The Honourable Minister of Works, Engr. David Umahi, CON, FNSE, FNATE, has reaffirmed the Federal Government’s commitment to delivering durable road infrastructure capable of lasting between 50 and 100 years. He made this statement during a follow-up inspection of ongoing works on the Abuja–Kaduna–Zaria–Kano Expressway, Section I (Abuja-Kaduna) on October 28, 2025. Speaking to newsmen, Engr. Umahi explained that the Ministry is adopting modern construction methods and using materials that ensure road longevity and sustainability under varying climatic and traffic conditions. “You cannot achieve a better California Bearing Ratio (CBR) by simply bringing laterite on the road. The existing subgrade, which has consolidated over years of traffic, has a stronger bearing capacity than a new one. That is why we are changing the approach — we are insisting on milling, stabilising, and strengthening, rather than removing old asphalt layers and replacing them with new materials,” the Minister stated. He praised the contractor, Messrs Infiouest International Limited for the quality of work done so far, noting that the project’s design is among the most advanced in the country. He further explained the engineering method being applied to ensure lasting results. “Wherever we have potholes within the carriageway, we don’t just patch. We treat the entire section using a stone base and, where necessary, stabilise it with cement. On the shoulders, we excavate about 10 centimeters below the existing asphalt, refill with a stone base slightly above the level, and compact properly. This ensures stability and prevents water from undermining the structure,” he revealed. Engr. Umahi emphasised that proper milling and concrete reinforcement at critical points are key to extending the life span of Nigerian roads. “Our design now prioritises rigid pavement (concrete roads) for major highways, while flexible pavements (asphaltic roads) are being phased out gradually. Where asphalt is used, we are introducing concrete shoulders to enhance strength and prevent failure. The goal is to ensure that no section of the road fails prematurely,” he further explained. The Minister also cautioned Engineers and Contractors against tampering with existing asphalt layers that are structurally stable. “Asphalt has a designed lifespan of about 25 years. When it is milled and recycled properly, it can serve even longer. We must adopt international best practices and stop unnecessary replacement of strong materials,” he advised. Engr. Umahi concluded by reiterating the Federal Government’s commitment to ensuring that all ongoing projects meet the highest quality standards and deliver value to Nigerians. “We are building roads that will stand the test of time — roads that will last 50 to 100 years, save public funds, and promote economic growth, he affirmed. The Honourable Minister of State for Works, Bello Muhammed Goronyo, Esq., has also reaffirmed that the administration of President Bola Ahmed Tinubu, GCFR, under the Renewed Hope Agenda, remains fully committed to improving the road infrastructure across the nation. He commended the Minister of Works, Engr. David Umahi, for his dedication and hands-on approach in the field, particularly in mentoring and inspiring young Engineers to contribute, meaningfully, to national development. The Director of Highways, Special Projects (North), Engr. Olufemi Adetunji, also commended the pace and quality of work being executed by the Contractor, noting that the Minister’s consistent inspection visits are helping to ensure timely and high-standard project delivery. In his remarks, the Chairman of Infiouest International Limited, Mr. Joseph Aboue Jaoude, stated that the company has deployed about 300 units of equipment to the project to ensure efficient operations and the delivery of quality work within schedule. Similarly, the Special Assistants to the President (S.A.-P) on Community Engagement, North Central and North West Zones, Dr. Abiodun and Hon. Abdullahi Tanko Yakasai appreciated the efforts of the current administration in transforming the nation’s road network, describing the progress as a true reflection of the President’s commitment to development and quality service delivery to the Nigerians.
TINUBU BUILDING ROADS THAT CAN LAST 50 TO 100 YEARS — Says UMAHI
Bodo-Bonny Road Project: Works at Substantial Level of Completion- Fashola ... President Buhari has connected us with the rest of Nigeria- Chief Longjohn Minister of Works and Housing, Mr. Babatunde Raji Fashola, SAN has said that works on the Bodo-Bonny Road Project has reached a substantial level of completion and that it would be completed by December, 2023. Inspecting the 37.9 km single carriageway with thirteen bridges on Wednesday, Fashola said it would boost the economic opportunities and activities of the region. While assuring Nigerians on the new date of completion, he said funding has been made available to ensure its completion even when the tenure of President Muhammadu Buhari expires. According to Fashola the present administration of President Buhari has demonstrated commitment in infrastructure development in all the regions of Nigeria. " It is instructive to point out that this very project is being executed by the Federal Government. I hear some people comment that the Federal Government is not doing anything in Rivers State. Bodo and Bonny are in Rivers State. This is a 200 billion Naira investment in one state. The amount is not the issue but the short and long terms significance of the project is addressing the problem of poverty and how to lift people out of poverty." He said that the purpose of the inspection was to see the level of work done and to administer solutions to any identified problems so that the road and bridges would be open for use for Nigerians by December, 2023. Addressing journalists after the inspection, he said, “There was urgent need to fast tract the completion of the road project pointing out that such infrastructure project would address both the monetary and multi- dimensional poverty of the people and the nation at large. " People are engaged at the sites, contractors, suppliers are busy working and making money. This place will be opened up in a way that it will be breath taking. It should be on record that the seed of ending poverty has been sown by President Buhari by this project." On his part, the Bodo Bonny Road and Bridges Project Peace Committee Chairman, Chief Osobonye Longjohn said that the project has connected Bodo -Bonny to Nigeria, stressing that it will bring prosperity to the land. " I thank President Muhammadu Buhari and the Minister of Works and Housing, Babatunde Raji Fashola, SAN for this project. Our hopes as a people is alive now because the project will create a lot of economic opportunities for our people. We are happy. As you have remembered us, we will remember this government led by the All Progressive Congress (APC)," he said. Earlier, the Project Manager of Julius Berger Plc, Thomas Haug said that the project has progressed tremendously and would be completed by December, 2023 pointing out that funding would not be a challenge. He said that the firm has completed major engineering works under water surface, adding that about thirteen bridges both minor and major ones have been completed. ...
Ember Months: FG Removes Barricades on Abuja-Kaduna-Kano Highways .... To ease traffic flow for motorists during festive season As part of the ember months programme, the Federal Ministry of Works and Housing has announced removal of barricades on the Abuja-Kaduna-Kano highways to allow free traffic flow for motorists flying the routes during the festive period. Engr Folorunso Esan, Director Highways Construction and Rehabilitation in the Ministry made this announcement in Zaria during an inspection visit of the ongoing work, Wednesday, December 14th, 2022 " This is part of our Ember Months programme, there was a directive by the Minister that all barriers at road construction sites where major works have been completed be removed by 15th of December to allow for free movement this season" he said Engr Esan stated that he was on the visit to specifically make the pronouncement for the removal of the barricades and opening of diversions as directed by the Honourable Minister. Accordingly, he explained that the usual gridlock motorists experienced during festive season necessitated the directive to the Contractors to remove barriers on the sections where major work has been completed and close for end of year break to resume early in January. In the same vein, the Federal Controller of Works, Federal Capital Territory, Engr Yakub Usman stated that, sequel to the directive of the Honourable Minister, palliative repairs and patching of potholes are ongoing at both Abuja and Kaduna end of the highway. " Palliative work are ongoing. Barrier cannot be removed in the works zones yet to be completed. However, the Contractor has been directed to carry out repair works on all the diversions as part of the palliative repairs" Engr Usman said Engr Usman revealed that the Abuja -Kaduna section of the project has eight diversions, saying that they are collaborating with the Contractor and relevant agencies such as FRSC to address unforeseen emergencies for effective traffic control during the yuletide. On his part the Supervising Project Controller of Zaria - Kano section of the highway, Engr Ibrahim said "We are opening up all the work zones where the works have attained binder course level. There is only one diversion left following the opening up of the work zones. Pothole patching is taking place at bad spots along the road" He also stated that they are working closely with FRSC and Kano traffic agency KAROTA for effective traffic management during the season, adding that the Contractor has put in place a tow truck and pay loader to facilitate clearance operations as required. Engr Esan was accompanied on the inspection by Director, Federal Highways, North -west, Engr Taiwo and the media team of the Ministry ...
Infrastructure: Recommendations For Getting Nigeria Out Of Poverty Already Being Addressed, Says Fashola • As Minister presides over 2022 EMBER Month Programme’s Press Briefing in Abuja • Confirms opening of the 2nd Niger Bridge for use during yuletide period • Also, barrier and diversions to be removed from Abuja-Kano, Lagos-Ibadan Roads to ease traffic during the festival period • Appeals for patience and strict observance of the national speed limit of 100 Km per hour by road users • FRSC, NARTO, PTD, Contractors, other stakeholders pledge cooperation to enable free flow of traffic, guard against avoidable accident Pointing the way forward in the light of the recent National Bureau of Statistics (NBS) recommendations for getting Nigeria out of poverty, the Minister of Works and Housing, Mr. Babatunde Fashola, SAN, Thursday declared that such recommendations were already being addressed by the Muhammadu Buhari administration with its massive investment in infrastructure renewal and expansion. The NBS in the report released in November on poverty index had recommended investments in Health, Education and Infrastructure among others as viable means to take the people out of poverty. But while presiding over the 2022 Ember Month Programme’s Press Briefing of the Ministry, Fashola, who noted that many people had been quoting the Report in terms of the poverty rate, explained to the audience of transport stakeholders who gathered at the Conference Room of the Ministry, “That (Infrastructure) was already happening before the recommendation came. President Buhari had started investing in infrastructure. That is why you and I are here”. Explaining that poverty has different dimensions including, monetary and multidimensional poverty, the Minister pointed out that the importance of infrastructure lay in the fact that it not only addresses monetary poverty but also multidimensional poverty which, according to him, includes absence of access, choice and efficiency. “And so for me, why is infrastructure so important? It is addressing poverty in the monetary and multidimensional modes because it provides jobs during construction and makes life better after construction. And as we have seen, as construction is going on journey time is getting better year-on-year”, he said. Stating that the Buhari administration “is on the right track” as far as addressing the poverty issues are concerned, the Minister, who noted that results would manifest in due course, added that people who express anxiety over the seeming delay in the results of the investments should commend the administration for investing the nation’s resources for the benefit of the people. He recalled that there was a time before the present administration when funds were being taken out of the country and also from an agency of the Nigerian National Petroleum Corporation (NNPC) to fund elections in the country, adding, “If they took away funds meant for national development, that was one of the causes of poverty.” “NNPC is now investing N621 billion in road construction but that was the money some people used to fund electioneering campaigns and provide cars for friends in the past. Buhari has put back the money where it belongs. These are things that are heading in the right direction”, Fashola said. The Minister declared, “When there is a problem it takes time to design a solution and when you apply the solution it takes time to get the final results. But ours is past the design stage because we are already seeing the results”, adding that if people who were saying it took them days to travel to a destination are now saying it takes them a few hours to make the same destination, “it means we are heading in the right direction”. Noting the various innovative ways, the administration has introduced to fund the investments in infrastructure, the Minister explained that when crude oil prices crashed at the onset and revenues fell, this government found other funding sources. “So, we now talk of the SUKUK; we are now talking about the Road Infrastructure Tax Credit Scheme, we are now talking about the Presidential Infrastructure Development Fund”, he said. Fashola, who recalled that the President went abroad, early in the life of the administration, to request for the repatriation of those stolen funds from the countries in which they were being kept to enable him fund critical infrastructure like the Second Niger Bridge, the Abuja-Kano Road and the Lagos-Ibadan Expressway among others adding that the execution of the road transport infrastructure projects are now going on. The Minister declared, “When the President committed in his June 12, 2019 remark that he was going to lift 100 million Nigerians out of poverty, perhaps, not many people thought it was possible. But that process has started. “All of these construction companies would ordinarily be out of work if the infrastructure programme is not being implemented; there would be no work for the people. And then the people who depend on construction for their businesses; those who own quarries, those who own construction equipment, trucks, tractors, bitumen, cement, without construction they will be out of job”. The Minister, while reiterating his challenge to the opposition for a debate on the role of infrastructure development in achieving economic growth and poverty eradication, noted the opposition’s penchant for celebrating the negative figures often thrown up by the International Monetary Fund (IMF) and similar bodies without being able to connect investments in infrastructure as the long term solution due to its numerous benefits such as creation of direct and indirect jobs as well as businesses which lead to the creation of a vibrant economy and legitimate distribution of wealth through the value chain. On the opening of the Second Niger Bridge, Fashola explained that the Bridge would be opened to traffic from December 15, 2022 to January 15, 2023, pointing out, however, that the access would only be for traffic going from the West to the East of the country adding that the flow would be reversed on January 15, 2023 to benefit traffic from the East to the West of the country. Emphasizing that work on the access road to the Bridge was not yet finished, the Minister who said the reason for the temporary opening was to ease pressure on the first bridge which was usually congested as a result of the huge traffic on it during the yuletide period added that the access roads linking the surrounding towns to the bridge are yet to be finished. “I believe it is good news so I can confirm it. As I have told you we have completed work on the Bridge. So, as it is now you can walk from one end of the bridge to the other; you can drive from one end to the other. But the connecting roads that link the bridge are what we are working on; that has not finished”, he said. The Minister attributed the delay in completion of the entire work on the access routes to the bridge to the flooding occasioned by the predicted heavy rains and the fact that contractors could not work on Mondays in the South East leading to the loss of 52 days in a year. Fashola, however, said that the flood that occurred in the area during the season was also a blessing explaining that the original level for the design of the access road had to be changed. “We had to raise the height of that road. So that flood has made the design to be reviewed and that is good for us. Happily, and thankfully, it did not affect the bridge in any way…”, he said. Buttressing the positive impact of infrastructure, the Minister asked, “Why do we need the Second Niger Bridge; is it not because we have outgrown the first bridge? Is it not because people spend days there just to go for Christmas?” He added, “That is part of poverty. That is the multidimensional poverty which this President said “I will relieve you of it and provide you a choice”. “You don’t have to sleep overnight on the bridge because you want to go home for Christmas. That is part of what we are talking about. And he has also approved that since the bridge is finished, we should create a temporary access so that in the journey this Christmas you can begin to experience what it will look like when the bridge is finally finished and we open it”, the Minister said. Fashola assured that the Ministry’s Director of Bridges would work in collaboration with the contractors and the FRSC to work out and publicize more on the arrangement adding, “We still have time of about a week and we will be working round the clock to make sure this plan works”. The Minister said the impact of the Second Niger Bridge arrangement would also be felt on the Abuja-Kano Road and the Lagos-Ibadan Expressway where, according to him, the contractors handling the projects have been asked to remove the barriers and diversions restricting traffic flow for the period of the festivities. “Let me explain the reason why we divert; we cannot build a 100 km road at once. So, we close sections of five, six to 10 kilometres on one side and divert traffic to the other side so that we can complete it. Once we open that road, that section is completed and we open it to traffic”, the Minister explained, adding that the Director in charge of Construction and Rehabilitation had sent the message to all his Controllers and all the contractors to pass the message to their staff. Noting that the directive was, “Don’t open up for construction of any new sections anymore,” the Minister said, “that is what we have done; by the 15th of December, remove the barriers, provide signage, reflective signs and flood lights to guide people through so that it is a free passage”. According to him, on Abuja-Kano, from Kaduna to Zaria there will be no diversions at all. And from Zaria to Kano, which is over 130 km, there will be only one diversion. And from Abuja to Kaduna, which is about 165 km there are going to be four diversions. So, from Abuja to Kano, which is 365 km, there are going to be only five diversions. Explaining that the five diversions are necessary for operational purposes Fashola added, “I think this is significant and the contractors are working to provide valid access. There are places where we are just going to patch so that you can drive because we are coming back to remove it for full construction which is the main contract”. “So when you see such things don’t go back to say it has failed, it has not failed, we have not built it, we have just provided relief. When you get to the built section where we have finished, you will see the quality of work we have done there, lane marking and everything and you will know this is the constructed part”, the Minister further explained. On the Lagos-Ibadan Expressway, he said the instruction to the contractors was no diversions or obstructions on the Lagos-Shagamu end from the 15th of December adding that on the Ibadan end there would also be no diversion. Appealing to the commuting public for patience, Fashola said, “So what I will then say is that you will expect efficient, reduced travel time if we use the road properly. So sometimes you have heard there will be religious events, cross over nights, sometimes traffic might slow down; FRSC is there to move it”. “Please be patient; don’t be in a hurry and face oncoming traffic because it will just build up the whole place and that is what will cause gridlock and not our work but impatience as it is”, he said adding that he will interact with the FRSC during the period and give the necessary support to ensure smooth traffic flow on the road. Reiterating the importance of patience among commuters, the Minister added, “Where there is slowdown, bear with us. We don’t intend it but these things can happen with the best of plans. The reason why we are here is that we have come here to plan for the worst and we are now hoping for the best. And the best can only come from the way we use the road”. To truck drivers, the Minister appealed, “Try and keep your trucks in good condition. Don’t overspeed, if you are tired, take a break and sleep because this is what causes accidents and obstructions. Mostly I want to appeal that the maximum speed on federal roads is 100km/hour not 101 km. So, I’d rather you drive below 100km/hour because we want you to arrive safely”. Appealing to the FRSC for more stringent monitoring of the traffic, Fashola who reiterated that no driver without a valid driver’s license should be allowed on Nigerian roads, added, “We are having too many road crashes and we are losing too many lives. In the month of September, the data that I got was better than August but it is still not tolerable. We lost over 400 people on the roads. We have to bring that number down”. “I am glad that FRSC is here. One of my appeals to FRSC is to do random checks, ask people for their driver’s licenses, if they don’t have arrest and prosecute them. Only certified people will drive on our roads. The President has approved patrol vehicles for you, use it to control traffic.” Listing the sections on which motorists are prone to excessive speeding to include Lagos-Ibadan, Abuja-Kano and Abuja to Lokoja, the Minister told the Commission, “Put your patrol vehicles on the road. If necessary, let them stay at the end of the traffic to restrict everybody to a maximum of 100km so that nobody overtakes them”. “These are some of the things we have come to share. We want to reduce the number of accidents. We want people to get home safely. We want it to be a very merry Christmas for them and certainly a more prosperous New Year that we hope to see”, the Minister said. Fashola also appealed to the people of Akure, Ado-Ekiti, people in Kabba and Benin-Sapele and all the people who use the Benin-Okene Road, the East West Road that government understands the challenges on those roads and is leaving nothing undone to solve them. He explained further, “Some of them are mired in our procurement processes which as matters of law we can’t change. So, we are working to fix them”. He added that the Ministry was also working to make recommendations to the President to get other sources of funding to invest in these roads. “So, our contractors do not despair; help is on the way. We are also mindful of this issue of inflation; we are going to address it; in some cases, we are providing augmentations. We can’t do everything. So, some of it may have to be quid pro quo, we give some and you give us some. But generally, I am optimistic that we are on the right part”, he assured. To other stakeholders, especially the road users, Nigerian Association of Road Transport Owners (NARTO) and Petroleum Tanker Drivers (PTD), Fashola thanked them for their cooperation in the efforts to bring sanity to the roads adding, “I am not blaming you for overloading. I am just advising you to comply with the law and I am happy to hear the report on efforts being made to do so. It ultimately means that the road will serve you for a longer period as designed; because, after all, what business do you have if you don’t have the road”. The Minister who thanked all the stakeholders and wished all Nigerians a happy Christmas and a prosperous New Year, said for those being accused of overloading cement the people concerned were known to the Ministry. He added, “We will call them and we will find a solution working together. So, it is work in progress”. Those who made presentations at the conference included the Director Highways, South West Zone, Engr. Adedamola Kuti who gave a comprehensive overview of the EMBER Months intervention programme of the Ministry and its Agency from Routes A1 to A6; the Managing Director of the Federal Roads Maintenance Agency (FERMA), Engr. Nuruddeen Rafindadi who affirmed the Ministry’s presentation while also presenting additional areas of intervention by FERMA; and representatives of the road transport unions as well as the Contractors who pledged their cooperation to ensure the smooth flow of traffic during the period. Also present at the briefing were the Minister of State, the Acting Permanent Secretary, Directors, Special Advisers and other top functionaries of the Ministry as well as other stakeholders. ...
Hon. Mustapha Shehuri Warns Contractors Against Delay in Project Delivery
The Minister of State for Power, Works and Housing, Hon. Mustapha Baba Shehuri has warned the contractor handling rehabilitation works on Yola - Hong - Mubi road against delay in the delivery of the project.
2. Hon. Baba Shehuri gave the warning on Saturday, while on an inspection tour of Federal Government's ongoing road projects in Adamawa State.
He expressed dismay over the slow pace of work by the contractor, Messrs AG Vision (Nigeria) Limited. Baba Shehuri described the road as a vital artery to the socio-economic development of area, the entire State and beyond, hence the need for urgency in its delivery.
3. The contract, which commenced in May, 2017 with a 24 - month completion period, is presently at a dismal 15.10% completion, which the Minister described as unacceptable.
4. According to the Contractor, the major cause for the delay is insecurity occasioned by activities of Boko Haram Insurgents in the area and inadequate funding. Hon. Baba Shehuri, who did not hide his displeasure with the Contractor, agreed that though the project was facing some security and funding challenges, he reminded him of the Federal Government's commitment to ensuring security of lives and properties, while the Ministry is making frantic efforts to ensure that certificates are being paid.
5. The Minister urged the Contractor to expedite action on the project by improving on its capacities, stressing that the project is already running out of time. While also commending the communities along the corridor and road users alike for their cooperation and understanding, he reiterated the resolve of the President Muhammadu Buhari's Administration towards the provision of critical infrastructure.
6. In his briefing on the project earlier, the Federal Controller of Works, Adamawa State, Engr. Salihu Abubakar revealed that the contract sum is N21.8 billion, the Contractor fully mobilised to site in 2017 and presently has a total of N6.3 billion unpaid certificates.
7. In the same vein, Hon. Baba Shehuri has summoned the Contractor handling the rehabilitation of Mararrabar Mubi - Michika - Madagali road, Messrs Rhas (Nigeria) Limited to his Office for apathy to work. The Minister, who was visibly livid with anger, expressed his dissatisfaction with the Contractor for abandoning the project despite being fully mobilised. He added that based on the tempo of work on the site, the fate of this all - important project is already jeopardised.
8. The Minister also used the opportunity to express misgivings over claims by the Contractor that the project was initially delayed due to non - availability of working drawings.
9. According to the Federal Controller, the 90 - kilometre road with 3 bridges, which were distroyed by Boko Haram Insurgents in 2014, has a completion period of 18 months, which had already elapsed and the project at a mere 1.7% completion.
10. However, the case of the Contractor handling the rehabilitation of Cham - Numan road project in Gombe and Adamawa States is different, as the Minister was highly impressed with the level of work achieved thus far. Eventhough the Minister applauded the pace of project, he still urged for increased tempo, while assuring the prompt release of funds to meet the project's timeline.
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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