FG EMBARKS ON DECISIVE EMERGENCY INTERVENTION ON BENIN-ASABA EXPRESSWAY The Honourable Minister of Works, Engr. David Nweze Umahi, CON, FNSE, FNATE, has kick-started the Federal Government’s emergency intervention on the Benin–Asaba Highway under the Ministry’s “Operation Rescue” initiative, aimed at restoring safe, smooth, and uninterrupted movement along the critical corridor. The intervention, to be carried out by the Ministry, through the hiring of equipment and direct implementation, is a demonstration of its determination to address the severe deterioration of sections of the road and bring immediate relief to motorists, commuters, businesses, and the affected communities. He made this known during the inauguration of *"Operation Rescue Benin -Asaba Expressway”* at Benin City, Edo State on Thursday, 24 September, 2026. The Benin–Asaba Highway is a strategic Federal Highway that commences at AIF Roundabout in Benin City, Edo State, and terminates at Summit Junction in Asaba, Delta State, with a distance of 125km. It was concessioned to the Benin-Asaba Expressway Concession Company (BAECC) by the immediate past administration but the handing over of the site was performed by the present one in March, 2025. However, it has since been proven that the Concessionaire lacks the technical and financial capabilities to execute the project. This was established by the *Independent Engineer (I.E.)* for the project, *Messrs Yolas Consultants Limited*.* Considering the plight of road users and the continued deterioration of the concessioned road, the I.E. advised the Ministry to urgently take all necessary steps to save it from further deterioration, avert further gridlock, assuage the suffering of motorists, as well as save the Federal Government from embarrassment. Engr. Umahi has personally been monitoring the implementation of the concession project, through several site visits and issued instructions via the I.E. for the *Concessionaire* to stick to the Ministry’s standards and methodology, which were not complied with leading to the worsening of the road condition. Hence, the Ministry’s intervention to save the critically failed sections of the Expressway, through the deployment of equipment and personnel. The Federal Ministry of Works, according to the Minister, is poised to alleviate the hardship being experienced by road users and communities on the corridor, alike. He reiterated that the Federal Government would not allow the condition of a major national artery to continue to undermine economic activities, the movement of people, goods, and services, as well as the safety of road users and the host communities. He stressed that the emergency intervention is focused on achieving immediate traffic relief, while providing a sustainable engineering solution to the identified problem spots. According to him, the intervention is also being driven by the overriding need to protect public interest and ensure that Nigerians using the road are not left to bear the consequences of the deteriorating infrastructure occasioned by the lapses of the *Concessionaire.* The Minister emphasised that *” this is not a new contract but an immediate solution to the plight of road users.”* He reaffirmed the commitment of President Bola Ahmed Tinubu’s administration to restoring critical road infrastructure across the country and ensuring that emergencies receive prompt and decisive attention. *“Operation Rescue”* is about immediate action, restoration of movement, and protection of the travelling public and communities along the corridor. *“We are determined to address the failed sections and, thereafter, provide a durable solution that will serve Nigerians for many years,”* the Minister asserted. Engr. Umahi called on road users and people along the corridor to cooperate with the Ministry’s officials and traffic-management personnel, as emergency works commence, assuring them that the Ministry would continue to monitor progress and take all necessary measures to minimise hardship during the period of the intervention. “*I am pleading with motorists to exercise patience, observe traffic-management directives and drive cautiously around active construction zones,* he stated. Engr. Umahi highly commended President Tinubu's concern over the well-being of citizens, reiterating that *”the Ministry remains committed to restoring the Benin–Asaba Expressway to a safe, functional and durable condition in the overall interest of Nigerians and the national economy."* Before this, the Governor of Edo State, His Excellency, Senator Monday Okpebholo had demonstrated his commitment to the welfare of his people during the protest in August, 2026 caused by the bad state of the road by immediately identifying with the situation and dispatching his Chief of Staff to appeal for calm and reassure the affected communities and motorists of immediate remedial action. Speaking at the Ceremony, His Excellency appreciated the President of the Federal Republic of Nigeria for his prompt and decisive intervention, as well as the Minister of Works for his continued commitment to the provision of road infrastructure across the country. The Governor of Delta State, His Excellency, Sheriff Oborevwori, represented by his Deputy, Charles Anaogu, expressed much gratitude for the immediate response in restoring the all-important road. *”It is a well-desired action to better the lives of the people of Delta State and the general public,* he added. The *representative of the Managing Director of the Niger Delta Development Commission (NDDC),* applauded the President for his commitment to the development of the Niger Delta region. He also commended the Honourable Minister for his steadfastness to the welfare of the people of the zone and Nigerians, at large. Delivering the Welcome Address earlier, the Special Adviser to the Edo State Governor on Project Implementation and Monitoring, Engr. Phoebe William Bello, described the rescue operation as very timely in reinstating the critical transportation corridor connecting communities, facilitating mobility, commerce and trade between Edo and Delta States with the other parts of the country. Therefore,*its importance cannot be overstated,”* she noted. The occasion was graced by lots of dignitaries and Goodwill Messages were delivered by the Deputy Governors of Edo and Delta States, the Rt. Honourable Speaker of the Edo State House of Assembly, the Youth Leader of Ikpaba Hill Community, and other stakeholders, who unanimously eulogised the Federal Government’s proactive response.
WORKS MINISTER DIRECTS IMMEDIATE ASSESSMENT OF SECTION III OF THE DUALIZED KANO - MAIDUGURI ROAD CUT OFF BY FLOOD, MEETS WITH DANGOTE, BUA, MAINSTREAM ON MEASURES TO FAST TRACK DELIVERY OF PROJECTS FUNDED BY TAX CREDIT - AS THE MINISTRY TERMINATES SECTION 1 KANO- MAIDUGURI ROAD HANDLED BY DANTATA & SAWOE LTD DUE TO EFFLUXION OF TIME The Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi CON has assured the Bauchi State Governor of immediate intervention on the flood damaged section of the Kano- Maiduguri federal road within Bauchi State that was cut off by flood after a heavy downpour recently. As part of immediate measures, he has directed a technical team from the Ministry to move to the spot to evaluate the damage done and report back for the Ministry to procure an emergency solution to the problem to alleviate the attendant inconveniences faced by the road users, especially the people of Malori-Guskuri community in Katsgun Local Government Area of Bauchi State whose source of livelihood has been severely affected by the destruction occasioned by flood. He said, "I'm directing the Director of Highway Rehabilitation to liaise with the Permanent Secretary Ministry of Works to immediately deploy some technical people to go and evaluate what we can do over there and it's very unfortunate that when a job is completed by contractors, we don't even enjoy the road for five years, and we are back to square one. That's why I've been saying that this issue of a one-year liability period is not desirable because every badly executed job can last for one year, but it cannot last for five years. So we are still going to request the contractor that did the job, Mothercart Ltd, to join that team and find out why the road had to cut into two as reported to us today, and that is section three of Kano-Maiduguri road." He announced the termination of section 1 of Kano-Maiduguriroad awarded since 2007 to Dantata & Sawoe Ltd due to effluxion of time. Speaking during a performance review meeting with Dangote Group of Companies Plc, BUA Group of Companies Plc and Mainstream Energy Solutions Ltd on the road projects handled under Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme held at the Ministry's headquarters, Mabushi -Abuja on 9th August 2024, the Honourable Minister said plans were underway to review the liability period for all federal government projects to ensure durability and value for money. He highlighted the progress made so far in funding critical projects under the Tax Credit Scheme and called for more concerted efforts by all contractors handling projects under the tax credit scheme in order to complete all the awarded projects on a record time as the projects are within the economic corridors of the nation. He said that going forward, there would be an agreement on milestone completion and timetable for the various ongoing projects being done under Tax Credit. "So, my position as the Minister of Works is that everybody must take responsibility. We will no longer fold our hands and allow the projects we have awarded and even reviewed to continue to linger. Nigerians are suffering on these roads, and President Ahmed Bola Tinubu GCFR is doing everything possible, giving the road sector special attention. And so it will be a failure on our side for us to fold our hands and watch contractors linger on these roads without minding the sufferings of the people." He called for more commitment on the side of all the funding partners, the ministry, and the contractors and asked for patience on the side of Nigerians. He said, " So we call for patience, partnership, and patriotism. The President means well for this nation. We must play our part and this is very important. So, to our contractors and to every staff member of the Ministry of Works, and of course to myself, we all must sit up and play our part to support the divine vision of Mr. President to retake our country." The following projects are handled on Tax Credit, and some of them have suffered delays due to obsolete prices, but all such projects are being reviewed to get these contractors to increase their pace of work. The projects are: - Dangote - the 35 km Apapa-Owonronshoki Expressway in Lagos State, the 38 km section of Abuja-Kaduna-Kano road dualization, the 49.577km Dikwa-Gamboru-Ngala road, Borno State, the construction of Nnamdi Azikiwe road (western bypass) in Kaduna State, the 49.153 km Bama - Banki road in Borno State, the reconstruction of 105km Obelle-Ilaro-Papalanto-Shagamu Road dualization, the reconstruction of 54.239km Deep Seaport in Lagos State, the 65.5 km Afikpo-Okigwe road in Ebonyi and Imo States being procured and the 53.7km of side lanes for the Lekki Deep Seaport in Lagos State being procured; - BUA - the 20 km of roads in each of the three sections of Lokoja - Benin Highway, the 17.6km section of Abuja-Kaduna-Kano road (more 3 km to be included at the Kano axis), the 132.5km Kano-Kongollam in Kano, Jigawa, and Kastina States, the 130km Bode Sadu - Kaiama road, 42km Eyenkorin-Offa road, the 73km Lafiaji-Bacita road and the 37km Okuta-Kenu road all in Kwara State; - Mainstream - the 76.586km Malando - Ngasike - Wara road in Kebbi State, the 45.13km Sabon Gari - Yuni - Auna Road in Magami LGA of Niger State and the asphalt overlay of Mokwa-Nasarawa road in Niger State. - MTN - the dualization of 107km Enugu- Onitsha road. The Honourable Minister commended the good works completed on the ongoing projects by Dangote Plc, like the Apapa-Owonronshoki Expressway,the Lekki-Deep Seaport road and the construction of Nnamdi Azikiwe road (western bypass) in Kaduna State. He also commended BUA for the good job they are doing at Ekpoma on the Lokoja Benin Highway project. He nonetheless charged Mainstream to step up efforts on the projects being handled by them. ...
ENUGU – ONITSHA ROAD CONSTRUCTION: FEDERAL MINISTRY OF WORKS REVIEWS PERFORMANCE, FROWNS AT SLOW PACE OF WORK BY RCC AND NIGERCAT, DIRECTS ENFORCEMENT OF OPERATION FREE OUR ROADS In furtherance of Federal Government’s directive on review of performance of all inherited ongoing and new road projects nationwide and as part of efforts to alleviate the sufferings of road users, the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON has directed the contractors handling the construction of the 107km Enugu – Onitsha road dualization to brace up for the implementation of the policies of the Renewed Hope administration with respect to speed and quality of work, commitment to project execution and care for the comfort of road users by maintaining one carriageway of the dual carriageway under construction to mitigate the sufferings of road users. This directive came during a crucial meeting of the Ministry with MTN that is funding the construction of Enugu – Onitsha road dualization under Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, the representatives of the Government of Enugu State and the two contractors handling the project under the Tax Credit scheme – RCC Ltd and Nigercat Ltd, held at the Ministry’s Headquarters, Mabushi- Abuja on 8th August 2024. The Honourable Minister while recalling that the Enugu – Onitsha dual carriageway is being funded by MTN under the Tax Credit Scheme expressed disappointment on the condition of the road under construction and blamed the sufferings of the road users on lack of commitment and sheer insensitivity of the contractors on the plight of the road users. He said, “The MTN has engaged the subcontractors, two subcontractors, RCC Ltd and Nigercat Ltd. The first time I supervised that project, I discovered that the Nigercat section where we have a binder course had failed. I directed that the binder course must be scarified and reinstated, and I knew it was inherited. I want to believe that it has been done.” He stated, “Let me express my disappointment over the slow pace of work on that project. It's one of the worst roads in this country. Everywhere we have diversion; diverting from the one that RCC and the Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points. So, by the reason of the launching of our Operation Free our Roads, it is now a violation of policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are pot holes on our roads” He further said, “Last Sunday, I inspected that road with the Governor of Enugu State and we saw the level of suffering of people at the Abakpa section of that road where RCC Ltd was putting binder, about 3.5 km of the road, and they blocked it. And so everybody now resorted to using one carriageway which is not even maintained. And so some people stayed there for five hours and that is not acceptable. I have continued to say that Nigerians should not be suffering while contractors are building roads for our people. It does not happen in any other country, the way it happens in Nigeria. The public must know that the President's intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on. Most of the time, contractors bring very serious nuisances, hardships, and pains to the public, and they don't care.” He thanked the government of Enugu State for their resolve to fund the construction of 20km Abakpa junction to Akama (9th Mile) section of Enugu – Onitsha road on rigid pavement and the construction of a flyover bridge at Abakpa junction to be refunded through MTN Tax Credit. He expressed hope that MTN would still execute the construction of the second phase of the 107km x 2 road dualization. He added, “Why Enugu State government is intervening is because of the slow pace of work by the contractors and because of funding issues. The essence of tax credit is for funds to be made available. And so, I don't see RCC going to keep to their promise to finish this project in 6 months. My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best. While they are doing the road, and if Nigercat is doing a good job, you can give them greater scope to do if you want to finish that job.” He warned that contractors delaying jobs are on their own as Federal Government, as a matter of policy, would not accept a phased handover of projects and has phased out VOP in contract administration. He maintained that the contractors must in line with the Renewed Hope agenda maintain all roads handled by them until they are fully completed and handed over to Federal Government. He further said to RCC Ltd, “When where you are working is almost going bad, it's better to get it finished. As a policy, we are not doing a phased handover. You have to finish your job, and then we inspect it, and if you take 10 years to finish your job, it's your duty to maintain the one that you have done that is failing” He re-emphasized the policy of the current administration, which de-emphasizes VOP but is open to contract review using prevailing rates. He said to RCC Ltd, “We've agreed on how to review the projects from Certificate No. 12, and it is the prevailing rates that we're going to give to you. And so, there will be no VOP when we review the job, and we should all work very hard to see that within two weeks, we get these documents down to BPP and see if we can take it to FEC this month.” He, however, noted that the slow pace in the progress of work on the Enugu – Onitsha road dualization does not lie in funding but in the execution by the contractors. ...
FEDERAL GOVERNMENT APPRAISES PERFORMANCE OF ALL ON GOING PROJECTS AWARDED TO JULIUS BERGER, TASKS THEM ON TIMELY PROJECT DELIVERY In keeping with the directive of the Federal Executive Council with respect to all inherited and new projects being handled by a number of multinational companies being delayed due to issues of price differentials or poor funding, the Federal Ministry of Works has opened a decisive discussion with Julius Berger Plc on all the inherited and new projects handled by them with a view to appraising their performance and take decisions on funding and milestones completion of all such awarded projects, as part of the measures of the Renewed Hope administration to mitigate the sufferings of road users at this moment of economic challenges. This was the outcome of the crucial meeting of the Ministry with the management of Julius Berger Plc held at the Ministry's Headquarters, Mabushi-Abuja on 7th August 2024. Speaking on the resolutions reached during the meeting, the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON reiterated the firmness of the Ministry on issues of price control, commitment of contractors to project execution, value for money, and uniform pricing location by location. He decried the unacceptable conditions of some of the inherited and new projects of all ongoing federal roads awarded to Julius Berger Plc, which are within the economic corridor of the nation and which were being delayed due to issues of price differentials or lack of effective funding. He listed the projects affected to include: the 82km by 2 dualization of section of Abuja-Kaduna- Zaria- Kano Highway currently handled by Julius Berger; phase 2 of Lagos-Ibadan expressway, whose pavement elements had been changed from asphalt to concrete; section 2A bypass at the 2nd Niger Bridge whose pavement element was changed to concrete; the Bodo-bonny road funded by NLNG Tax Credit; the under deck structural works at 3rd Mainland bridge, Iddo bridge and Carter Bridge. The Honourable Minister urged the contractor to be open to a mutually agreed modality for milestone execution and funding of the projects at reviewed rates as may be agreed upon and approved by Federal Executive Council. He said," Our job is to develop this mechanism based on FEC directives, and engage with the Honourable Minister of Finance and Coordinating Minister of the Economy, and finally we take our recommendations back to Mr. President, and of course FEC for consideration." On the section of Abuja Kaduna- Zaria-Kano road agreed to be handled by Julius Berger Plc, he commended the quality of work being done but directed the contractor to stick to one carriageway at a time within the scope and conclude their works. The contractor was further directed to, within three weeks, fill the two carriageways with stone base and level it to alleviate the sufferings of road users. He further said, "We agreed that this project, within their own corridor, will last for 14 months. Project execution should be deployed in four sections, and we'll be paying Berger ₦20 billion every month to get the job completed. On the Lagos-Ibadan Expressway, phase 2, he said the Ministry had no choice but to determine the contract and ask Bureau of Public Procurement for No Objection for selective tendering. He recalled, "We changed the elements of the pavement from asphalt to concrete, and the total cost we came up with based on prevailing cost is ₦153 billion. But they are offering ₦258 billion. Since we've been on this since September 2023, we have no choice but to determine this contract. And then we ask BPP for No Objection for selective tendering, whereby we will be sending our own advice of ₦153 billion to BPP, and we send their own of ₦258 billion to BPP, and then we invite other contractors to also bid. This we will conclude within the next one month so that we can get that job concluded". On the Second Niger Bridge Bypass handled by Julius Berger Plc, he said, "one of the bypasses, which is 17.27kilometer by two on asphalt was awarded to Julius Berger. We changed the pavement elements to concrete and the cost that we came up with was ₦133 billion. Berger almost gave us more than twice our cost, which is ₦279 billion. We have disagreed with this cost at the time of negotiation since September 2023. We've also decided to get the project back to BPP and invite more contractors to bid because this is public fund". On the Bodo-Bonny project being funded by NLNG Tax Credit, the Honourable Minister expressed concerns that Julius Berger Plc, though had mobilized back to site after additional cost of N80 billon was approved for the work, but reports showed that their pace of work was slow. He was further worried that they came up with a longer timeline of 16 months within which to deliver the project against the December 2024 deadline proposed by the Ministry. He said, "Finally, we agreed on an additional cost of ₦80 billion, which will bring the project to about ₦280 billion fixed and non-varying with the unit rates agreed, and we agreed that this project will not increase in cost beyond ₦280 billion". He urged the contractor to shift ground to a shorter timeline for the sake of the people. Concerning the under deck structural works at 3rd Mainland Bridge, Iddo bridge, Carter Bridge in Lagos State, he commended the contractor for doing fantastic work. He said," We have no problems on pricing. We've paid 30% due to the intervention of Mr. President. They're working, and we've directed that each time they put a certificate and we still have funds, we will pay within seven days because this job they're doing is very critical. For 53 years, those bridges were constructed, no maintenance, and so the deterioration is so horrible and frightening. Right now, we've closed the 3rd Mainland Bridge against big trucks. On the Odukpani road in Cross River State, he said, "We have got approval from Federal Executive Council to increase their project by ₦36 billion, thereby raising the project cost from ₦54 billion to ₦90 billion. This was just approved for a few days ago. We want to know their response on that. Yes, we have agreed to change the pavement to concrete, and our position is that they have to engage on one carriageway when we agree on this. It is when we agree on all these ones where that we do not have complete funding that we can enter into the second phase of what FEC directed, and that is to discuss the mechanism". In his remarks, the Permanent Secretary of the Ministry, Yakubu Adam Kofarmata, PhD, stated that some of the ongoing road projects handled by contractors required emergency works to alleviate the sufferings of road users and assured that all the supervising engineers would be on their toes to ensure that the Ministry's policy of Operation Free our Roads was carried out by all the contractors handling federal government roads nationwide. On the section of Abuja-Kaduna-Zaria-Kano Highway handled by Julius Berger Plc, He said, "we have requested this emergency work due to the flow of information and the requests that we've been getting from Nigerians plying Abuja to Kano, more especially Abuja to Kaduna road, where a number of big craters have been created on that road". Hon. Barr. Orji Uchenna Orji Special Adviser (Media) to the Honourable Minister of Works ...
Delivery of Quality Road Infrastructure Enhances Academic Environment - Fashola
The Minister of Works and Housing, Mr. Babatunde Raji Fashola,SAN has stated that provision of quality road infrastructure in tertiary institutions would enhance academic environment and develop the education sector in the country.
Mr. Fashola made the statement while handing over the 2km internal road project which his Ministry rehabilitated and reconstructed at the Federal University of Agriculture, Makurdi, Benue State.
The Minister was represented at the event by the Federal Controller of Works in Benue State, Engr, Charles Olasupo Oke.
Fashola said, "It is undebatable that quality of education will be impacted by the quality of infrastructure and learning environment and those who doubt it should simply listen to some of the feedbacks from students in the schools where this type of intervention had taken place."
He also explained that the infrastructure gap in the country was steadily being bridged by a gradual process of repairs, renewal and construction on major highways and it has now reached the schools.
The Minister stated that there were currently 43 number of road intervention projects within tertiary Institutions across Nigeria being executed by his Ministry, pointing out that, the students were expressing renewed enthusiasm with regards to attending classes because some defective roads had been restored to good condition.
He added that the road Intervention project had not only impacted on the condition of learning in the schools but had also created jobs and generated employment for Nigerians.
Fashola urged the school authority to take ownership and ensure that the road asset was properly utilized and maintained , assuring that the Federal Government would do more to the development of Federal Institutions.
The Vice Chancellor of the Federal University of Agriculture, Makurdi, Professor A.R. Kimbir, expressed gratitude to the Federal Government and the Minister of Works and Housing, Mr Babatunde Raji Fashola,SAN for the road intervention project.
He said that the commissioning of the road project came in less than two months after a 8.25MW Solar Hybrid Power Plant was commissioned in the School.
"The eloquent message from these projects is that the gap in infrastructural needs of the University is being steadily bridged by the Administration of His Excellency, President Muhammadu Buhari, GCFR. The University is really deficient in the quantum and quality of adjectives to convey her true feeling of gratitude and happiness," he said.
Explaining further the VC said, "The positive impact of this project on campus life was highly invaluable as it addresses Infrastructural needs of the University with direct bearing on the quality of learning environment, easy movement on the campus for staff, students and members of the host Community."
Professor Kimbir stated his commitment to ensure carefull use of the road infrastructure and requested for more of such gesture from the Federal Government.
"The commitment of the University is that the infrastructure would be protected for maximum utilization, suffice, however, to state that many more of such campus roads are crying for rehabilitation, adding that it is imperative to say that these campus roads have not been maintained since inception of the University over the last three decades."
Though the school is not in session, some 400 level students of the university who attended the commissioning ceremony: Onwe Samson and Onmonya Paul, expressed gratitudes to the Federal Government and the Honourable Minister of Works and Housing, Mr. Babatunde Raji Fashola,SAN for the road intervention project.
They solicited for more of its kind especially the road that will link the school to the town direct without going through the roads in the villages which they said would help to curb security challenge.
In attendance at the brief handover ceremony were traditional rulers and some members of the University Governing Council.
Remarks Of The Honourable Minister Of Power, Works And Housing At The 29th Monthly Power Sector Meeting Hosted By Mainstream Energy (Concessionaires Of Kainji And Jebba Hydro-Power Stations) In Niger
In lieu of our monthly meeting for July 2018, I opted to brief the public about our progress so far in our journey to incremental power towards steady and, finally, uninterrupted supply.
In the process, I highlighted the challenges we have overcome and those we are dealing with, and what needs to be done and who has the responsibility to do so.
Those who know and who genuinely desire to solve problems in this industry do not need to be told that the most pressing challenge of the Sector today lies at the Distribution end.
Amongst the challenges at this sector of the value chain, (and there are problems in Gas, Generation and Transmission), the most urgent are Distribution of available energy to consumers, and there is an unused energy in the region of 2,000 Megawatts in this category.
The other, of course, is the supply of meters to consumers. These two issues of power distribution and supply of meters rank highest in the feedback from the stakeholders in the industry.
In order to address these challenges and find solutions to them, I issued policy guidelines and directives to appropriate institutions for them to act.
It is in this context that I think it is fortuitous that Mainstream is our host today, because my remarks will focus on the review of progress we have made with some of our policies.
I have always insisted that there must be methods to decision making, and this includes evaluation of decisions to see how they have progressed and what needs to be added or modified.
Therefore, we must understand that policies are not an end in themselves . Policies represent an expression of our hopes and aspirations and must be embraced, nursed and nurtured to deliver on all their capacities and possibilities.
In a sense, I liken policies to the human being. At birth, he represents the hopes of parents for tomorrow. Left alone, that infant is helpless, so he is dependent for feeding, clothing and all survival needs until he becomes ambulatory, able to stand, walk, talk, run, and matures into adulthood.
With this analogy in the background, I will address the progress of some of our policies for the benefit of members and the larger public.
A) N701 Billion Payment Assurance Guarantee
This was not in any law. It was a creation of the Buhari Government to give comfort to investors in the Generation side of the value chain that they will be paid for supplying power.
Since its implementation in 2017, recovery of payments by GENCOs has increased from 20% to 80%; and power supply capacity has improved from 4,000MW to 7,000MW and there is an appetite by other players to participate.
Is it perfect? Certainly not.
Do the GENCOs like it? I am sure that they will tell that 80% recovery is better for business than 20% recovery, but they would rather have 100% recovery.
But this is only one side of the coin. The other side of the coin is that GENCOs must transparently invoice for their output and, for example, we must harmonise the price of gas for payment under the scheme, where there are differential prices arising from different Gas suppliers.
Therefore, we must work as the parents and owners of the policy to nurture and improve on its capabilities.
B) Eligible Customer
This was introduced on 15th of May 2017, and the Regulations to govern it were issued by NERC on 1st of November 2017.
The purpose was, amongst others, to improve distribution side of electricity and facilitate better power supply to consumers who consumed up to 2MW and above.
From reports reaching me, 5 (FIVE) industrial customers are now benefitting from the policy and taking their power directly from a GENCO, who incidentally is our host today, Messrs Mainstream Energy Ltd.
We also have a list of 26 (TWENTY-SIX) industrial customers who are seeking to benefit from the policy.
The DISCOs must be interested to know that I have also issued directives to NERC to work out and implement Competition Transition Charges as provided by Law, to safeguard them from any losses.
We will continue to monitor the impact of the policy and remain flexible to keep what works and change what does not; and I urge everybody to remain open-minded, adaptive and responsive.
C) Meter Asset Provider (MAP)
This policy was introduced to address the meter supply gap, relieve the DISCOs of the financial burden of meters, allow entrepreneurs to take up this as a business and diversify the sources of meter supply.
The Regulations and Condition for its operation were issued by NERC on 8th March 2018.
Reports reaching me indicate that there is an embracement of the policy. Entrepreneurs are showing interest and talking to banks to raise finance.
Some DISCOs have signed up to the Government-Supported fund of N37 Billion and we will keep an eye on the progress of the initiative.
Government intervention in this regard is part of its role of enabling to be effective. It does not relieve the DISCOs of their contractual obligation to provide meters.
On the contrary it seeks to help them perform their contract.
D) Energising Educational Institutions and Markets
These are Government-led initiatives based on the Rural Electrification plan approved by the President in 2016 to provide access to power for rural dwellers and vulnerable members of our society.
We proposed to use 6 (SIX) small hydro dams that had been abandoned for decades, Federal Government owned universities and some markets as anchors.
Apart from the Universities, where Government is directly funding the intervention, the markets are being privately funded, contrary to the untrue allegations that have been made in the media, and I challenge those who made the allegation to provide proof to the contrary.
There are currently 15 (FIFTEEN) markets under contemplation with Ariaria, Sabon Gari and Sura markets in Aba, Kano and Lagos as flagships.
The 6 (SIX) hydro dams are to be concessioned to private operators to build, operate, and transfer.
Our thinking is simple. While the whole value chain and power privatization gradually evolves, it is possible to create Oases of success by showing to our children that they can have reliable power while in school.
If that is a reason to get children to school and keep them there, certainly, no good business can oppose this.
Indeed, it seems to me sensible to expect that the future of today’s business and even Government, rests solely on the quality of education that the current generation of students get.
As for the markets, the 37,000 shops in Ariaria, about 13,000 in Sabon Gari, and about 1,000 in Sura represent SMEs, where the majority of our people earn a living.
They are currently paying for expensive power from small and environmentally unfriendly generators.
It seems to me that our nation will have come to their aid if we deliver reliable power to the most vulnerable like them.
Ladies and Gentlemen, this is my update about the progress of our policies and the rationale behind them.
I welcome you to this meeting and wish us fruitful deliberations.
Babatunde Raji Fashola, SAN
Honourable Minister of Power, Works and Housing
Monday 13th August 2018
DRIVING NIGERIA’S FUTURE: CELEBRATING TWO YEARS OF TRANSFORMATIVE LEADERSHIP AND THE LAGOS-CALABAR COASTAL HIGHWAY MILESTONE
DRIVING NIGERIA’S FUTURE: CELEBRATING TWO YEARS OF TRANSFORMATIVE LEADERSHIP AND THE LAGOS-CALABAR COASTAL HIGHWAY MILESTONE
MID -TERM REVIEW MEETING ON THE IMPLIMENTATION OF THE DECISIONS REACHED AT THE 29TH NATIONAL COUNCIL ON WORKS (NCW) DAY 1
MID -TERM REVIEW MEETING ON THE IMPLIMENTATION OF THE DECISIONS REACHED AT THE 29TH NATIONAL COUNCIL ON WORKS (NCW) DAY 1