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Mar
07
2026

LATEST PRESS

National Media Tour: FG Intensifies Renewed Hope Agenda with Strategic Road Projects Across Nasarawa State

The Federal Government has reaffirmed its intention to improve road infrastructure across the country as part of efforts to enhance economic growth, connectivity, and ease of movement for Nigerians. This assurance was reiterated during the continuation of the Federal Ministry of Works’ nationwide media tour and commissioning of emergency and special intervention projects in Nasarawa State.

Speaking during the tour, the Director of Information and Public Relations of the Federal Ministry of Works, Mal. Mohammed A. Ahmed, stated that the projects are part of the Federal Government’s strategic efforts to rehabilitate critical sections of its road network under the leadership of President Bola Ahmed Tinubu, GCFR. He explained that upon assuming office in May 2023, the present administration inherited 2,064 ongoing road projects, many of which had been abandoned due to funding challenges, and an inherited debt burden of about ₦13 trillion.

According to him, the Federal Government consequently prioritised 260 emergency and special intervention projects across the country to address critically failed sections of federal roads and areas affected by flooding and other natural disasters.
“These projects were initiated to quickly restore critical road and transport links to ensure seamless movement of people, goods, and services across the country,” Ahmed said.
He noted that the intervention projects are being executed under the leadership of the Honourable Minister of Works, Senator Engr. David Umahi, CON, FNSE, FNATE, is part of the administration’s broader infrastructure development drive under the Renewed Hope Agenda.

One of the projects commissioned during the tour was a 6-kilometre section of the road linking Agyaragu town to Sabon Kwara in Keana Local Government Area, Nasarawa South Senatorial District, Nasarawa State. The contractor, A.A. Albasu (Nigeria) Limited, commenced construction in November, 2022 and completed it in November, 2023. The project forms part of a 10.5-kilometre corridor serving the surrounding communities.

The construction works included earthworks, excavation and removal of existing culverts, and excavation to the required depth to receive blinding. Other works carried out include the provision of pipe culverts and lined drains, 200mm thick naturally occurring lateritic sub-base course materials, 100mm thick crushed stone base course, asphaltic concrete wearing course, surface dressing on shoulders, and lane markings.

Providing technical details of the project, the Federal Controller of Works in Nasarawa State, Engr. Ishaku Mamri, explained that the road had previously been in a deplorable condition, causing significant hardship for road users, residents, and traders, who rely on the route to transport goods and access nearby towns. He disclosed that the rehabilitated section was constructed to a standard width of 7.3 metres with shoulders, and that it includes approximately 4 kilometres of drainage infrastructure to ensure durability and effective water management. “The road was awarded in November, 2022 and completed in 2023. It has since been in use by the community and has significantly improved movement within the area,” he added. Engr. Mamri noted that residents have expressed appreciation for the intervention, while also appealing for the completion of the remaining four (4) kilometres of the alignment.

As part of the Media Tour, Engr. Ahmed Tijjani Aminu, a representative of the Council for the Regulation of Engineering in Nigeria (COREN), and the Chairman of the Nigerian Society of Engineers (NSE), Lafia Branch, Engr Simon Obagu were present. Also present was the Chairman of the Nigeria Union of Journalists (NUJ), Nasarawa State Council, Comrade Salihu Mohammed Alkali, who performed the official commissioning of the project, on behalf of the Honourable Minister of Works.

The media tour also included a visit to the ongoing Lafia Bypass project site, a 15.8-kilometre alternative route designed to ease traffic congestion within Lafia metropolis by providing a faster corridor for commuters travelling between Abuja, Makurdi, and the eastern parts of the country.

According to the Project Engineer for Messrs China Harbour Engineering Company (CHEC), Engr. Tijani Olalekan, the contract, which had previously stalled after being awarded by the past administration, fully recommenced in February, 2024 under the current administration and has now reached over 80 percent completion. It is expected to be completed before the end of the year.

The scope of work includes site clearance and earthworks, construction of hydraulic structures, sub-base, stone base, stone pitching, lined drains, asphaltic concrete binder course, as well as the relocation of electrical poles along the project’s corridor.

The Commissioner of Works, Housing, and Transport, Nasarawa State, Hon. Mu’azu A. Gosho, commended the contractor for the quality of work. Also present were the Chairman of the Nigerian Society of Engineers (NSE), Lafia Branch, Engr. Simon Obagu, Engr. Ahmed Tijjani Aminu, representing COREN; the NUJ Chairman in Nasarawa State, Salisu Mohammed Alkali; and community members, who all expressed satisfaction with the quality of the work executed.

At the Nasarawa–Toto axis, officials also visited ongoing rehabilitation works on the Keffi–Nasarawan Toto–Abaji road, a strategic route aimed at improving connectivity between the Federal Capital Territory, Nasarawa, and other neighbouring states.
The Controller explained that the road project, originally awarded in 2018, experienced delays due to inadequate funding but has since gained momentum following renewed commitment from the Federal Government.

The FCW further revealed that the project has been restructured into phases, with the initial Phase 1 nearing completion under the 2025–2026 budgetary provisions, while Phase 2, involving concrete pavement construction is set to commence, soon. The Federal Government recently approved the second phase of the project covering approximately 129.3 kilometres at a cost of about ₦203 billion, further underscoring the administration’s commitment to strengthening the nation’s road and transport infrastructure.

The Project Manager, Mr. William, as well as the Site Engineer, Engr. Daniel Aleyemi, assured the team of quality work, while expressing optimism that the project would be completed before the end of the month.

The Director of Information and Public Relations emphasised that road infrastructure development remains a central pillar of President Tinubu’s Renewed Hope Agenda, particularly under the priority area focused on expanding and improving the national infrastructure. He noted that the administration is also advancing four (4) Legacy Road Projects, including the Lagos–Calabar Coastal Highway, the Sokoto–Badagry Super Highway, the Calabar–Abuja Super Highway, and the Dualisation of Akwanga–Jos–Bauchi–Gombe Road, all aimed at transforming connectivity and stimulating economic development across the six (6) geopolitical zones of the country. All the roads will be on concrete pavements with solar street lighting and railways.

The nationwide media tour, he added, is designed to promote transparency, allow journalists and professional bodies to verify the quality of ongoing works, and enable Nigerians to see firsthand the progress being made in the delivery of critical infrastructure.

The Federal Government reiterated its commitment to sustaining the momentum in road construction, reconstruction, expansion, and rehabilitation to support economic growth, national integration, and improved quality of life for Nigerians.

Mohammed A. Ahmed
Director, Information and Public Relations.
7 March, 2026.

May
23
2023

President Buhari Commissions Seven Legacy Projects Under Works and Housing Sector. ...the Second Niger, Ikom and Loko-Oweto bridges; Kaduna-Kano Road section and Federal Secretariat Projects commissioned President Muhammadu Buhari has today virtually commissioned seven laudable legacy projects under the Federal Ministry of Works and Housing across some states of the federation. These projects are: the Second Niger bridge linking Asaba and Onitsha in Delta and Anambra states, Ikom bridge in Cross River state and Loko-Oweto bridge linking Nasarawa and Benue states. Other projects include: Kaduna-Kano Road section dual carriageway and Federal Secretariat building complex in Anambra, Bayelsa and Zamfara states. Mr. Babatunde Raji Fashola, has been the Minister superintending over the Works and Housing sector under the Administration of President Muhammadu Buhari since inception in 2015. The Presidential commissioning was conducted virtually and simultaneously across the seven project locations in the respective states. President Buhari described the projects as symbols of his administration's efforts and commitment to renew the Nigerian stock of Infrastructure, pointing out that it was a deliberate choice and not an accident. Which today has greatly enhanced the Nigerian GDP from 20% to 40% there by delivering on the prosperity of citizenry. The President further explained that government's debts were tied to Infrastructure, pointing out the assets and investments of the government is in place. Accordingly, President Buhari stated that the projects were an example of the change promise of his administration as well as a practical effort to confront the multi-dimensional poverty instead of lamentation. Earlier, the Minister of Works and Housing, Babatunde Fashola stated that the projects these projects have massively impacted on Nigerians of various geo-political zones, saying that with these projects, President Buhari had met people at their door steps even when they never saw him in person. Accordingly, Fashola explained that the economic activities that took place during the construction work had resulted in pushing back the multi- dimensional poverty from the society. He listed the benefits to include; job creation for the people; reduced travel time with additional comfort during travels, business efficiency and value appreciation of properties. Fashola commended the cooperation and support of all the stakeholders, such as Ministers, State Governors, National Assembly Members, Contractors, Traditional and Community Leaders in the project locations for the success achieved in delivering the projects. Governors of Anambra and Imo states, Professor Charles Soludo and Hope Uzodinma respectively, the Governor of Delta State represented by the Chief of Staff, Rt Hon. Festus Ovie Agas as well as the Minister of Labour and Productivity, Dr (Sen.) Chris Ngige, who all delivered goodwill messages. They all expressed joy and commended President Buhari for delivering on the projects which they described as having huge economic impact on the Nation. The three Federal Secretariats were named after some dignitaries such as, Dr. Good luck Ebele Johnathan for Baylelsa, Ebele Okeke for Awka and Mallam Yahaya Gusau for Zamfara Federal Secretariat complex in Gusau. It was a very colourful and eventful legacy project commissioning ceremony across the Nation. ...

May
17
2023

FG Directs Immediate Closure as Theft of Reinforcements Lead to Failure of Section of Ijora Olopa Road The Federal Government on Wednesday directed the immediate closure of the Ijora-Olopa Bridge following the discovery that some miscreants have tampered with the major reinforcement elements of the deck from underneath which led to the failure of a section of the Bridge along Ijora Olopa Road, beside Water Corporation, Ijora. The Minister of Works and Housing, Mr. Babatunde Fashola, SAN, in a Press Statement signed by his Special Adviser on Communications, Mr. Hakeem Bello, identified the failed section as the Ijora-Olopa inward Ijora-Oloye–Apapa. According to the Statement, Roads leading directly to the Bridge such as Costain inward Eko Bridge and Carter Bridge descent inward Ijora Oloye have, as a result, been closed to traffic from last night. Working with the Lagos State Government and other traffic management authorities, the Federal Controller of Works in Lagos has also issued the following Traffic Advisory to ensure that motorists and other members of the commuting public are able to use alternative routes. •      From Eko Bridge motorists should take IGANMU/ SIFAX to Ijora Oloye or Apapa, •      From Iddo to Ijora-Oloye/ Apapa; traffic will be diverted at the intersection underpass at Ijora Olopa on contraflow, and reconnected at the U-Turn to Ijora-Oloye or Apapa. It would be recalled that the Hon. Minister of Works and Housing has on several occasions asked illegal squatters occupying Lagos under-bridges to quit as fire incidents and other illegal activities underneath such bridges often result in extensive damage of the vital infrastructure constructed with the nation’s scarce resources. ...

Apr
30
2023

Lagos-Ibadan Expressway: FG Appeals For Patience, Says Reconstruction Work On Final Stretch Progressing Satisfactorily …Work within OPIC area between Kara Bridge and Long Bridge completed, to be opened to traffic Sunday (April 30) As the reconstruction work on the Lagos-Ibadan Expressway enters its final phase, the Federal Government has appealed for patience and understanding of motorists on account of the heavy traffic being experienced on the stretch from Toll Gate to Kara Bridge in Lagos. The Hon. Minister of Works and Housing, Mr Babatunde Fashola SAN in a Press Release signed by his Special Adviser on Communications, Mr Hakeem Bello, said he empathizes with members of the public who have had to endure longer than usual traffic as the reconstruction work in the heavily built-up stretch progresses towards the finish line. According to the Minister, the intensity of work and the high volume of traffic which had to be accommodated at the same time have been complicated by impatience on the part of some motorists who drive against the planned traffic flow and breakdown of vehicles. He however noted that the Federal Ministry of Works and Housing is working with the Lagos State Government, all traffic management and security agencies to minimize the discomfort of motorists. The Minister also explained that the contractors are also being encouraged to ensure that the final challenging phase of the Lagos-Ibadan Expressway reconstruction work are concluded as soon as possible.  While noting that the earlier envisaged April 30 date for conclusion of the final stretch could not be achieved due to a combination of factors, work within the OPIC area between Kara Bridge and the Long Bridge has been completed and would be opened to traffic tomorrow, Sunday (April 30). This means that the main carriageway, both bounds, from Berger (New Garage) and Sagamu Inter-change on Section 1 of the Project has been completed.  All attention, according to the Minister, would now be focused on the outstanding work between Otedola Bridge and Berger (both bounds).  ...

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03
2025

  


OTHER NEWS

Dec
11
2018

FG Commends Contractors On Quality Of Roads; Advocates For Alternative Funding Sources

The Federal Government has commended contractors handling various road and housing projects in the South South region for doing a good and quality job.

2.      The Honourable Minister of State I for Power, Works and Housing, Hon. Mustapha Baba Shehuri expressed satisfaction on the quality of road   rehabilitation and construction, as well as the construction of mass houses under the present administration,  since its inception three years ago. He added that contractors are now fully back to sites with attendant effects on rejuvenating the economy and enhancing human capital development.

3.      Shehuri noted that in tackling infrastructural deficits across the country, there is a dire need for alternative and innovative sources of funding beside the usual annual budgetary allocations, adding that government is presently using the SUKUK (bond) funding option and Public - Private - Partnerships (PPP) to bridge infrastructural gaps in the country.

4.      The Minister stated this in Yenagoa, Bayelsa State during a working tour to the South South geopolitical zone to inspect ongoing projects being embarked upon by the Ministry.

5.      Earlier in his tour, the Minister inspected the Dualisation of Lokoja – Benin road, Section II: Okene – Auchi, Section III: Auchi – Ehor, as well as Section IV: Ehor – Benin City.

6.     He also visited the ongoing Dualisation of  Sapele - Ewu road, sections I and II, Sapele - Agbor and Agbor - Ewu, respectively.

7.      The Honourable Minister expressed satisfaction in the level and quality of work being carried out, especially in Bayelsa state inspite of the difficult terrain. He said this while inspecting ongoing construction works on Yenegwe – Okaki – Kolo road and the Dualisation of Yenegwe Road Junction – Kolo – Otuoke – Bayelsa Palm road.

8.      While in Rivers State, the Federal Controller of Works, Engr. J. O. Fadire briefed the Minister on the progress of work on the Rehabilitation of Enugu – Port Harcourt Expressway, Section IV, Aba - Port Harcourt, as well as the 39 - kilometre Bodo – Bonny road with bridges across Afa, Opobo and Nanabie Creeks, the only one to link the Ogoni people with Bonny Island.

9.     Engr. Fadire stated that though there are challenges affecting the pace of work such as  the environment, compensation and youth restiveness,  he, however, commended the contractor, Messrs Julius Berger (Nig.) Ltd. for the progress made within a short period of time. He further assured the Minister that the project will be delivered as scheduled because funding is not an issue as the major financiers, Messrs NLNG Ltd. is committed.

10.     The Minister visited the  construction sites of houses under the National Housing Programme (NHP), the second of its kind in the history of the nation since the President Shagari Low Cost Housing of the early 1980s, in Benin City, Edo State, Asaba, Delta State, Uyo, Akwa Ibom State and Calabar, Cross Rivers State. He also inspected the ongoing construction of the Federal Secretariat in Yenegoa, Bayelsa, where the Federal Controller of Housing in the State assured the Minister that the project will be completed by February, next year.

11.    Hon. Shehuri noted that with the construction of these affordable Mass Housing Estates across the country, the present government is delivering on its campaign promise of bridging the housing deficit in the country, creating jobs and  generating wealth.

12.    The Phase I of the NHP projects, according to the Minister, have reached advance stages of completion and will be due for commissioning in the first quarter of next year, stressing that the houses are for all interested illegible Nigerians.

13.     The Minister further disclosed that the procurement processes for the second phase of the Programme will soon be concluded and contracts awarded for its commencement in all the states that have provided the Ministry with land.

14.     During the course of the Tour of Duty, the Honourable Minister also visited the 132 KVA Transmission Substations at Uyo and Calabar in Akwa Ibom and Cross River States, respectively, where the present Government installed and commissioned an additional 1 * 60 MVA Transformer each, in April.

15. While conducting the Minister round the Uyo Facility, the General Manager, Port Harcourt Region of the Transmission Company of Nigeria (TCN), Engr. Solomon Uyouko lamented that out of the 144 megawatts capacity of the transmission infrastructure, the DisCo utilise a meagre 2% daily, leaving most of the generated and transmitted power idle.

16. The story is almost similar at the 132 KVA Transmission Substation in  Calabar, where the Acting Assistant General Manager, Engr. Nasiru Bello stated that out of the 192 megawatts  transmitted daily, the DisCo evacuates between 20 - 30%.

17.      Commenting on the unfortunate state of power distribution infrastructure in the country, Hon. Shehuri said the present scenario is unacceptable, while admonishing the DisCos to up their game or pave way for those with requisite capacities. He further urged Nigerians to start blaming the DisCos for lack of electricity, not the Federal Government.

Speeches

Jul
14
2017

Power Sector Reforms- Challenges And The Way Forward

Being The Text Of The Lecture Delivered By The Honourable Minister Of Power, Works And Housing, Mr Babatunde Raji Fashola, San At The Department Of Economics 2017 Public Lecture Series, University Of Lagos, On Thursday 13th July 2017

I thank you for inviting me to be your guest lecturer at the 2017 edition  of your public lecture series.

I accepted this invitation for many reasons. First it was conveyed through Mr. Ayo Gbeleyi who served with me meritoriously as Honourable Commissioner and Head of PPP Office and he implored me to do the best I could to make time to accept.

Secondly, the topic which focuses on “Challenges and the way forward” resonates with my view of the power sector and I believe that of many, who acknowledge that the sector has challenges; more importantly the topic is solution driven and positive in outlook which is consistent with my attitude, that, instead of recrimination, reproach and cynicism, we should look for the way forward. 

I will like to say that many right thinking and well-meaning Nigerians are now taking this view, which is that the problem of power in the country can be solved, and we all have different but very important roles to play.

I will come to this as I proceed, but I must warn that this may be a fairly long speech, because there is a lot to say, and because there is a lot happening in power, and more importantly because I believe one of the most important things I can do as a Minister is to simplify what is going on for the benefit of the public and to discuss it using street level  terms and not technical terms.

The bottom line really is that people want to know when they will have stable electricity, why they do not have it, and what government is doing about it.

Permit me to share with you, what our road map is.

We recognise that our power supply is not enough and what we have done is do the simplest thing, get more power.

So our road map seeks to get, first incremental power, progress to stable power, and then achieve uninterrupted power.

From this road map it must be clear to any right thinking and well meaning person that this is a journey and not an event that will happen overnight.

As we progress on this journey, we will get to critical milestones from which we can look back and say we are now better off at that milestone, than when we started the journey.

I understand the urgency of now, to get the power, I understand the high level of expectation.

I know that they come from many years of broken promises and a change from government-managed power to privatisation of power.

While I fully support privatisation, I believe what took place in 2013 in the heat of politics was a privatisation that was well intentioned since 2005 but delivered with some deception in 2013 with the expectation of political profit.

It led many uninformed Nigerians to believe that once the privatisation was concluded, the assets sold to the Distribution companies (DisCos) and the Generation companies (GenCos) there was immediately going to be power.

I cautioned then that people’s expectations were being unduly raised without telling them that there was a lot of work to do.

While I believed that the APC government will do a better job, little did I expect that I would inherit the problem. But I am grateful for the opportunity from Mr. President, to contribute to solving a problem that I am deeply passionate about and I will offer nothing but my best while I am at it.

As I have said, there are challenges, which is why I accepted this invitation and they can be solved, which is why I have come to share my thoughts about the way forward.

I have also pointed out that we have a road map whose first objective is to get incremental power and this means power from gas, solar, wind, coastal waves, hydro dams, nuclear and bio mass.

I have also pointed out that all of us have roles to play.

I am inspired by the history of Nigeria that whenever we have united to confront a problem, we have never lost. The number of Nigerians interested in generating power is increasing daily and this is encouraging.

This is evidenced by dozens of letters and proposals I get daily, even though they are wrongly directed to the Ministry, because power is now privatised.

There are people who know about it, there are those seeking to make money from it, there are those who know absolutely nothing about it but are still seeking to try. The positive I take away from it is that we are increasingly looking in the right direction.

I will share a story with you, first for its humour and secondly for its consistency, with our road map to get the incremental power.

I had received a text on my telephone, one of the many hundreds I get daily since I published my telephone number many years ago.

This particular one was interesting because the sender alleged that he had found the solution to our energy needs and was wiling to share it with me.

I called him to discuss this “novel” idea he claimed to have. He then referred me to a news report that showed how somebody was generating electricity from a potato.

I then took the time to explain to him that this was not new technology but indeed what we had shared with school children in my time as Governor, in the Power Kids Club that we set up to introduce people to the fundamentals of electricity early in life.

Just as I was preparing this speech, one of my former state Executive Council members who served with me referred me to an online publication about generating electricity using biomass.

Ladies and gentlemen, these two instances confirm what I said about:

Increasing interest of Nigerians in solving the power challenge, which is positive and welcome.

Generating incremental power from all viable sources.

The hard truth is that generating electricity from potatoes or cow dung is possible. The question is viability and sustainability.

First, how much cow dung can we produce to keep the power going? Because even countries who have enough cows, like Brazil and can export beef, don’t use cow dung for power.

Similarly, how much potato can we produce to fire our power needs?

In any event, in a country where there is poverty and hungry people, and with the proven calorific and nutritional values of potato, I think it would be a poor choice to use it for power generation as opposed to using it for nutrition and well-being of children and people.

I will shortly come to specifics of what we are doing to resolve the challenges, but permit me as I have just clarified the situation about cow dung, potato, (which also by the way applies to all those who want to generate electricity by using waste) to also explain what I think is fundamental about power.

It is that there is no real problem in buying and installing a power plant. It is not different from you buying and installing a generator in your home.

The problem starts when you cannot get diesel or petrol, just as we usually don’t have enough gas supply either because of production shortages or vandalism.

The problem with your generator starts when you have to connect your neighbour and issues arise as to how you share the cost or what appliances your neighbour or even your family can switch on when the generator is running especially if it is not a very big one, in order to avoid damage.

The problem arises if the generator needs maintenance or repairs. Can you use it during repairs if you don’t have a backup?

What is true of the generators we install for ourselves is essentially true of the power plants we have as a country.

Those plants are nothing more than big generators. We connect them through 330KV wires, 132 KV wires, 33KV wires and 11 KV wires that transmit the power from the plant, carrying them across several hundreds of kilometres, injecting and sending them through about 183 sub-stations to the distribution companies before they get to our homes, offices, schools and so on.

In the process wires snap, equipment gets damaged by us or by natural wear and tear and requires replacement. Most of it, we have to import because we do not have enough as backup, the plant is not available during repairs.

In order to get incremental power therefore, we have resolved to use all our sustainable energy sources like hydro, gas, wind, solar, and coal (not potato and cow dung) and work is now going on at:

For Hydro -
a) Zungeru Hydro plant in Niger for 700 MW
b) Kashimbilla Hydro plant in Taraba for 40 MW
c)  Dadin Kowa Hydro plant in Gombe for 29 MW
d) Gurara Hydro plant Nigeria for 30 MW
e) Later this year work should start on Mambilla Hydro for 3,050 MW

As for gas plants, there are many already such as:

Egbin 1,320                              
Geregu I & II                                
Omotosho I
Omotosho II
Olorunsogo I
Olorunsogo II
Alaoji
Ibom
Calabar
Ughelli

to mention just a few, all of which are challenged by Debts owed from the previous administrations, lack of sufficient gas or vandalism of existing gas lines or a combination of them.

Gas supply is the responsibility of the Ministry of Petroleum Resources and its parastatals like NNPC, Nigerian Gas Company and others.

We are working with them to improve on supply of gas to these plants to ensure that their redundant capacities and idle turbines come back into operation to produce electricity.

We have just concluded repairs on Afam IV Power Plant that was plagued by a damaged transformer which we replaced in order to restore 100 MW of gas fired power to the grid.

Simultaneously there is a Presidential initiative with General Electric through our Ministry to deliver 240 MW of emergency power to the site of Afam III using the existing gas resources there.

The turbines are already in country and installation should be complete within year.

As for wind energy, we are completing the abandoned 10MW Katsina wind farm project to pilot wind energy development and if sustainable, we can expand it.

There is no recorded coal power production today. The last one at Orji River Coal Power Plant in Enugu built by the colonial government had been dismantled when I visited.

But we are working with a group that shows the commitment to deliver up to 3,000MW of coal power in the Benue/Kogi belt where there are proven and sustainable deposits of coal about 20 kilometres from the intended power site.

Solar power presents the real window of opportunity to quickly increase power and also give people access.

We have shown that we can deliver solar by completing the 1.2MW solar project in the lower Usman Dam area. We have signed power purchase agreements with 14 developers who potentially can deliver 1,125 MW of solar.

We are partnering with Jigawa state to deliver about 1,000 MW of solar power at a site of 2,000 hectares already delivered to us by the state government. The project is at design and preparation stage.

We have completed the energy audit to deliver independent power to 37 universities and 7 teaching hospitals and one of them is the University of Lagos.

27 (TWENTY-SEVEN) of those plants will be solar plants.

These are only one side of what government is doing to deliver incremental power through solar.

The other side is what citizens have started on their own with solar.

Some of the ones I can recall are those of an oil marketing company that is now powering its petrol filling stations by solar, and initiatives by other groups which I have helped to launch to deliver solar packs to unconnected communities.

Recently, the Acting President also commissioned an Independent Solar Power facility at a village called Wuna in Abuja that had not been connected to the Grid.

For the avoidance of doubt solar is the new power, its appeal is very strong with young people and it provides a unique opportunity to close our power supply deficit.

My final word on these sources of power generation is that they speak to the idea of an energy mix; and we have delivered one for Nigeria which targets 30% renewable of our total energy production by 2030.

Generation of power is not the end of the power value chain. On the contrary, it is just the beginning. To reach our homes the power has to be transported.

This is the Transmission System and the National Grid that co-ordinates 8 transmission regions with 183 substations from the National Control Centre in Oshogbo.

For the record, this Grid is also somewhat misunderstood. People have said it is the problem because it can only carry 5,000 MW.

I will correct this unchanging opinion first by stating that under the Buhari Administration, the Grid has expanded to 6,200 MW because we have completed transmission stations in places like Ikot Ekepene, Okada, Alagbon, Ajah, Katampe, Sokoto and awarded many more in places like Damboa, Pankshin, Osogbo, Kumbotso, Odogunyan to mention a few.

In the last few days we completed work at:
Kukwaba substation in Abuja
Increased transformer capacity at
Ajah substation in Lagos
Mayo Belwa substation in Adamawa

The logic therefore is that if projects to expand the Grid are being completed and new ones started, it is either ignorance or mischief to continue to argue that the Grid cannot wheel more than 5,000 MW.

The correct, informed and sensible view is that the Grid is dynamic and must grow as power production grows.

How we got to this Grid improvement is the story that I will share now.

Since the integrated power project started almost a decade ago, several projects were issued as contracts to develop the transmission system.

Many of the equipment imported by contactors were trapped at the port in over 800 containers for almost 10 (TEN) years because Government did not budget to pay the contactors.

It is in the first full budget of the Buhari Administration that a budget for payment was presented and approved in 2016.

At the time of preparing this speech, we have paid N930, 229, 418 (NINE HUNDRED AND THIRTY MILLION, TWO HUNDRED AND TWENTY-NINE THOUSAND FOUR HUNDRED AND EIGHTEEN NAIRA) and resultantly 387 (THREE HUNDRED AND EIGHTY SEVEN) containers have now been recovered and handed to the contractors for deployment to their site.

Some of those sites whose projects have been held back were:

1.      Design and construction of 2x60 MVA 132/33KV transmission substations at Kachia Kaduna State.    
2.     Ganmo-Ogbomosho 132KV transmission Line Project (45KM) Kwara-Oyo.
3.     Supply of Aluminum conductor composite core for Re-conducting of Onitsha New Haven 330KV transmission line.
4.    Construction of 132KV DC TRX line Yola-Song-Little Gombe-Mubi-Gulak.
5.    Construction of Onitsha Oba-Nnewi-Ideato Okigwe 132KV Double Circuit Transmission.
6.     Even the completion of the 215 MW Kaduna plant was held back because some of those equipment were previously trapped in the port.

We are currently planning to maintain and upgrade the carrying capacity of some old lines by re-conducting them and expanding their transmission capacity.

But while the transmission is being upgraded the last mile of the value chain, which is the distribution end, must be ready to accept and distribute the power.

For the record, there are 11 Distribution Companies namely:

– Kaduna Distribution Company
– Kano Distribution Company
– Yola Distribution Company
– Jos Distribution Company
– Abuja Distribution Company
– Ibadan Distribution Company
– Ikeja Distribution Company
– Eko Distribution Company
– Benin Distribution Company
– Port Harcourt Distribution Company
– Enugu Distribution Company

Many of them inherited old distribution assets like feeders, Transformers, Ring main units and conductors (the lines) to mention a few.

If you are observant you will see falling, bending, misaligned poles and wires in your streets and neighbourhoods.

They don’t look as organised as those you see abroad.

These are the old assets sold to the DisCos which must be upgraded, repaired and replaced over time in order to be able to effectively distribute power (received from the Transmission Company) to your offices, schools, shops and homes.

Therefore, the Transmission Company is a service provider to the DisCo, who is the customer just as the DisCo is the service provider to you and I who are customers.

Therefore, if any one of them is inefficient, you and I don’t get power or it is unreliable.

You will have heard of load rejection and be wondering why what is not enough is being rejected.

Each DisCo has a fixed % of the total amount allocated to it and the DisCo then nominates the area within their business area where they want TCN (the transmission) to send power.

Disco % of total allocated in MYTO2  
Abuja 11.5%
Benin 9%
Enugu 9%
Eko 11%
Ibadan 13%
Ikeja 15%
Jos 5.5%
Kaduna 8%
Kano 8%
Port Harcourt 6.5%  
Yola 3.5%

 

 

 

 

 

 

 

 

 

 

Normally as a business they will nominate supply to places where customers are paying and where their equipment is working.

In places where collection is difficult or equipment is not functioning, they will refuse to energise their power intake or are unable to do so. This is what is called load rejection.

What then happens is that the Control Centre tells the GenCos to reduce their power production because if it is not taken, it results in high frequency which can damage the generating unit, create loss of power, and sometimes result in Grid collapse depending on how severe the outage is.

The problems came on the Horizon as Gas is improving and Rains are  arriving to increase power production on Thermal and Hydro plants.

Eligible Customer

This is why I have exercised the power conferred on me by the Act to declare what is called “Eligible Customer”.

What this simply means is that certain classes of consumers that consume a lot of energy like factories, hotels, state governments or local government secretariats, whose DisCos have poor distribution equipment, can apply to NERC for eligibility to build the distribution facility that the DisCo cannot or refuses to build, and then take their power direct from the GenCo.

Clearly the purpose is to increase service and access to power and we have already received a number of requests; however the power is not cheap.

The cost of building the distribution asset means that it comes at a premium, but offers access to more realistic power, which is cheaper than self-generation and diesel, which is between N60-N70 per kw/h.

The success of this initiative offers many prospects for success:

Competition by small GenCos
Response by DisCos to upgrade their equipment
Disaggregated tariff paid by eligible customers who are high end consumers without materially adversely affecting regular domestic consumers, (whose tariff can only be changed by a major tariff review which I will explain) and creating an opportunity for cross-subsidization. (Rich and heavy consumers bear some of the cost of the poor and small consumers.)

Tariff

This is as best as I can attempt to summarize the value chain and what we are doing. There are of course more technical issues that time and the forum do not permit or compel. However, we must all recognize and accept that tariff is a cost that we must all pay to keep the value chain viable as a business.

It is measured by meters (which I will come to) but every consumer must pay. It is a criminal offence in Nigeria and all over the civilized world to use public electricity and not pay for it.

Tariff is not fixed by the Minister. I have no such power. Tariff is proposed by the DisCos after consultation with their customers, and then approved by NERC (the Nigerian Electric Regulatory Commission) during a major Tarrif review.

The process of determining tariff takes into consideration the amount of power (4,500 MV in 2015) the number of consumers on record who will pay it (6,000,000), the cost of producing and transporting power, operating cost of the operators, exchange rate, inflation and interest rate; and the tariff for each class of consumer is determined.

The classes of consumers are R1, R2, R3 and MD. The tariff of each class is different in their DisCo while the tariff of R2, R3 and M are different from DisCo to DisCo.

It is only R1 that has a fixed tariff of N4 per/kwh across all DisCos and it was not changed in the last tariff review.

I spoke about a major tariff review; there is also minor tariff review.

The 2015 tariff review gave us a 10-year tariff that should be declining as the sector stabilizes.

It provides for a major review after 5 years, and minor reviews every 6 (SIX) months to keep the market abreast of the economic realities of foreign exchange, gas price, and inflation changes.

If we want to experience reliable electricity, we must accept the reality of tariffs and possible upward or downward reviews.

We must stop going to court to get injunctions to stop tariff reviews. We don’t do so, when exchange rate, inflation and prices of other commodities change. (The Court of Appeal has reversed the decision of the Federal High Court which stopped the implementation of the last tariff review).

What we must insist on, is the provision of meters, so that we can monitor and control what we consume.

Government must also not interfere with the power of the regulator when it fixes tariff in the way the last administration ordered a reversal of tariff in order to win electoral votes in 2014.

It created a massive debt for Nigeria, because while the Government ordered a reversal of Tariff, it did not reduce Exchange Rate, Interest Rate , cost of wages or cost of gas and other inputs necessary to produce power.

Why should Nigeria carry a debt created by an individual’s electoral ambition?

This is what the Buhari administration has to contend with.

It might interest members of the public to know that most if not all the oil & gas producing communities where there is electricity connection do not pay for power, somebody is carrying that cost.

It is worsened by the fact that the light bulbs are on during the day and I am told in some communities that they are never switched off. This is waste. What is wasted will never be enough.

Meters

One of the omissions of the privatization carried out by the last administration was lack of compulsory metering before the privatization.

This is compounded by an inaccurate consumer projection of 6 million households, without a consumer audit. These are the problems the Buhari government is now trying to fix with the Power Sector Recovery Program, which I will discuss later.

What the public must know about meters are:

Meters are measuring and safety equipment that must be tested by NEMSA before they can be used.

Different classes of consumers require different types of meters: Single and multiple phases to ensure that your meter matches your consumption.

Meters by the same manufacturers are calibrated for each DisCo use, such that you cannot use a meter calibrated for Ikeja DisCo in Eko DisCo without Re-calibration.

Meters cannot be installed without visit to the home for audit assessment.

DisCos liquidity problem makes it difficult for them to access credit to order and supply meters. One DisCo requires over N20B to meter.

The consumer base does not capture all those who consume power, and without meters, the DisCos aggregate power distributed to a destination and estimate the bill for the known consumer who is perhaps paying for the neighbour who is not known or is stealing energy; (whistle blowing for energy theft is a civic responsibility)

Those who are resisting the installation of meters and assaulting DisCo staff who seek to install meters must stop it. It is a criminal offence.

N37 Billion meter contract

The government of Nigeria had in 2003 (14 years ago) issued a contract for the supply of 3 million meters to NEPA/PHCN

That contract was not performed until the privatization was concluded in 2013, and was inherited by the Buhari government as a court case in which a judgment of N119Billion had been signed against government. We have worked to get the case out of court , negotiate the judgement and go back to the N37Billion contract to see how many meters it can now provide, and how to install them. We are still finalising the terms of agreement.

Gas supply

Although we get power from Hydro and we plan more from solar and coal, I cannot conclude this speech without speaking a little about gas which is managed by the Ministry of Petroleum Resources but which is the fuel for 26 (TWENTY-SIX) plants out of the 29 (TWENTY-NINE) power plants in the country.

2016 was a particularly difficult year for our gas fired turbines because there were at least 16 major gas pipeline attacks with explosions, between February and May of 2016.

This is why we did not experience stability until August when the rains came and we could rely on the Hydros, whose capacity had been upgraded.

Those pipelines are gradually now being repaired as a result of relative peace secured by initiatives of the President, Vice President, Minister of Petroleum Resources, Governors and other stakeholders.

Power Sector Recovery Programme (PSRP)

Without a doubt the privatisation of power is the way to go.

Admittedly it has not yet delivered the kind of results we were all made to expect, for some of the reasons I have stated; political interference, liquidity, metering, debts, governance, technical capacity of operators and the political dishonesty with which Nigerians expectation were raised to the sky.

But I have no doubt at all, having studied the privatization of Brazil, Mexico, India, South-Africa and China (who went through some or all of our current challenges), that reliable electricity will happen in Nigeria.

It is not an event, it is a journey marked by positive trends that have occurred and will occur as the right solutions are deployed to challenges.

This is what the Power Sector Reform Program (PSRP) seeks to achieve.

Because of the current transition challenges, some people have called for the cancellation of the privatization, but such a course of action (which I do not support) has consequences: -

Government will be breaching its own contract in the same way we cancelled the privatization of refineries in 2007 and will send a negative investment signal that we do not respect agreements;

Government will have to refund in dollars, all the monies paid by the DisCos and GenCos most of which have been spent on almost 50,000 workers of PHCN who had to be paid;

Government will now have to re-employ those or other workers back to operate the assets and again increase salary and pension costs, when our recurrent cost is above 70% of budget today.

Instead of doing these, Government believes that the lapses in the privatization can be re-engineered, retrofitted or reformed to deliver.

The PSRP is therefore a set of policies and actions aimed at restoring credibility, liquidity, transparency, efficiency, good governance and improved service delivery to the power sector.

The PSRP is meant to implement and deliver the power component of the Economic Recovery & Growth Plan (ERGP) of the Buhari Government and it is already being implemented.

N701 Billion NBET payment assurance programme

Metering plan (already discussed)

Constitution of Boards of Agencies for Governance (NERC); Rural Electrification Agency (REA)

Change of Government Representatives in DisCos

Procurement and Capital Requirement Guidelines for Discos by NERC

Energy mix, already done to achieve diversity of energy sources and energy security

Tariff Computation Reform

Communication and Advocacy

Technical capacity and equipment upgrade by DisCos for loss restriction

Legislation to restore and punish energy theft and damage to power assets

Ladies and Gentlemen, these are some of the challenges the power sector faces and the way forward as formulated by the Buhari Government in order to reform the power sector for efficient delivery.

As you will have seen, many if not all of them are man made.

Therefore if men and women create problems , only men and women can solve them. 

You and I therefore  have critical roles to play , and I have signed up to play my own.

Have you ?

Thank you for your attention.

Babatunde Raji Fashola, SAN
Honourable Minister of Power, Works and Housing

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