participation and avoid a private monopoly of power”, adding that as clearly stated in Section 71(6) of the Electric Power Sector Reform Act (EPSRA) dealing with Terms and Conditions of licenses, “no exclusivity or monopoly was intended for a license holder such as GenCos or DisCos”. The aforementioned Section states that, “Unless expressly indicated in the license, the grant of a license shall not hinder or restrict the grant of a license to another person for a like purpose and, in the absence of such an express indication, the licensee shall not claim any exclusivity, provided that the commission may allow a licensed activity to be exclusive for all or part of the period of the license for a specific purpose, for a geographical area, or for some combination of the foregoing”. Noting that the Regulatory Commission has not issued any such exclusive license to any DisCo, Fashola declared, “If we take into consideration that, after five years of privatization, there are still people and businesses who do not have power or enough power, common sense and public interest demands that we must not resist ordinary people, small businesses like shops and markets from seeking alternative sources of energy”. “The truth is that they already have these sources of alternative energy, in small petrol and diesel generators that cost them about N100 per kilowatt hour. If the DISCOs are not resisting the generator sellers who are contributing to pollution, what is the logic of resisting small entrepreneurs bringing mini gas plants to supply a market need?”, the Minister argued, pointing out that for now, the nation’s developmental needs could not wait “for businessmen who are not yet ready to serve”. Urging NERC “to act with dispatch”, Fashola said the stated policy statements were made in the National interest, public good, the need to support small businesses, provide access to power for ordinary people and increase productivity adding, however, that although he was not unmindful of concerns about loss of market or customers by DISCOs such concerns must be balanced against national interest and that with improvement in their businesses, they would be in a position to use their economies of scale of large volumes of power to buy out or out-price the small entrepreneurs. The Minister implored members of the public who seek more information “to get a copy of EPSRA and read its simple provisions”, adding that the Act confers extensive regulatory powers on NERC “including the power in Sections 73 and 74, to amend or cancel a license if the licensee is unable to discharge  the duties and obligations imposed by the license”. Fashola also directed NBET, the bulk trader, to work with Bureau of Public Enterprises (BPE), to fashion out ways to ensure that the DisCos improve their collection remittance and also start to pay their debts saying this would help to promote stability in the Sector. “This business cannot progress if debtors do not pay their debts”, he said. Stating, however, that it is neither his intention nor that of Government to take over the business of the DisCos, the Minister declared, “On the contrary, it is Government’s desire to see DISCOs thrive and flourish in a competitive environment”, adding, “In the period when they are not yet ready, willing, or able, life must go on and we must find solutions and substitutes as we have seen in other sectors”. Such sectors, he said, include the Broadcasting, Newspaper and Telecommunication Sectors where, according to him, “those who could not compete conceded and left the stage gloriously without breaking down the system”, while those who could compete have brought better living conditions to Nigerians. Saying that the policy directives should not be seen as anti-Privatization, Fashola, who said they were meant to ginger all stakeholders to brace up to their responsibilities to serve the people, added, “I remain convinced that Privatization is the way forward. Privatization has brought us mega value in Broadcasting; it has brought us better value in Newspapers, Telecommunications and Banking and other sectors of our national life and I remain convinced that it will deliver in Power”. “This is not a time to trade blames, because there is enough to go round; rather it is a time to reiterate everybody's responsibility and urge all of us to brace up, to do what we are obliged to do, which is to serve the people, he said, adding, “I suspect that these facts may appear like a red flag to the bulls of anti-privatization, but I remain convinced that privatization is the way forward”.       Recalling that when the public complained about the tariff approved by NERC, he was the one that stood in the forefront of explaining to the public even though it was the Discos who collect the tariff, Fashola declared, “In the face of this picture, where we have power to sell, with more to come, the number of complaints coming to Government for meters, which the DISCOs should supply, and for estimated billings, and mass disconnections when not everybody is owing, cannot continue”. “Government must act, and will do so. The DisCos bought these assets with their eyes opened, and they must compete to deliver or exit”, Fashola declared, adding that Small businesses who need very little power are not getting enough because the DisCos could not take the power to them. The Minister expressed dismay that investment of GenCos was threatened because they could not utilize the capacity they have installed, adding that in order to improve service to small businesses, Government, acting through the Rural Electrification Agency (REA), was linking Small Power Entrepreneurs with markets like Ariaria in Aba, Sabon Gari Market in Kano, and Sura Market in Lagos which, according to him, contain approximately 37,000, 13,000, and 1,047 shops respectively, which are being metered by the small entrepreneurs who have offered to replace the generators of traders with more efficient power and meters. According to the Minister, there are 15 markets in all which if successfully implemented would provide power to 85,485 shops, empower 205,000 SMEs and create 2,000 jobs during the installation and after in operation and maintenance adding, “The DisCos are agitating that this should not happen, yet they offer no solution.” On what government has been doing to assist the DisCos and other operators to deliver power, Fashola said as facilitator of business and enabler of the Private Sector government had, through the Central Bank of Nigeria, made available the sum of N213 Billion to the Power Sector at a concessionary interest rate, below market rate, to GenCos and DisCos adding, however, that some DisCos had shied away from taking the facility. According to him, “Probably because of the source of fund conditions, such as opening of letters of credit attached to the performance, some DisCos have not taken the money”, adding that currently  NERC detected “an unauthorized use of money by the Ibadan DisCo” and was now taking some remedial measures. The Minister said Government has also responded to claims of debts owed by Ministries, Departments and Agencies (MDAs) of government to DisCos before the present administration, a debt which, he said, “was alleged to be in the region of over N70Billion adding that at the cost to government, “several hundreds of thousands of bills, amounting to about 450,000 bills, were verified” while government has ascertained that N27 Billion was owed by Federal MDAs to DisCos. Prior to the tenure of this administration, he said, GenCos and Gas suppliers who produce power, were being underpaid by NBET because the DisCos were under collecting or under-remitting such that GenCos were getting only about 20 per cent of their invoices from Power adding that Government intervened and created N701 Billion Payment Assurance Guarantee (PAG)  to NBET to ensure that payment to GenCos improved. Payment of invoices, according to Fashola, has now increased from 20 to 80 per cent “in the hope that if we move production, DisCos will collect and remit”. He expressed regrets, however, that his office still receives daily reports by mail, letters and e-mails of exorbitant bills by DisCos to Consumers without meters while the remittance by DisCos to NBET has not increased resulting in NBET  owing the GenCos N325.7 Billion, a debt which he was certain could be settled if NBET could collect what DisCos are currently owing it. Also, in order to assist in the evacuation of 2,000MW, the difference between what the GenCos can produce and the DisCos can distribute, Fashola said the DisCos were asked to submit their transformer and other equipment requirements adding that, as part shareholders, government has committed to invest N76 Billion for the procurement of equipment and installation to help the DisCos evacuate the 2,000 MW to consumers. Other inputs by government, he said, include settling an inherited court case and making available N37 Billion to Meter Asset Providers (MAPs), under the regulations made by NERC to license meter investors, “to help supply meters that the DisCos are under contract to supply but are yet unable to do so”, adding that the gesture was in order to bridge he metering gap and to promote harmonious relationship and reduced friction between the DisCos and their MAPs. Progress, the Minister said, have also been recorded in the sector between 2015 and 2018 including improvement in the generation of power from 4,000 MW (approx) in 2015 to 7,000 MW (approx) in 2018 averaging an increase of 1,000 MW (approx) per annum adding that additional 455 MW (Azura); 215 megawatts (Kaduna), 240 MW (Afam III); 40 MW (Kashimbilla); almost totaling 954 MW would be added this year while 700 MW (Zungeru), 480 MW (Okpai II) about 1,150 MW are projected for 2019, even as the GENCOs are undertaking various repairs, rehabilitation and expansion that would bring on incremental power. “Transmission has also increased from 5,000 MW (Approx) in 2015 to 7,124 MW (Approx) in December 2017 averaging 1,062 MW per annum increase in transmission capacity. TCN currently has about 90 Transmission projects in various stages of construction and many are to be completed this year”, Fashola said adding, “So, we can transport what the GENCOS generate and there is a Transmission Expansion plan 2018 to 2028 which Government is committed to implement”. The Minister said although distribution has increased from 2,690 MW (Approx) in 2015 to 5,222 MW (Approx) in 2018, averaging an increase of 844 MW per annum “because the DISCOS have also done some work”, adding that from 2016 when the DisCos complained about lack of enough power to distribute, the problem today was that the DisCos could not distribute all of the Power that was available, leaving the sector with an unused capacity of 2,000 MW (Approx), with the approximately 1,150 MW projected to come this year and 2019. In the robust question and answer session that followed, Fashola explained that all the solutions being applied to reform the power sector such as the Payment Assurance Guarantee, among others, were contained in the Power Sector Reform Programme (PSRP) which the his Ministry compiled urging stakeholders, including the Media, to read it for understanding. Also present at the event were the Minister of State, Power, Works and Housing Surveyor Suleiman Zarma Hassan, Chairman NERC, Professor James Momoh and his Vice, Engr. Sanusi Garba, Managing Director, Transmission Company of Nigeria, Mr. Usman Gur Mohammed, Managing Director Rural Electrification Agency, Mrs. Damilola Ogunbiyi, other Agency Heads, Directors and Special Advisers . ...

FEC Approves N230billion For Roads Construction The Federal Executive Council (FEC) presided over by President Muhammadu Buhari on Wednesday approved N230.28 billion for road projects and mining data in the country. The Minister of Information and Culture, Alhaji Lai Mohammed and the Minister of State for Mines and Steel Development, Alhaji Bawa Bwari, made this known when they briefed State House correspondents at the end of Council’s meeting at the Presidential Villa, Abuja. The minister of Information and Culture disclosed that N206 billion of the amount was approved for linking roads and associated infrastructures for the 2nd Niger Bridge linking Anambra and Delta states. Also approved today is a contract for the link road and associated infrastructures for the 2nd Niger Bridge. The link road is about 11.9 kilometers. The contract was awarded to Julius Berger at N206 billion. The bridge is linking Anambra and Delta states. If you remember, the contract was awarded by the last administration under a Public Private Partnership (PPP) arrangement which failed,’’ he added. According to him, N11.58 billion was approved for rehabilitation of a road in Enugu State. Approval for the re-award of the contract for the rehabilitation of Oji-Achi-Maku-Agu-Ndiabi section in Enugu State. What happened in this road was that the contract was awarded earlier to the company that failed and Setraco has now been re-awarded that section of the road, he added. He said another 92 million dollar was approved for engineering, procurement and construction of the OB3 gas pipeline project. The minister explained that the project had been awarded but there was need for redesigning it. The project is important because of delivery of gas from the Eastern part of the country to power turbines and to improve our power supply,’’ he said. According to him, the Minister of Finance, Kemi Adeosun, also presented three memos which were approved by the Council. He said the memos included ratification of the multilateral competent authority agreement on automatic exchange of financial accounting information and ratification of the Africa 50th Articles of Association. The Council also gave the approval for the financial transparency policy guidelines. In his contribution, the Minister of State for Mines and Steel Development, Bawa Bwari, said that the Council approved N12.7billion for exploration and consultancy projects in the mining sector. According to him, the projects will help in getting accurate mining data, which will attract local and foreign investments. Our major challenge in diversification programme of the government in the mining sector has been that of data. Today the Federal Executive Council approved the contract for exploration and consultancy on some of our targeted minerals like gold, industrial minerals, earth metals, iron ore for four companies in exploration and four companies in consultancy side of it and this contract is worth N12.7 billion. "And with this, we will encourage both local and foreign investors to come in. Our Major challenge is the bankable data, most mining companies will not want to come into your country when they are not sure of what they are going to meet. Nigeria has the potential for minerals although we have not been known as a solid mineral destination, we have been known as oil and gas destination. The perception is gradually changing and for us to really encourage this people to come in, we really need to explore because you cannot mine without information and information can only be gotten through exploration. The government today approved for us to start with some of our targeted minerals in line with what we have in the road map,’’ he stated. (NAN) ...

BRF At 55 : Greying Gracefully, Going On With Gusto By HAKEEM BELLO In November 2010, in a tribute to Stephen J. Solarz, a former nine-term New York congressman, Douglas Martin wrote that he was a “torrent of activity” supporting it with a statement issued by the late lawmaker’s office that “during his first six months in Congress, he made 12 speeches on the House floor, co-sponsored 370 bills, held 11 news conferences, made 24 trips to his district and attended 99 events there, visited 23 subway stations, sent constituents 513,720 pieces of mail and took an 18-day tour of the Middle East.” In October 2015, Babatunde Raji Fashola, SAN, was honoured amongst seven distinguished personalities with an award named for Stephen J Solarz by the International Crisis Group. From his eight-year tenure as the governor of Lagos State to his two-year-plus as Nigeria’s minister of Power, Works and Housing, our own BRF has, as the global conflict-prevention organisation acknowledged in conferring the honour on him, been a “relentless fighter for the improvement of people's lives….”  Barely a month after the global recognition of BRF’s “commitment to resolving social, economic and security challenges in one of the world’s most challenging urban environments”, President Muhammadu Buhari tapped him to join him in tackling the nation’s multifarious infrastructural challenges. Ever since, the three-in-one ministry has witnessed a “torrent of activity” towards the making life more meaningful for Nigerians of all strata. Has he lived up to the recognition of the ICG and the confidence reposed in him by President Buhari to deliver? His 55th birthday on 28 June affords us the opportunity to not only answer that question but also look at The Essential BRF.  For BRF, results rather than excuses should count towards measuring a leader’s gravitas. So, not for him any argument which suggests that , comparing an executive position with an appointive capacity within a complex federation such as Nigeria is like comparing apples with oranges. Not even if you illustrate with the now-common fiasco over the national budget as an example of a barrier to effective delivery of much-expected services to the people. Any unbiased but informed observer would, unhesitantly, proffer that, within those constraints, and with the unwavering support from his principal, the minister has demonstrated unflinching commitment to reducing Nigeria’s infrastructural deficit to the barest minimum, one project at a time, across Nigeria’s 36 states. One thing you can’t take away from BRF is his penchant for, to use a favourite word of his, dimensioning any problem, no matter how seemingly gargantuan. He is the master of drilling down. His staff at the ministry will attest to how, from the day of his inauguration, he has been engaging everyone in marathon consultations, sometimes into the night, to be able to put every problem in proper perspective and then ensuring that the job gets done - without any short-cut. A DEVELOPMENT MATRIX For him, nothing should be done superficially. Let’s take work on roads. He starts with the premise that good roads will help reflate and grow the nation’s economy, reduce travel time, cost of transportation of goods and services, and create jobs which will provide the economic means for the worker to live meaningfully. To achieve this, in the short term, would mean starting with roads which can be quickly completed to facilitate connectivity. This should further be guided by choosing first the roads which connect states together and bear the heaviest traffic such as the Lagos-Ibadan expressway, and working the way across Nigeria gradually. By sticking religiously to, and developing this plan, enunciated with his team in the Ministry with necessary policy and budgetary support from the Cabinet led by the President and National Assembly, albeit, with all the “constituency complications,” Fashola has been delivering on his mandate. On Power, Fashola believes that predictable supply achieved through incremental, stable, and, ultimately, uninterrupted supply of electricity, availability will be a critical and defining component of our economic renaissance, job creation, GDP growth and reduction of income inequalities. This has formed the basis of the Federal Government’s Roadmap to Power with the accompanying policies and plans like the Power Sector Recovery Programme (PSRP) aimed at strengthening the responsibility of the Ministry as a regulator through the National Electricity Regulatory Commission (NERC), so that the GenCos and DisCos can be held to their contracts with citizens; getting the support needed to complete stalled power projects in the generation, transmission and distribution value chains; and improving the liquidity in the sector. Coming with a practical experience from Lagos, Fashola believes the construction of houses will complement the economic growth drive by direct and indirect jobs in the housing value chain from construction companies, to artisans, labourers, vendors and many more. The Federal Government’s housing project is currently going on in 34 States of the Federation which have provided the required suitable land for the programme, currently at its pilot stage and poised to address the issues of affordability, acceptability and climatic/cultural diversities which have been the bane of the previous housing programmes.  What used to be the standard question about how one man can cope with the leadership of three ministries comes less frequently in its monotony now because Fashola has continually demonstrated that tackling challenges is his second nature. Never mind that he has had to sleep less than the averagely-required hours and do unusual things - for instance in 2017 during an inspection of projects in the North East, he led the team to drive on the road by the dreaded Sambisa Forest in the thick of the night - whilst greying graciously but achieving results. By the way, Hamza Idris of the Daily Trust, who was on the trip, had asked him what gave him the courage to travel at that time, he answered as only a BRF would: “Well, I don’t think it is courage. I have a job to do and it has to be done well. If you are building and managing roads, you can’t manage them from slides, you can’t manage them remotely. You must at least see how good or bad those roads are. It gives a sense, either of urgency, enthusiasm, or a combination of both, to be able to really deal with it. The Ministry of Defence is aware that we are here, but the security arrangement is just precautionary. We have seen ordinary Nigerians travelling in their buses. I have seen the Taraba Mass Transit Services, Adamawa Express, Bauchi Express and others. So, life is going on and we just have a job to do.” There is no better way to end this birthday tribute to this quintessential man who is extremely loyal to his principal, political party and his principles, than quoting his answer to another question on that North East inspection trip:    “I am never satisfied with anything I am involved in; I just keep going. It’s difficult to satisfy me, and if you ask me to assess myself, I would continue to push myself.” ...