Federal Ministry of Works (FMW)
... building the backbone for Development ...
Follow Us:
Nigerian-Sweden Collaborate To Improve Electricity Supply In Nigeria...
Oct
27
2018

Nigerian-Sweden Collaborate To Improve Electricity Supply In Nigeria

The Minister of State I for Power, Works and Housing, Hon. Mustapha Baba Shehuri has applauded the Swedish Government for their expression of interest to collaborate with the Federal Government of Nigeria in the provision of infrastructure needed to move the economy forward and make life meaningful for Nigerians.

Baba Shehuri made the commendation when he receivedthe representatives of Her Excellency, the Swedish Ambassador to Nigeria, Mrs. IngerUltvedt,  Charge d’ affaires of the Swedish Embassy, Mrs. Ida Hockerfeldtand Head of Economic Affairs, Mrs.Fanny Nylanderwho paid him a courtesy call.

The Minister revealed that with the privatization of the generation and distribution aspects of electric power supply, it makes economic sense for any foreign country to invest in Nigeria, a country that already has the population and enabling environment for Foreign Direct Investment to thrive.

He stated, “We have the population and a lot of potentials in the areas of renewable energy which some investors like the Chinese have already keyed into by providing mini grids to generate andsupply electric power to some communities”.

The Head of Economic Affairs of the Swedish Embassy in Nigeria, Mrs. Fanny Nylander had earlier explained that the meeting is a follow-up to the Swedish Minister for Trade, Mrs Ann Linda’s, visit to theHonourable Minister for Power, Works and Housing, BabatundeRajiFashola, SAN in 2016 and thesigning of a Memorandum of Understanding (MoU) with Nigeria under the Nordic Umbrella on Energy.

Mrs. Nylander further invited the Minister to be the “Country  Host” to the ‘Swedish – Nigerian Sustainable Energy Conference’ holding in Lagos on November 13, 2018, adding that the event is to create an avenue for Swedish companies to explore ways of supporting Africa, particularly Nigeria, in power generation, transmission and distribution.

“The True Situation Of Electric Power In Nigeria Today And The Prospects For Th...
Oct
25
2018

“The True Situation Of Electric Power In Nigeria Today And The Prospects For The Future”  Speech By H.E Babatunde Raji Fashola, SAN At The Nigeria-South Africa Chamber Of Commerce (NSACC) Breakfast Forum

Thank you for inviting me to be your speaker at this Breakfast meeting and for choosing the topic, that seeks to know where we are, and where we are heading as regards power supply.

I think I will like to start by setting a context as to why I feel qualified to speak here and also about the subject without sounding immodest.

First, I think you deem me qualified by your invitation. Next reason of course is that, by virtue of my current office as Minister for Power, Works and Housing you expect me to know.

Furthermore, for those of you who live in Lagos, my tenure as governor heralded the development of  Independent Power Plants in Iju, Lagos Island, Alausa Secretariat, Ikeja GRA, Lekki Phase 1 and Lekki Free Zone, all of which were targeted at supplying power to public institutions and facilities like the water works, courts, schools, and street lighting, except the Free Zone which was for commerce.

Most importantly I have visited almost all of Nigeria’s power plants in operation and those under construction, the National Control Centre, all the Distribution Companies, Major Transmission Sub-Stations and I know their current state of operation.

In addition, for 29 months, I had monthly meetings with all the operators in the power value chain across Nigeria’s states and commissioned not a few transmission and distribution assets.

Of course, I am not an engineer, but I have many brilliant Engineers  who work with me and advise me.

I am also not an arm-chair analyst. I speak about what I have seen and experienced.

This background is important as context to the matter which you wish me to speak about, which is the real status of progress in the Power Sector.

So too are two other items of context; namely, where we were in 2015, and what we promised.

If you do not define your Goal against your reality, progress will be difficult to recognize.

As to where we were in 2015, power generation was averaging 4,000 MW; transmission was averaging 5,000 MW and distribution was averaging 3,000 MW.

As to what we promised, I stated in my very first public briefing in November 2015 that contrary to previous practice, we were committing to a journey; first of getting incremental power, with the plan to proceed to steady power, and ultimately get uninterrupted power.

I made it clear that our intention was to improve your power supply experience gradually rather than discuss the megawatts as quantum of power, and that any reference to the megawatts would be measuring milestones of our progress in the journey of incremental power.

As to where we are today: from 4,000MW, generation has reached 7,000MW, averaging incremental generation of 1,000 MW every year since 2015;

Transmission has reached 7,000MW from 5,000MW, averaging 666 MW of incremental transmission every year; and

Distribution peaked at 5,222MW in January of this year, from about 3,000 MW in 2015, averaging 740 MW incremental distribution capacity every year.

We have moved the needle forward – I  see progress.

This was the essence of my promise to you that we will increase the available capacity and your experience will get better; however, we have not finished our work.

How far we can go depends on what those of you who will decide who forms the next government do when you vote.

You will compare our record of three years with what we met after the previous 16 (sixteen) years.

If you compare our performance record in three years with the 16 - year record of the previous administration in the areas of Generation, Transmission and Distribution you will get the following instructive results:  Incremental Generation of 1000MW per year against 4000MW in 16 years which amounts to 250MW per year; Transmission capacity improvement by 666MW per year against 5000MW in 16 years which amounts to 312.5MW per year ; and Distribution capacity improvement by 740MW per year as against 3,000MW in 16 years which amounts to 187.5MW per year.

You will also compare the resources available to us in the last 3 years, with what was available over the previous 16 years.

In addition, you will have to ask yourself whether you are running your generator for longer or shorter periods today, than in 2015; and also whether you are spending more to buy fuel for your generator than three years ago.

Those of you who are well-meaning and right thinking know the answers.

The feedback from Consumers also reflect the impact of the results being underscored. I will share some of these with you. In the opening piece to the Law Section Pull-Out of October 16th , 2018 titled “ Lessons from Rome”  Onikepo  Braithwaite writes:

“… With regards to power supply in Nigeria, I had to encourage the Learned Silk and congratulate him, because the power supply in my area of residence, has been extremely steady in the past one year, to the extent that my generator is lying there unused, not even connected. I have been able to live comfortably, without a generator or an inverter, for almost one and a half years. However, we are eager to see this feat performed throughout the country, so that Nigerians can enjoy a better quality of life.”

Another Consumer gave the following feedback via sms :

“Just say I let you know in ajah now people worry more about buying meter card than petrol for generators.  I was in the store in my neighbourhood and people were actually having the conversation I just smiled. And it's also economic growth for this axis  as an home owner, cause more people are moving here I can say that boldly for my estate...well done Sir…”

Also, a Consumer who resides in the Mowe area of Ogun State, Steven Shobiye, gave the following testimonial which he titled, “ Mowe Comes Alive”:

“Since 2014, power supply in Mowe was dead until last year when hope was renewed and the town came alive again. This good news is not only for Mowe but all the neighbouring towns and villages like Ofada, Owode, Ogunronbi to mention a few. Thanks to tireless Minister for Power, Works and Housing, Mr Babatunde Raji Fashola SAN and his formidable team…”

The story of Magboro and its environs which got connected to power  after 17 years of non – supply  also remains a glowing testimony to progress in the Sector.

Of course, there are people still unserved or not well served. However, the good news is that there is a mechanism put in place by the Nigerian Electricity Regulatory Commission (NERC) to monitor complaints by Consumers. A total of 166,543 complaints were resolved out of 262,096 from January to June 2018.

You will also have to compare our plans for tomorrow with the plan of the others, and this takes me to the other part of the topic about PROSPECTS FOR THE FUTURE.

Today I can tell you that by the end of this year another 945 MW will be ready for supply from the following power plants;

(i) Azura 450MW (which is finished and producing)

(ii) AFAM IV 240MW (which is finished and awaiting commissioning)

(iii) Kaduna 215MW (which is undergoing pre-commissioning testing)

(iv) Kashimbilla 40MW (which is nearing completion).

Between 2019 and 2020 (Q1) Zungeru 700MW, Okpai II 450MW, totalling 1,150MW should come into operation.

These do not include about 7,000MW of installed but inoperative power plants that are constrained either by Gas supply or transmission capacity or both, about which action is being taken.

It does not include independent power plants now under construction in 9 federal universities with a plan to scale to 37 , neither does it include 15 independent power projects targeting major markets now under construction to power 85,000 shops and small businesses.

On the transmission side, we have finalized a 10-year transmission expansion plan from 2018 to 2028.

We have recovered 690 containers of power equipment abandoned at the Port as part of the legacy of the previous 16 years, and deployed them to the sub-stations they were originally meant for.

Currently, there are not less than 90 transmission sub-station projects at different stages of construction.

This year we have completed a few, and last week we commissioned Damaturu sub-station in Yobe, and Ejigbo sub-station in Lagos will be commissioned today , and so will the Ilase tourist beach in Lagos, which will soon be connected to grid power for the first time in its history.

On the distribution side, first let me remind you that all the eleven companies that distribute power were sold to private investors.

It is their responsibility, not that of Government to supply distribution equipment like breakers, transformers and meters.

So, if there is any problem there, as indeed there are, it is private businessmen who should solve this problem.

Of course their ability to respond partly depends on what government does. So, to the question what is government doing ? I say:

We have 7000 MW of power operationally available but distribution can only take 5000.

We have engaged with Manufacturers Association of Nigeria (MAN) to offer the rights to take the 2,000MW and enunciated the Eligible Customer Policy for consumers who take up to 2MW and beyond.

The policy took effect recently, 5 major industries have connected and we have dozens of new applications being processed;

For meter shortages, we have enunciated a policy of licencing Meter Asset Providers, independent of the Discos but who will be supplying their customers. 180 applications have been received.
Discos are also investing in meters and supplying them.

Off-grid supply – we have enunciated a Mini Grid Regulation that allows people to build and distribute up to 1MW under licence, and up to 100kw without licence.

Distribution Expansion- In order to support distribution equipment capacity, government as a shareholder of the Discos is investing about N72B in distribution equipment at the 33kv and 11kv points of the value chain.

In summary, incremental capacity is heading in the right direction, we are planning to solve today’s problems, liberalize participation in the sector, and enable private sector undertake the business of generating and distributing power, which it contracted to do with the privatization programme that took place in 2013.

The prospects for the future are clear, they portray hope, and I am optimistic that today’s problems represent opportunities in the power sector for tomorrow.

Thank you.

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

FERMA Gives Nigerian Roads Facelift, Completes Over 300 Capital Road Projects Nationw...
Oct
19
2018

FERMA Gives Nigerian Roads Facelift, Completes Over 300 Capital Road Projects Nationwide

ABUJA - (FERMA Report) - The Managing Director / CEO of the Federal Roads Maintenance Agency (FERMA), Nuruddeen Rafindadi (Engr) has said that the agency has completed an additional 212 capital projects to the 88 road projects earlier reported and over 100 direct labour works within FERMA's scope of work nationwide.

Some of the completed projects, according to him include: the rehabilitation of Bambal - Buzawa Road along Kiyawa - Jama’are Federal Road in Bauchi State where the patching of potholes and laying of asphalt were done. He identified the other general maintenance works completed as the Kari - Yobe State Border Road. Adding, the Ganjuwa - Gubi Road linking Wussarawa Road has also enjoyed rehabilitation works such as scarification, provision of stone base, asphaltic overlay and construction of culverts.

Rafindadi also mentioned that the Federal Roads Maintenance Agency has recently disilted drainages on some Federal Roads in Edo State, while carrying out repairs on some bridges and failed portions of roads in the state, including the Benin Bypass and Ugonoba bridge amongst others. He however said that work on the failed carriageway at Ogheghe Junction along the Benin - Warri dual carriageway is ongoing.

He later informed that other works that have been completed here include: site clearance, laterite work on shoulders, boulder placement on carriageways and cement stabilization of challenging sections; repairs of failed carriageway sections and pothole patching on the Ogheghe Junction along the Benin - Warri dual carriageway; the Benin Township Road along Benin - Asaba dual carriageway and the Oluke - Sobe - Fon linking Ondo State Border Road in Edo State.

The MD also revealed that that in Plateau State, potholes along the Jos - Gimi - Fadan Kashi Roads and the Jos - Makurdi Road were also patched, including the general maintenance of other roads in Ilesha, Osun State through the intervention of FERMA.

While noting that in the North - Central Zone direct labour works were carried out up to 100% completion along the Abuja - Keffi Road and Gwagwalada Road, involving patching of potholes, disilting of drains, reinstatement and embankment washout, the Managing Director hinted that in the South - West Zone, road construction activities such as hydraulic structures, routine disilting of open covered drains, washout and repairs, palliative works and patching of potholes were done in Lagos, Ogun and Oyo States respectively.

"Some other completed projects in the South West include - maintenance works on the Lagos - Badagry Expressway stretching from Agbara - Atan, Olosha Bus Stop along Western Avenue - Agege Motor Road to Gbongan - Iwo - Oyo State Border Road. The work continued from here to Abeokuta Bakatari Road in Ogun State, up to Odo Oba along Oyo - Ogbomosho Old Road to Ibadan - Idi Ayunre Mamu Road," he depicted.

"In the North East, the construction of reinforced concrete line drain along Kurba Gayiwuyo Road in Borno State, the patching of potholes along Maiduguri - Jos Road in Borno State (Sections I & II), construction of two cells reinforced concrete Box Culvert and Washout repairs along UBA - Askirambalala Road in Borno State as well as special repairs of Gumel - Maigatari - Niger Republic Road in Jigawa State were executed. Tthe disilting works on culvert/line drains and vegetation control along Kano State Border - Birnin Kudu - Bauchi State Border in Jigawa State have been 100% completed."

In his analysis, Nuredeen stated that the reconstruction of failed sections of Box Culvert (Abuja Bound) along Kaduna - Abuja dual carriageway in Kaduna State and the reinstatement of collapsed portions of single and multiple Cell Pipe Culverts along the Kaduna - Birningwari - Niger State Border Road in Kaduna State are other interventions. He inferred that emergency repairs of collapsed 2-cell culverts and the reinstatement of embankment washouts along Kachia - Kwoi (Niger State) Border Road in Kaduna State and the repair of critical failures along the Kaduna - Abuja - Niger State (Abuja Bounds) are significant as well as the repair of critical failures along the Kaduna - Abuja - Niger State Border dual carriageway which is Kaduna Bound in Kaduna State.

He continued that vegetation/silt control of the Kaduna - Abuja dual carriageway (Section I-V) along with the vegetation/silt control of the Kaduna - Birnin Gwari dual carriageway (Section II) in Kaduna State have been done.

"Still in FERMA's resolve to reach to all roads within its scope of works nationwide, FERMA has completed the reconstruction of failed sections, effected vegetation control, reinstated failed portions and reinforced concrete stone base on carriageways. It has also embarked on asphalt repairs and cutting of potholes to regular shapes, just as the disilting of line drains on roads in Kano and Kebbi States have been delivered," he stated explaining to some concerned citizens the reason why FERMA is not carrying out activities on some roads.

Responding to questions on the cause of non-involvement in the rehabilitation of Agbor - Amukpe Road in Delta State, he announced that FERMA cannot carry out any rehabilitation work on roads where there is an ongoing contract. On the Ondo - Ore Road, the MD said that the contract for the road is being supervised by the Federal Ministry of Power, Works and Housing and so the agency can not intervene there.

Speaking on the Ukpagada - Ogoja Road in Cross River State, the MD allayed that the mandate of FERMA is for Federal Roads, adding that FERMA can only intervene on State and Local Government roads when such roads are appropriated under constituency projects. He further clarified on the roads in Nnewi, Anambra State that the agency has four road works proposed to be done in the 2018 capital appropriation around Nnewi which comprises the Oba - Nnewi - Okija Road, saying it has been advertised for tender.

Nigerian Youth Charged To Promote Peaceful Co-Existence...
Sep
12
2018

Nigerian Youth Charged To Promote Peaceful Co-Existence

Nigerian youth has been charged to promote peace and unity at all times for meaningful development in the country because the future belongs to them.

The Director, Public Procurement, Federal Ministry of Power, Works and Housing, Alhaji Musa Badeiri stated this as he received members of the Northern Youth Council of Nigeria (NYCN) who paid him a courtesy call in his office today.

Badeiri posited that Nigerian Youth are energetic, hardworking, committed and has the potential to make Nigeria a country of their dream that will be reckoned with in the comity of nations. He said “We are all Ambassadors; we must show it by our deed and action”

He noted that the Nigerian Independence in 1960 was through the effort of our Founding Fathers like Sir Ahmadu Bello, Obafemi Awolowo and Sir Nnmadi Azikwe.  He stated, “we are living on the goodwill of our past leaders who fought for the country’s independence and as such we also have the responsibility to continue the good works and maintain peace at all cost’.

While appreciating the award and honour given to him, Badeiri assured the Council of his support and mentorship at all times.

Earlier, the Vice President, National Affairs and leader of the Delegation, Barrister Faruk Mohammed disclosed that the Council is involve in various advocacy campaigns to promote peace and good governance in the country, campaign against drug abuse among the youth and also in partnership with the National University Commission for educational and social responsibility to the youths amongst others.

Mohammed affirmed that the Council singled out Alhaji Badeiri for the award of Excellency (the Golden Medal of Honour) due to his immense contributions towards nation building, educational development and youth empowerment, adding that, “this award is not just to honour you but also to submit to your mentorship”.

 

FG Commits N22.7b To Mayo Belwa-Jada-Ganye-Toungo Road In Adamawa State...
Aug
28
2018

FG Commits N22.7b To Mayo Belwa-Jada-Ganye-Toungo Road In Adamawa State

The Federal Government is to spend the sum of N22,699,176,016.86 on the rehabilitation of Mayo Belwa-Jada-Ganye-Toungo road in Adamawa State. The Minister of Power, Works and Housing Mr. Babatunde Fashola, SAN who was represented by his Minister of State 1, Honourable Mustapha Baba Shehuri and flanked by his counterpart, Minister of State 11, Surveyor Suleiman Hassan Zarma, at the Flag-Off Ceremony in Mayo Belwa town, over the weekend, disclosed that the 112km road was due for rehabilitation having been built since 1999.

Fashola stated that the road, which is presently characterized with failed sections, potholes, alligator cracks, depressions and washouts at the edges, is an important economic route which links and passes through the agriculturally predominant towns of Mararaba, Jamtari, Jada, Dashen, Ganye and Toungo. It also leads to the neighbouring Taraba State.

The contract which has a completion period of 36 months, the Minister said, provides for the reconstruction of 112km road to a required 7.3m carriageway width and 2.75m shoulders. The carriageway, he noted, is to be overlaid with 60mm asphalt concrete binder course, 40mm asphalt concrete wearing course with pavement of 200mm thick and 200mm stone base.

Other ancillary benefits to the road users on that corridor, Fashola added, include stone pitching, kerbs and chutes to avoid washouts, kilometer posts and most importantly, road sings to give direction and make driving less cumbersome and pleasurable.

In his response, the Special Guest of Honour, the Executive Governor of Adamawa State, Senator Bindow Umaru Jubrilla thanked President Muhammadu Buhari and Members of the National Assembly and most especially the Member representing Jada-Ganye-Mayo Belwa-Toungo Federal Constituency, Hon. Abdulrazak Namdas for finding it worthy to invest so much on the corridor stating that the Federal Government is bound to generate huge revenue from the investment in the area of increased rice production and livestock farming.

The ceremony attracted so many illustrious sons and daughters of the constituency and state some whom included Senator Ahmed Abubakar, Senator Binta Massi Garba, Secretary to Government of the Federation, Mr. Boss Mustapha and the Gangwari Ganye, HRH Alh. (Dr) Umar Adamu Sanda,OON among others.

Other dignitaries that showed solidarity to their friends in Adamawa State were the Senate Committee Chairman on Works, Sen. Kabiru Gaya, Chairman House Committee on Works, Hon. Toby Okechukwu, Minister of Health, Prof. Isaac Nebo among others.

The contract was awarded to Messrs Triacta Nigeria Limited.

FEC Approves Road Project Linking Anambra And Enugu States...
Aug
16
2018

FEC Approves Road Project Linking Anambra and Enugu States

The Federal Executive Council (FEC) on Wednesday approved the sum of N15.7 billion for the completion of a road project that stretches from Enugu State to Anambra State.

The Minister of Power Works and Housing, Babatunde Fashola, disclosed this while briefing newsmen after the FEC meeting presided over by the Acting President, Prof. Yemi Osinbajo, on Wednesday in Abuja.

He said the project included roads captured as Umana-Ndiagu, Agba, Ebenebe, Amansea, Awka, Anambra which spurred into Umumba in Enugu State.

“The contract was awarded in 2012 and there were spurs off the Enugu-Onitsha Highway to six different communities, Ebenebe, Agba, Umana-Ndiagu, Nkpodu, Ekeagu and Ugwuoba.

“Because of lack of appropriate budgeting and funding all of these projects could not be completed.

“There were failures in the implementation as we inherited it; there was also the need to provide for erosion control measures and drains.

“That has led to the revision of the existing contract awarded in 2012 from N10.3 billion to 15.734billion.”

Fashola said that it was the revision to enable the contract to be completed that was presented and approved by the council.

Earlier, Alhaji Lai Mohammed, the Minister of Information and Culture, said that Wednesday’s FEC briefing was one of the shortest as only one minister would brief newsmen on projects that had been approved.(NAN)

Remarks By The Permanent Secretary, Federal Ministry Of Power, Works And Housing, (Wo...
Aug
15
2018

Remarks By The Permanent Secretary, Federal Ministry Of Power, Works And Housing, (Works And Housing Sector), Mohammed Bukar, At The 24th National Council Meeting On Works, Held In Birnin-Kebbi, Kebbi State

Protocols,

I am pleased to welcome you to the 24th Meeting of the National Council on Works holding in Birnin-Kebbi, Kebbi State.

2. As you are aware, the theme of this year’s National Council Meeting is “Ensuring Value-for-Money in Nigerian Highways Development”. The theme is apt and timely, considering our collective resolve to address the challenges in road development in the country within available resources.

3. In order to ensure that this target is achieved, it has become necessary for all the critical stakeholders to consider and provide contemporary policies that will support the attainment of the above target.

4. It is quite instructive that the theme was carefully chosen to ensure prudent spending of available financial resources in Highways development in the country due to the huge investment governments at all levels are making in road development.

5. The Meeting is significant as it will afford us the desired opportunities to identify challenges in the highways sector and develop strategies towards addressing them.  We are therefore, expected to explore various realistic means of proper utilization of funds and other resources meant for road projects, to enable quick service delivery, which in turn will fast-track national growth and sustainability. May I also stress on the need to ensure that all our recommendations align with the objectives of the Economic Recovery and Growth Plan (ERGP) of 2017-2019 which focuses on restoring economic growth, ease of doing business, investing in our people and creating a competitive economy.  The achievement of these objectives largely lies on the availability of good road network across the country.

6. Distinguished delegates and officials, the timing of this meeting therefore, is very significant as it affords us the opportunity to think through and make necessary provisions in our various Budgets for the year 2019 and beyond as well as take necessary steps that will ensure money spent on roads impacts on the Nigerian economy, positively.

7. On this note, I once again welcome you all and wish you fruitful deliberations.

8. Thank you.

 

Introductory Remarks By The Director, Planning, Research & Statistics, Federal Minist...
Aug
13
2018

Introductory Remarks By The Director, Planning, Research & Statistics, Federal Ministry Of Power, Works & Housing (Works & Housing Sector), Dr. Famous S. Eseduwo At The 24th National Council Meeting On Works At Birnin-Kebbi, Kebbi State

INTRODUCTION

Let me start by appreciating God all-mighty for making this 24th National Council Meeting on Works, holding here today at the Presidential Lodge Conference Centre, Birnin-Kebbi, Kebbi State, a reality. As the coordinator of the Ministerial Planning/Organizing Committee for this important perennial event, I also joined the Permanent Secretary, Ministry of Works, Kebbi State in welcoming you to this week-long meeting with the theme, “Ensuring Value-For-Money in Nigerian Highways Development”.

I wish to also express our sincere gratitude to his Excellency, Senator Abubakar Atiku Bagudu, the Executive Governor of Kebbi State, the government and good people of Kebbi state, for providing the enabling environment for this year’s National Council Meeting On Works.

I like to also appreciate our Honourable Minister Of Power, Works & Housing, His Excellency, Babatunde Raji Fashola, SAN, the two Honourable Ministers of State, Power, Works & Housing, Hon. Mustapha Baba Shehuri and Surv. Suleiman Hassan Zarma, mnis, as well as the Permanent Secretary, Mohammed Bukar, the directors and staff of the Federal Ministry of Power, Works & Housing (Works & Housing Sector) for their invaluable support in bringing together this meeting. 

The Nigerian highways development problems are numerous and road is a common good that requires a going concern of everybody. As man cannot live without food, almost at the same scale, man cannot live without road, comfortably. We use road every day virtually for everything that keeps us going. 

This underscores government’s continuous efforts to fix highways within available resources over the years. The rationale for this national council meeting on works, therefore, is to identify the unsettling challenges in the road sub-sector and come up with implementable strategies towards improving highways development in Nigeria within available financial, human and material resources.

Permit me to refresh our memories that the National Council on Works is the highest policy-making and advocacy organ in the Works Sector and as such, the stakeholders converged every year to deliberate on issues concerning road infrastructure. This is exactly why we are gathered here today. Thus, we are expected to kick-start the technical sessions any moment from now through the thematic group discussion methodology. The thematic groups were thought out of the memoranda received and summarized for this meeting. We have carefully broken down this year’s theme, “Ensuring value-for-money in Nigerian Highways Development” into five thematic areas which the chairman of the 1st technical session will announce to us very soon.

The National Council Meeting on Works, of a fact, is an inclusive approach to highways policy formulation, aimed at providing practical solutions to the existing road infrastructure development challenges in our country. This year’s thinking is to be guided by the perspective of “value-for-money”.

Let me on behalf of the planning/organizing committee sincerely apologize for any initial inconveniences you may have encountered on your arrival to Birnin-Kebbi, relating to issues ranging from hotel accommodation to intra-city transportation. Such challenges are often normal when a large number of persons visit a city for a programme. Nonetheless, please bear with us because it was due to circumstances beyond our control.

I want to assure you that all necessary arrangements have been put in place to ensure the success of this year’s council meeting. As we progress with the meeting, some of the preliminary challenges will sort out themselves. The secretariat is available for any possible assistance 24/5.

Please open your folders and flip through the programme to be acquainted with the sessions we intend to have from today to Thursday as well as the memoranda for the thematic group discussions and possible recommendations.

Once again, I welcome you to the thinking platform of this year’s national council meeting on Works which we are expected to deliberate on the summarized memos today and tomorrow towards making recommendations to the meeting of Permanent Secretaries holding on Wednesday.

Thank you and wishing you productive deliberations.

Remarks Of The Honourable Minister Of Power, Works And Housing At The 29th Monthly Po...
Aug
13
2018

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

HELD AT THE ALHAJI UMARU MUSA YAR’ADUA INDOOR SPORTS HALL, MURTALA MUHAMMED SQU...
Jul
26
2018

HELD AT THE ALHAJI UMARU MUSA YAR’ADUA INDOOR SPORTS HALL, MURTALA MUHAMMED SQUARE, KADUNA ,KADUNA STATE.FROM 11TH-15TH JULY, 2016

The 2nd edition of the National Council on Power (NACOP) was held in Kaduna, Kaduna State; from 11th to 15th July, 2016. The Council was presided over by the Honourable Minister of Power, Works and Housing Babatunde Raji Fashola, (SAN), supported by the Honourable Minister of State for Power, Works and Housing, Honourable Mustapha Baba Shehuri.

2. A total number of 305 participants involved in the electricity industry from both the local and international, public and private Sectors were in attendance. Participants included members of the National Assembly (Power Committees), Commissioners and Permanent Secretaries in charge of Energy/Power in the States, CEOs of power companies, representatives of donor agencies, development partners, representatives of professional bodies and the academia, Nigerians in Diaspora, electricity consumers, non-governmental organisations, other stakeholders and observers.

3. A total of 29 memoranda on five (5) themes were received from stakeholders. Presentations on power related issues were made. Council reviewed the specific recommendations from the Technical Session, and also the decisions and directives at its inaugural meeting in 2014. In addition, Council validated and adopted the Sustainable Energy for ALL (SE4ALL) Action Agenda, National Renewable Energy Action Plan, (NREAP) the National Energy Efficiency Action Plan (NEEAP), and unveiled the Power Sector Investment Opportunities and Guidelines, document containing 2016-2030 energy mix target for Nigeria.

4. The memoranda and papers represented were exhaustively discussed in five (5) thematic technical committees focused on: Gas To Power; Energy Mix; Transmission; Market Liquidity; and Policy Initiatives and Manpower Development.

5. Council considered the issues, observations, and recommendations made by each Technical Committee of the Technical Session in a report laid before it, and took key decisions as well as gave directives for implementation of the decisions with time lines as outlined below:

A. The immediate implementation of the decisions and directives of the inaugural meeting of the Council that were still pending within sixty (60) days after the meeting;
B. NERC and NBET should ensure project promoters of Gas fired thermal station have made adequate provisions for gas supply before granting license and signing Power Purchase Agreement (PPA) respectively;
C. Gas Regulatory Agencies and Department of Petroleum Resources (DPR) should streamline the process for giving capable and interested investors access to gas resources.
D. Government (DPR, NERC, NBET) should support, facilitate and incentivize the development of alternatives to pipeline distribution of natural gas, Liquefied Petroleum Gas (LPG), liquefied natural gas (LNG), Natural Gas Liquid (NGL) should be developed.
E. Nigeria’s country energy mix should be diversified to reduce the dependence on Gas. Council endorsed the target of 30GW with 30% renewable including 5MW solar on the national grid by 2030 and 8,969MW by 2019, as captured in the Power Sector Investment Opportunities and Guidelines document:

i. Energy data bank for reliable data for effective planning should be established;
ii. Pending energy policies should be harmonized, approved and made available to the public;
iii. The ongoing Power Master Plan Study by the Japanese International Cooperation Agency (JICA) and the Transmission Master Plan by the World Bank should be completed timely;
iv. The different energy targets from different policies document should be harmonized;
v. The approved National rural electrification implementation strategy and plan should be implemented.
vi. The approved of the Rural Electrification Implementation Strategy and Plan would address the challenge of politically based rural electrification projects resulting in a large portfolio of uncompleted projects without adequate funding to complete.
vii. Speedily complete of all ongoing Federal Government power projects nationwide.
viii. Assessment of all assets pre-privatization the distribution companies, especially investments by State and Local Governments;

F. Skills for operation and maintenance in the power sector especially for the renewable technologies should be enhanced.
G. On the submission of the Transmission Work Group::

Xii. Council noted the need to expand the 330 KV and 132KV lines and substation transmission system and the need for more investment to accommodate the expected growth in generation; and
Xiii. Council recommended multiple approaches for financing the transmission grid:

i. BOT which will encourage investment in the sector and enhance liquidity;
ii. B&T; currently operated by TCN
iii. Build, Lease and Transfer which will allow financial institutions to get involved in the Power business as there will be opportunity for recouping of invested funds.

H. On the right of way (ROW):

XIV. Council noted that National Electricity Regulatory Commission (NERC) already has in place several frameworks and policies that allow state and local governments as well as other investors to recover capital invested in transmission facilities. NERC also has several frameworks and policies that support investment recovery in distribution facilities within the franchise of a successor distribution company.
XV. Council directed the Ministry and NERC to be more aggressive in explaining and promoting the frameworks and policies to state and local governments as well as interested investors;
XVI. Council referred to the 2014 decisions on ROW and encouraged implementation of the decisions taken;
XVI. Council directed that existing Miscellaneous Offences Acts which already contains adequate sanctions against vandalization of electricity infrastructure should be more vigorously applied and enforced;
XVII. Council directed NERC to enhance monitoring of DisCOs activities to ensure discipline and adequate return on investment;
XVIII. The BPE representative on the Boards of the distribution companies should be replaced by knowledgeable, capable and
aggressive nominees of FGN so that the activities of the DisCos can be more effectively monitored

I. On the need to enhance Market Liquidity in the Power Sector Council approved that:

XIX. The present MYTO 2015 methodology and tariff should be maintained;
XX. DisCos should be more vigorously monitored (by NERC, BPE and their Boards) in order to ensure that they improve on their level of services delivery in line with their contractual obligations, their licenses and their purchase performance agreements;
XXI. NERC should ensure improvement in the implementation of existing policies and regulation;
XXII. Council re-iterated the existing policy on metering and directed that NERC should come up with regulations to eliminate estimated billings.
XXIII. Council noted that NERC already has a regulation under which an unmetered consumer is only required to pay his or her last undisputed bill (presumably at a lower tariff) until he or she is metered and that the distribution companies cannot disconnect the customer for non-payment; it therefore directed that NERC should more aggressive in publicizing the policy;
XXIV. Laws, enforcement and judicial processes should clearly treat electricity theft and Vandalism as a criminal offence;
XXV. Bulk metering for rural communities, estates and other closed communities should be encouraged for increased revenue generation and sense of ownership by the community;
XXVI. All MDAs facilities should be adequately metered as a matter of priority;
XXVII. DisCos should improve on their technical and commercial efficiency;
XXVIII. NERC should enforce the provision for the establishment of LCs by the DisCos;
XXIX. Better Corporate governance should be encouraged in the sector;
XXX. NERC and BPE should compel the DisCos and GenCos to maintain competent technical competence as required by their various agreements and licenses;
XXXI. Monitoring of the financial and operational performance of the companies in the sector should be more vigorous carried out by NERC, BPE, Boards, NEMSA, Ministry and other relevant government Agencies/Institutions;
XXXII. Government should through the Ministry, ensure regular Forensic Audit of all the accounts of the DisCos with the Commercial Banks.
XXXIII. Council noted that BPE on instruction of the Vice President and NERC were already undertaking such audit.;
XXXIV. Any state government that wants to embark on projects that will be connected to the distribution network should refer to NERC regulations on such investment for guidance;
XXXV. NERC should hold regular meetings with key stakeholders with a view to enlightening them on the procedures to be followed on the request for compensation for electrocution victims;
XXXVI. NCP should conclude the sharing of government share of the privatization assets of the Distribution Companies to State and Local Governments;
XXXVII. There should be a mechanism to monitor the implementation of the recommendations made at the end of each NACOP meeting.

J. On enhancing Policy initiatives and Capacity Building, Council directed that Federal and State Ministries, Departments and Agencies(MDAs) involved in implementing NACOP decisions should report on the implementation of such decisions and directives through the Task Implementation Team;

K. Council further approved that:

XXXVIII. Validated Nigerian Power Sector Content Development Policy should be institutionalized;
XXXIX. Harmonization of all policies being implemented by power stakeholders should be put in place to enhance efficiency;
XXXX. Existing Policies should be reviewed for efficiency and effectiveness;
XXXXI. Capacity of Personnel to implement this policy should be strengthened;
XXXXV. Implementation of the policies should be monitored and evaluated periodically.

L. On the absence of a National Power Training Policy and legislation to strengthen the effectiveness of NAPTIN, Council:

XXXXVI. noted the existence of the Draft National Power Training Policy and approved that it should be subjected to stakeholders review;
XXXXVII. noted the gap but declined to endorse the request to seek legislation to establish NAPTIN, noting that as an organization duly set up under the Companies and Allied Matters Act NAPTIN is fully empowered to discharge its mandate;
XXXXVIII. directed the urgent building of the capacity of the FMPW&H to monitor and evaluate key activities in the Power Sector

M. On the report that the Kaduna State is in the process of developing a State Electricity Reform Law, Council noted the decision of NACOP 2014 on the establishment of state Ministry of Energy across all states and encourage them to do so and also approved that:

XXXXIX. Sub national governments should have access to the newly approved NREEP2015;
XXXXXX. NERC should mandate DISCOs to publish their short term development (3-5 yrs) plans to enable the state governments put in place appropriate plans to assist investors;
XXXXXI. State Law should not contradict the provisions of the Electric Power Sector Reforms Acts of 2005;

N. On the DRAFT Rural Electrification Strategy and Implementation Plan, Council endorsed the call that Federal and State Governments should fund and complete energy audits of all Public facilities.

O. On the request by West African Power Pool (WAPP) that all DISCOs become members of WAPP, Council encouraged GenCos, DISCOs and other Power Ultility providers to become members of WAPP in order to take advantage of the benefits of the WAPP initiative, Council encouraged WAPP membership.

P. On payment of Outstanding Bills to DISCOs and their Performances, Council approved as a Public policy that MDAs at the Federal and State levels should lead by example by paying their bills;

6. The documentation of all Council Resolutions as well as all the Memoranda submitted by all Stakeholders including States, the Federal Ministry of Power and papers delivered during the Plenary Session are available at the Ministry website:

My Directives On Improved Service Delivery In The Power    Sector Went To L...
Jul
20
2018

My Directives On Improved Service Delivery In The Power    Sector Went To Legal Entities, Not To An Interloper - Fashola

Before fiction becomes fact for lack of a response, I feel obliged to respond to SOME, NOT ALL of the allegations credited to one Mr. Sunday Oduntan who presents himself as Executive Director, Research and Advocacy of the Association of Electricity Distributors (ANED), which he made in response to my directives to NERC (the regulator) and BPE/NBET as contracting parties to the DisCos.

Throughout my Press Statement which contained the directives, I referred copiously to the provisions of the Electric Power Sector Reform Act (EPSRA) which is the law that regulates the power sector. I referred to DisCos in their capacities as licensees.

Mr. Oduntan should tell members of the public if ANED is a licensee.

He should tell the public whether he is an investor in a DisCo and in which DisCo he has invested and what he invested.

He should tell members of the public that I walked him out of our monthly meeting because he has no capacity to attend and he was not invited.

If ANED is not a licensee, who is ANED ? An NGO? If so, they should listen to consumers because Nothing is Going On about poor service.

The BPE, NBET and NERC, to whom my directives were made, contracted individually with DisCos not as an association.

Any right thinking and well-meaning person knows that power supply has economic consequences and has  political relevance.

However to suggest therefore that my directives were political, turns reality on its head; because for the past 20 months, in all my public briefings at monthly meetings with the DisCos, these same issues of service delivery of meters, estimated billings, investment in distribution equipment by DisCos have dominated my remarks.

However, assuming this was not so, do the onset of elections preclude the quest for better service or continued Governance?

If Mr. Oduntan represents the DisCos who, for reasons best known to them, choose not to act to save their investments, that is a matter of choice for them.

I do not recognize him because the law that guides my functions does not recognize him.

His statement that no directives from me will save the power sector from collapse, is consistent with the views of someone who has no skin in the game.

It is perhaps a Freudian revelation of the mindset of those he represents, whoever they may be.

It is a sickening parallel of the Biblical story of the woman who tried to steal a baby before the great King Solomon, and asked them to divide the child.

It is revealing of the mindset of a saboteur not a builder, and he would do very well to acquaint himself and advise his co-travellers about the consequences of sabotaging the economy under our Laws.

While the DisCos reserve the right to choose to affiliate with that view or disown it, I am optimistic that the power sector will prosper in spite of Oduntan-minded personalities.

As for the allegation that figures of power generation and distribution released by me are not true, the taste of the pudding lies with those who eat it.

Electricity consumers know what their experience was in 2015, 2016, 2017 and today.

These figures have been released many months back when we reached those milestones as part of my monthly report and roadmap of incremental power.

It is clearly Oduntan-like, to keep quiet at the time, when there were no directives, and to suddenly wake up many months later to dispute what he did not contest.

It is obvious that the warning lights of compliance necessity are blinking, and those he represents do not like the colour.

Another Oduntan-minded interpretation of my directive is that it is an attempt to demonize the DisCos.

Far from it.

If the DisCos connect with their consumers, they will hear from them first-hand, how traumatized they feel about load shedding, absence of meters and estimated billing.

The GenCos, who are short paid because the DisCos under-remit in spite of high estimated billing to consumers, will tell DisCos how they feel.

My directives seek to rectify these problems because I believe they can be rectified.

If Oduntan truly speaks for the DisCos, which I doubt, he should ignore the messenger (Fashola) and advise those for whom he acts as surrogate, to focus on the message.

The message is simple:

Electricity consumers (which include Fashola), want better service;

NBET wants its money; about N800 billion, so she can pay GenCos;

If DisCos can prove that FGN owes more than what we admit, they should deduct (N72 billion) from N800 billion and pay the remaining N728 billion which they owe NBET;

DisCos should respond to the query from the Ministry of Power, Works and Housing as to why 408 feeders, which have a capacity to deliver 5,756MW of power to consumers only carry 444MW because of faulty lines, bad equipment and load shedding?

Oduntan should interprete this and tell the public whether it is the Ministry who should fix these lines and whether the unused energy will not reach the consumers if the feeders are put to use.

These are part of the subject of my directives to NERC to address deliberate load shedding.

Oduntan should advise his clients to spend the money used in publishing media responses to fix these problems to restore bad lines, and provide transformers and meters to their consumers.

That is what electricity consumers want, Better Service.

Babatunde Raji Fashola, SAN
Honourable Minister of Power, Works and Housing
Friday 20th July 2018

 

Housing Is A Catalyst For Development And Sustainable Economic Growth Says Fashola...
Jul
16
2018

Housing Is A Catalyst For Development And Sustainable Economic Growth Says Fashola

The Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, has said that the present Administration has taken leadership role by demonstrating how provision of affordable housing can catalyze development and sustainable economic growth in Nigeria.

Fashola explained that President Buhari has used the National Housing Programme (NHP), presently active in 34 States of the federation in the last three years, as one of the tools to grow the economy and extricate the nation from recession.   According to him, ‘’we are able to employ, on the average, a thousand people at each of the 34 NHP sites, and this is only for the pilot stage’’.

The Minister stated this at the recently concluded 7th Meeting of the National Council on Lands, Housing and Urban Development held at the Banquet Hall, Gombe International Hotel, Gombe State with the theme ‘Provision of Affordable Housing: A Catalyst for Development and Sustainable Economic Growth’.

Speaking at the Council, Fashola urged Policy Makers and government at all levels to make efforts in consolidating on the achievements of the present government by building more houses and also proffer policies to address urbanization. He said that one of such policies is to consciously redistribute wealth and opportunities by strong commitments to programs like Agriculture and Mining.

The Minister stated that from his trips across the nation, ‘’I can tell you categorically that President Buhari’s investment in infrastructural development is impacting on the nations urbanization challenge in a positive way’’.

In his remarks, the Special Guest of Honour and the Host Governor, the Executive Governor of Gombe State, H.E. Alhaji Ibrahim Hassan Dankwambo, commended the Ministry for choosing Gombe State as host, assuring that the Council meeting was bound to address the challenges facing Land Administration, Housing and Urban Development to enable the sector contribute meaningfully to the socio-economic development of the nation.

Dankwambo stated that access to quality and affordable housing is not only fundamental to the health and well being of families and communities, but critical to human survival. He urged Government at all levels to work assiduously in ensuring provision of affordable housing, particularly for the low and modest income earners in the country.

While he commended the efforts of the Federal Government in the construction of mass housing under the National Housing Programme (NHP), stating  that the state government has also consolidated on these gains with the construction of over  1, 000 housing units, fully completed and allocated to civil servants and the general public in the state.

Earlier, while addressing the meeting of the Permanent Secretaries at the state level and other stakeholders, the Permanent Secretary of the Ministry, (Works & Housing) Mohammed Bukar, said that the provision of affordable housing rest on the shoulders of all stakeholders in the industry, adding that ‘it is a collective duty to provide leadership for achieving the set objective’.

Bukar enjoined all stakeholders to make judicious use of the opportunity provided by the 7th Meeting of the National Council on Lands, Housing and Urban Development to deliberate on the memoranda submitted for consideration towards formulating and strengthening policies that will address the challenges in the built environment and making housing affordable to all Nigerians.

In her goodwill message, the Head of the Civil Service of the Federation, Mrs Winfred Oyo-Ita, represented by the Permanent Secretary, Service Welfare, Mrs Didi Walson Jack, stated that the Council meeting is an auspicious moment bringing together key stakeholders in the housing sector to deliberate on policy issues geared towards the full delivery of mass housing. She commended the ministry for initiating and promoting the discuss on affordable housing in Nigeria

According to her, the Federal Executive Council in consideration of the need to reposition the civil service for greater productivity approved the Federal Civil Service Strategy and Implementation Plan, adding that one of the 8 goals of the Plan is to enhance the value reposition of Civil Servants via improving their access to affordable housing. She stressed that this initiative led to the creation of the Federal Integrated Staff Housing (FISH) programme by the Head of Service, which has assisted over       35, 000 civil servants to acquire homes through the provision of mortgage with a long term repayment plan.

The Council meeting ended with the issuance of a Communiqué unanimously agreed by all stakeholders to chat the way forward and also formulate a holistic Housing Policy for development and sustainable economic growth in Nigeria.

A total number of Thirty-four (34) memoranda were received and considered under the following four thematic groups:

i.                     Policy, Finance, Capacity Building for Affordable Housing Delivery;
ii.                   Building Consideration and Institutional Strengthening for Affordable Housing Provision;
iii.                  Urban Planning Provision for Affordable Housing; and
iv.                 Lands and Infrastructure Consideration for Affordable Housing.

Keynote Address By The Honourable Minister Of Power, Works And Housing, At The 7th Na...
Jul
12
2018

Keynote Address By The Honourable Minister Of Power, Works And Housing, At The 7th National Council On Lands, Housing, And Urban Development, Held At Gombe State

Protocol

Ladies and Gentlemen, I once again have the honor and pleasure to address this Council. This year, I do so around the theme of our meeting, which is ‘The Provision of Affordable Housing: A Catalyst for Development and Sustainable Economic Growth’.

Permit me to first express our profound gratitude on behalf of the Federal Government to the Government and good people of Gombe State for accepting to host this annual Council Meeting of Lands, Housing and Urban Development.

The event would not have been possible without the exceptional commitment of His Excellency, Dr. Ibrahim Hassan Dankwambo, the Executive Governor of Gombe State and members of his cabinet, especially the Hon. Commissioner for Metropolitan and Urban Planning Development, Mrs. Fatima Abubakar, on whom the responsibility for the organization of this event fell. Permit me, therefore, to wholeheartedly appreciate His Excellency for his resilient leadership qualities.

I wish to start by saying that at all levels of our Government, there is something that can be done about Housing and we should commit to doing so across partisan lines.

Very often, when the discussion about the lack of Housing begins, it either revolves around the size of the Deficit or the Cost of the houses or the pointing of fingers as to who should do what and has not done so.

Very rarely do those discussions bring up solutions or action points.  Problems clearly cannot be solved by simply talking about them.

No matter what we say, unless we begin to act, it changes nothing. Strangely, we have had this conversation daily, and across election cycles of 4 years, each that I shudder to ask whether we take time to reflect.

I have stopped talking many years ago and have started acting, and whether it is at State or National level, I can point to my contribution and that of my Staff and say, “We did something.” Can you?

But before I continue, permit me to indulge those who spend their time on the debate about the size of the deficit and ask how educated and informed that debate is. Who conducted the census that produced the figures in the Deficit?

Who verified the figures that now seem to trap many of our people in a vortex of difficulty?

Does the deficit take into account the empty and unoccupied houses in every State of Nigeria?

Are these housing deficits in sub-urban, rural areas or in the urban centers?

Why is there urbanization, and why is housing shortage a problem of urbanization?
It seems to me that as Policy Makers, before we even start to build houses, the first thing we can do is to address urbanization by policy.

One of the policies is to consciously redistribute wealth and opportunities by strong commitments to programs like Agriculture and Mining.

These are rural-centric economic decisions that take wealth and opportunities to the rural areas, and slow down migration to the urban centers in search of opportunities.

From my trips across the States, I can tell you categorically that President Buhari’s commitment to infrastructure, which is driving mining and the Agricultural focus is already impacting on our urbanization challenge in a positive way.

Work at quarries and on cash crop farms, which are situated in the rural areas, is now getting to the people; instead of them coming to look for it in the urban centres.

All of us, as critical shareholders, can deepen these to the recesses of our States where President Buhari cannot reach.

As we slow down the migration, we must now provide homes to the people, starting in the urban centres where the need is greatest.

This is what President Buhari has done with the National Housing Project Pilot in the 34 States that gave us land.

Once again, the President has asked me to thank all those Governors who gave us land. Because of them, we are able to employ, averagely, a thousand people at each of those sites, and this is only for the pilot stage.

And this is the heart of the matter. The reason for our theme, ‘Why Housing Can and Should be the Catalyst for Development and Sustainable Economic Growth.’

If you have been involved as I have been, you will know that the people employed at housing sites are Builders, Welders, Carpenters, Electricians, Bricklayers, Water and Food Vendors, and other suppliers along with Labourers.

They are the people who are largely paid on a daily basis or on weekly, or at best monthly basis.

These are some of the most vulnerable people in our economy as they are in other economies. Whenever Government can reach these people and provide work for them, you know that such an economy is working.

President Buhari has reached these people. I have met them and we need to do more by multiplying the Housing commitment.

But beyond building houses, there is the problem of affordability and definition.

It seems to me that whether it is to buy or to rent, affordability will always be an issue. But we must start by making clear to our people that not everyone can afford to buy or own a house, but it is ideal to at least seek to shelter everybody who has a job, by rental which is affordable.

The question therefore is that after we have provided work for these vulnerable people, which pays them weekly or monthly in arrears, is it affordable for them when they seek to rent houses, and we ask them to pay one or two years rent in advance.

This is not Government, this is us, the landlords, and we can change this by accepting monthly rent in arrears secured with their employer’s guarantee.

If this happens, we will see how housing will catalyse our economy. When my rent is matched to my income, you and I will be witnesses to a release and relief of millions of people who seek help to pay their rent even though they have a job.

As for those who wish to buy houses, mortgages are the solution and we must issue more.

The Federal Mortgage Bank is mandated to do so, not only by re-capitalisation but also by granting the following exemptions:

A)    0% equity for loans not exceeding N5million
B)     Reduction of equity from 20% to 10% for loans up to N6 – 15million.

This is in addition to a planned re-capitalisation and the opening of the National Housing Fund (NHF) to non-Government employees.

Between May 2015  and July 10, 2018 the FMBN has issued 3,862 mortgages to Nigerians to acquire their own homes.

But this is not all that is happening or can happen in the Economy with an appropriate commitment to Housing.

The Oil and Gas sector can also benefit enormously from Housing if we all commit to implementing the Gas master plan.

At the moment we are under utilizing our Gas resources especially in the area of domestic use for cooking and heating.

In order to take the benefit of this gift of Nature, our Ministry is working with the Ministry of Petroleum Resources to develop standards for pipes and installations that will facilitate domestic use of Gas for cooking and heating.

Ladies and Gentlemen, these are some of the ways that housing provision can catalyze development and economic growth.

The Federal Government can, and has taken leadership by showing the way.

Large scale nationwide impact now depends on what we do at the State, Local Government and private sector levels.

Therefore I will close by urging you to do something – build a house.

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

Act To Make Discos Deliver On Responsibilities To Consumers, Fashola Directs NERC...
Jul
10
2018

Act To Make Discos Deliver On Responsibilities To Consumers, Fashola Directs NERC

*Minister asks NERC to enforce DisCos meter supply contract, improvement on their distribution equipment, capacity to take more powers from GenCos
*Also directs NBET to work with BPE to improve DisCos collection remittance and  pay their debts to help promote stability in the Sector
*Says complaints coming to Government over metering, estimated billing and mass disconnections cannot continue
*I remain convinced that privatization is way forward- FASHOLA

The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, Monday directed the Nigerian Electricity Regulatory Commission (NERC) to immediately step in to ensure that Electricity Distribution Companies (DisCos) improve on their distribution equipment and increase capacity to enable them optimize the use of electrical resources by the Generation Companies (GenCos).

Fashola, who spoke at a Press Briefing on the “Power Sector State of Play, Next Steps and Policy Directives”, also directed NERC to enforce the contract of DisCos to supply meters and act to ensure the urgent speedy supply and installation of meters with a view to eliminating estimated billing and promote efficient industry and market structures.

The Minister, who said the improvement in their distribution equipment and increase in capacity would enable the DisCos take up the available 2,000MW difference between the generation capacity of the GenCos and the distribution capacity of the DisCos, also directed the Regulatory Commission to stop DisCos from threatening private entrepreneurs from entering the market to supply consumers whom they are unable to supply.

Instead, according the Minister, such entrepreneurs should be licensed by the Commission subject to its terms and conditions “in order to promote competition and private sector participation and avoid a private monopoly of power”, adding that as clearly stated in Section 71(6) of the Electric Power Sector Reform Act (EPSRA) dealing with Terms and Conditions of licenses, “no exclusivity or monopoly was intended for a license holder such as GenCos or DisCos”.

The aforementioned Section states that, “Unless expressly indicated in the license, the grant of a license shall not hinder or restrict the grant of a license to another person for a like purpose and, in the absence of such an express indication, the licensee shall not claim any exclusivity, provided that the commission may allow a licensed activity to be exclusive for all or part of the period of the license for a specific purpose, for a geographical area, or for some combination of the foregoing”.

Noting that the Regulatory Commission has not issued any such exclusive license to any DisCo, Fashola declared, “If we take into consideration that, after five years of privatization, there are still people and businesses who do not have power or enough power, common sense and public interest demands that we must not resist ordinary people, small businesses like shops and markets from seeking alternative sources of energy”.

“The truth is that they already have these sources of alternative energy, in small petrol and diesel generators that cost them about N100 per kilowatt hour. If the DISCOs are not resisting the generator sellers who are contributing to pollution, what is the logic of resisting small entrepreneurs bringing mini gas plants to supply a market need?”, the Minister argued, pointing out that for now, the nation’s developmental needs could not wait “for businessmen who are not yet ready to serve”.

Urging NERC “to act with dispatch”, Fashola said the stated policy statements were made in the National interest, public good, the need to support small businesses, provide access to power for ordinary people and increase productivity adding, however, that although he was not unmindful of concerns about loss of market or customers by DISCOs such concerns must be balanced against national interest and that with improvement in their businesses, they would be in a position to use their economies of scale of large volumes of power to buy out or out-price the small entrepreneurs.

The Minister implored members of the public who seek more information “to get a copy of EPSRA and read its simple provisions”, adding that the Act confers extensive regulatory powers on NERC “including the power in Sections 73 and 74, to amend or cancel a license if the licensee is unable to discharge  the duties and obligations imposed by the license”.

Fashola also directed NBET, the bulk trader, to work with Bureau of Public Enterprises (BPE), to fashion out ways to ensure that the DisCos improve their collection remittance and also start to pay their debts saying this would help to promote stability in the Sector. “This business cannot progress if debtors do not pay their debts”, he said.

Stating, however, that it is neither his intention nor that of Government to take over the business of the DisCos, the Minister declared, “On the contrary, it is Government’s desire to see DISCOs thrive and flourish in a competitive environment”, adding, “In the period when they are not yet ready, willing, or able, life must go on and we must find solutions and substitutes as we have seen in other sectors”.

Such sectors, he said, include the Broadcasting, Newspaper and Telecommunication Sectors where, according to him, “those who could not compete conceded and left the stage gloriously without breaking down the system”, while those who could compete have brought better living conditions to Nigerians.

Saying that the policy directives should not be seen as anti-Privatization, Fashola, who said they were meant to ginger all stakeholders to brace up to their responsibilities to serve the people, added, “I remain convinced that Privatization is the way forward. Privatization has brought us mega value in Broadcasting; it has brought us better value in Newspapers, Telecommunications and Banking and other sectors of our national life and I remain convinced that it will deliver in Power”.

“This is not a time to trade blames, because there is enough to go round; rather it is a time to reiterate everybody's responsibility and urge all of us to brace up, to do what we are obliged to do, which is to serve the people, he said, adding, “I suspect that these facts may appear like a red flag to the bulls of anti-privatization, but I remain convinced that privatization is the way forward”.      

Recalling that when the public complained about the tariff approved by NERC, he was the one that stood in the forefront of explaining to the public even though it was the Discos who collect the tariff, Fashola declared, “In the face of this picture, where we have power to sell, with more to come, the number of complaints coming to Government for meters, which the DISCOs should supply, and for estimated billings, and mass disconnections when not everybody is owing, cannot continue”.

“Government must act, and will do so. The DisCos bought these assets with their eyes opened, and they must compete to deliver or exit”, Fashola declared, adding that Small businesses who need very little power are not getting enough because the DisCos could not take the power to them.

The Minister expressed dismay that investment of GenCos was threatened because they could not utilize the capacity they have installed, adding that in order to improve service to small businesses, Government, acting through the Rural Electrification Agency (REA), was linking Small Power Entrepreneurs with markets like Ariaria in Aba, Sabon Gari Market in Kano, and Sura Market in Lagos which, according to him, contain approximately 37,000, 13,000, and 1,047 shops respectively, which are being metered by the small entrepreneurs who have offered to replace the generators of traders with more efficient power and meters.

According to the Minister, there are 15 markets in all which if successfully implemented would provide power to 85,485 shops, empower 205,000 SMEs and create 2,000 jobs during the installation and after in operation and maintenance adding, “The DisCos are agitating that this should not happen, yet they offer no solution.”

On what government has been doing to assist the DisCos and other operators to deliver power, Fashola said as facilitator of business and enabler of the Private Sector government had, through the Central Bank of Nigeria, made available the sum of N213 Billion to the Power Sector at a concessionary interest rate, below market rate, to GenCos and DisCos adding, however, that some DisCos had shied away from taking the facility.

According to him, “Probably because of the source of fund conditions, such as opening of letters of credit attached to the performance, some DisCos have not taken the money”, adding that currently  NERC detected “an unauthorized use of money by the Ibadan DisCo” and was now taking some remedial measures.

The Minister said Government has also responded to claims of debts owed by Ministries, Departments and Agencies (MDAs) of government to DisCos before the present administration, a debt which, he said, “was alleged to be in the region of over N70Billion adding that at the cost to government, “several hundreds of thousands of bills, amounting to about 450,000 bills, were verified” while government has ascertained that N27 Billion was owed by Federal MDAs to DisCos.

Prior to the tenure of this administration, he said, GenCos and Gas suppliers who produce power, were being underpaid by NBET because the DisCos were under collecting or under-remitting such that GenCos were getting only about 20 per cent of their invoices from Power adding that Government intervened and created N701 Billion Payment Assurance Guarantee (PAG)  to NBET to ensure that payment to GenCos improved.

Payment of invoices, according to Fashola, has now increased from 20 to 80 per cent “in the hope that if we move production, DisCos will collect and remit”. He expressed regrets, however, that his office still receives daily reports by mail, letters and e-mails of exorbitant bills by DisCos to Consumers without meters while the remittance by DisCos to NBET has not increased resulting in NBET  owing the GenCos N325.7 Billion, a debt which he was certain could be settled if NBET could collect what DisCos are currently owing it.

Also, in order to assist in the evacuation of 2,000MW, the difference between what the GenCos can produce and the DisCos can distribute, Fashola said the DisCos were asked to submit their transformer and other equipment requirements adding that, as part shareholders, government has committed to invest N76 Billion for the procurement of equipment and installation to help the DisCos evacuate the 2,000 MW to consumers.

Other inputs by government, he said, include settling an inherited court case and making available N37 Billion to Meter Asset Providers (MAPs), under the regulations made by NERC to license meter investors, “to help supply meters that the DisCos are under contract to supply but are yet unable to do so”, adding that the gesture was in order to bridge he metering gap and to promote harmonious relationship and reduced friction between the DisCos and their MAPs.

Progress, the Minister said, have also been recorded in the sector between 2015 and 2018 including improvement in the generation of power from 4,000 MW (approx) in 2015 to 7,000 MW (approx) in 2018 averaging an increase of 1,000 MW (approx) per annum adding that additional 455 MW (Azura); 215 megawatts (Kaduna), 240 MW (Afam III); 40 MW (Kashimbilla); almost totaling 954 MW would be added this year while 700 MW (Zungeru), 480 MW (Okpai II) about 1,150 MW are projected for 2019, even as the GENCOs are undertaking various repairs, rehabilitation and expansion that would bring on incremental power.

“Transmission has also increased from 5,000 MW (Approx) in 2015 to 7,124 MW (Approx) in December 2017 averaging 1,062 MW per annum increase in transmission capacity. TCN currently has about 90 Transmission projects in various stages of construction and many are to be completed this year”, Fashola said adding, “So, we can transport what the GENCOS generate and there is a Transmission Expansion plan 2018 to 2028 which Government is committed to implement”.

The Minister said although distribution has increased from 2,690 MW (Approx) in 2015 to 5,222 MW (Approx) in 2018, averaging an increase of 844 MW per annum “because the DISCOS have also done some work”, adding that from 2016 when the DisCos complained about lack of enough power to distribute, the problem today was that the DisCos could not distribute all of the Power that was available, leaving the sector with an unused capacity of 2,000 MW (Approx), with the approximately 1,150 MW projected to come this year and 2019.

In the robust question and answer session that followed, Fashola explained that all the solutions being applied to reform the power sector such as the Payment Assurance Guarantee, among others, were contained in the Power Sector Reform Programme (PSRP) which the his Ministry compiled urging stakeholders, including the Media, to read it for understanding.

Also present at the event were the Minister of State, Power, Works and Housing Surveyor Suleiman Zarma Hassan, Chairman NERC, Professor James Momoh and his Vice, Engr. Sanusi Garba, Managing Director, Transmission Company of Nigeria, Mr. Usman Gur Mohammed, Managing Director Rural Electrification Agency, Mrs. Damilola Ogunbiyi, other Agency Heads, Directors and Special Advisers .

FEC Approves N230billion For Roads Construction...
Jul
05
2018

FEC Approves N230billion For Roads Construction

The Federal Executive Council (FEC) presided over by President Muhammadu Buhari on Wednesday approved N230.28 billion for road projects and mining data in the country.

The Minister of Information and Culture, Alhaji Lai Mohammed and the Minister of State for Mines and Steel Development, Alhaji Bawa Bwari, made this known when they briefed State House correspondents at the end of Council’s meeting at the Presidential Villa, Abuja.

The minister of Information and Culture disclosed that N206 billion of the amount was approved for linking roads and associated infrastructures for the 2nd Niger Bridge linking Anambra and Delta states.

Also approved today is a contract for the link road and associated infrastructures for the 2nd Niger Bridge. The link road is about 11.9 kilometers. The contract was awarded to Julius Berger at N206 billion. The bridge is linking Anambra and Delta states.

If you remember, the contract was awarded by the last administration under a Public Private Partnership (PPP) arrangement which failed,’’ he added.
According to him, N11.58 billion was approved for rehabilitation of a road in Enugu State.

Approval for the re-award of the contract for the rehabilitation of Oji-Achi-Maku-Agu-Ndiabi section in Enugu State.

What happened in this road was that the contract was awarded earlier to the company that failed and Setraco has now been re-awarded that section of the road, he added.
He said another 92 million dollar was approved for engineering, procurement and construction of the OB3 gas pipeline project.
The minister explained that the project had been awarded but there was need for redesigning it.

The project is important because of delivery of gas from the Eastern part of the country to power turbines and to improve our power supply,’’ he said.
According to him, the Minister of Finance, Kemi Adeosun, also presented three memos which were approved by the Council.

He said the memos included ratification of the multilateral competent authority agreement on automatic exchange of financial accounting information and ratification of the Africa 50th Articles of Association.
The Council also gave the approval for the financial transparency policy guidelines.

In his contribution, the Minister of State for Mines and Steel Development, Bawa Bwari, said that the Council approved N12.7billion for exploration and consultancy projects in the mining sector.
According to him, the projects will help in getting accurate mining data, which will attract local and foreign investments.

Our major challenge in diversification programme of the government in the mining sector has been that of data.

Today the Federal Executive Council approved the contract for exploration and consultancy on some of our targeted minerals like gold, industrial minerals, earth metals, iron ore for four companies in exploration and four companies in consultancy side of it and this contract is worth N12.7 billion.

"And with this, we will encourage both local and foreign investors to come in.

Our Major challenge is the bankable data, most mining companies will not want to come into your country when they are not sure of what they are going to meet.

Nigeria has the potential for minerals although we have not been known as a solid mineral destination, we have been known as oil and gas destination.

The perception is gradually changing and for us to really encourage this people to come in, we really need to explore because you cannot mine without information and information can only be gotten through exploration.

The government today approved for us to start with some of our targeted minerals in line with what we have in the road map,’’ he stated. (NAN)

“Nation Building And Institutional Development, Lessons For Nigeria From The Is...
Oct
30
2018

“Nation Building And Institutional Development, Lessons For Nigeria From The Island Club At 75,” Address Delivered By His Excellency, President Muhammadu Buhari, GCFR On The Occasion Of The Seventy-Fifth Anniversary Of The Island Club, Lagos

My chairman of the great Island Club, members of the management committee, worthy members of the club, eminent Nigerians, distinguished ladies and gentlemen.

Permit me to open my speech with words of congratulations and felicitations to the Island Club, her leadership team, comprised of the management committee and her body of members; on this occasion of the Seventy-Fifth Anniversary of the club.

To you all, I say Happy Anniversary and best wishes for many more years.

As an institution, Island Club has endured, not without challenges, but in spite of them: and there are many lessons for us as a people and a nation to learn from 75 years of history that has been woven into the walls and fabric of this club.

The first is perhaps the lesson that dispels the hyperbolic expression that flies around these days that Nigeria lacks institutions.   

The Island Club and many other social clubs who have endured over decades put a lie to those kind of uninformed statements.

Apart from social clubs, and non-governmental institutions, Nigeria has governmental institutions like federal, state and local governments, and indeed judicial, parliamentary, law enforcement and other institutions.

The fact that we expect more from them, the fact that they may be facing challenges does not justify the unsupported assertions that they do not exist.

Many of them have existed before and after the creation of Nigeria as corporate entities and have evolved from sometimes very humble beginnings to what they have become today.

At some times, they have worked very well. At other times, they have been challenged to give more; but they have never ceased to exist.

This is why I said earlier, that there is a lot to be learned from the Island Club.

Her history is all too well known and published to warrant any repetition here.

What is relevant for my purpose is to briefly recall that at any time, this was the place where the Giants of Nigeria gathered.

At the time, Lagos was the capital of Nigeria and ministers, state commissioners, many public officers and captains of industry were regular users of this club.

That has changed in the sense that the capital of Nigeria has moved to Abuja, but Island Club still retains its fair share of members of government at various levels as it does among the leaders of the business community.

But we must remember that just a few years ago this club faced very serious headwinds which threatened it to its very core.

Attendance dwindled, regular events around which brotherhood and conviviality that bound members together were threatened; indeed, there were court cases.

In the end, the storm calmed, Island Club went through a very tedious and I daresay painful process of change, and here we are at a glorious dawn that heralds many possibilities.

The club of which I proudly serve as grand patron has found its groove again.

Because of this process of change, I can confidently predict that Island Club will be here for another 75 years and more, long after we are all gone.

But that process of change and reform did not happen because Island Club did anything.

It happened because people, yes people, members of the club and I believe non-members, who were people of goodwill chose to act.

As an institution, like governments or agencies, Island Club as a creature of charter, brought into existence by laws made by men, can do nothing by herself.

It is men and women who define, who decide and who determine what happens to institutions.

When institutions do well, it is men and women who are entrusted with authority over that institution who have done well and vice versa.

This is an important lesson to learn from Island Club‘s history.

At the time of perhaps the greatest crisis, the men entrusted with the fortunes of the Island Club did not abdicate.

They confronted crises and embraced change; and they reminded me of the story of the Eagle which has been well told but which I crave your indulgence to repeat because of its profound lessons about change and hard decisions.

“The Eagle has the longest life-span of its species. It can live up to 70 years. But to reach this age, the eagle must make a very difficult decision!

In its 40th year, the eagle's long and flexible Talons can no longer grab a prey which serves as food. Its long and sharp beak becomes bent.

Its old-aged and heavy wings, due to their thick feathers, stick to its chest and make it difficult to fly. Then, the eagle is left with only two options: DIE or go through a painful process of CHANGE!

This process lasts for 150 days (5 months)

The process requires the eagle to fly to a mountain top and sit on its nest. There the eagle knocks its beak against a rock until it plucks it out.

Then the eagle will wait for the new beak to grow back after which it will pluck out its talons. When its talons grow back, the eagle starts plucking its old aged feathers.

And after this the eagle takes its famous flight of rebirth and LIVES for 30 more years!”

This story is not biologically proven and seems scientifically impossible for the Eagle to live without food for 150 days. But it is nonetheless inspiring. It is the inspiration that I seek to draw from and share.

Why is Change needed?

In order to better our Nation and ourselves, we too have to start the change process. We need to jettison things that have not worked and embrace those that will work.

We need to free ourselves from habits that have held us hostage in the past so that we can embrace the promise of a better Nigeria that beckons ahead.

That process may be painful, it may be tedious, but if an Eagle does it to survive, why can’t we?

When I took office on 29th May 2015 on the basis of the mandate you generously gave me as your President, one of the challenges I had to deal with was Nigeria‘s food security risk.   

With so much arable land, we were entirely dependent on others to feed ourselves, especially for staples and greens.

We were spending about $5 million daily to import rice that could be produced in Lagos, Ogun, Abia, Kebbi, Sokoto, Jigawa and many parts of Nigeria.

In the past, we had laudable initiatives like Operation Feed The Nation and Green Revolution aimed at securing our food supply and empowering our people.

Regrettably, by a combination of many factors, not least the vested interest of those who benefit from us importing food that we can produce, these initiatives did not achieve their laudable objectives.

Those interests were still there when I assumed office in May 2015. They fought back when I announced our commitment to produce what we eat and our refusal to provide foreign exchange to import those things.

I will not inundate you with the details of what they did, except to say that they nearly crippled us economically.

But today, I stand very proud to say that we took the flight of the Eagle in reaction to our food security.

Although they are still fighting, by importing to neighboring countries and dumping on us through smuggling; we are responding, and will do more to defeat them for the benefits of our people.

But I can tell you now that we have made progress.

Not only have we created millions of new rice and wheat farmers, who are not only self employed, they are now employers.

We intend to move this forward and retain the full benefits of what we have created, not only by expanding the number of farmers, but by developing the value-added chain of processing and ultimately building the base that leads us to full industrialization.

This is one of the reasons why I am offering myself to serve you for another term.

Manufacturing, which is a key driver of employment and wealth creation is largely dependent on agriculture, as it is on power supply and reliable transportation infrastructure about which I will speak shortly.

But before I leave the subject of manufacturing, let me say that our modest efforts are beginning to yield results as shown by the recent reports of the National Bureau of Statistics which shows increased growth in the manufacturing sector.

Let me say therefore, that as far as our institutions are concerned, it will require all of us, men and women of goodwill, right thinking and well-meaning Nigerians to get involved, participate, play our roles and do our level best in the way that the members of Island Club have done, in order to change what we do not like and create what we want.

On a related note let me quickly allude to the state of our national infrastructure.

A significant stock of our national infrastructure whether it is power, roads, bridges, schools, airports, rail, hospitals and many more require replacement, repairs, maintenance and expansion.

The challenges we face with infrastructure are not too dissimilar to what Island Club faced in the past and which they have now acted to remedy.

Most of the Roads, Bridges, Airports, Seaports, Power plants that we need to get on with our lives were largely built in the 1970s, and 1980s.

They were the best when we built them, but our population has grown faster than the rate of the growth of infrastructure.

I also recall that at one time, the Island Club had no hall of this size like the hall we now converge in.

The Annual Christmas and Ileya dances used to hold in the open and were dependent on the benevolence of nature, until one Chairman and management team decided to fly like the Eagle.

At the time they took the flight of change to bring down what remained of the old and inadequate structure, they did not have the resources to build this hall but they had a lot of belief and resolve.

And because of their commitment to change, we can now converge in this hall without the fear of the Rains.

Let me remind us that it took more than one term and one election cycle of the Chairman of the Island Club to build this hall, just as it will require more than one election cycle to build a nation and deliver change.

But I can report that the process of change for our infrastructure has commenced.

We have completed the Abuja-Kaduna Rail and the Abuja Business District to Airport intra-city rail and the New Port Harcourt International Airport Building which were not completed because we failed to pay the counterpart funding at the time we were earning about $100 per barrel of oil.

Our administration paid these monies when the price of oil dropped to about $50 per barrel, and simultaneously committed to the Construction of the Lagos- Abeokuta- Ibadan- Kano Rail which has started.

We have revived most of the road contracts that were abandoned and started new ones and I can say to you confidently that there is no state in Nigeria where our Government is not constructing at least one Road.

In Lagos for example, the Ikorodu-Sagamu and the Lagos-Otta-Abeokuta Roads are long abandoned roads we have revived and contractors are now back to work while I have inaugurated an Infrastructure Development Fund to ensure that the Lagos-Ibadan, Second Niger Bridge and Abuja-Kano roads are not affected or delayed by funding problems again. We have also awarded the Tin-Can Island, Mile 2, Oshodi – Oworonshoki Expressway which is contributing to the gridlock in the State and work should start in November this year.

With significantly less resources we are getting a lot more done.

As far as power supply is concerned, we all know that it had been largely privatized before the advent of my administration with only the transmission part left for Government to manage.

But even our harshest critics will admit that we have moved things forward from where we met them.

A significant number of Nigerians admit that the hours they run their generators, and the amount they spend on diesel and petrol to power their generators is reducing.

That is progress and we are not finished.

We know there is a lot of work to do but we are inspired by the progress in generation from 4,000MW to 7,000MW ; in transmission from 5,000MW to 7,000MW and in distribution from 2,690MW to 5,222MW.

Compared to the 4,000 MW of generation that we inherited after 16 years which did not start from zero in 1999, it means that we are averaging 1000 MW per annum of incremental power Generation every year since 2015 when we took office.

This is change for the better, compared to 4,000 MW after sixteen years  (which as I said did not start from zero in 1999), which is an average of 250 MW per annum.

Our policy of Eligible Customers to provide power to industrial customers working with the Manufactures Association of Nigeria is bearing encouraging results, with 5 industries already connected to reliable power and 14 more industries are being processed while many more new applications are coming in.

The policy of Meter Asset Providers to facilitate increased supply of meters excited 103 applicants, out of which 80 no objections have been issued.

As you all know, the only thing that stands between Policy, Impact and Results is time. We can only now wait to see how the solutions we have designed trickle down and bear fruit. But this is only one side of the Power story. The on-grid side.

On the Off-grid development side, another policy outcome of our Government will imminently bear fruits in 9 Federal Universities which are the pilot phase of supplying independent power to our children‘s places of learning.

Two markets, Ariaria in Abia State with 37,000 shops and Sabon Gari market in Kano with 13,000 shops are the pilots of 15 markets comprising 85,000 shops and 255,000 micro small and medium Enterprises that will get reliable and uninterrupted power.

Last week Friday, the Vice President was here in Lagos to inaugurate the Sura Independent Power Project , a product of our Mini Grid policy that has delivered uninterrupted power to 1,047 shop owners in Sura market. The feedback from the shop owners, that they have not used their generators for the last 70 days since the project was completed and that their businesses are growing , they are employing more people , confirm to me that we are on the right track.

It is because of these hardworking Nigerians who need the support of Government that I offer to serve again.

I could not conclude this address without a mention of our progress with regards to Security.

During my campaign for office in 2014, we were in a situation where insurgents had actually captured local governments and hoisted flags with a view to setting up their own parallel government.

We have retaken all of that from them.

But because crime is rewarding to its perpetrators, they do not give up easily.

They now attack soft targets and we will not stop our pursuit of them until they give up their nefarious acts and are brought to justice.

As we deal with new challenges and the dynamic nature of crime and indeed life as a whole, I understand that it is sometimes easy to forget what we overcame and have achieved when we face new challenges.

We overcame a situation where government activity like National day parades could not hold in the open.

They were held inside the villa in Abuja. That has changed since my assumption of office.

We rescued 107 children from Chibok incident and reunited them with their families, although 112 children still remain to be rescued, as very painful reminders that our work is not done.

We had a set back with the abduction of our children in Dapchi, but our response was quicker than Chibok, as we recovered all the children except unfortunately Leah Sharibu, the young girl for whom I will not rest until we bring her home, to the care and love of her anxious and traumatised parents.

I wish there is a crime free world; but sadly this world exists only in the ideal and it is my responsibility in this part of the world to lead the search for that ideal world.

Like the history of the Island Club to which I have referred, where the road to overcoming her challenges took more than one term of the chairman, it is obvious that we cannot solve all the problems we are faced within one term of my Presidency or one term of any President.

Change is not an event, it is a process and requires time.

This is another reason why I am offering myself to serve again. I believe that these problems can be solved and our choices are moving us in the right direction, which is forward.

Mr. Chairman, members of the management committee, Eminent body of members, invited Guests, Ladies and Gentlemen, like the Island Club, I believe Nigeria must move forward, consolidate on progress and seek to achieve more. We cannot afford to go back.

This is what I offer and promise, that we work together to build the Nigeria that we desire, and I invite all of you to join me, because it is possible, as we consign our difficulties to history and embrace a future of prosperity.

Let us consolidate and move forward together, because going back cannot be a choice.

Muhammadu Buhari, GCFR
President of the Federal Republic of Nigeria

Speech Delivered By H.E, Babatunde Raji Fashola, SAN At The South West Town Hall Meet...
Oct
26
2018

Speech Delivered By H.E, Babatunde Raji Fashola, SAN At The South West Town Hall Meeting

We must first commend the Hon. Minister of Information and Culture for inaugurating this series of town hall meetings that have been held across Nigeria over the past 3 years.

This in itself is something that has changed in how the FGN communicates with citizens and is quite different from the previous attempts that were targeted to react to crisis or to catch votes at the 11th hour.

I will start my presentation by giving you an overview of what the government of Nigeria is getting done through my ministry (Power, Works and Housing) across the country and then I will come to the specifics as it affects the South West zone.

Of course, I cannot pretend that politics is not in the air, and that elections are a few weeks away. This means that all Nigerians including those of us in the Southwest have to make a choice about who to choose and which party to vote for.

I am mindful of the fact that this is the first time where we have had two major parties manage our affairs.

One for 16 years and another for 3 and a half years thus far.

I am aware that we still want more service from Government, and therefore decision-making will require deep reflection.

Do we go back to those who have served you for 16 years since 1999; or do we move forward with this government that has had only three years and five months to serve us?

So the next election might well be a choice between going back and moving forward.

Let me start by saying that my ministry is responsible for delivering some of Nigeria’s critical infrastructure for transport, electricity and housing.

In 2015 when you elected this government, the budget for these three ministries, left behind by the previous government, was N19 billion for works, N5 Billion for power, and N1.2 Billion for housing making a total of N25.2 Billion.

In the year 2017, the budget for works was N394 Billion; Power was N69.96 Billion and Housing was N64.9 Billion (Total N529 Billion).

In a country where the population is growing faster than the infrastructure, the difference between these budgets must tell you that this government is more serious about providing infrastructure to support you.

So, if you need more roads, more bridges, more power, more housing and the Job opportunities and prosperity that their delivery will bring, your choice in the next election should be easier.

Don’t go back to a budget of N25.2 Billion for Infrastructure , move forward with a budget for Infrastructure which has grown to N543 Billion in 2018.

Another feature of the difference between these two budget sizes is that the last government was spending less on infrastructure for almost one decade when oil prices stayed at $100 per barrel during that decade.

This government is spending more on infrastructure when oil prices largely hovered between $40-$60.

So, in making your choice, please consider who is the better manager. The one who did less with more or the one who did more with less.

Again I urge you to reflect. Do you want to go back to doing less with more, or move forward with doing more with less.

And before I leave this point, let me just inform you that over the last 10 years, from the proceeds of oil, Saudi Arabia spent $420 billion on infrastructure.

But it is not about spending money alone, it is about what we did with it; and what was left behind for us.

What was left behind were massive debts owed to contractors who had not been paid for 3 to 5 years and who had laid off thousands of workers and shut down equipment and plants.

That was one of the reasons why the economy first went into recession, and, I suspect, one of the reasons they quickly conceded defeat.

They also left behind debts owed to state governments who were forced to intervene on federal infrastructure especially roads and bridges. That figure stands at about N450 Billion.

What we spent the money on, was to pay contractors and today I can tell you that there is no state in Nigeria where we are not building at least one Federal Road.      

We are constructing houses in 34 states in a pilot scheme to determine affordability and acceptability; and we have 90 transmission projects aimed at improving connectivity between the GenCos and the DisCos who serve you.

Those 90 projects are largely resuscitated because this government has recovered 690 containers of power equipment out of over 800 containers left at the Port for almost a decade because they did not pay contractors, who then could not pay the shippers and warehouse companies.

The Buhari government has paid, the projects are making progress. (Adamawa) (Odogunyan) (Ejigbo) (Apo) (Damaturu) are some of those completed Transmission Sub-stations.

Those of you from Ondo and environs will agree that although the work is not finished, your travel time on the Benin-Ore-Sagamu road has reduced.

Our contractor is on site and has to work while you use the road.

The same is true of the Lagos-Ibadan expressway that connects 3 states of Lagos, Ogun and Oyo; and links to Ondo and beyond.

Those of you who use the road will acknowledge that you no longer have to spend the night on the road.

You can go to Ibadan from Lagos and be sure that you can return on the same day.

Yet we have not finished. Please as you prepare to choose next year, remember those long hours on Benin-Ore, Lagos-Ibadan that sometimes stretched into the Night. Do you want to go back ?

Ask yourself if progress on these roads in 3 years is better than what you have seen over 16 years.

It will help you decide who to choose to ensure that the road is finished, and you can move forward.

Also remember those who presided over the cuts in the budget of these roads in the 2017 budget.

As they plan to frustrate and slow down the Buhari government, the president innovates and finds solutions.

There is now a Presidential Infrastructure Development Fund to ensure that the Second Niger bridge, the Abuja-Kaduna-Kano Road, Lagos-Ibadan expressway and some other projects are not deprived of funding again.


Major roads in the Southwest like the Lagos-Otta-Abeokuta Road, the Ikorodu-Sagamu road, which had been deserted and left to decay, now have contractors at work. Do you want to go back to that ?

The Apapa- TinCan - Mile 2 -Oshodi- Oworonshoki road has been awarded and work should start sometime in November this year as the construction equipment are being readied.

This will give a final solution for the gridlock that was inherited from the last government.

These are some of the examples of what has changed and is changing for the better.

Those who ran it aground for 16 years now say we are not quick enough.

The question you right thinking and well-meaning citizens should ask is which Nation has been rebuilt in 4 years?

It is going to take more than one election cycle to consolidate on the progress I have shared with you; and if you do not choose wisely you can reverse it.

A choice to go back is a choice to reverse this progress and a choice to move forward is a sensible choice to consolidate and progress.

Those same people who caused the problem cannot now be trusted to fix it.

You will hear from them that the country has problems as they try to weaponise our challenges to deceive Nigerians.

The infrastructure decayed under their watch; insurgency and bombings started under their watch; the grand corruption under their watch makes it impossible to identify one item of critical infrastructure that Nigeria can point to in a decade during which oil price averaged over $100 per barrel. (1976; 1980s)

On the housing side, as I said we are in every state including all the states of the South West except Lagos. Each site employs not less than 1,000 people made up of builders, artisans, fabricators, and vendors and we plan to do much more.

Through this infrastructure commitment, the President and the government is driving the economy vehicle in the right direction.

The last quarter report of the National Bureau of Statistics for Q2 of 2018 shows the following rate of growth in sectors affected by my ministry:

Transportation – (Road, rail, water and air)  – 21.76%

Construction – 7.66%

Electricity- 7.59%

But it is not just travel time reduction, and economic growth that is impacted, the number of road traffic accidents, injuries and loss of lives are reducing month by month as FRSC figures from June and July 2018 show. While the biggest cause of accidents remains speed violations.

Let me close with some specific comments on power in the South West :- Magboro, Mowe, Ibafo, Ondo (North and South) are communities who were never connected to power supply before.

That story has changed. They are now connected and experiencing power supply. That is change.

This is because we increased generation from 4,000 to 7,000 MW; averaging 1,000 MW per annum; Transmission from 5,000 to 7,000MW averaging 660MW per annum, and distribution from 2,690 MW in May 2015 to 5,222MW in January 2018, averaging 844 MW per annum.

We have not finished and we have not reached everybody yet; but many of you can tell the difference now and attest to the fact that things have changed for the better.

Ask yourself if you use your generator longer today than in 2015 or if you spend less money on diesel today than in 2015, or if you are getting power supply longer today than in 2015.

Please choose next year according to that answer.

Also ask yourself who has done better: 4,000 MW over 16 years at an average 250 MW per annum? Or 3000 MW over 3 years at an average of 1000 MW per annum?

I have addressed the choice before you between going back and moving forward.

Let me end my contribution on another issue that is critical to the decision you have to make about your future.

That issue is TRUST.

Who will you trust to better manage your affairs . The one who did less with more; or the one that is doing more with less.

Without a doubt, we have done more with less time and with less money. That is change and we remain committed to doing more.  

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

Minister Proffers A“Change Of Attitude” To Tackle Wastes In Nigeria...
Oct
25
2018

Minister Proffers A“Change Of Attitude” To Tackle Wastes In Nigeria

The Minister of State I, Federal Ministry of Power, Works and Housing, Hon. Mustapha Baba Shehuri has proffered a ‘change of attitude’ as a prerequisite for managing for municipal solid waste in the country.

This was contained in a Keynote Address delivered at the flag off ceremony to commemorate this year’s Urban October, a vehicle established by the United Nations to mark the World Habitat Day (WHD) and World Cities Day (WCD), held in at the NAF Conference Centre, Abuja.

Hon. Baba Shehuri disclosed that tackling municipal solid waste was a common challenge to urban dwellers, governments and communities andhas continued to create a great toll on public funds, as well as health due to the huge complexities surrounding the processes of generation, collection and disposal.

He decried the effects of solid waste had on the health of citizens, climate and the environment as a whole, indicating the need to clearly separate different aspects of waste management and for citizens to adopt attitudinal change towards tackling them.

The Minister further disclosed that municipal solid waste management is embedded within the Sustainable Development Goals (SDGs) and has strong linkages impacting on various areas of the SDGs, such as living conditions, sanitation and public health.

Speaking earlier, the Honourable Minister of State II, Surv. Suleiman Hassan Zarma opined that peoples’ lifestyles and consumption patterns could greatly reduce waste. He left stakeholders with a “food for thought” when he quote dthe British Economist, Sir Josiah Stamp, “It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging those responsibilities”.

He then urged urban dwellers to adopt more environmental friendly habits of taking active roles in environmental education for all, reverse the use of polythene, plastics to natural life and avoid exposing the environment to disasters.

The UN Under-Secretary General and Executive Director of UN-Habitat, Ms. Maimunah Mohd Sharif, represented by Mr. Jean Bakole, UN Resident Coordinator recommended the 3Rs - Reducing, Re-using and Recycling waste as alternative measures to tackle solid wastes.

Mr. Bakole reported that the UN-Habitat was carrying out its role to support cities to turn them into Waste-Wise Cities, ensuring wastes are properly disposed and managed. According to him, Plans are under way to recognize cities that are leading in waste management.

He said that effective waste management starts with individuals through taking corrective actions; and with this, “we could achieve a world that is cleaner, greener safer, healthier and happier for us to live, work and play in”.

The Chairman, Senate Committee on Housing and Urban Development, Senator Barnabas Gemade expressed delight to be part of the commemoration, stating thatas municipal solid wastes management poses a critical issue for Nigeria, he would urge the Parliament and other policy makers to have adequate representation at all levels of government to ensure that all municipal solid wastes management-related policies were properly covered and adapted.

The Minister of State I, Hon. Baba Shehuri presented gifts and awards to the outstanding school’s performance and participation in the World Habitat Day tothe following schools: Fine Trust Comprehensive College, Jikwoyi Phase 3, Anglican Comprehensive Secondary School, Kubwa and Fouad Lababidi Islamic Academy, Wuse, Abuja.

World Habitat Day (WHD) is usually marked every first Monday of October, while World Cities Day (WCD) is deliberated every October 31st worldwide. Their objectives are to reflect on the state of our towns and cities, and on the basic human right of all to adequate shelter.

It also reminds us we all have the power and the responsibility to shape the future of our cities and towns. This year’s WHD has as its Theme: Municipal Solid Waste Management and Building Sustainable and Resilient Cities for WCD.

The Bilateral Relationship Between Nigeria And Arab Republic Of Egypt, An Excell...
Sep
14
2018

The Bilateral Relationship Between Nigeria And Arab Republic Of Egypt, An Excellent One   -  Fashola

The Minister of Power, Works and Housing, BabatundeRajiFashola SAN has commended the excellent bi-lateral relationship between the Federal Government of Nigeria and the Arab Republic of Egypt which he described as very cordial and long standing one.

The commendation came on the heels of a courtesy call today at his Mabushi office by the former Prime Minister and current Assistant to the President of the Arab Republic of Egypt for National and Strategic Projects, His Excellency, Sherif Ismail.

Fasholaexpressed appreciation for the consistent and strong commitment of the Republic of Egypt to partnering with Nigeria Government in constructing solid and durable roads, on contracts awarded to Arab Contractors thereby justifying the confidence repose in them.

The Minister posited that with the bi-lateral relationship between Nigeria and Egypt, he is optimistic that very soon theinfrastructural deficit in the African Continent will be reduced to the barest minimum.

Fashola, called for the intensification and exploration of new opportunities in areas of trade and investment between the two countries. In his words “trade is our primary concern at the moment. Trade is our focal point of interest.”

He noted that the present administration under the leadership of President MuhammaduBuhari investedimpressively in an attempt to ensure that Nigerians have regular power supply. Fashola therefore urged theEgyptian Investors to support their electricity companies in Nigeria to invest in providing meters to Nigerians.

Earlier, the Assistant to the President of the Arab Republic of Egypt for National and Strategic Projects, His Excellency, Sherif Ismail stated that he came with members of his entourage to exchange ideas with the Nigerian Government on how both countries can explore opportunities of infrastructural development and further improve on their investment capacity in Nigeria.

Sherif added that they came to deepen the bi-lateral relationship that exist between their country and Nigeria – a country which he described as a great nation.

 

FG Still Committed To Infrastructural Services Despite Inadequate Resources...
Sep
04
2018

FG Still Committed To Infrastructural Services Despite Inadequate Resources

The Federal Government has once again reiterated its commitment towards the provision of critical infrastructural services across the nation despite inadequate resources and low budgetary provision.

This was contained in a statement by the Minister of State II for Power, Works and Housing, Surv. Suleiman Hassan Zarma, mnis, when he received a delegation and Council members of Abubakar Tafawa Balewa University (ATBU), Bauchi, in his office at the Ministry’s Headquarters today in Abuja.

Zarma stated that budget is usually inadequate in all MDAs, but noted that President Buhari, in fulfilment of his campaign promises to Nigerians is committed to the yearnings and aspiration of the people towards the nation’s development.

Earlier in his address, the Vice Chancellor of the University, Prof. Abdulrahman Ibrahim, on behalf of the delegation expressed their delight to the Minister for receiving the team at a short notice despite his tight schedule. He commended the Ministry on its achievements and success story in the housing, power and road sectors since the inception of this administration.

He thanked the Ministry for including ATBU among the nine pilot universities to benefit from the rural electrification project in Nigeria

Prof. Abdulrahman Ibrahim stated that their mission is to solicit the support of the Minister and indeed the ministry towards the provision of road network projects in the main campus and also the upgrading of its present 0.5 megawatt to 3.5 megawatt electricity to enhance proper and effective utilization. He lamented that the present budgetary provision of the university is grossly inadequate for these huge projects; hence they crave the support and intervention of the Ministry towards the realization of these projects.

The delegation was led by the Chancellor and Chairman of Council, Amb. Mrs. Nimota Akanbi,OON, Vice Chancellor Prof. Abdulrahman Ibrahim and other Council members of the University and were also present.

The Minister thanked the ATBU authority for the honour accorded him at the last convocation ceremony of the school, adding that the Ministry will not hesitate to render necessary support on the issues presented.

FG Orders Remedial Works On Road Washouts...
Aug
26
2018

FG Orders Remedial Works On Road Washouts

The attention of the Honourable Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola, SAN, has been drawn to embankment and road washouts at five different locations across the country today which usual seasonal occurrences arise from heavy downpours around this period of the year and perhaps the current emergent global warming.

The embankment washouts include km 7+250 from Bida, along recently awarded Lambata-Lapai-Bida road project to Messrs CGC Nig. Plc, immediately after the Nigerian Cereal Institute in Niger State. The contractor has commenced immediate mobilization to site on the directive of the ministry and will commence emergency reinstatement work by tomorrow Sunday August 26th to enable free flow of traffic. Also in Niger State is the Armco Pipe collapse at km 16 along  Bida – Minna,  Niger State road. The Niger State Government has commissioned a Federal contractor on that corridor, Messrs Triacta Nig. Plc to restore the anomaly for safe passage.

Other washouts are at Kwaita bridge along Abuja – Lokoja carriage way where the subsisting contractor, Reynolds Construction Company has been directed to commence immediate remedial works; embarkment washout at Bayo LGA on the road linking Gombe – Biu in Borno State where FIK Construction Company on the corridor has been directed to move in and commence palliative measures and finally the embankment washout at Jabbi-Lamba Village along Yola – Mubi road before Girei LGA.

Fashola has appealed to motorists and other road users to be cautious on the mentioned locations and adhere strictly to safety instructions of the Corps Marshalls who have been drafted by the Corps Marshall, Federal Road Safety Corps, Dr. Boboye Oyeyemi to immediately move in and ensure traffic control and possible redirection of traffic where necessary.

Fashola has enjoined all Nigerians to immediately report any such occurrence on the Federal Highways as this season marks the peak of the rainy season in order to avoid loss of human lives and properties.

Ensuring Value For Money In Nigerian Highways Development Being Remarks By Babatunde ...
Aug
16
2018

Ensuring Value For Money In Nigerian Highways Development Being Remarks By Babatunde Raji Fashola, San At The National Council On Works, Held In Kebbi

On behalf of the State Commissioners and other Members of Council, I express the appreciation of the Federal Government of Nigeria to the Government and People of Kebbi State for hosting our Council Meeting and for doing so under very hospitable circumstances, in Birnin Kebbi.

Apart from being the home of famous Emirates like Gwandu, Yauri, Zuru, Argungu to mention a few, Kebbi State has come to the centre stage in Nigeria’s developmental history, especially at this time when Governor Atiku Bagudu is providing visionary, developmental and progressive leadership.

Statesmen, not big men, as former Governors, former Chief Judges have rallied around their Governor and Government to pursue a common goal of development.

From Agriculture, to Roads, Housing to Power, whenever it is partnership for Development, Atiku Bagudu will be found making the strongest case for why Kebbi must be involved. This remarkable and inspiring leadership must be acknowledged.

It is in this environment of developmental focus that we converge for the 24th National Council for Works to discuss development around getting “Value for Money in Nigerian Highways”.

Ladies and gentlemen, I found this topic appealing to this Council because of some of the assumptions that have been made about Cost of Roads in Nigeria, the questions I have had to answer, posed by people who ought to know, and because I hope to generate a more informed conversation about the matter.

It is my expectation that in each State, we will be sufficiently interested to interrogate issues like the source of value, where it lies and how to get the best out of it.

Therefore, I would like to start by asking the question why Nigeria has bad roads after almost a decade of prolific receipts from oil boom when oil prices were at $100 per barrel.

The answer is partly because we did not invest our money in Roads in the way that the United Arab Emirates, Qatar, Saudi Arabia and Brazil, to mention a few oil-exporting countries, have done.

To the extent that Roads are assets that live for longer periods of time and deliver collective National Benefit in terms of movement of goods and services and contribution to the GDP, clearly, it is doubtful that we got optimum value for those oil incomes between 2007 and 2015.

In other words, instead of investing our oil receipts in Roads, and long-term assets, of infrastructure, we spent the money on recurrent items of expenditure.

This is clearly discernible from the Annual Federal Budgets of that era, where the maximum provision for Capital Expenditure struggled to exceed 20%, when they seldom went beyond the threshold of 15%; and what was ultimately released by way of cash was scarcely ever in excess of 50%.

The result of these, of course was that by 2015 when I took office, there were over 200 roads whose contract values were in excess of N2 trillion and for which payments had only cumulated to about N500 billion.

Some of these roads had been awarded for upwards of 10 (ten) years. Inadequate budget and funding had delayed their completion. Many sites had been abandoned, workers laid off, equipment grounded.

This was where the Buhari Government picked up. With significantly lower oil incomes, we got the contractors back to site one after the other. We raised the budget size from N4 Trillion to N6 Trillion in 2016 and increased capital spending to 30%; which was funded by borrowing to finance the deficit.

For those who wanted roads to be fixed and those who did not want the nation to borrow, there is no middle ground. You either borrow to invest in tomorrow’s infrastructure at today’s prices, or wait until you can do it tomorrow at tomorrow’s price.

Our reality today is that the roads that were awarded 10 years ago and were not funded then have to be funded at today’s prices of money, interest rates, and at today’s prices of cement, iron rod, laterite and labour wages.

Clearly, we lost not only the value of money not properly invested, we lost value in the cost of doing business without good roads. We lost value in productivity by men and machine that became redundant.

While we cannot recover what is lost, we must not lose what is ahead; in this regard, I am happy to say that the Buhari Government is investing wisely and sensibly in the infrastructure that will drive Nigeria’s tomorrow.

From Rail to Ports, Power and Roads, this administration is resolute in its determination to complete ongoing or abandoned projects. Today, there is no State in Nigeria where the Federal Government of Nigeria is not executing one Road Project.

Hon. Commissioner has confirmed in his address Roads being executed in Kebbi. He wants more , the Buhari Government is ready to do more. It is in your hands to bring him back.

Undoubtedly, we have done more with less. This is the meaning of value. But there are other challenges that we must work together to improve upon in order to remove avoidable costs from Road and related infrastructure development.

A) Land issues, compensation, and court cases compound the cost of construction.

B) Conflicts, security breaches, pose risks to construction workers, which escalates costs in many ways, such as insurance, payment of security personnel, delays to project completion, to mention a few;

C) The absence of uniform Public Sector Procurement Prices;

D) Proper project planning, development and supervision;

E) Post-construction maintenance of scheduled and unscheduled natures to achieve asset life cycle expectation and performance; ( Bridges – Tamburawa, Tatabu, Third Mainland, Niger Bridge, Koton Karfe , Ijora, Isaac Boro).

F) Dispute resolution mechanisms as a means of achieving cost efficiency in road construction and achieving value for money, must be interrogated;

G) Government Treasury Operations and Payment Systems, review and reform will contribute to achieving better value for money in Road Development Project.

H) Increasing local content in Nigeria Road Construction and implementing Presidential Order 5.

Ladies and Gentlemen, these are only some of the items of avoidable costs around which we should have a conversation and a resolution if we are to achieve better value for money.

Each one of them is a full subject of debate in itself.

It is my expectation that many sections of the construction industry will rise up to the challenges inherent in improving each of the areas I have highlighted.

I make myself ready to contribute and participate upon reasonable notice.

Thank you for listening and I wish us very fruitful deliberations.

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

Electricity: Customer Eligibility Policy Yields Result – Fashola...
Aug
14
2018

Electricity: Customer Eligibility Policy Yields Result – Fashola

The Customer Eligibility Policy of the Federal Government has started yielding result, with five industrial customers presently buying electricity directly from Generation Companies (GenCos).

The Minister of Power, Works and Housing, Babatunde Fashola made this known on Monday at the 29th stakeholders’ meeting organised by Mainstream Energy Solutions Ltd., in Minna.

The News Agency of Nigeria (NAN) reports that the Customer Eligibility Policy was declared by the minister in 2017 to improve distribution side of electricity and facilitate better power supply to consumers who consumed up to two mws and above.

“From reports reaching me, five industrial customers are now benefitting from the policy and taking their power directly from a GENCO, which incidentally is our host today, messers Mainstream Energy Ltd.

“We also have a list of 26 industrial customers who are seeking to benefit from the policy,’’ Fashola said.

According him , directives have been issued to the Nigeria Electricity Regulatory Commission (NERC) to work out and implement competition transition charges as provided by Law, to safeguard operators from any losses arising from the policy.

“We will continue to monitor the impact of the policy and remain flexible to keep what works and change what does not.

“I urge everybody to remain open-minded, adaptive and responsive.’’

He said the provision of N701 billion payment assurance guaranteed by government was to give comfort to investors in the generation side of the value chain.

This, he said was designed to ensure the payment of power produced by GenCos.

“Since its implementation in 2017, recovery of payments by GenCos has increased from 20 per cent to 80 per cent 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 per cent recovery is better for business than 20 per cent recovery, but they would rather have 100 per cent recovery,’’ he said.

The minster, however, said that GenCos must transparently invoice for their output made on generation of power.
“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 owners of the policy to nurture and improve on its capabilities.

On Meter Asset Provider (MAP), he said the policy was introduced to address the meter supply gap, relieve the DISCOs of the financial burden of meters.

He said reports reaching him indicated that there was an embracement of the policy, adding that entrepreneurs were showing interest and talking to banks to raise finance.

On energising educational institutions and markets, Fashola said, “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.’’

He said government had proposed to use six small hydro dams that had been abandoned for decades to energise Federal Government owned universities and some markets.

“There are currently 15 markets under contemplation with Ariaria, Sabon Gari and Sura markets in Aba, Kano and Lagos as flagships.

“The six hydro dams are to be concessioned to private operators on Build, Operate, and Transfer (BOT),’’ he said.

Source: NAN

Welcome Address By The Permanent Secretary, Ministry Of Works And Transport, Kebbi St...
Aug
13
2018

Welcome Address By The Permanent Secretary, Ministry Of Works And Transport, Kebbi State On The Occasion Of  The 24th National Council On Works Meeting In Birnin-Kebbi, Kebbi State

On behalf of His Excellency, the Executive Governor, Senator Abubakar Atiku Bagudu, Matawalen Gwandu and hospitable people of Kebbi State, I humbly welcome here in Birnin-Kebbi, Kebbi State, “The Land of Equity”.

2. The theme of this year’s meeting is “Ensuring Value for Money in Nigerian Highways Development”, which literally means optimal use of resources to achieve the intended outcome.

3. A limited perception of the benefit derived from the huge investment in Highway projects, believes that, the ends will not justify the means, in terms of resources invested and the intended outcome.  However, a wider perception of it shows that the benefit involved is numerous, among which are the following:-

(i) highway projects enhance free movement of people, goods and services, thereby fostering economic, cultural, agricultural and political development;
(ii) Highway projects, link various communities, regions and nations, thereby enhancing regional and international relationship;
(iii) Highway projects, promote peaceful co-existence between various communities, thereby enhancing social development.
This is to mention just a few.

4. The theme seeks for the use of technical knowledge and methods to achieve qualitative works on all Highway projects, ensuring value for money.

5. At this juncture, I would like to commend His Excellency, the Executive Governor of Kebbi State, Senator Abubakar Atiku Bagudu for hosting this important meeting for the first time in the history of the state.

6. The Honourable Minister of Power, Works and Housing, His Excellency, Babatunde Raji Fashola, SAN, also needs to be commended for approving the hosting right to Kebbi State.

7. The Organizing Committee of Federal Ministry of Power, Works and Housing will also not be left behind in the commendation for selecting a theme that encompasses all spheres of life, as no matter how small a business may be, one needs value for his investment.

8. As for the delegates, I wish you an interesting and fruitful deliberations and also call upon you to feel free and visit historic places in Kebbi State, being a home to two famous international festivals of fishing in Argungu and Uhola in Zuru.

9. Once again, I welcome you all to the 24th Meeting of National Council on Works.
GOD Bless Kebbi State
GOD bless Nigeria.

THANK YOU

FEC Approves N348.5 Billion For Road Expansion...
Aug
10
2018

FEC Approves N348.5 Billion For Road Expansion

The Federal Executive Council on Wednesday approved N348.5 billion for the expansion of the Akwanga-Jos-Bauchi-Gombe road into dual carriage way, linking Nasarawa, Plateau, Bauchi and Gombe States.

The Minister of Power, Works and Housing, Babatunde Fashola, made this known when he briefed State House Correspondents on the outcome of the Council’s meeting.

The meeting was presided over by acting President Yemi Osinbajo at the Presidential Villa, Abuja.

Fashola said some portions of the affected road will be improved from a single carriage way to dual carriage, in order to ease the transportation. “The Ministry of Power, works and Housing presented the request for the award of the Akwanga-Jos-Bauchi-Gombe road, which was approved for the sum of N348, 595, 000, 000, for a total of 420.6 kilometres and the project scope is the expansion of the current two single lane highway into a dual carriage way.

“What is significant about this project is that it completes the integration of the North-Central zone with the South-East and the North-East, having earlier approved contracts for the Abuja-Keffi road and the Akwanga-Lafia-Makurdi road all in the North-Central as well as approved the 9th Mile-Enugu-Makurdi road which connects the South-east to the North-Central,” he said.

According to the Minister, the Federal Government has also approved the release of one billion naira as commitment fee for the immediate commencement of the expansion of Abuja – Keffi road. Fashola revealed that already three construction camps for the road project had been established to fast-track the movement of the contractors to site.

He, however, expressed his ministry’s inability to pay seven billion naira as compensation to those to be affected by the Abuja – Keffi expansion road project. Mr Femi Adesina, who also addressed the correspondents on the outcome of the meeting, disclosed that the Council approved over N12 billion for the execution of ecological projects across the country,

He said the benefitting states included Anambra, Lagos, Oyo, Akwa Ibom, Adamawa, Bauchi, Borno, Jigawa, Kaduna, Plateau, as well as the Federal Capital Territory and the State House. He said: “The sum of 12, 104, 882, 000 was approved for twelve ecological projects in different geo-political zones of the country.

“The projects include Umunze erosion/flood control project in Anambra State, dredging and channelization of Musafejo canal in Surulere-Lagos and Ibadan flood and erosion control works in Oyo State.

“Others are Ibiaku-Utui-Uroan route erosion control works in Akwa Ibom; erosion control and rehabilitation of Hong-Kanaha road in Adamawa State and gully erosion control project in Bauchi State.

“The ecological projects include the Ramat Polytechnic erosion control and flood project in Borno State, erosion, flood control and road improvement works in Dutse, Jigawa State and erosion and flood control work in Kaduna Polytechnic, Kaduna State.’’

Adesina also listed other projects to include the flood and erosion control project at Kanam, Plateau State; erosion control and bridges and road improvement works in Kwali Area Council Abuja and erosion control at State House-Abuja.

Source (NAN)

Third Mainland Bridge Closure For Maintenance Tests Now Shifted To August 24...
Jul
24
2018

Third Mainland Bridge Closure For Maintenance Tests Now Shifted To August 24

* As FG Directs Immediate Deployment Of Trucks To 300-Capacity Trailer Park As Part Of Efforts To Decongest Oshodi-Apapa Expressway

The three day closure of the Third Mainland Bridge for Investigative Maintenance Test earlier slated to begin on July 27, 2018, has been shifted to August 24 the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, has announced. The Shutdown, earlier scheduled to last from July 27 to July 30 will now last from August 24 to August 26, 2018.

In a Press Statement, Fashola said the shift in the date was arrived at after due consultations with the Lagos State Government and wide deliberations with other relevant stakeholders adding that the date shift was done “in order to give succour and relief to the people of Lagos State and other inter-state road users and support the efforts of the State Government."

On the efforts to decongest the Oshodi-Apapa Expressway, Fashola said, in the short term, he has directed the immediate deployment of trucks to the trailer park being constructed by the Ministry with the capacity to accommodate about 300 trucks while construction works for the shoreline protection continues.

Also, the on-going palliative work on the sections of the Apapa-Oshodi Road , the on-going construction of the road leading to the Apapa Port from Ijora will soon be completed  while the main exit route through Tincan – Oshodi – Oworonshoki is under procurement for award. When completed, the project will enable free flow of traffic in the axis.

Also following the visit of the Vice President, Professor Yemi Osinbajo, to Lagos in connection with the Apapa Port Gridlock, the Federal Government has said, as a short term measure, a call up system in the control of truck movement would be introduced adding that it would be initially manual while the long term digital and ICT based system would be developed and deployed. The Association of Truck Owners has agreed to manage the manual system with their members who are truck operators, government also said.

Third Mainland Bridge To Be Shut For Three Days For Assessment...
Jul
17
2018

Third Mainland Bridge To Be Shut For Three Days For Assessment

* Three-day closure begins from July 27 while repairs begin after report of assessment is received to determine extent of deterioration
* “We will try to reduce the period of closure as much as possible. But this is ultimately a choice between peoples’ safety”, says Fashola
* “There was a signed statement from my office and it did not contain 27 months”, he maintains

The Third Mainland Bridge in Lagos will be closed to traffic for three days from July 27, 2018, for investigative work to be conducted to assess the current condition of the Bridge, the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, has explained in Abuja.

Fashola, who spoke, Monday, as Guest on the Channels Television breakfast programme, Sunrise Daily in the Federal Capital Territory, said the shutdown was necessary in order to ascertain whether there had been any material deterioration between the period the first procurement for maintenance of the Bridge was approved and now adding that the three days would be used “to really do an examination just to be sure that there has been no material deterioration beyond what we procured”.

The Minister, who debunked the misreporting in some sections of the media that the Bridge would be closed for 27 months, declared, “The first message we sent out was that it was going to be closed for three days from the 27th of July”, adding that the duration of maintenance would only be determined after the report of the investigative work has been received and extent of deterioration known.

He said the investigation would have been carried out earlier but the need to reduce the inconveniences that would accompany the closure compelled government to shift the time to a more convenient period when children would be on vacation and when fewer vehicles were likely to be on the Bridge.

“We thought that if we allowed the children to go on vacation first it would reduce the number of vehicles that needed necessarily to be on the road and ultimately reduce the amount of inconvenience. But now we are torn between maintenance and safety and peoples’ convenience”, Fashola said adding, “Essentially the first three days at the end of this month, as issued in our Press Statement, is for investigative work to be conducted to assess the current condition”.

The Minister, who said it was only after the assessment of the amount of maintenance work involved that government engineers and the contracting firms would lay out the plan of work, added, “I think it is later in the year or early next year that the repairs will then start”, pointing out that some of the equipment and materials have to be imported.

Noting that the repairs would “imminently compel some closure”, Fashola, who recalled that the Bridge had been closed for repairs in the past when he was Governor, pointed out that it was shut down for 12 weeks, adding, “We will try to reduce the period of closure as much as possible. But this is ultimately a choice between peoples’ safety; that bridge must not collapse and it needs maintenance”.

“It has been built now going up to a period of 30 years and if you recall, the maintenance that was done at that time was not completed because the budget was cut and that was why they did it in phases. So we are back to what we should have done before. It is costing more but it needs to be done”, he said.

Reiterating that he was currently not in the position to say how long the maintenance would last until the receipt of the report from the investigation and the amount of damage determined, declared, “For now, the first three days is what I can speak of and it is when we get the report and determine the extent of damage that we will now come back to the public and tell them and say definitively how long it will be”.

“I am not in the position to say it now until that report comes back to us. But what will happen at the end of July is three days”, he said, adding that those peddling the 27 months rumour about the duration of repairs might have mistaken the “July 27th” date mentioned in the government Press Statement for 27 months. “There was a signed statement from my office and it did not contain 27 months”, he said.

Fashola, who admonished the Media, both traditional and social, to endeavour to be more accurate in their reportage especially of such sensitive issues, expressed regrets that many of the nation’s public assets have remained unmaintained for decades citing the Ijora Bridge which he recalled collapsed some time ago due to lack of maintenance after 40 years plus.

FEC Approves Reconstruction Of Roads In The Country...
Jul
12
2018

FEC Approves Reconstruction Of Roads In The Country

The Federal Executive Council (FEC) presided over by President Muhammadu Buhari on Wednesday approved N35.6billion for reconstruction of roads and bridge in the country.

The Minister of Power, Works and Housing, Mr Babatunde Fashola, disclosed this when he briefed State House correspondents at the end of the Council’s meeting held at the Presidential Villa, Abuja.

The Minister said N8.9 billion of the amount was approved for construction of Ikom bridge and road in Calabar, Cross River.

According to him, the road and bridge has a completion period of 24 months and when completed, will create access to the port for trailers to move freely with their containers.

The Minister said that N11.78 billion was approved for Nguru –Gashua – Balmari road in Yobe State, while N8.6 billion was approved for Ilorin – Kishi road in Kwara State.

He said the Council also approved N5.4 billion for another road project in Abia State,

He disclosed that N933 million was also approved for automatic meter reading equipment for Transmission Company of Nigeria (TCN).

“The other project that was approved relates to power and this is the approval to procure at the request of the TCN an automatic meter reading machine and services – that will include the installation of equipment and also the training of engineers, auditors, IT engineers who will operate and maintain the system.

“The total installation period is 18 months, supply and installation,’’ he said. According to Fashola, the wholesale meters are different from the retail meters, saying that smooth implementation of the wholesale meters would help in dispute resolution as data can be easily produced online and eliminate all delays in the system.

The Minister of Information and Culture, Alhaji Lai Mohammed, who fielded a question on the controversy surrounding NYSC exemption certificate of the Minister of Finance, Mrs Kemi Adeosun, said the federal government had already responded to the allegation via statement from the NYSC.

He said: “The government has spoken. NYSC is part of government and I have nothing to add to what the NYSC has said.’’

Text Of The Special Herbert Macaulay Memorial Lecture Delivered By The Honourable Min...
Jul
11
2018

Text Of The Special Herbert Macaulay Memorial Lecture Delivered By The Honourable Minister Of Power, Works & Housing At The University Of Nigeria, Nsukka

I am the most unlikely candidate to deliver a lecture on engineering and its contributions to national development.

I feel truly honored to be invited and I am humbled. As you all know too well, I am a legal practitioner, and went to university with subjects in the liberal arts, likely History, Literature, Economics and Religious Knowledge.

This itself was not a choice. It was, for me, a matter of necessity.  I wanted to be a professional and law was the only profession I could gain admission to study without having to contend with Mathematics.

I just did not like Mathematics and was confounded by figures and formulas in Physics and Chemistry. 

In my third year in secondary school, I was moved from the science classes to the arts and I was happy to see end of Mathematics. Or, so I thought, until Public Service beckoned.

From my days as Governor having to deal with budgets, Mathematics did not leave me as much as I thought we had parted ways.

Roads, Bridges, Waterworks, Housing projects and General Infrastructure had to be built in Lagos State if we were to come anywhere close to fulfilling electoral promises that I made and serving the people in any meaningful way.

Enter drawings, designs, calculations in bills of Engineering measurement, bills of quantities to measure costs and so much more.

Everything I thought I had parted ways with as a former student of the sciences were staring me in the face as a Governor.

I had to understand road designs, piles for bridges, housing designs, bills of quantities, dredging projects, gas pipelines to support our independent power plants, chlorine aid chemicals to treat water, visits had to be made to project sites and everywhere I entered there was an engineer of one type or the other.

TYPES OF ENGINEERING

In preparing this speech my little research further brought to fore the many ways that engineering defines our lives more than we have perhaps acknowledged.

For example, some of the diverse fields of engineering we have not paid enough attention to are:

Metallurgical Engineering which involves the research, control and development of processes used in the extraction and refining of metals.

Biomechanical and Biomedical engineering which combine the discipline of mechanical engineering with human anatomy and physiology. Resultantly, this leads to work in developing prostheses, developing movements for people with spinal injuries and refining equipment used for athletes.

Geomatic engineers collect, display and analyse data about the Earth’s surface and its gravity fields. This is crucial for developing mapping technology, delineating legal boundaries and indeed monitoring environmental changes.

Plastics engineering. At a time where there is a proliferation of plastic waste, this area of engineering can help develop technologies to manipulate and reshape plastics for recycling purposes.

Software engineering. In this age of apps, software engineers are trained in the specification, development, design and maintenance of software systems and products.

Water resource engineering. We cannot take for granted that water will always be an available resource. Indeed, there are already many examples, both at home and abroad, where the search for water has quickly escalated into conflicts. This type of engineering helps in the assessment of pollution sources, the control of flood damage and resolution of conflicts and effective management of water reserves.

As a coastal State, Lagos was threatened by flood, being 2  (TWO) meters below the sea level and again engineers around me, explaining how the drainage hydraulic systems of canals worked to prevent the State from being submerged.

It became very clear to me that engineering defines our civilization and there is no escape from it, in the way that law, orders our civilizations.

From the sub-national activities in Lagos, things have moved on to a National scale, with President Muhammadu Buhari’s decision to merge the Ministries of Power, Works and Housing into one, and my appointment as substantive Minister, with Mustapha Baba Shekuri and Suleiman Hassan Zarma as Ministers of State I and II respectively. 

I stand here today on the shoulders of giants who created this opportunity.

President Muhammadu Buhari who built this platform, and the many engineers at Lagos State level and now in the Ministry of Power, Works and Housing in Abuja, who have been my pillars of support by sharing their knowledge.

As I have said earlier, engineering defines life, and for a nation with a growing population like Nigeria that requires a massive injection of infrastructure, Engineering is going to play a very important role in our journey of development and our quest for prosperity.

One of the things I hope to achieve here is to re-focus the attention of this university and others to the need that Nigeria has today and will have for many decades to come, for well-trained Engineers who will not only build our infrastructure but will maintain them.

Given what President Buhari has committed to deliver, I do not foresee a situation where any Engineer or Technician who is enterprising will not have job to do; and I will explain.

As I said earlier, our population is growing; and the impact on our infrastructure is now manifest and it is affecting our quality of life. 

Whether it is this school, where you will see that lecture rooms are crowded, bed space for students is a challenge, sports facilities probably aging, and water supply a struggle. 

Or at the sea ports and airports that were built decades ago, or road networks that erosion have taken over, or power transformers and distributions lines that now serve multiples of the people they were initially installed for. 

You will see an opportunity for infrastructure upgrade, addition, renewal or reconstruction. Every time you see these challenges, there is inherently an opportunity for an engineer; and this is what I want us to focus on—the opportunities. 

We have done it before. In the 1970s immediately after the unfortunate Civil War, Nigeria embarked on a radical infrastructure renewal, building stadia, roads, bridges, high rise towers and so on, similar to what has unfolded in the United Arab Emirate in the last decade.

In the 1990s, there was a modest effort, which coincidentally was led by President Buhari under the aegis of the Petroleum Trust Fund, which became short-lived. 

Some of the roads that are still motorable in some parts of the country today were beneficiaries of that intervention, and it is no surprise that people in those places still look to President Buhari for hope because they know he has done it before.

Sadly, we missed this opportunity in the period of between 2007-2015 on a national scale when the price of crude oil, our biggest export, started rising until it exceeded to $100 per barrel and stayed there for a few years.

While many oil producing nations like Saudi Arabia, Qatar, Brazil, United Arab Emirates of Dubai and Abu Dhabi chose to invest in life changing infrastructure of hospitals, bridges airports, universities, skyscrapers, the managers of our own economy chose a different infrastructure. 

They called it Stomach Infrastructure.

They shared the money that could have changed our lives.

They imported $5m worth of rice almost on a daily basis and distributed it to the people who could have produced it. 

There is now judicial proceeding seeking to have some people account for how $2.2 Billion was allegedly shared for financing an election.

While the judicial proceedings will, hopefully, answer the question as to what happened, my interest is in the lost opportunity. 

Around the same period and with the same opportunity of oil proceeds, the Burj Khalifa, which is 829 meters tall and has 163 floors making it, the tallest building of all time, opened in Dubai; to announce their emergence on the world stage .

It took less than 5 years to build and it cost $1.5 Bilion, less than what was allegedly diverted for elections here. 

The opportunities that were lost are difficult to fully quantify in terms of material success and pride, employment for engineers, technicians, artisans, suppliers, and so much more. 

This is the lost opportunity that President Buhari is determined to harness through the Economic Recovery and Growth Plan, a document that I enjoin every one of us to read. 

In it, you will see a clear statement of intent, with a clear statement of actions, and you will see what each ministry is supposed to do. 

For the Ministry of Power, Works and Housing, our action points relate to Power sufficiency and infrastructure delivery, especially roads, bridges, public buildings and housing, in order to reflate the economy, create jobs, improve productivity and growth. 

So, when President Buhari talks about change, he wants us to understand that stomach infrastructure was a National Misadventure that must never happen again. 

He wants us to commit to the type of infrastructure that changes lives, and builds real things that will deliver a shared prosperity. 

When President Buhari talks about change, he wants us to remember that while billions of dollars were being mismanaged, the roads on this campus were deteriorating. Enugu-Port-Harcourt road was not motorable.

Enugu- Onitsha road was dilapidated.

Work had stopped on the Second Niger Bridge.

Work had stopped on the Zik Mausoleum, all because we chose stomach infrastructure and neglected to pay contractors and engineers. 

President Buhari wants us to understand that change is not an accidental occurrence; it is a matter of choice. Unlike before, President Buhari’s government has made a different choice.

That choice is to invest our resources in infrastructure; and in 3 years the signs are becoming manifest:-

Some Contractors are now back to university roads.

The first phase of 9 out of 37 Independent Power Projects for Federal Universities has been funded from the budget and the first Green Bonds ever launched in Africa.

Contractors are back to work on Enugu–Port Harcourt and Enugu–Onitsha; the problem of the 9th Mile Road will be finally solved with a new engineering design.

Work has resumed on the 2nd Niger Bridge, and with a Presidential Infrastructure Development Fund, work should not stop again on that project because of funding, until it is completed.

The Contractor is back to site at the site of the Zik Mausoleum, and promises to complete and hand it over before December this year.

There is a housing project being undertaken in 34 states of Nigeria including this State, where no less than one thousand people are currently employed at each site including engineers.

Power projects are being delivered to critical markets under a pilot scheme to support small businesses, using young electrical engineers deploying solar and gas plants in Ariaria Market for 37,000 shops and Sabon Gari Market for 15,000 shops.

Whenever I visited all these sites, the dominant profession was engineering. Men and women involved in design, testing, measurement, mixing of aggregate to cast concrete, Iron rods for reinforcement, installing solar panels, connecting electrical appliances like transformers, circuit breakers, and many more in order to deliver life changing infrastructure.

When we talk about how difficult things became in our country, it is a conversation about the opportunities we probably did not give to our Engineers.

President Buhari is determined to change that.

If you are still looking for evidence of his commitment to change; I will share some more examples with you.

The first is a series of difficult projects that seem to have defied solutions and to which the Buhari Government directed its change agenda.

One of them is the massive commitment to developing a National Standard gauge rail network to ease transportation.

The first of these, the Lagos–Ibadan-Kano line has commenced with thousands of men and women working on the sites.

There is also the Bodo – Bonny highway and bridges to connect Bodo to the Island of Bonny in Rivers state.

You might be interested to learn that this project was conceived in the late 1970s and two different contracts to deliver it were not executed.

The project has now been awarded and the contractor is on site, employing engineers and other professionals to deliver life-changing infrastructure in the Niger Delta.

One of the things that will happen is that the dangerous crossing across the creek and Atlantic Ocean from Bodo to Bonny and back and its consequential cost and time to the people of the area will be replaced by a drive across the bridge over the water bodies. 

Of course, some of you might have heard of the Mambilla Hydro power plant. To put it mildly in scope and cost it is gargantuan.

It will easily contend as the largest single power plant in Africa, with its 3,050 megawatt size and its $5.7 Billion cost.

It will involve building massive dams, casting millions of tons of concrete, deploying millions of tons of cement, iron rods, mobilising equipment, transporting them, housing workers, feeding them and developing an ecosystem of productivity in Taraba State, that will challenge all of our logistic capacities.

It will take at least 5 years to build; during which time $5.7 Billion, about N2.1 Trillion, will be expended. It is an Engineer’s dreams come true.

What is significant about it is that it was conceived since about 1972, and while many talked about it, the Buhari Government choose to act. That is change.

After many years, the Federal Executive Council of Nigeria, the highest Executive decision making body created by our constitution has approved it. The Engineering procurement and construction contract has been signed.

What is left is to raise the funding to finance it.

Instead of bemoaning the lost opportunity of many squandered billions of dollars, this project was one of the top items on President Buhari’s agenda when he visited China in 2016.

The Minister for Finance is leading our negotiation team to raise the finance.

Apart from the power that it will deliver, the construction jobs it will create, the mining employment for rocks, sand, and other building materials, the road network, the resettlement construction, and other benefits, it will unlock the agricultural promise of Taraba and surrounding states in a most defining way for our National prosperity.

But the commitment does not end at project development; it is backed by Executive action such as the President’s Executive Order No 5 that seeks to promote and secure local content by ensuring that the jobs that can be done by Nigerians must be reserved for them.

This must be good and welcome news for Nigerian professionals, especially those involved in Engineering and Construction business.

On our housing sites, there are similar directives that all the materials to used be made in Nigeria, unless they are items that we are unable to produce.

But Mr. President has not stopped there. In order to ensure that yesterday’s lost opportunities are not replicated, he is now deploying some of the recovered proceeds towards rebuilding our infrastructure.

In the Works Sector, he has just approved the release of N120 Billion towards funding 37 roads in the 2018 budget.

This is indisputable evidence of his commitment to hand Nigeria back to the people and make our money work for us.

Ladies and Gentlemen, the list of what is changing in our country for the better is long. The promise of hope and a better tomorrow are bigger than the problem that Nigeria faces today.

What remains is a matter of choice for us to choose what we want.

We will have to choose between real infrastructure and infrastructure of the stomach.

The Faculty of Engineering in the University of Nigeria and other Universities, and the Engineering students have to make, a choice; about which type of infrastructure provides security for their future.

It is, for me, truly commendable for the University of Nigeria to have inaugurated such a prestigious platform as this Herbert Macaulay Memorial Lecture, to propagate the nationalist and developmental ideals of one of the Giants of our country.

What we then do after the lecture becomes more defining than what we say.

The Economic Recovery and Growth Plan and the commitment to infrastructure renewal and development indicate clearly, where this Government’s priorities lie.

In order to make our manpower development and production respond to our National needs, I contend that the University of Nigeria must see the enormous opportunities and need for Engineers if we are to successfully deliver these projects I have listed and many more still to come.

The best way to respond and contribute to national development is to commit to producing high quality Engineering graduates, and stimulate a high Engineering undergraduate intake.

The future for jobs is promising.

Engineers will be needed not just to build Mambilla Power, the Rail projects, the Bridges, the Airports, the Seaports, and the Gas pipelines, the Power Substations and other projects, but more importantly to operate and maintain them in order to keep them running.

It is this handshake, between Government programmes and policies on one hand, and career development and manpower building by the Universities on the other hand that will take us quicker and faster towards the kind of Nigeria, that men like Herbert Macaulay in whose name we gather, dreamt of, lived for, fought for and died for.

For the construction to take place there must be a conducive work environment, where opportunities can birth Jobs, drive productivity and create prosperity; there must be peace.

Peace of a kind that requires little if any of the law enforcement capacity of the state; and a type of peace that is driven by brotherhood and peaceful coexistence.

All of us must seek that kind of peace in our enlightened common interest.

I seriously think that the best that security agents can do is to prevent conflict from being violent, to enforce the law and impose order.

It us, you and I, who hold the keys to peace

I thank Professor Benjamin C Ozumba, the Vice-Chancellor, the University of Nigeria, the faculty Board of Engineering for inviting me, and I thank you for listening.

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

Press Briefing On Power Sector State Of Play, Next Steps And Policy Directions By The...
Jul
10
2018

Press Briefing On Power Sector State Of Play, Next Steps And Policy Directions By The Honourable Minister Of Power, Works And Housing, At The Ministry Of Power, Works And Housing Headquarters

I believe that most Nigerians know that the Power sector has been privatized and that this happened since November 2013.

What I believe most Nigerians have struggled with is an understanding of:

a. The organizational and operational structure of the Power sector after privatization;

b. An understanding of who to turn to when service is not good;

c. And perhaps what to expect the privatization to give to the sector.

These are some of the issues I propose to address in this briefing, and I intend to highlight the challenges we have encountered, those we have solved, those we are working on, the progress we have made, what needs to be done and who has the responsibility to do what.

Perhaps the best place to start is to go back to the beginning, to recall what we had before privatization; and then compare it with post-privatization, in order to facilitate the understanding of the ordinary Nigerian.

The first thing to deal with is to explain the power and supply process (which is sometimes called the value chain) as comprising 3 (THREE) main parts:

a.Power Generation – Which is where electricity is produced;

b.Power Transmission – which is the system of substations, towers and lines that convey the power from the power generation sites to the distribution sites;

c.Power Distribution – which is the final leg that supplies the power to end users, homes, offices, factories, markets, etc, Meter the power consumers, BilI them  and collect the bills.

Before the privatization, all these 3 (THREE) functions of (a) Generation, (b) Transmission and (c) Distribution were substantially Government business, which was run as a monopoly through Power Holding Company of Nigeria (PHCN).

This means that Government generated the power from various gas and hydro power plants, transported the power from hundreds of substations across Nigeria and distributed the power from hundreds of distribution stations nationwide, and supplied meters, billed customers and collected the money.

Privatization has changed this.

Government has sold some of the Power generation plants to 6 (SIX) Generation Companies (GENCOs), and sold the Distribution Assets to 11 (ELEVEN) Distribution Companies (DISCOs).

It is the DISCOs after privatization who now have responsibility to supply power to the consumers, provide meters and collect the money.

Government has retained the responsibility of transmission (transport of power) in a company called Transmission Company of Nigeria (TCN).

From this, it must be obvious to the ordinary person that supply of power is now a private business in the hands of the owners of the DISCOs.

But because of the critical and sensitive nature of power supply, Government has not left the supply of power supply solely to the DISCOs. Government at Federal, State and Local Government, and the former employees of the PHCN hold 40% of the shares of the DISCOs.

In addition, Government is responsible for regulating behaviour and compliance through the Nigerian Electricity Regulatory Commission (NERC), which is like what the Central Bank (CBN) is to the Banking Sector, or what the Nigerian Communication Commission (NCC) is to the Telecoms sector or the Nigerian Broadcasting Corporation (NBC) is to the media, and I will say more about this.

Government, during the privatization, also took steps to perform its support and enabling role to private sector by setting up a company called the Nigerian Bulk electricity trading company (NBET).   

What NBET does is to give confidence to generation companies by guaranteeing to buy bulk power, which is an incentive to GENCOs to invest in building more Power plants because there is an assured buyer.

In real terms therefore, the power that the DISCOs sell does not belong to them; they are only distributors for a commission under a vesting contract with NBET, who is the person who pays the GENCOs for the power, and vests them in the DISCOs.

All of these arrangements arise from the Electric Power Sector Reform Act (EPSRA) of 2005 which led to the privatization which took place in 2013.

That law, which regulates the power sector, recognizes certain categories of persons who can buy power from a GENCO and they are:    

A. A distribution company (DISCO)    

B. A bulk trader (NBET)    

C. An eligible customer declared by the Minister under Section 27 of the Act.

Interestingly no DISCO is buying power directly from the GENCO for reasons only known to them.

They are content to allow the government bulk trader pay the GENCO for the power and receive it under the vesting contract which they are not properly performing because they remit only about 15% to 20% of the power they receive, and have accumulated debts of about N859 Billion (Principal and Interest) owed to NBET. I will also come back to these in the next steps and policy directives I will issue.

Interestingly, the EPSRA does not make it mandatory for any Nigerian to receive power only from the DISCO or to use only public power.

That is why it is not an offence for Nigerians to buy generators, inverters or solar systems which are, of course, more expensive than the power which NBET buys from the Gencos and vests in the DISCOs to  distribute to  consumers.

Therefore, in answer to the question of who to turn to when you have no meter, no supply of power, or your transformer is bad; it is the discos, who are your service providers, that you should turn to.    They are the ones who bill you and collect money from you.

I must of course point out that, from time to time, there are failures in the system such as gas supply shortage or transmission failures.

This is not the fault of DISCOs, but any fair-minded observer will admit that this does not happen every day and this has nothing to do with supply of meters or the proliferation of estimated bills.   

As to where we are today I can report progress in generation, transmission and distribution post-privatization.

1. Generation of power has improved from 4,000 MW (approx) in 2015 to 7,000 MW (approx) in 2018 averaging an increase of 1,000 MW (approx) per annum and we expect to add 455 MW (Azura); 215 megawatts (Kaduna), 240 MW (Afam III); 40 MW (Kashimbilla); almost a total of 954 MW in 2018; and 700 MW (Zubgeru) 480 MW (Okpai II) about 1,150 MW projected for 2019, and the GENCOs are undertaking various repairs, rehabilitation and expansion that will bring on incremental power.

2. Transmission has increased from 5,000 MW (Approx) in 2015 to 7,124 MW (Approx) in December 2017 averaging 1,062 MW per annum increase in transmission capacity. TCN currently has about 90 Transmission projects in various stages of construction and many are to be completed this year.

So, we can transport what the GENCOS generate and there is a Transmission Expansion plan 2018 to 2028 which Government is committed to implement.

3. Distribution has increased from 2,690 MW (Approx) in 2015 to 5,222 MW Approx in 2018, averaging an increase of 844 MW per annum because the DISCOS have also done some work.

But as it is now obvious, from 2016 when the DISCOs complained about lack of enough power to distribute, the problem today is that the DISCOs cannot distribute all of the Power that is available, leaving the sector with an unused capacity of 2,000 MW (Approx), with the approximately 1,150 MW projected to come this year and 2019.

This is not a time to trade blames, because there is enough to go round; rather it is a time to reiterate everybody's responsibility and urge all of us to brace up, to do what we are obliged to do, which is to serve the people.

I suspect that these facts may appear like a red flag to the bulls of anti-privatization, but I remain convinced that privatization is the way forward.   

Privatisation has brought us better value in broadcasting, newspapers, telecoms, banking and other sectors and I remain convinced that it will deliver in power.   

The fact is that like in telecoms, banking, newspapers and other sectors, those who cannot compete will concede as some banks, and telecoms companies did without bringing down the sector.   

What is government doing?

As a facilitator of business and enabler of the private sector, Government has done the following:

A. Through the Central Bank of Nigeria (CBN) government has made available the sum of N213 Billion to the power sector at concessionary interest rate below market rate to GENCOS and DISCOS.    

Regrettably because of the source of funds, conditions such as the opening of Letters of Credit were attached to secure performance of the purpose for which the money was meant;    

Some DISCOS have not taken the money and instead have gone to court thereby frustrating full disbursement, and recently the NERC has revealed unauthorized use of the money by Ibadan DISCO and taken some regulatory actions;

B. Government has responded to claims of debts owed by MDAs to DISCOs before this administration alleged to be in the region of upwards of over N70 Billion.

At the cost of government, several hundreds of thousands of bills were very painstakingly verified and government ascertained that N27 billion was owed by federal MDAs to DISCOS.     
The payment was by a set-off of this amount against the sum of N859 billion owed by DISCOs to NBET (a government agency) to reduce that debt;

C Prior to the tenure of this administration and during it, GENCOS and gas suppliers who produce the power were being underpaid by NBET because DISCOs were under collecting or under remitting, such that GENCOs were getting only about 20% of their invoices for power they generated.

Government created a N701 Billion Payment Assurance Guarantee for NBET to ensure that payments to GENCOS improved and this has now increased to 80% payment on invoices, up from 20%, in the hope that with improved power production, DISCOs will collect and remit more;

ii) As things stands my office still receives daily reports by text, e-mails and letters of "exhorbitant" bills by Discos to consumers without meters, but the remittance by Discos to NBET is not increasing;

iii) NBET is also owing the GENCOs N325.784 Billion which can be settled if NBET collects what the Discos are owing;

iv) Of course it is important to point out that some other Government institutions are owing the Discos and there are individuals and corporations who are by-passing meters and stealing energy

All these point to a situation that can be resolved if everybody does what is right.

D In order to assist in the evacuation of 2000 MW (the deficit between what the GENCOS can produce which is 7000 MW and what the DISCOs can distribute which is 5000 MW) the Government asked the DISCOs to submit their transformers and equipment requirements.

As 40% shareholder, Government has committed to invest N72 Billion for procurement of equipment and installation to help get the 2,000 MW to consumers and this process has been advertised with encouraging responses from original equipment manufacturers, which are being evaluated.

E In order to bridge the metering gap, Government has settled an inherited court case and is able to make available N37 billion to Meter Asset Providers (MAP) under regulations made by NERC to license meter entrepreneurs to help supply meters that the DISCOs are under contract to supply but are as yet unable to fully discharge.

The regulations require DISCOs to contract with their MAPs in order to promote a harmonious relationship and reduce friction and disputes.

F    In order to accelerate supply to industries and heavy consumers, Government, through my office, pursuant to powers conferred by Section 27 of the EPSRA declared eligible customer, which was to enable people who consumed 2MW and above, who were not getting power because of lack of distribution equipment, invest in the provision of the equipment and take power directly from GENCOs who had the power.

The DISCOs initially resisted and are currently giving reluctant co-operation to a policy meant to supply power to people they cannot supply.

G All of you will remember of course that NERC, (not the Ministry of Power or the Minister ) , approved a Tariff increase for the Sector. When the public complained it was I,  (not the Discos), who stood in the forefront of explaining to the public. Yet it is the Discos who collect the tariff.

This is a picture of the industry as best as I can summarize the facts.

In the face of this picture, where we have power to sell, with more to come, the number of complaints coming to Government for meters, which the DISCOs should supply, and for estimated billings, and mass disconnections when not everybody is owing cannot continue.

Government must act, and will do so. The DISCOs bought these assets with their eyes opened, and they must compete to deliver or exit.

Small businesses who need very little power are not getting enough because the DISCOs cannot take the power to them.

The investment of GENCOs is threatened because they cannot utilize the capacity they have installed.

In order to improve service to small businesses, Government, acting through the Rural Electrification Agency (REA) is linking Small Power Entrepreneurs with markets like Ariaria in Aba, Sabon Gari Market in Kano, and Sura Market in Lagos.

The markets contain approximately 37,000, 13,000, and 1,047 shops respectively, which are being metered by the small entrepreneurs who have offered to replace their generators with more efficient power and meters.

There are 15 (fifteen) markets in all which if successfully implemented would provide power to 85,485 shops, empower 205,000 SMEs and create 2,000 jobs during the installation and after in operation and maintenance.

The DISCOs are agitating that this should not happen , yet they offer no solution. I want to use this opportunity to refer to Section 71(6) of EPSRA, which I will discuss later and say clearly that the Law did not anticipate exclusivity for any DISCO.

Clearly, unless the DISCOs have a license that is endorsed as EXCLUSIVE, it is clear that no DISCO has exclusivity over its franchise area.

It is obvious that the law did not intend to replace Government monopoly of PHCN in the Power Sector, with a private monopoly of businessmen.

Whenever there is poor service, Government, as a matter of Policy and Public Interest is able and entitled to act and invite new players to fill the gap.

The truth is that the generator sellers, inverter sellers are already filling this gap without protest.

What these entrepreneurs therefore bring is, to replace multiple, inefficient, unhealthy and expensive generators with simple efficient and environment friendly solutions and meters.

This is what the public interest demands.

Policy Directions and Next Steps

It is not my intention, or that of Government, to take over the business of DISCOs. On the contrary, it is Government’s desire to see DISCOs thrive and flourish in a competitive environment.

In the period when they are not yet ready, willing, or able, life must go on and we must find solutions and substitutes as we have seen in other sectors. Therefore, pursuant to the provision of Section 33 of the EPSRA which provides that:

33 (1) The minister may issue general policy directions to the commission (NERC) on matters concerning electricity, including directions on overall system planning and co-ordination, which the commission shall take into consideration in discharging its functions under Section 32 (2) provided that such directions are not in conflict with this Act or the Constitution of the Federal Republic of Nigeria.

And

Section 32 (1) (a) – (g) provides for what the commission (NERC) is set up to do, which includes:

(a) to create, promote and preserve efficient industry  and market structures and to ensure optimal utilization of resources for the provision of electricity services;

(c) to ensure that an adequate supply of electricity supply is available to consumers;

And

Section 32 (2) (a) – (g) which specifies functions for the commission (NERC) to:

(a) promote competition and private sector participation, when and where feasible.

(d) license and regulate persons engaged in the generation, transmission, system operation, distribution and trading of electricity.”

It is clear that a  combined reading of these provisions show that it is necessary to direct NERC to step in to:-

Ensure that DISCOs improve on their distribution equipment and capacity to take up the available 2,000MW in order to optimize the use of the electrical resource produced by the GENCOs, and I direct NERC to immediately act in this regard.

Enforce the contract of DISCOs to supply meters and act to ensure the urgent speedy supply and installation of meters with a view to eliminating estimated billing and promote efficient industry and market structures;

Stop DISCOs from threatening private entrepreneurs from entering the market to supply consumers whom the DISCOs cannot supply and to license such persons subject to terms and conditions in order to “promote competition and private sector participation” and avoid a private monopoly of power.

3a) Section 71(6) dealing with Terms and Conditions of licenses clearly shows that no exclusivity or monopoly was intended for a license holder such as GENCOs or DISCOs when it provides that:-

“unless expressly indicated in the licence, the grant of a license shall not hinder or restrict the grant of a license to another person for a like purpose and, in the absence of such an express indication, the licensee shall not claim any exclusivity, provided that the commission may allow a licenced activity to be exclusive for all or part of the period of the licence for a specific purpose, for a geographical area, or for some combination of the foregoing.

To the best of my knowledge, the commission (NERC) has not issued any exclusive license.

If we take into consideration that after 5 (FIVE) years of privatization, there are still people and businesses who do not have power or enough power, common sense and public interest demands that we must not resist ordinary people, small businesses like shops and markets from seeking alternative sources of energy.

The truth is that they already have these sources of alternative energy, in small petrol and diesel generators that cost them about N100 per kilowatt hour.

If the DISCOs are not resisting the generator sellers who are contributing to pollution, what is the logic of resisting small entrepreneurs bringing mini gas plants to supply a market need?

I am not unmindful of concerns about loss of market or customers by DISCOs but this must be balanced against our national interest and my belief that as their businesses steady and improve, they will be in a position to use their economies of scale of large volumes of power to buy out or outprice these small entrepreneurs.

For now, our developmental needs cannot wait for businessmen who are not yet ready to serve.

National interest, public good, the need to support small business, provide access to power for ordinary people and increase productivity inform the policy statements 1, 2, and 3, that I have made above; and I expect NERC to act with dispatch.

Let me implore members of the public who seek more information to get a copy of EPSRA and read its simple provisions.

They confer extensive regulatory powers on NERC ( not on the Ministry or the Minister) including the power in Sections 73 and 74, to amend or  cancel a licence if the licensee is unable it "...discharge  the duties and obligations imposed by the licence."

In order in to promote stability, I also direct NBET the bulk trader, to work with Bureau of Public Enterprises (BPE), to fashion out ways to ensure that the DISCOs improve their collection remittance and also start to pay their debts.

This business cannot progress if debtors do not pay their debts.

In conclusion let me thank all players for their commitment thus far and express my commitment and that of my Ministry to continue to work towards the progress and success of the sector to deliver service to the public.

Thank you very much.

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

PHOTO NEWS

Oct
31
2024

THE HON. MINISTER OF WORKS, H.E. SEN. (ENGR.) NWEZE DAVID UMAHI, CON, FNSE, FNATE ENGAGES STAKEHOLDERS IN ONDO STATE ON THE 63-KILOMETRE ALIGNMENT OF THE LAGOS - CALABAR COASTAL HIGHWAY PASSING THROUGH THE STATE, THURSDAY, 31ST OCTOBER, 2024 IN AKURE.

1

Click To View More Pictures

PHOTO NEWS

Mar
05
2024

HON. MINISTER OF WORKS, HIS EXCELLENCY SEN. ENGR NWEZE DAVID UMAHI CON (RIGHT) WITH THE DIRECTOR, INFRASTRUCTURE AND URBAN DEVELOPMENT, MIKE SALAWOU HELD AT THE OFFICE OF THE HONOURABLE MINISTER FEDERAL MINISTRY OF WORKS, THIS 5TH MARCH 2024.

Hon. Minister of Works, His Excellency Sen. Engr Nweze David Umahi CON (Right) with the Director, Infrastructure and Urban Development, Mike Salawou held at the office of the Honourable Minister Federal Ministry of Works, this 5th March 2024.

Click To View More Pictures