Feb

03

2018

FG To Complete Tatabu Bridge Reconstruction In 2018

The Minister of Power, Works and Housing, Mr Babatunde Fashola recently said that the reconstruction work on Tatabu bridge along Mokwa-Jebba road would be completed before the end of 2018.

Fashola said this in Abuja when a delegation from the Nigerian Association of Road Transport Owners (NARTO) and Petroleum Tanker Drivers (PTD) paid him a courtesy visit. He said the contractor handling the project was already on site, adding that the arrangement by the Federal Government when the bridge collapsed was to have a temporary road for motorists.

“When I first came on that road, from llorin to Jebba, your people were there for two weeks, they could not move but as I speak to you, that side has improved. “The contractor has created a temporary road, while the reconstruction work on the bridge is ongoing and we cannot complete the project in 14 days even with all the resources available,” he said.

He said plans had been concluded in the ministry to have a workshop with members of NARTO and PTD on ways to make Nigerian roads safe and durable.

The minister said President Muhammadu Buhari had approved that certain vehicles would be restricted from being loaded beyond a certain point in ports and NNPC depots.

According to him, before we will start the implementation, we thought we should have a workshop with you so that you will know what we want to do. Dr Kassim Bataiya, the President of NARTO and leader of the delegation, commended the minister for his efforts in addressing the problems of decaying infrastructure in the country.

He said several reasons account for the failure of roads in the country but observed that the Federal Government was particularly pointing accusing fingers on overloading of trucks. “While agreeing that overloading is one of the causes, we have consistently maintained that standards in road design, materials, construction and supervision are compromised,” he said. He pledged the commitment of NARTO and PTD to cooperate with the Federal Government to ensure sanity, safety and security on Nigerian roads.

Source: (NAN)

Jan

25

2018

Tambuwal Commissions 80KWp Solar Electricity Project

Governor Aminu Waziri Tambuwal of Sokoto State has commissioned the 80KWp solar mini – grid electricity project which will provide uninterrupted power supply to Kurudla Village in Gudu Local Government Area of Sokoto State on Friday 19th January, 2018.

Tambuwal said more than 500 households would benefit from clean electricity supply. In his words, he said “today’s event marks the beginning of a great collaborative effort towards ensuring sustainable growth through renewable energy sector development. It has now become absolutely necessary to take advantage of the ongoing renewable energy effort to ensure self – sufficiency in energy for economic development”. He added that “mini – grid powered by renewable sources is the best option for us to expand electricity access in the rural areas where the national grid is not available”.

The governor used the occasion and appealed to the community leaders and residents to ensure adequate security of the equipment and personnel handling the project, while disclosing that the project is co – funded by the European Union, and jointly implemented by the Federal Ministry of Power, Works and Housing and the German International Development Agency, Deutsche Geseuschaft fur Internationale Zusammenarbeit (GIZ) through the Nigerian Energy Support Programme (NESP) which partnered with the Sokoto State Government and a private investor, GoSolar Africa Energy Limited to develop the project.

Also speaking at the occasion, the Minister of State II, Power, Works and Housing, Suleiman Hassan Zarma, expressed the readiness of the Buhari’s led administration to work with development partners and the private sector on energy solutions so that those at  the  remote and underserved rural communities would also have access to reliable and sustainable electricity supply at affordable prices.

To this effect, the Minister said “in May 2016, the Federal government initiated the Road map of Incremental, Steady and Uninterrupted Power Supply and adopted the policy of diversifying the Nigerian Energy Mix”. Adding that the Federal government have in the last two years developed several policies and action plans aimed at developing our renewable energy resources which include: the National Renewable Energy Action Plans (NREAP) and Sustainable Energy for All (SE4ALL) action agenda in line with the Federal government’s commitment to the Paris Agreement and United Nation Sustainable Development Goals (SDG) and particularly to serve as implementation tool for the National Renewable Energy and Energy Efficiency (NREEEP) approved by the Federal Executive Council ( FEC) IN 2015. He said “Federal government have also recently developed a Power Sector Recovery Plan (PSRP) which is aimed at addressing some of the core problems facing the power industry”.

Earlier, the German Ambassador to Nigeria, Mr. Dietmar Kreusel, had expressed optimism that the introduction of solar mini grid would expand access to electricity not just in Kurudla, but in other areas of the country. In a similar vein, the European Union Ambassador to Nigeria, Mr. Ketil Karlsen, said that over 1.5 billion people globally lacked access to cheap, affordable and steady electricity, which Nigeria falls into.

In his part, the country’s representative of a private firm, GoSolar Africa Energy Limited, Mr. Femi Oye said the provision of the solar project has led to improved life of the people of Kurudla community through improved education, water and jobs as a lot of economic activities such as millers, iron benders as well as shops and saloons have started springing up in the area.

Jan

18

2018

FEC Approves Projects in Water, Aviation and Power Sectors

The Federal Executive Council (FEC) has approved N3.7 billion for the rehabilitation of Kazaure water project and N656 million for upgrading of obsolete Flight Safety Laboratory and framework for investment in the nation’s power sector.

Minister of Water Resources, Alhaji Suleiman Adamu, who alongside the Minister of State for Aviation, Sen. Hadi Sirika, and the Minister of Power, Works and Housing, Babatunde Fashola, made this known while briefing State House correspondents on the outcome of the Council’s meeting.

He said the Kazaure water project which was started in 1997 and abandoned in 2000 would soon be resuscitated under the on-going Federal Government’s programme of resuscitating all irrigable land across the country.

Minister of State for Aviation, Hadi Sirika, said that the upgrading of the flight laboratory was necessitated by the fact that the equipment which was established in 2012 had become obsolete.

Babatunde Fashola, the Minister of Power, Works and Housing said the Council approved a framework of investment at the 33KVA and 11KVA line in expanding the national distribution network, to deliver an extra 2000Megawatts of electricity (to consumers) which is currently not getting to the grid.

Jan

12

2018

FG to involve more Nigerians in Meter Manufacturing – Fashola

The Minister of Power, Works and Housing, Mr Babatunde Fashola on Thursday said the Federal Government had concluded plans to involve more Nigerians in meter manufacturing.

Fashola spoke while inspecting the National Meter Test Station in Oshodi, Lagos.

He said that the measure would reduce the pressure on Electricity Distribution Companies (DISCOs) on meter supply.

“The core business of DISCOs is to transport energy; their business is not to supply meters.

“The government will address metering more vigorously this year with regulations which will open up business in metering to more investors.

“This will reduce the pressure on DISCOs so that they can concentrate more on their core business.

“So, we will open up the business to other people who want to play in the sector once the meter regulations are completed this year,” he said.

Fashola said that Nigeria’s meter journey from 1950 showed that consumers depend on meters from foreign countries.

“We have seen Nigeria’s meter journey; the meters from 1950 to date, meters from Greece, Japan, Britain and China. This has shown that how our industry totally depends on meters from foreign countries.

“But now, we are beginning to see meters from local manufacturers like Mojec and Moman; that is a good place to be.

“At present, we have over 100 million telephone subscribers in Nigeria, but let me ask you, how many telephones are made in Nigeria?

“We spend millions of naira to buy telephone from China and still we will go back and borrow money from China.

“So, we want to change that in the meter industry; we are happy that some Nigerians are manufacturing meter in Nigeria and we promise to support them,” he said.

He added that the National Meter Test, under Nigerian Electricity Management Service Agency (NEMSA) was to test the accuracy of meters before installation.

According to him, the accuracy tests are in two steps, so that the DISCOs will not cheat consumers and consumers do not cheat DISCOs.

The minister reiterated the FG’s plan to roll out meters to Nigerian consumers soon.

He said: “We plan to roll out meters, and we must”.

The Managing Director/Chief Executive Officer of NEMSA and Chief Electrical Inspector of the Federation, Mr Peter Ewesor, said all meters being used by the DISCOs passed through the centre before installation.

According to him, it is not possible for the meters that passed through the centre to shortchange consumers. (NAN)

Source: (NAN)

Jan

03

2018

Aftermath Of Fire Incident Reported By Gas Processing Company : Tcn , Gencos Working To Restore Operation Of National Grid

…We urge members of the public to bear with us as we work to overcome this set back which should be temporary- MINISTRY

Regrettably, after a sustained period of increasing production and distribution of power since September 2017 to date, the Nigerian Gas Processing and Transportation Company Ltd (NGPTC) has reported a fire incident on its Escravos Lagos Pipeline System near Okada, Edo State on Tuesday, 2nd January, 2018.

The incident requires a shutdown of the pipeline supplying gas to Egbin 1,320MW; Olorunsogo NIPP 676MW, Olorunsogo 338MW, Omotosho NIPP 450MW, Omotosho 338 MW and Paras 60MW power stations.

The sudden loss of generation due to interruption in gas supply from these stations caused the national transmission grid to trip off around 20:20 on 2nd January 2018. The national transmission grid is owned and operated by the Transmission Company of Nigeria (TCN).

Most of Nigeria's power generation is from thermal power stations that require gas for fuel. The gas is produced by oil and gas companies overseen by the Ministry of Petroleum Resources. The gas is delivered to the power stations through pipelines owned and operated by Nigerian Gas Processing and Transportation Company Ltd (NGPTC), a subsidiary of Nigerian National Petroleum Company (NNPC).

TCN and the generation companies are working to restore operation of the national grid. Once the national grid is restored output from the hydroelectric power stations and all other unaffected gas fired thermal power stations will be increased to the extent possible to minimize the impact of loss of generation from the affected power stations while NNPC takes necessary steps to restore gas supply.

We urge members of the public to bear with us as we work to overcome this set back which should be temporary.

Signed:
MINISTRY OF POWER, WORKS AND HOUSING

Dec

16

2017

Programme To Provide Uninterrupted Power Supply For University Students, Not A  Mere ‘Streetlighting’ Project - Ministry

The Ministry of Power, Works and Housing wishes to restate that the Energizing Education Programme (EEP) of the Federal Government is aimed at rejuvenating the nation’s education system by providing uninterrupted power supply to a total of 37 federal universities and 7 university teaching hospitals.

This clarification has become necessary in the light of the misrepresentation of the Programme as a mere “solar –powered streetlight project in nine universities across the country valued at N10bn,” by the Punch newspaper while purportedly reporting the proceedings of the 2018 Budget Defense Meeting of the Senate Committee on Power, Steel Development and Metallurgy attended by the Managing Director of the Rural Electrification Agency on Thursday, 14th December 2017.

The Punch Newspaper in a report, which first appeared in its Online version , claimed that the Senate “criticized a solar-powered streetlight project” thereby deliberately misrepresenting the Energizing Education Programme (EEP).Far from being a “streetlight” project, the EEP in fact seeks to rejuvenate the education system through electrifying a total of 37 federal universities and 7 university teaching hospitals, with Independent Power Plants (IPPS), which will boost effective learning, innovation and advancement through uninterrupted power supply.

In addition to helping to extend electrification to rural and underserved areas in which the institutions are located ultimately, the Programme will enable the institutions benefit from world-class training schools, for the training of students in renewable energy, as well as provide optimized security, for the safety and well being of students and staff, through the installation of streetlights on campus which is only a small component of the Project.

Although implementation of this programme is led by the power sector, through the Rural Electrification Agency, the Vice Chancellors and the Ministry of Education have signed onto this as a critical investment in the education sector.

The deliberate attempt to water down the significant impact this Programme will have on the enhanced education of Nigerian students is outright unpatriotic as it seeks to prevent the socio-economic development of our nation.

In addition to the open and transparent coverage of the milestones attained preparatory to the take off of the Project like the Meetings and signing of the Memorandum of Understanding between the REA and the first set of participating tertiary institutions, the Ministry holds itself ready to provide further details to the media and any other interested entities to stem any further misrepresentation.

Dec

12

2017

Remarks By Babatunde Raji Fashola, SAN At The 22nd Monthly Power Sector Operators Meeting, Lokoja, Kogi State On Monday, 11th Of December 2017

I welcome you warmly to this monthly meeting holding in Kogi state; which incidentally is our last meeting for the 2017 calendar year.

Therefore, it provides us an opportunity to reflect, not only on what has happened last month but also to assess how far we have progress through the whole year with our road map of incremental, stable and utilmately uninterrupted power.

Please recall that in January 2017, up till March 2017, power production was significantly low, largely as a result of the lack of gas and the disruptions in the Niger Delta.

By collective action of Government and all of you, many of these challenges have either been fully overcome or brought under control and management.

Government has responded with policies and actions like the N701 Billion payment assurance guarantee which has brought confidence to the production side of the power business and resulted in increased power production taking us to an all-time high of over 7,000 MW of power availability.

Government action in Transmission service expansion through TCN, and your feedback about service points where you require service from TCN, has helped to increase Transmission capacity which took us to over 4,000MW grid available power, that was relatively steady.

In the course of the year, slowly but steadily, the incidents of total and partial grid collapses have began to reduce.

Last month, at our meeting in Asaba, we resolved to maintain the progress even though the rains had gone.

I am happy to report that in the last month, reports and feedback confirm that we have surpassed not only our peak of grid supply during the rains, we have surpassed Nigeria’s highest ever peak grid supply.

As at Tuesday 5th of December 2017, the peak supply reached 5,019 MW, which was below the 5,074 MW we achieved in January 2016.

However, on Friday 8th December, 2017, grid supplied power peaked at an all-time high of 5,155 MW, over the January 2016 figure of 5,074 MW.

It is a major milestone in our journey of incremental power and if we keep our feet on the ground and we remain focused and unexcited, we will improve on it, and hopefully get to the second leg of our journey which is steady power.

No one person can claim individual credit for this progress. It is the product of teamwork starting from the leadership provided by President Buhari, many people in Government and in your companies who the public will never see, but all of whom I salute for their service; and of course the hard work by all of you.

While I value the work that you have done, I will implore you to remember that Nigerians expect more and there is still a lot of hard work ahead.

The fact that we can produce over 7,000 MW and can now only put over 5,000 MW on the grid means that we have 2,000 MW of unused power left in a country where many still require power.

This is a new problem that we must resolve.

We must get that 2,000 MW out to the people who need it, because more power is coming in 2018 from places like Azura (450 MW); Katsina wind (10 MW); Gbarain (115 MW); Kashimbilla (40 MW); Afam III (240 MW); Gurara (30 MW); Dadin Kowa (29 MW); and Kaduna (215 MW) to mention a few.

All of these do not include mini-grids and solar systems that are in various stages of development.

This may appear to be a lot of work. Yes, that is one way to see it.

But I see it as a momentous opportunity and privilege to be part of a revolution that will change the course of Nigeria irreversibly for the better.

If you see it this way, you will brace yourself for the exciting journey that lies ahead to solve the problem of lack of meters, estimated billing, and other service related issues.

You will be in a position to  put a smile on the faces of Nigerians who trust in our ability as a Government and a team to deliver on their power expectations.

This part of the journey requires us to think about what we can do individually and collectively about how to make it better.

It requires us to jettison our fixed positions and prejudices, it requires us to offer solutions not disagreements and to demonstrate a willingness to try out new things.

Therefore, as we set out on this new phase of our exciting journey permit to address some of the things we must do quickly from now into the new year of 2018 and beyond.

On Thursday, 7 December 2017, I was listening to a radio program where a small business operator was discussing her fish business and the problems she was encountering.

She was one of the many people whose lives President Buhari is committed to changing for the better.

As you would expect, she complained about power supply but she did not say where she was or where her business is located.

This happening at a time when, as I have announced, that we are now able to produce up to 7,000 MW of power and able to transport a similar capacity.

It happened 48 hours after we successfully reached the peak supply of 5,019 MW put on the grid and distributed on 5th December 2017 and before the peak of 5,155MW.

It happened while the mini grid summit, the largest ever attended in Africa, with 600 participants from about 40 countries holding in Abuja, was coming to its closing stages to decide how to deploy mini grid electric supply to those unserved and under-served places and small businesses in Nigeria.

It showed clearly that there is a gulf between the location of the need and the location of supply.

If we can produce 7,000 MW but we can only distribute about 5,000 MW, the problem has changed from lack of power to locating where the need is and designing a solution that takes the balance of 2,000 MW to those who need it, who can use it and who  can pay for it.

We must act to build the bridge that connects this gulf of supply and demand.

That bridge is a bridge of data and information about finding the location of the businesses and industries that need power and getting the 2,000 MW that is waiting for deployment to them.

The conversation clearly must change from there is no power, to what needs to be done to connect to the 2,000 MW that is available, and the additional power, which will come into production in 2018.

I have taken the first steps towards collecting the data.

I called the DG of the Lagos Chamber of Commerce and the President of Manufacturers Organisation on the need to meet with them to do some of the following:

Identify the location of their members who need power and do not have it;

Determine the quality and power rating of their equipment as the basis for an energy audit that tells us what each business or manufacturer needs and what the estate or industrial cluster will need;
Identify the closest connection point to the company from  they can be connected to part of that unused 2000 MW power.

D. Determine the cost of the upgrade and equipment and how it can be financed on a win-win basis between the Genco - Disco and the factory or cluster.

This is the action that my team and I are convinced is necessary to connect supply with demand.

We want to supply power, but everybody must help us by letting us know where they are, especially the big consumers.

This is what the eligible customer seeks to do.

We should stop resisting it and instead embrace it to see what it offers in terms of problem solving.

Policy initiatives such as this take time to settle and they do not come without challenges.

But we cannot understand the challenges, talk less of overcoming them without first trying.

I expect that very early in the New Year, we will be able to achieve a collaboration with Manufacturers Association of Nigeria and other Chambers of Commerce and Industry to jointly take this momentous step.

Thank you for your attention.

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

Monday 11th December 2017

Nov

28

2017

We Have Clearest Pathway to Reform Power Sector – VP Osinbajo

*  World Bank’s Senior Director praises FG for Ease of Business Ranking Feat

The Buhari administration has now devised a clear pathway to achieving its power sector reform objectives, according to Vice President Yemi Osinbajo, SAN.

The Vice President stated this today at the State House in Abuja when he met with a delegation of officials from the World Bank (WB) and the International Finance Corporation (IFC) led by Mr. Riccardo Puliti, Senior Director of the Bank’s Global Energy Practice.

Speaking to the delegation at the meeting which had in attendance the Minister of Power, Works and Housing, Mr Babatunde Fashola and the Minister of Finance, Mrs Kemi Adeosun, the Vice President assured “we are completely committed to ensuring that we play our part in the arrangement and we think that this possibly one of the clearest pathways in a long time”

He lauded the partnership between the Federal Government and the World Bank team for the commitment and support shown to the implementation of the Power sector recovery programme.
Prof. Osinbajo noted that the partnership with the World Bank has “helped us a great deal with the timelines and milestones that have to be achieved and also a great deal in refining our own approach to the entire reform process”.

During his remarks, the leader of the delegation and a Senior Director on Global Energy Practice at the World Bank, Mr Riccardo Puliti expressed satisfaction with Federal Government’s cooperation and commitment to the reform of the power sector. He noted that the partnership between the World Bank and the Federal Government is a model which would add great value to the power sector in Nigeria.

Mr Puliti equally praised the Buhari Presidency for the remarkable feat achieved in the ease of business ranking released recently by the World Bank, noting that it is a major milestone for the country’s economic reform programme.

Meanwhile, the Minister of Power, Works and Housing, Mr. Fashola told journalists after the meeting, that the delegation was in the State House to brief the Vice President on the progress made by the Federal Government working with the World Bank on the Power Sector Recovery Programme. He assured that the reform programme is intended to solve various problems confronting the sector and would make the sector effective, as well as make it responsive to consumers and customers who will be ultimate beneficiaries of the on-going reform programme.

Nov

17

2017

Federal Executive Council approves N27billion for reconstruction of Gombe – Biu road

The Federal Executive Council today approved the sum of N27billion for reconstruction of Gombe – Biu road. The Council also approved N458million as consultancy fee for implementation of the National Economic Recovery and Growth Plan and the endorsement of the Nigeria National Building Code.

These were the decisions taken by the Federal Executive Council today which held under Vice-President Yemi Osinbajo today.

Briefing State State House correspondents after the meeting, Minister of Power, Works and Housing, Mr Babatunde Fashola, disclosed that the Gombe-Biu 117 kilometres road project which connects Gombe,Yobe, Adamawa and Borno states, will boost agricultural activities and power supply in the affected states.

Mr Fashola however stated that the road project excluded the nine kilo metres already constructed by the Gombe state government.

The Minister also disclosed that the Nigeria National Building Code, which was approved by the National Council on Housing, Land and Urban Development, was also endorsed by the council.

Minister of Budget and National Planning Udoma Udo Udoma, who also briefed alongside Mr Fashola, told the correspondents that the Council approved the engagement of Malaysian based consultants to conduct a study that would aid the implementation of the National Economic Recovery and Growth Plan at the cost of (N458Million) 1.5 million dollars.

Nov

14

2017

Remarks By Babatunde Raji Fashola, SAN At The 21st Monthly Power Sector Operators Meeting Held In Asaba, Delta State On Monday The 13th Of November 2017

Dear members of the Nigerian Electricity Sector Industry:

I welcome you once again to our monthly power meeting, the 21st monthly meeting we have held without fail.

This meeting is being hosted by Benin Electricity Distribution Company in Asaba, the capital of Delta State which falls within the franchise of Benin DISco.

As it has now become customary, I am happy to announce again some progress that we have made in the last one month in our journey of incremental, steady and uninterrupted power.

Within the last month:

A.    Transmission Company of Nigeria (TCN) expanded transmission capacity in Zaria, Kaduna State and Funtua, Katsina State by adding 40 and 60MVA transformers to the Transmission sub-station to increase the TCN capacity to transmit power in those areas;

B.    The Nigerian Electricity Regulatory Commission (NERC) completed consultation and issued the Regulations needed to guide the operations and implementation of the eligible customer declaration that I made, to increase our capacity to distribute power;

C.    Rural Electrification Agency (REA) completed the guidelines for the operation of the rural electrification fund that will help vulnerable groups and communities gain access to funding to support their electricity development program;

D.     The Ministry of Power, Works and Housing, on Friday the 10th November 2017, signed the EPC contract for the Mambilla Hydro power project, over 40 years after the project was first conceived.    

By way of explanation the Rural Electrification Fund was created by Section 88 of the Electric Power Sector Reform Act (EPSRA) of 2005 to promote support and provide rural electrification  access.

The fund will provide a partial single payment capital subsidy and or technical assistance to eligible private Rural Power Developers, NGOs or communities to invest in options such as hybrid mini grids or solar home systems to scale up rural access to electricity.

Those who will be served are the unserved and underserved Rural Communities.

What they are likely to get are minimum amounts of $10,000 (N3.5m)    and Maximum amounts of $300,000. (N106m) or 75% of project cost which ever is less.

The REA will publish details of guidelines and eligibility.

These are only headline items of developments that characterize the progress we are making month after month, especially since March 2017.    

They do not represent, or pretend to fully report, all of the progress that is going on at distribution levels, which is highlighted by the New Asaba Mains 2x15MVA injection  substation completed and commissioned today by Benin DisCo.

This is expected to improve service to Okwe, Akuebulu, Jarret, Ogbeofu, Osadebe Way, Okwe Housing Estate, Oduke, New Jerusalem, Malbovil and more by reducing load shedding and increasing the hours of supply.

Minute by minute, hour by hour, day by day, week by week and month by month we have not only gained momentum, we are seeing progress that inspires us not to flag, progress that inspires us to continue, because the power problem can be successfully managed by Nigerians.

Not even your worst critic can deny that his experience has improved; even if he is reluctant to acknowledge it, which is his prerogative.    

Our work is certainly not driven by a quest for acknowledgment; on the contrary it is driven by our belief in our collective abilities to change what we do not accept.    

We remind ourselves that we are not immune from what we do. If we make it work as we intend to, it will also serve us.

We thank well-meaning Nigerians who are gracious to acknowledge that their experience has improved and who ask us to do more. Your honesty inspires us to continue.

Dear members, we all know that the progress this year was due to many things we have done and the peace in the Gas producing regions which enabled us to get the gas stations and the Hydro stations to work together.    

Now that the rains are coming to an end we expect some minor, not major, reduction in the production from the Hydro, and we must work now to keep all the gas stations well maintained and operational.    

I am sure that we can do this, if there is peace in the gas producing areas and gas supply is not interrupted.

There are other challenges that we must also overcome together:

A. Estimated billing and metering, and in this regard we anxiously await the Regulation from NERC to open up meter supply Business.

B. Similarly I am happy to report that following the approval of the Federal executive Council (FEC) earlier in the year, the dispute over meters supply contract that started since 2003, was resolved by a Court approved settlement on Thursday the 9th day of November 2017.

C. This means that there will be N37 billion available for meter supply by the contractor to DisCos who want to partner and can reach their independent agreement with the contractor. While we await the regulations by NERC, a lot of preparatory work can be done.

D. To the communities in Ondo State around Okitipupa, Onitsha, Nnewi, Ihiala in Anambra State, Mowe in Ogun State, and others across the country, we have not forgotten you.

E. The problems of right of way for 11Kv and 33Kv  distribution lines within the states is one that we must overcome together. I have signed letters last week to all 36 state governors and the FCT minister, with copies to each DisCo asking them to support you in protecting and recovering the right of way for your distribution lines so that you can serve their states and residents better.

I will conclude my remarks by referring to the local communities under the Benin DisCo and address the issues that affect you while you host us:

1)    Asaba - Benin 330KV line was energized to service on 3rd November 2017. Asaba 330kv substation is now being fed from both Benin and Onitsha. The line also raised the number of circuits from Onitsha to Benin to 3 (THREE).

2)    Presently a 40mva 132/33kv mobile transformer is undergoing installation at Auchi with in-house capacity to be commissioned in 2 (TWO) weeks time.

3)    A new 330/ 132kv substation is to be constructed at Okpai with a 132kv line from the station to service a proposed 132/33kv substation at Kwale. The procurement of the projects are ongoing.

4)    Installation of a new 60mva 132/33kv transformer is to commence at Irrua transmission station any time from now.

On a final note, I am happy to announce that we have recovered $64,630,055:00 from our international customers in Benin Republic and Republic of Niger. The Nigerian Bulk Electricity Trader, (NBET) will work out the modalities for distribution.

Thank you for your attention.

Babatunde Raji Fashola, SAN
Honourable Minister of Power, Works and Housing
Monday 13th November 2017

Nov

08

2017

Fashola Flags Off 9th Experts’ Meeting On Abidjan-Lagos Corridor Highway Development Programme

•Says President Buhari is fully committed to realisation of the Project to enhance trade and communication within the sub-region

•Highway will enhance rapid sub-regional integration, improve socio-economic activities, job opportunities and curb social vices-Minister

The Minister of Power Works and Housing, Mr. Babatunde Fashola SAN, Tuesday in Abuja, flagged off the 9th Steering Committee & Experts Meeting on the Abidjan-Lagos Corridor Highway Development Programme saying the highway would  enhance rapid sub-regional integration and communication and other benefits among the stakeholders.

In his address at the Transcorp Hilton venue of the 3-day Meeting, Fashola named other benefits of the Highway to include improvement in socio- economic activities among the West African countries, creation of employment opportunities and reduction in social vices, adding that rapid integration would enable the sub-region keep abreast with other fast growing economies such as Asia and South America.

The Minister told the gathering of experts and professionals representing the five ECOWAS countries involved in the project-Nigeria, Ghana, Cote D’Ivoire, Benin Republic and Togo- “With the development of this Corridor, we will enhance rapid integration that already exists in other economic blocs in other parts of the world”.

“It will improve socio- economic activities among the West African countries and it will lead to rapid integration, creation of employment opportunities and reduce social vices among our population”, he said adding, “It testifies to the strong bond among the African countries with common goals and aspirations to develop our sub-region both in terms of standard of living for our people and the level of communication between our countries”.

Commending the ECOWAS Heads of State and Governments for their vision leading to the development of the project, Fashola described the meeting of the Steering Committee and Experts on the project as “crucial to the success of meeting the development of the Abidjan-Lagos Corridor project”.

The Minister told the Committee, “Let me say that when this Corridor is finished, very few people will see the work that you do; very few people will know how many hours you have spent preparing, planning, working and ultimately implementing the project. But I see that work, I acknowledge it and I appreciate it”.

“As you are well aware, road development drives economic growth which the West African Sub-Region must pursue to keep abreast with the fast growing economies in Asia and South America with a view to reducing the migration of our youths and also keeping our precious human capital on the Continent”, he said.

Expressing the commitment of President Muhammadu Buhari and the Nigerian Government to the realisation of the project as a means to enhance trade and communication, Fashola declared, “This is why I am also happy to report at this Opening Session that Nigeria has now signed the financing agreement, which was one of the outstanding issues”.

The Minister, who also acknowledged the support of the Minister of Finance in signing the Financing Agreement, noted that the global Ease of Doing Business report which was published recently acknowledged that Nigeria made “some inspiring progress”. He added, “And there is still work to be done if we are to deliver on vision of economic prosperity that we have”.

“This is why I am very delighted and honoured to address this meeting of experts on the Abidjan-Lagos Corridor Development Project in preparation for the 9th Ministerial Steering Committee Meeting which will hold at this venue over the next few days”, he said.

Also thanking members of the team in the Nigerian Ministry of Power, Works and Housing, from the Permanent Secretary to the Directors who were at the flag-off, Fashola, who specially thanked the Director Highways, (Planning and Development) Engineer Chukwunwike Uzo, declared, “I can say very clearly that if these Directors, our staff, were trying to build their own houses, the commitment they will show will not be greater than the commitment they are showing in the development of this project”.

Thanking the Committee members for their efforts and wishing them “very happy and fruitful deliberations”, Fashola urged them to dedicate themselves to the noble project, “a project you are clearly committed to”, adding, “It holds the key to cross-border trade, to tourism, to cultural integration and to prosperity”.

Earlier in her remarks, the ECOWAS Commissioner for Infrastructure, Antoinette G. Weeks said the meeting of the Steering Committee and Experts on the Abidjan-Lagos Corridor Highway Development would finalize the documents for the various aspects of the project including, according to her, consultancy services in financing and road safety as well as the review of the various technical studies culminating in the award of the contracts.

The Commissioner thanked Nigeria’s President Muhammadu Buhari and the Government for hosting the three day event and specifically expressed appreciation to the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, as well as the Permanent Secretary, for the ground works and preparations leading to the present meeting.

The Abidjan-Lagos Corridor Highway is a 1,008 kilometre highway that will traverse five countries in the Economic Community of West African States (ECOWAS), including Cote D’Ivoire, Ghana, Benin Republic, Togo and Nigeria and will provide access to vibrant sea ports which account for about 90 per cent exports and 60 per cent imports across the sub-region.

According to the details released at the event, approximately 558 kilometres of the highway will run through Ghana, approximately 135 kilometres will run through Benin Republic, approximately 180 kilometres through Cote D’Ivoire, approximately 57 kilometres through Togo and approximately 78 Kilometres though Nigeria.

Hakeem Bello
Special Adviser, Communications To The Hon. Minister

Nov

03

2017

Fashola Charges Universuty DONS To Produce Competitive Graduates

-Challenges them on provision of affordable housing for indigent students

The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, has appealed to Vice Chancellors of Nigerian Universities to meticulously pay significant attention to the academic curriculum of tertiary institutions, especially as it affects students in the built and construction industry. He added that ‘’this will ensure that Graduates are fit for the ever changing world and can compete favourably with their contemporaries worldwide.’’

The Minister stated this at the High Level Policy Dialogue on Affordable Housing for indigent students and low income earners organised by the Committee of Vice-Chancellors of Nigerian Federal Universities (CVC) in Abuja.

Fashola, who was represented by the Minister of State II for Power, Works and Housing, Surv. Suleiman Hassan Zarma, mnis, commended the university Dons for the laudable initiatives of the new pro-poor housing framework aimed at addressing the housing challenges of these categories of people and indeed the entire citizenry.

He stated that the CVC’s inspiration stemmed from the PhD work of Dr. Paschal Onyemaechi whose findings and research work has translated into a housing project termed ‘’Build for Nigeria’’ shared the vision of the present administration’s on-going construction of mass and affordable housing across the 36 States of the federation, under the National Housing Programme Scheme.

According to the Minister, ‘’it is no longer news that there is a huge housing deficit in the country and that the poor and low income earners are at the receiving end. It is very unfair that our children at our Tertiary Institutions are also grappling with the problem of accommodation.’’ He however assured them that government is mindful of these situations and is heavily investing on infrastructural facilities, site and services schemes, mortgage facilities, Public Private Partnership Schemes and lots more to bridge the gap of the nation’s housing deficits.

The Committee of Vice Chancellors of Nigerian Universities which is coordinating collaboration amongst all the 153 universities in Nigeria, has decided to take the lead with the Dialogue, along with other sponsors and professional bodies to identify and proffer possible solutions to the escalating low-income housing deficit and the urban housing crisis in Nigeria.

The overall essence of the research is to focus on how the benefits of Public Private Partnership (PPP) can be maximized to improve access to decent and affordable housing for low and middle-income earners in developing economies like Nigeria.

The High-Level Policy Dialogue which featured panel discussants, presented a detailed report on the strategies for the implementation of the ‘Build for Nigeria’ solution to the Vice President and other leaders representing various interest groups and the general public.
The occasion was graced by the Executive Governor of Kebbi State, Senator Atiku Bagudu, Minister of State for Education, Prof Anthony Anwuka, the Catholic Archbishop of Abuja, His Eminence John Cardinal Onaiyekan, Royal fathers and other keynote speakers.

Oct

31

2017

Road Trust Fund (Press Information Package)

1.    What is a Road Trust Fund?

The Road Trust Fund (RTF) is being set up to facilitate and incentivise private sector involvement in the provision of Nigeria’s Federal road infrastructure. It is a form of Public Private Partnership that will accelerate the provision of Federal Roads by allowing private sector operators to collectively fund road provision in exchange for tax credits.

This will complement Federal Government’s budgetary allocation to roads.

2.    What are the benefits of the Road Trust Fund?

Increases funds available for road development and accelerates road provision across the nation.  Reduces pressure on the Federal Budget by allowing private engagement.

Allows for cost reduction by providing a new benchmark in road costing.  Private sector participation in what was previously a Federal Government monopoly will create more efficient delivery of road projects. Better negotiation and the promise of prompt payment to contractors, is expected to materially reduce project costs.

Provides alternate funding to the Government for road infrastructure development.

Creates a platform for collaboration among private sector players as well as between private sector and Government.

Encourages co-operation in business districts affected by poor road infrastructure which will enhance output and reduce business operating costs.

Allows businesses to direct funds that would otherwise have been ‘tax Naira’ into much needed areas of infrastructure.

3.    Why is the Government focusing on roads?

Federal roads are critical in unlocking socio-economic development.  While they account for just 17% of the total national road network, Federal roads carry more than 80% of national vehicular and freight traffic. (Nigeria’s road network consists of 200,000Km of which N33,000km are Federal Roads according to the Ministry of Power, Works and Housing)

 The deficit in roads is so large that there is a need to mobilise additional funding sources.

4.    How does the Road Trust Fund work?

The Road Trust Fund is a revision of the existing infrastructure tax relief scheme that allows for tax relief to companies that incur expenditure on public infrastructure. To date, just two companies have been able to take advantage of this provision. The reason being that few companies are large enough to solely undertake road projects. The RTF, being a collective model, can mobilise funds from a range of tax paying companies, irrespective of their location or sector. RTF is it therefore, expected to mobilise significant capital into road provision.
RTF uses a collective model to mobilise private capital from companies of all sizes to undertake road projects through a series of Road Trust Funds.  Each Fund will be a stand-alone Collective Infrastructure Fund (CIF) using a Special Purpose Vehicle (SPV).

We  have already consulted with the private sector in the development of the RTF and some companies have already identified roads they wish to reconstruct and are organising their funding. However, this scheme is designed such that Financial Intermediaries will be promoting Road Trust Fund projects and soliciting commitments from interested companies.

5.    Why would a private company want to participate in this?

Private sector participation is being incentivised through a Tax Credit Scheme that enables all participating companies to claim tax relief based on the amount of capital contribution (on a pro-rata basis).

6.    What are the benefits of the Tax Credit Scheme to the private sector?

    Companies will be allowed to recover 100% of costs incurred on road infrastructure as a tax credit against total tax payable (including up to 10% for cost of funds);
    Accelerated depreciation to enable recovery in 3 years rather than 4 years for standard assets; and
     Ability to directly intervene in roads that are critical to their businesses which drives competitiveness.

7.    Are there special incentives for building roads in economically disadvantaged areas?

Yes. The relief allows for cost recovery within a single year instead of 3 years for economically disadvantaged areas. We are encouraging and facilitating investment across all areas of Nigeria to achieve inclusive economic growth.

8.    Would the scheme negatively affect Government revenues?

No. The effect of this scheme will be revenue neutral. In addition to the fact that we are already seeing improved performance in our tax receipts by improving tax compliance and blocking loopholes, we are proposing a cap on cost recovery to a maximum of 50% of tax payable by each participant in any year of assessment. This means that in any given year of assessment for tax purposes, at least 50% of total tax payable will be remitted.

9.    Currently, road maintenance puts a major strain on budgetary resources, has this been considered?

Reducing budgetary pressure is a major advantage of the fund. Participants are required to guarantee the road for 5 years beyond maintenance.  

10.    Will the Roads be tolled?

Once the roads are completed they are handed over to the Federal Government who may decide to toll  the roads in accordance with the National Tolling Policy.

11.    What is the role of the Ministry of Power Works and Housing ?

The Ministry is responsible for approving the road designs, monitoring all approved Road Trust Fund Projects  by managing costs and timelines as well as ensuring that equal development across Nigeria by rebalancing the Federal  budget, where necessary.

12.    How does Government ensure costs are not inflated

All costs and contractors will be scrutinised and approved by the Bureau of Public Procurement in line with legal requirements. This will ensure that costs are not inflated and that unqualified contractors are not used on the projects.

13.    Would further information be provided to the private sector?

Yes. The Ministry of Finance will develop detailed Guidance Notes on the Provisions of the new Infrastructure Tax Incentive within the next 30-days.

Oct

27

2017

Fashola Presides Over Signing Of PPA Between Qua Iboe Power Plant And NBET To Deliver 540MW To National Grid

•Says milestone event is consistent with FG’s Roadmap on Power, ERGP

•Advocates dedication, patriotism in service as building block of national development

•QIPP will utilize Nigeria’s gas resources to increase our electricity generation capacity and reduce the cost of power”, says Sanusi

The Minister of Power Works and Housing, Mr. Babatunde Fashola SAN, Thursday in Abuja presided over the signing of a 540 MW Power Purchase Agreement between the Nigerian Bulk Electricity Trading Plc (NBET) and Qua Iboe Independent Power Plant saying it was consistent with the roadmap of the government on power which is one of the five principal components of the Economic Recovery and Growth Plan (ERGP).

In his remarks at the Ministry’s Conference Room venue of the event, Fashola explained that within the responsibility framework of the ERGP, the Ministry of Power, Works and Housing had drawn a roadmap for providing power for the country which, according to him, “is to start with getting incremental energy until we can stabilize; then we go to uninterrupted power”.

The Minister said while the Ministry of Petroleum Resources bears the responsibility for the Energy component of the ERGP, his Ministry was saddled with the responsibility of the production and supply of sufficient energy and power for the people of Nigeria, adding, “a process that potentially adds 540 megawatts to our power store fits very well with our incremental power roadmap”.

“Within our responsibility framework, we have drawn a roadmap for providing power for this country which is to start with getting incremental energy until we stabilize; then we go to uninterrupted power. That is our journey”, he said.

Advocating dedication and patriotism among Nigerians in the service of the country, Fashola said such qualities should be a motivation for national service in or out of government and with or without title adding that with dedication and patriotism, there was a lot one could do to ultimately deliver one’s own share of the national commonwealth to help build prosperity for the people of Nigeria.

The Minister commended developers of the plant-Black Rhino Group, Dangote Group, the Nigerian National Petroleum Corporation (NNPC), among others - for demonstrating the aforementioned virtues. He declared, “Well, I think all of the Private Sector partners, Mobil, NNPC, the Ministry of Petroleum Resources, have demonstrated clearly that you don’t need to be in government and you don’t need a title to serve”.

He told Nigerian investors, “There is a lot you can do with dedication, patriotism to ultimately deliver your own share of the national commonwealth to help build prosperity for our people”.

Fashola thanked the Nigerian Bulk Electricity Trader (NBET), for its efforts in bringing all the parties together to make the signing of the PPA possible adding that the ceremony was important not only because of the presence of the partners but also because the media would be able to share with the members of the public what was involved in delivering the project for the good of the people of Nigeria.

The Minister declared, “I think this ceremony is important not just because we are here, but because I hope that those who cover this event will be able to share with the members of the public how much effort, how much team work, how much consensus building, how many people are really involved in order to bring ultimately to the doorsteps of Nigerians this very important commodity that is defining for our development and for our goal”.

Thanking, particularly, the NBET Managing Director, Dr. Marilyn Amobi, and the Permanent Secretary, Power, in the Ministry, Engr. Louis Edozien,  for his “very resolute determination in guiding his team and bringing all of them ultimately to safe harbour”, the Minister, however, expressed regrets that the media would not see the behind-the-scene efforts such as “the long distant calls, the emails in the dead of the night, the heated argument over the telephones and the plodding from office to office”, that preceded the event.  

He disclosed that at his Ministry’s Monthly Project Review meeting the day before, one of the projects reviewed was the preparation for the construction of the Ikot-Ekpene-Ikot-Abasi Line -which, according to him, the Qua Iboe Plant would depend on adding that the commitment of the Niger Delta Power Holding Company (NDPHC) to deliver on the project was not in doubt. “And we are looking at all the options to get that project back on track”, he said.

Urging all the stakeholders to get to work, Fashola declared, “Incidentally and fortuitously, not only will Qua Iboe Power Plant benefit from it, it will also help us release the store of energy that needs to go out to the public from the Ibom Power Plant when all of those lines are finally delivered”.

In his remarks earlier, Chairman of Black Rhino Group and Emir of Kano, His Highness Emir Muhammad Sanusi ll, said the project was being jointly developed by his Group, Dangote and the NNPC, following the purchase of the rights to do so from Mobil Producing Nigeria Unlimited adding that the plant would be one of the lowest cost thermal power plants in Nigeria “due to its efficient combined-cycle design and competitive gas price”.

Noting the importance of the project to the President and the Vice President, Emir Sanusi, who recalled the persistent follow-ups with the Power, Works and Housing Minister, other Ministers and Agencies concerned, promised that the partners would do everything possible to deliver it to Nigerians on time and schedule, added that in the next few months the partners would inject about $1.2Billion into the project.

He declared, “QIPP will utilize Nigeria’s gas resources to increase our electricity generation capacity and reduce the cost of power”, adding that the plant represented “an example of how the Federal Government of Nigeria and private investors can work together to develop infrastructure that has a real socio-economic impact in our country”.

In her remarks also, the Managing Director of NBET, Dr Marilyn Amobi, disclosed that the process took almost two years to get to the signing stage adding that the project started as an alliance between the NNPC and the Joint Venture Partners towards the response to the call by government to pursue investment in the power sector towards the privatization of Nigeria’s Electricity Supply Industry.

Commending the Minister’s role in bringing the signing event to fruition, the NBET MD declared, “Hon. Minister, I think it will be very unfair if I fail to acknowledge your doggedness…” she said, adding that he should be applauded for his commitment to the entire process and sector.

Also present at the ceremony were the Chairman, Dangote Group, Alhaji Aliko Dangote, the United States Ambassador to Nigeria, Mr Stuart Symington, NNPC COO, Mr Saidu Mohammed, among other dignitaries and top officials from both the private and public sectors.

Oct

20

2017

Fashola calls for support to end Apapa gridlock, port congestions

The Minister of Power, Works and Housing, Mr Babatunde Fashola, on Thursday in Lagos called for the collaboration of all stakeholders to tackle traffick gridlock, port congestion and other problems in Apapa and its environs.

Fashola made the call at a stakeholders meeting on the ongoing Apapa Wharf Road reconstruction project in Surulere.

The stakeholders at the meeting included the three financiers of the project, AG Dangote Construction Company Ltd, Flour Mills of Nigeria Ltd and Nigerian Ports Authority (NPA).

Others were National Union of Petroleum and Natural Gas Workers (NUPENG), Association of Maritime Truck Owners (AMATO) and National Association of Road Transport Owners (NARTO), among others.

The stakeholders, after extensive deliberations, agreed to resolve issues of logistics and regulation of truckers and port operations.

They called on shipping companies to return to the system of using their loading bays and effective call up systems to end port congestions.

They also advised AP Molar Multi Terminal (APMT), whose cargo operations take hours to emulate the operations of Port Terminal Multipurpose Ltd (PTML) who have perfected the act of evacuating cargo within minutes.

They agreed that emergency interventions should be carried out on the roads around Coconut bus stop area and some other bad portions.

They resolved to have another inclusive meeting to carry Shippers, government regulatory agencies and other stakeholders who were absent at the gathering along to evolve permanent solutions,

Fashola advised the stakeholders to organise forums where they could proffer solution to the problems and make recommendations to government to speed up solutions on various issues.

The minister stressed the need to put other ports in the country to use to reduce pressure on the two major ports in Apapa and promised to work with his transport counterpart, Mr Rotimi Amechi, to involve the rail sector in finding solutions.

He called for sacrifice on the part of the various stakeholders as the Yuletide season is approaching to ensure speedy solution to all the problems.

“During this period when everybody is sacrificing something, let us sacrifice, it is an exchange, everybody must sacrifice.
“This is not about us, it is about everybody,” he told stakeholders.

He explained that procurement process for the Oshodi Tin Can Island road was ongoing.

Earlier, Fashola had inspected ongoing rehabilitation works at Costain and its environs, which he told journalists was to ensure smooth roads during the festive period.

Honorary adviser to the Dangote Group, Mr Joseph Makoju said that Dangote was handling and co-funding the Apapa Wharf Road reconstruction project as part of its Corporate Social Responsibility (CSR).

Makoju said that it was painful that the project was being misunderstood by both the public and a section of the media who make negative remarks against the Dangote Group instead of commending it for giving back to society.

He explained that the Dangote Group also suffered from the problems of gridlock and other problems caused by port congestions as it affected their businesses and operations as well.
He added that the company was ready to tackle all problems that related to the construction raised at the forum and deliver the project within one year.

“We give our assurances that we will deliver and we need your understanding,” he said.

Mr Ashif Juma, Managing Director AG Dangote Construction Company Ltd, contractors handling the project said that there was massive deployment of men and equipment to site as the rainy season ended adding that by November significant visible progress would be seen in the construction.

Juma explained that it was not easy to work on old roads because some unexpected problems usually came up in the midst of the project.

He added that the firm was working closely with the Federal Ministry of Power, Works and Housing (FMPW$H) on the project and that work tempo would double in November.

“We will work two shifts seven days a week. We cannot do this work without your help,” he told the other stakeholders.

The NPA on its part promised to begin enforcement of traffic regulations in port areas which include Oshodi, Babs Aminasaun, Costain and Ijora Olopa road areas,

NAN reports that Fashola, on June 17 signed the N4.34 billion Memorandum of Understanding (MOU) for the reconstruction of the four kilometres Apapa Wharf road with AG Dangote Construction Company Ltd and other companies.

The project is being funded by AG Dangote Construction Company Ltd, the Nigerian Ports Authority (NPA) and Flour Mills of Nigeria.

Source: NAN

Feb

05

2018

“STRIKE MUST BE A LAST RESORT” - FASHOLA

The Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola has expressed that industrial actions such as strike should be the last resort and not the first option when trying to resolve problematic situations or issues.

Fashola stated this at a meeting with the leadership of the Nigerian Association of Road Transport Owners (NARTO) and the Petroleum Tanker Drivers (PTD), branch of NUPENG when the former paid him a courtesy visit on Thursday, February 1st, 2018 at the Ministry conference room.

He revealed that the Tatabu Bridge will be completed before the end of the year but however denied corrupt practices in road execution as alleged, saying that the “solution to bad roads is a long process” while requesting that evidence and proof of corrupt practices concerning the sector should be brought forward for investigation.

The National President of NARTO, Dr. Kassim Bataiya, earlier in his speech commended the Federal Government under the leadership of President Muhammadu Buhari and particularly applauded the Ministry for its commitment and performance thus far.

Dr. Bataiya noted that the present administration is making effort to reverse the situation of bad roads by approving the rehabilitation, dualisation, construction and re-construction of several Federal highways across the six geo-political zones.

While enumerating the causes of road failure to poor design and construction; poor maintenance; use of low quality materials, heavy traffic and so on, the association suggested both short and long terms recommendations such as banning the importation of 60,000-litre capacity tanks into the country, the use of rail transport for the movement of heavy equipment, FERMA to be directed towards ensuring routine maintenance are carried out on regular basis, dumping of refuse, as well as hawking to be prohibited amongst others.

The Association further appealed to government ‘to take cognizance of the non-availability of trucks”, and “think of how to provide enough trucks to transport the extra load that will be generated due to the application of the axle load policy. It stated that the total number of active trucks in the country is not more than 20,000.

A presentation of update and work done so far on Federal roads and bridges was done by the Director, HighWays Planning and Development, Chukwunwike Ogbonna Uzo, who explained that the ministry had already planned to meet with all stakeholders in the sector in other to wholistically fashion out the way forward for the sector.

Also in attendance at the meeting was the Minister of State I, Ministry of Power, Works and Housing, Honourable Mustapha Baba Shehuri and relevant Directors of the Ministry.

Feb

01

2018

Remarks by the Honorable Minister. During the Presentation of 20 Years Transmission Expansion Master Plan for TCN on 30 January 2018

When the Buhari administration was inaugurated in 2015, the story of Transmission Company of Nigeria (TCN) was the story of a lack of capacity to transport generated power.

With or without verification, the popular view was that TCN had only a rigid capacity to transport 5,000 MW of energy and no more.

With a mandate to improve TCN’s capacity, supported by appropriate policy approvals from Mr. President and budgetary support, that story is changing.

The budgetary support has been most helpful; first in enabling TCN to pay warehouse and shipping companies to recover over 500 containers of goods and equipment left at the port for many years before the Buhari administration.

Secondly these containers and the equipment are now regularly being transported to TCN sites and substations to restart and complete transmission projects that had stalled for years.

TCN’s capacity to transport energy has steadily but surely grown to 7,125 MW as at December 2017.

With more projects heading towards completion in 2018 and beyond, this capacity will increase.

But increased capacity is not the real story.

The real story is that the increase is now orderly, logical, and targeted to address, as a priority, locations where there is existing power or incoming power.

This will ensure that in due course we do not have stories of stranded power again in our conversations about energy production and supply.

Ladies and gentlemen, this is the background that makes today a milestone day in our journey of incremental power, aiming to achieve steady power, and ultimately deliver uninterrupted power.

We gather to receive the 20-year Transmission Expansion Master Plan by Fichtner and participate in a workshop which would enable stakeholders the opportunity to review and improve the report.

With the completion of the 20-year Transmission Expansion Plan, the era of trial and error in the transmission expansion program will be over.

I accepted to open this workshop based on my conviction that the report will clearly bring out the future development of improved power system delivery in Nigeria for the next 20 years; starting from gas supply through the other power supply value chain.

The development of the master plan started in 2016. The objective of the studies is to complement the transmission rehabilitation and expansion program and power sector recovery plan by establishing the long-term generation and transmission plan that meets the forecasted national electricity demand at the lowest economic cost.

I therefore urge the CEOs of all generator and distribution companies to work closely with TCN to ensure that the outcome of the report is carefully reviewed and practical implementation should commence after obtaining formal approval from the relevant agencies.

The NERC and NBET are implored to key into the master plan when procuring additional generation, while the Discos should follow the Transmission plan for developing their own distribution master plan.

This is a new dawn for order and methods in the process of solving the power problem.

On behalf of the President, the Federal Government of Nigeria, I accept this report and commit that our team will do our best to implement its recommendations for the benefit of our people.

Thank you for your attention.

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

Jan

22

2018

Senate Committee Members Applaud As Fashola Reports 71.58% Q2 Performance For 2017 Budget

*  ’’I will like to say here that I have not seen any Budget of that magnitude funded up to 71 per cent; never’’, says Member

*  Members agree on necessity for bulk budgeting to fund roads but ask that the current budget plan continue until the process is changed
 
The Senate Committee on Works Tuesday applauded as the Minister of Power, Works and Housing, Mr Babatunde  Fashola SAN, reported that the 2017 Budget for his Ministry has achieved 71.58 per cent implementation as at December 2017.

Fashola, who had gone to the Committee Meeting to defend the 2018 Budget proposal for his Ministry, told Members of the Committee that based on all the payments made to contractors for all the works done since the commencement of the projects to date, the current Budget Performance for the second release of the Budget year now stood at 71.58 per cent.

Recalling that he first reported a performance of 15.3 per cent based on payments of N57Billion made after the first release of money, the Minister, who explained that he could not quote the full performance then because, although the works had been completed and the certificates in, they were yet to be paid for, pointed out that based on some payments that were made between December 2017 and January 2018, the Performance had now gone up to 71.58 per cent.

He told the Committee, ’’As I said in my introductory remarks, as at December 2017, we could only report what we had paid for, which was a lot less than the work that had actually been done; because the releases that we had for first release under 2017, was made in August 2017 and it was for N57Billion as you could see. So it was not until December 2017 that we got the second allocation of N120Billion and we also got some disbursements from the SUKUK in the sum of N57Billion’’.

’’Now, based on some payments that have been made between December 2017 and now (January 17th 2018), after the second release came to hand, we have paid out N57Billion as I said in the first release, N57.4Billion also released under the SUKUK and N120Billion. So this takes the Budget Performance up from 15.3 per cent in Q1 to 71.58 per cent as at today’’, he said eliciting applause from the Committee Members. He noted that this is the first time the Federal Government has recorded such impressive performance.

The Minister, who noted that the budget has run just a little above two Quarters (June 2017 – January 2018), declared, ’’Our new performance now is 71.58 per cent. The details of those payments are what is broken down in Annex 1 covering, I believe, about 526 projects at various levels’’. He added that the Overhead Costs of the Ministry and its Parastatals currently stood at 62 per cent while the Personnel Cost which, according to him, was being implemented would be reported through the Office of the Accountant General of the Federation.

Referring the Members to Annexure 1 of the document, Fashola said it contains details of the 526 projects listed there and various roads across the six geopolitical zones including breakdown of payments, physical progress of work, the certificates and the amount that have been paid, the budget performance and the progress of work achieved.

The Minister reiterated that the 2017 Budget was in the sum of N586.535Billion for the Ministry of Power, Works and Housing and its parastatals.

Also contained in Annexure 1, he said, were Overhead Costs in the sum of N15.047Billion, broken down in Paragraph  B for the main Ministry, Parastatals and Agencies like FERMA and so on and so forth, the Personnel Costs amounting to N13,556,553,547 also itemized for the three sectors of the Ministry as well as the breakdown between the Main Ministry and the other sectors.

Responding to questions from members, especially on the status of roads in the 2017 Budget which were not awarded in the Budget year, Fashola reiterated his earlier call for a bulk amount to be provided in the annual budget to fund roads adding that it would make for the continuous funding of the roads not awarded during the budget year.

According to the Minister, this would also solve the recurring problem of a project meant for one annual budget reappearing in the budget for the following year or being abandoned adding that the present process whereby the Procurement Law stipulates a process that takes up to six months as well as other processes involved before the award of a contract was responsible for the aforementioned situation.

’’The truth is that I don’t see any self-respecting public officer, not the least of the people who are with me here, that want to start a project and not complete it; that I can say on their behalf, they don’t want to abandon any project. But from their experience, which I have come to share, is that in some budget years, when budget is passed they find zero location for some projects. So their enthusiasm is lost if their tool is taken away”, he said adding, however, that things have changed in the last two years.

The Minister continued, “The question we must ask ourselves is, can we finance new projects every year? We are constructing roads in a very limited weather window and a very long drawn Procurement process of about six months every year and without completing one, we go to another because our constituents want them”.

Fashola, who also noted that some of the roads being constructed run from 50km to  about 500 kilometres, added that if in a state where they have three to five kilometre roads, it usually took 24 months to finish. Would it be physically possible to expect such lengthy roads to start and finish in one budget year? He advised that that it was necessary to adopt a process that would work for the country. “Our resources are not increasing in the same exponential manner in which we are committing to new projects and we have projects that will have to be completed”, the Minister said.

Commenting on the budget performance, Chairman of the Committee Senator Kabir Gaya, commended the Minister for the performance saying in the history of budget performance in the country in the last ten years there has not been such achievement adding that the budget for Works in 2014, which, according to him was much smaller than the 2017 budget could not achieve up to half performance while the 2017 budget of over N500Billion had performed so much in just two quarters.

“I want to say that in the history of our budget performance for the last ten years we have not seen such but in just two years we are seeing systematic progress. There was a budget of N20Billion I think in 2015 and the budget in the last two years has tripled that. This shows that this Government is concerned about improving the state of infrastructure”, the Chairman said.

Noting that there have been some projects abandoned for 10 years before the coming of the present administration, the Chairman declared, “This administration has graciously put money into them. So I think Honourable Minister, I believe you are equal to the task you will continue to handle it and we know you are capable”. 

Also commenting on the performance, another member of the Committee, Sen. Barnabas Gemade, from Benue State, described it as something that had never happened before in the country. His words, ’’In line with the Chairman’s comments, I will like to say here that I have not seen any Budget of that magnitude funded up to 71 per cent; never’’.

Most of the Committee members were, however, agreed that although the idea of creating a bulk budget to fund roads was good, it was necessary that the Government continued to function with the existing Procurement Law, Budget practice until such a time a new and acceptable Budget plan would be put in place.

With the Minister at the Budget Defense were the Permanent Secretary, Works and Housing, Mr Muhammed Bukar, the Director, Finance and Accounts, Mr Ibrahim Tumsah, the Director, Public Procurement, Mr Ibrahim Badeiri, the Director Highways, Planning and Development, Engr. Chuks Uzo, and the Director Highways, Construction and Rehabilitation, Engr. Yemi Oguntominiyi among other senior officials of the Ministry.

Jan

16

2018

Federal Ministry of Power, Works and Housing
Public Procurement Department (Power Sector)

Re - Request for Quotation

The Federal Ministry of Power, Works & Housing (Power Sector) hereby wishes to inform the general public and the contractors who responded to the REQUEST FOR QUOTATION on (SUPPLY OF ITEMS AND SERVICES) earlier issued via our On-Line portal, dated Thursday 8th December, 2017 as extended is hereby stepped down by the Ministry.

2.    This decision was taken due to some difficulties experienced in our On-Line procurement network and web platform; this caused some stalemates which considerably negated some procurement ethics and the due confidentiality the Ministry seeks to advance.

3.    The Ministry sincerely regrets any inconvenience this decision may have caused the public and the Bidders/Contractors. This action taken by the Ministry is to ensure probity and better service delivery.

4.    Interested contractors are hereby informed that the stepped down procurement shall be repeated among the first round of our procurement Notices/Request for Quotation in the Month of January, 2018.

5.    Thanks for your patronage.

Signed
Permanent Secretary

Jan

09

2018

Remarks By Babatunde Raji Fashola, SAN At The 23rd Monthly Power Sector Operators Meeting Held In Lafia, Nasarawa State, Monday 8th January, 2018

I will like to start this my remarks by highlighting the Progress and milestones on our journey for incremental power which reassure us that we are on the right path and inspire us to continue with more belief.

Those milestones are represented by:
a. Generated power has gone up to 7000 MW in 2017 from 3,000  MW in May 2015
b. Transmission Capacity at 6900MW in 2017 from  about 5,000  MW in May 2015
c. Peak Distribution now averaging 5,000 MW in 2017 from 2,690MW in 2015.

That said I will like to thank all of you for your contributions towards these milestones.

The reason I thank you is because you are impacting the lives of Nigerians, you are saving them money and changing their lifestyles for the better.

They tell me that their consumption of diesel and petrol to run generators for power has reduced and the hours they run their generators has gradually reduced.

This is the result of incremental power and we must get more of it.

They also tell me that they are now monitoring how they use power and are turning off appliances that are not needed.

Although this is meant to save costs, it also conserves energy, reduces waste and supports incremental power.

In the last 3 months we have increased the supply of power in the dry weather and people’s experience with power was better.

We must thank the Ministry of Petroleum  Resources for the increase in gas supply .

The cynics who used to say that it is only during the rains that power improves now see that what we have done is no fluke.

Apart from Gas other stakeholders are also taking commendable steps.

A few months ago the Nigerian Electricity Regulatory Commission (NERC) formally presented the Mini Grid Regulations at this meeting and its impact is beginning to manifest.

Last month in Abuja, Nigeria through the Rural Electrification Agency  hosted a Mini Grids Summit that is the largest ever attended in Africa with 600 participants from about 40 Countries.

The word is spreading around the world as mini grids will help us connect more people and boost incremental power.

We are also putting together a policy position to help expand the distribution network of the DisCos and use this to distribute the 2000MW that is currently available but cannot be distributed.

I also use the opportunity to call out to Manufacurers to let us know where they are, how much power they need, and how we can connect you because we have 2000 MW of undistributed power.

This year we should work harder to increase our people’s access to meters and reduce the incidents of estimated billing as NERC concludes the Meter Regulations that will open up the meters supply and installation business.

In the first few days of the new year we suffered a set back to our power supply which was caused by damage to the gas supply network around Okada.

First, I want to repeat that gas is the fuel that most of the generation companies use to produce electricity and all of us have a stake in ensuring that they are not damaged.

Secondly, I am happy to inform Nigerians that as at last night the Nigerian National Petroleum Corporation (NNPC) informed us that repairs have been completed. We thank and commend them for their response.

Thirdly, what remains is to test the lines and restore pressure and supply to the generation companies.

One by one all the stakeholders from GenCos, TCN and DisCos will work to restore supply to the levels they were before the pipeline damage.

From there we will continue our journey of incremental power.

I wish you all a happy new year.

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

8th January 2018

Dec

21

2017

NEMSA Embarks On A Nationwide Technical Monitoring And Evaluation Of Primary 33kv Feeder Lines With Associated 33/11kv Injection Substations

The Nigerian Electricity Management Services Agency (NEMSA) has commenced a Nationwide Technical Monitoring and Evaluation of the primary 33KV feeder lines and associated 33/11KV injection substations with supply source from 330/132/33KV transmission substations.

The exigency of the exercise is to identify constraints militating against quick realization of the Federal Government’s policy and efforts for sustainability of the incremental, steady and uninterrupted power supply as they are achieved through the 33KV primary feeder lines to the 33/11KV injection substations and subsequently through the 11KV feeder lines and associated distribution transformers and finally to the consumers. Also this is to identify the high risk and technical loss points along the 33KV feeder lines. Again this is to enable NEMSA find out the causes/reasons for load rejection by the DisCos and to make recommendations for dealing with identified issues/challenges.

Engr. Peter O. Ewesor, the MD/CEO NEMSA & Chief Electrical Inspector of the Federation, while on one of the inspections, said “the importance of the exercise cannot be overemphasized in light of the spate of the increasing number of electrical accidents and incidents, power failures/outages at the downstream-of the power value chain (power distribution networks) even when there is a huge increase in power generation in the grid system”.

The exercise, which commenced on the 18th of October, 2017, has so far covered Abuja, Ikeja, Kano, Benin, Port Harcourt, Kaduna and Enugu DisCo’s networks and the exercise is still ongoing.

Furthermore, Engr. Ewesor said “the exercise will identify high risk defective networks that pose serious threat and danger to operators’ operational staff and the general public for immediate attention and correction/rectification by respective DisCos and TCN. 

Therefore, the importance and the expected positive impact of this National Technical Monitoring and Evaluation exercise which is part fulfilment of NEMSA’s mandate cannot be overemphasized.

During the exercise, some of the DisCos were given immediate order to effect rectification of the defects and lack of procedures that were observed.

Dec

15

2017

Hand Over Of Presidential Lodge To LASG : FG Keeping Its Promise As Done With Bodo-Bonny Bridge, Mambilla Hydro Power Project - Fashola

* It s in fulfilment of commitment and promise by the President of Change   Minister
* Ambode expresses appreciation to Buhari, Osinbajo, Fashola
* Says asset will be turned into National Monument, Tourist Centre

The administration of President Muhammadu Buhari, on Tuesday further improved its rating as one that keeps its promises as the Federal Government signed and exchanged the documents that finally vests the ownership of the historic Presidential Lodge on the Marina in Central Lagos to the Lagos State Government almost two decades after the process began.

In a brief but impressive ceremony at the Conference Hall of the Ministry of Power Works and Housing, the Minister, Mr. Babatunde Fashola SAN, said the event was taking place in fulfilment of the promise made by President Muhammadu Buhari at inception adding that the formal handover had brought to an end a journey that had lasted almost two decades.

Reiterating that successive Governments of Lagos State had made strong representations to the Federal Government for the handover of the asset and others like it to the State, Fashola added, “This is a long journey that has come to an end. It is a journey that has taken almost two decades during which the Lagos State Government has asked that the ownership of this property be vested in it”.

The Minister, who noted that events in the past had made it seem as if the handover would not happen, declared, “But the President of Change, the Promise Keeper, has made it possible”, adding that while the Lagos State Government has already taken possession, the event of the day was to formally sign and hand over documents that would establish the rights of the State Government to the ownership of the property.

Congratulating the State Government on the occasion, Fashola, who also congratulated Governor Akinwumni Ambode for the 2018 Trillion Budget which he recently presented to the State House of Assembly, said the event was “consistent with President Buhari’s promise to respond to those many other things that had been left undone”.

The Minister, who named such things that had been left undone to include the Bodo-Bonny Bridge, that waited for over 20 years and the Mambilla Hydro Power Project added that like Bodo and Bonny “which has brought hope to the people of Bonny” and the Mambilla Power Project to the people of Taraba, Lagos State had become a beneficiary of ä promise kept”.
Responding, Governor Ambode acknowledged the spirited efforts made by the Minister, who was his immediate predecessor in Government, when he was Governor of the State, to get the ownership of the property back to Lagos adding that the State Government’s intention was to turn the asset to a National Monument as National Centre for Leadership and also a Tourist Centre.
Expressing delight at “this historic day”, Ambode, who was accompanied by some members of his Cabinet, added, “This day actually finalizes the intention of Mr President to actually bring positive change to Lagos. We want to sincerely appreciate Mr. President, Muhammadu Buhari who has graciously approved that the Presidential Lodge be released to Lagos State”. The Governor also expressed appreciation to the Vice President, Prof. Yemi Osinbajo and the Chief of Staff to the President, Mallam Abba Kyari as well as everyone that played a role towards the realisation of the handover.
“We have been trying to get this particular asset back to Lagos, just like the Minister had said, for the last 20 years”, the Governor said, describing it as both delightful and significant that “on this particular day, it is my Predecessor, and now the Minister of Power Works and Housing, who is now actually doing the final handing over of the property for which he, as Governor, fought hard to get back to Lagos State”.
Also describing as, “actually gratifying” that the Minister was the one “positioned to happily do the documentation and handing over of the asset to Lagos State”, Ambode said it was “a sign of greater things and greater collaborations between Lagos State and the Federal Government”, adding, “We believe strongly that this singular gesture will improve the economy of not only Lagos State but that of the whole country”. 
Also present at the event were the Minister of State, Hon Mustapha Baba Shehuri, the Permanent Secretary Works and Housing, represented by the Director Finance and Accounts, Mr Ibrahim Tumsah, the Director Highways (Planning and Development), Engineer Uzo Chukwunwike , Director, Human Resources, Mrs Motunrayo Alimi, Director, Legal Services, Mrs Justina Shuwa, other Directors, Special advisers and other top functionaries in the Ministry as well as members of the Lagos State Executive Council such as the Secretary to the State Government, Mr Tunji Bello and Commissioner for Information and Strategy, Mr Steve Ayorinde  among others.

Nov

30

2017

Keynote Speech By Babatunde Raji Fashola, SAN At United Nations Sponsored FRSC Capacity Building For Implementation Of The United Nations Road Safety Legal Instruments

I welcome this opportunity to be your Keynote Speaker at the United Nations-sponsored Capacity Building Program for the Federal Road Safety Corps (FRSC).

This opportunity provides me with a very important public platform to share my thoughts about the direction in which I think FRSC should be heading, and what we, the Government of Nigeria, should be doing to enable her towards that direction.

I will also use this opportunity to address some assumptions and explode some myths about road traffic accidents in Nigeria, and what we should be doing to reduce the incidents of road traffic accidents, and the attendant loss of life, limb and property.

The technical capacity which the facilitators from the United Nations Economic Commission for Europe Road Safety Secretariat will offer the FRSC is only one side of the capacity issues that FRSC needs.

The other side of FRSC’s needs is in the nature of equipment, tools, infrastructure and financial resources necessary to give them a visible and responsive presence on all Federal Highways in Nigeria.

Thankfully, the Corps Marshal, Mr. Boboye Oyeyemi, who is very passionate about his work, has responded to my request to him to submit an inventory of needs like bikes, patrol vehicles, and medical equipment that can help save lives. This is in the region of N16 billion in the first instance, and I have directed our Ministry to send this to the office of the Secretary to the Government, who supervises the FRSC on behalf of the Presidency, to whom FRSC reports.

I made a case for support for this funding to the Senate Committee on FERMA when I appeared before them recently, and not only are they well-disposed to the idea of appropriately resourcing FRSC, they expressly committed to taking action to sensitise their colleagues to the necessity.

This is as it should be, because if security and safety of lives and property is a most important duty, agencies like FRSC, who are our first responders at scenes of road accidents must be well-equipped to respond within the Medical Golden Hour, to ensure that accidents, when they inevitably occur, do not result in loss of life.

Not only must FRSC therefore have the necessary complement of vehicles and bikes to track down over-speeding drivers and bring them within control, they must have Mobile Intensive Care Units on wheels (not mere ambulances), with doctors, nurses, paramedics and other medical personnel at strategic points nationwide, to administer First Aid , and other life saving measures until victims are successfully moved to proper hospitals.

Really and truly, investing in at least one helicopter with medical evacuation capacity and well-trained staff for FRSC in each geo-political zone, if it is just to save one Nigerian life (which may be anybody), is consistent with one of the 3 (three) pillars of the Economic Recovery and Growth Plan (ERGP) which is “To invest in our people”.

While there is a lot more that can be said about building the capacity of FRSC, I will leave the details to the FRSC. I think the most important point has been made: we must invest to save lives.

The other point, which lies at the heart of FRSC’s existence, the UN capacity building program, and everything that FRSC stands for, is Road Safety, Road Traffic Accidents, the causes, and what we must do more of to reduce the incidents.

First, let me speak to the conditions of our roads.
I will classify them into 3 (three) broad categories, namely:

A. Those that have outlived their design life;
B. Those that are within their design life; and
C. Those that are just being built.

For those that have outlived their design life, they should have been replaced and rebuilt, but they have not. Roads like the Calabar-Itu-Odukpani fall within this category.

They were built in the 1970s, and not only have they outlived their design life, they have had to deal with tonnage and capacities well beyond what their design intended.

Can such a road be truly expected to stay intact and deliver a pleasant motoring experience? Put differently, can anyone of us today wear the same clothes we wore as teenagers and expect it to fit and not rip apart?

Thankfully, these type of roads are now receiving attention under President Buhari, as the Calabar-Itu-Odukpani, Gombe-Biu, Ilorin-Jebba and other roads that fall within this category are being awarded for reconstruction, along with the third class of roads which are just being built (like Oyo-Ogbomosho Bye pass, Loko-Oweto Bridge, 2nd Niger Bridge, Kaduna Bye pass, Kano Bye pass), where contractors have returned to site, after demobilizing for non-payment for up to 3 years.

As for the second category of roads, which are within their design life, they have been victims of overloading, right of way abuse, and lack of maintenance as depreciation sets in.

Members of the public must know that roads are depreciating assets. They do not last forever, and require regular maintenance and, with time, replacement, if they are to serve their intended purpose.

These factors of abuse and lack of maintenance combine to reduce the quality of our motoring experience on the roads. With this background, I will now pose the questions: How bad are our roads?

Some have repeatedly said, “All the roads are bad.”

That is not true.

We have good parts, and bad parts caused by abuse and lack of maintenance.

Can you sleep in your office suit and shirts, refuse to wash and iron them, and really expect them to look good on you?

A recent survey that I directed should be conducted produced instructive and educating results about the degree and extent of bad portions of our roads.

Otta-Abeokuta road in Ogun State, with a length of 64km, has failures at:

A.     KM 20 + 775 to 23+275 (2,500 metres) at Sango-Otta flyover to Tipper Garage;
B.     KM 24+275 to 24+725 (550 metres) at Owode to Ifo;
C.     KM 44+113 to 53+147 (9,034 metres) at Papalanto to Itori

A total failure length of 12,084 m out of 64,000 metres, which is 18.75%

While 1 meter of failure is not acceptable, and we are mobilizing the contractor back to this road shortly after 4 years without a budget, the point is that 18.75% out of 64KM does not support the conclusion that “all” of the road is bad.

A similar survey on the Asaba-bound sections and Benin-bound sections which I asked to be carried out on the Benin-Asaba Dual Carriageway last week, also showed that the total aggregate of potholes and failures on the Asaba-bound section amounts to 3.02% of the total road length, while the total aggregate of potholes and failures on the Benin-bound section is 1.51%.

We are preparing remedial action to restore these sections.

The same is true of the Asaba-Illa-Ebu-Edo State border road, which is one of 44 roads across Nigeria and the 6 (six) geo-political zones where remedial work will start in a few weeks time once we conclude procurement.

These roads are the inherited legacy of road abuse and lack of maintenance, which President Buhari intends to change. This is why President Buhari has recently reconstituted the management of FERMA, the statutory agency responsible for maintenance of our roads.

They assumed office in the first week of October 2017, and from my interactions with the team, I am optimistic that Nigerians will experience change on their roads when they begin to implement their maintenance plan, which they constantly review with the Ministry.

Many of us, some of whom have not used the roads, readily describe our roads as a Death Trap. Really?

I undertook a tour of our roads earlier this year to see things for myself. We went by road and travelled in two coaster buses, driving for at least twelve hours everyday. We left at 8a.m daily and drove until 8p.m at the least. On one occasion, we drove for 18 hours, from 8a.m to 2a.m the following day.

We drove through different sections of roads that had outlived their design life, those that are within their design life with failures in some cases, and those that are currently under construction, where the drive was smooth.

We were not trapped, and we did not die. The only incident we had as we traversed 34 states (with Jigawa and Kebbi left to tour) was a tyre change on the Numan-Jalingo road. We drove at a maximum of 100km per hour. We had no accident.

How many people remember that there is a speed limit on our roads, in spite of FRSC’s efforts to introduce speed-limiting devices? How many people know or remember that there is a braking distance in driving?

FRSC will be 30 years next year, and they have acquired enormous experience and data that we must use if we are to reduce road traffic accidents and save lives.

Every month, my office receives a copy of the road traffic incidents Report across the country from FRSC, which I read, and direct that the Ministry respond to the findings and recommendations as they relate to road conditions, and causes of accidents.

Between June 2015 and August 2017, the report and data gathered by FRSC reveals indisputably that the biggest causes of Road Traffic Accidents on our roads are as follows.

A.     Speed violation - 26.63%
B.     Loss of Control - 23.04%
C.     Dangerous Driving – 9.37%
D.     Sign light violation – 9.57%
E.     Tyre Burst – 6.25%
F.     Wrongful overtaking – 5.92%
G.     Bad road – 0.55%

Of course there are other causes like Brake failure, sleeping on the steering, poor weather, overloading, which are not indexed above because they are not necessary to make the point that bad roads are not the primary cause of accidents.

Based on this data collated by FRSC, whose sector commanders in all 36 states and the FCT are our first responders at accident scenes, can anybody still make the argument that bad roads are the cause of Road Traffic Accidents? It seems not.

However, while I am willing to agree that bad roads may contribute, an unlicensed driver (and, presumably, an incompetent one); a driver with bad sight (without corrective glasses); an over-speeding driver; one who does not know the appropriate pressure to inflate his tyre; or who does not know that he should not overtake at a bend, does not help his own safety or that of the other road users.

Poor sight and these other factors must be addressed as we saw recently at the accident scene that occurred on Kara Bridge in Lagos, where there was no pothole and people still died in an accident.

Ladies and Gentlemen, I will now conclude by restating some of the things that we need to do, which are easy, in order to reduce incidents of Road Traffic Accidents and loss of lives.

As we prepare for the high volume of traffic that will characterize end of year movement for Christmas, FRSC has been mandated to undertake random checks for drivers without driver’s license, who must be taken off the roads to reduce the threat they constitute to themselves and other road users.

FRSC will also take steps to curtail over-speeding and reduce incidents caused by over-speeding. They will also, within the limit of their resources, ensure observance of traffic rules, restrict drivers to their lanes, reduce incidents of wrongful overtaking, and, hopefully, reduce accidents.

This undertaking of protecting lives and preventing loss of property is not that of FRSC alone. All of us, as road users, employers, have a role to play.

It will help us if those who own transport businesses play their part by ensuring that all their drivers undertake mandatory eye test and get corrective glasses to help their vision, improve their judgment, and reduce driver errors.

All my own drivers have been subjected to those tests and so have I. I do not need my glasses to read.

I need them to see better because I am short-sighted.

All those who drive over long distances must invest in their own safety and get enough rest before undertaking long journeys; and where necessary, fleet operators must recruit relief drivers.

Finally, in all that FRSC has to do, I have met with all the sector commanders and impressed upon them the ‘S’ in their name is the most important reason for their existence.

It stands for ‘Safety’.

They must remember that whatever they do must be in aid of safety and not contrary to it.

I wish you all a safe motoring experience and a Merry Christmas, as our Government continues to improve safety on our roads and give you a better motoring experience.

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

Nov

17

2017

FG’s Massive Investment In Construction, A Pinnacle To Economic Growth And Recovery

The Vice President, Prof. Yemi Osinbajo, SAN, has stated that the Administration of President Muhammadu Buhari adopted one of the most effective strategies to drag the nation’s economy out of the woes of recession through massive spending and investment in the construction industry.

Professor Osinbajo noted that the present government understands very clearly the critical role the construction sector plays in a nation’s industrial and economic development. He added that ‘’apart from providing houses for the citizens and roads to facilitate societal integration and movement of goods, the construction sector creates formation and wealth in the economy.’’ According to him, the multiplier effect and employment generated by the on-going construction of National Housing Programme, covering all the 36 states of the federation and FCT is as a result of massive spending on construction by government.

Speaking at the 27th Biennial Conference and General Meeting of the Nigerian Institute of Quantity Surveyors in Abuja, the Vice President, represented by the Honourable Minister of State II for Power, Works and Housing, Surv. Suleiman Hassan Zarma, mnis, said the theme of the conference: ‘’Developing the Economy for Sustainable Growth- The Construction Industry as an Effective Stimulant’’ is a key component of the Change Agenda of Mr President.

He commended the President and members of the Institute for demonstrating responsibilities to contemporary issues relating to government for the growth and development of Nigeria, adding that Government will sustain the collaborative efforts with key stakeholders like the professionals, contractors and manufacturers to bring about the much desired transformation in the industry.

Earlier in her opening remarks, the President of the Nigerian Institute of Quantity Surveyors (NIQS), QS Mercy Iyortyer stated that the choice of this year’s theme is part of the Institute’s ongoing efforts in contributing to the change mantra of the present administration in the area of sustainable economic growth and national development.

QS Iyortyer on behalf of the Institute commended the government of the day for taking the bull by the horn in getting the country out of recession thereby reducing dependency on oil revenues and diversifying the economy by harnessing other industries such as agriculture, manufacturing and solid mineral as well as tackling other macroeconomic factors.

The president of NIQS appealed to the government to consider reformations in the sector by constituting a Construction Industry Board or Council comprising key players in the Industry who will advise, plan and execute reforms that will galvanize the Industry into the needed stimulant for sustainable economic development and growth.

There were keynote addresses by the FCT Minister, Muhammad Musa Bello, past Presidents of NIQS and other major stakeholders in the sector that graced the occasion. The meeting is expected to issue a communiqué at the end conference which will be forwarded to the appropriate authority for necessary action.

Nov

15

2017

FG Recovers $64.6m Electricity Debt From International Customers

The Federal Government on Monday announced that it had recovered 64.6 million dollars electricity debt from its international customers.

Minster of Power, Works and Housing, Babatunde Fashola announced this at the 21st monthly power sector meeting in Asaba.

Fashola, in a text of his opening remark made available to the News Agency of Nigeria (NAN) in Abuja, said that the money recovered was from Benin and Niger Republics.

He said that Nigerian Bulk Electricity Trader (NBET) would work out modalities for distribution of the fund to the value chain operators.

The minister also announced that Rural Electrification Agency (REA) had completed guidelines for the operation of the rural electrification fund.

He said that the fund would help vulnerable groups and communities to gain access to funding to support their electricity development programme.

“By way of explanation, the rural electrification fund was created by section 88 of the Electric Power Sector Reform Act (EPSRA) of 2005 to promote support and provide rural electrification access.

“The fund will provide a partial single payment capital subsidy and or technical assistance to eligible private Rural Power Developers, NGOs or communities to invest in options such as hybrid mini grids or solar home systems to scale up rural access to electricity.

“What they are likely to get are minimum amounts of N3.5m and maximum amounts of N106m or 75 per cent of project cost whichever is less,” he said.

According to him, REA will publish details of the guidelines and eligibility.

These, he said, were only headline items of developments that characterised the progress the government was making month after month, especially since March 2017.

He said that progress was also being recorded at the distribution levels.

He listed the recent achievements in the franchise areas of the Benin DisCo to include the newly completed Asaba main 2x15MVA injection substation commissioned on Monday.

Fashola said the completion of the substation was expected to improve service by reduction of load shedding and increase power supply to Okwe, Akuebulu, Jarret, Ogbeofu, Osadebe way, Okwe housing estate and Oduke.

“Minute by minute, hour by hour, day by day, week by week and month by month we have not only gained momentum, we are seeing progress that inspires us to continue, because the power problem can be successfully managed by Nigerians.”

On further measures to improve power supply in the coverage areas of the Benin DisCos, Fashola said Asaba – Benin 330KV line was energized to service on Nov. 3.

Asaba 330kv substation is now being fed from both Benin and Onitsha.

“The line also raised the number of circuits from Onitsha to Benin to three.

According to him, a 40mva 132/33kv mobile transformer is undergoing installation at Auchi with in-house capacity to be commissioned in two weeks time.

Fashola also disclosed that a new 330/ 132kv substation would be constructed at Okpai with a 132kv line from the station to service a proposed 132/33kv substation at Kwale.

He also hinted that installation of a new 60mva 132/33kv transformer would commence at Irrua transmission station any time from now.

The minster thanked well-meaning Nigerians who acknowledged that their experience on the power supply had improved, adding that their honesty inspired government and the operators to continue the improvement.

He, however, admitted that there were other challenges that must be collectively addressed.

On estimated billing and metering, he also explained that government and sector operators were anxiously awaiting for the regulation from NERC to open up meter supply business.

Nov

10

2017

Before Perception Becomes Reality

A Statement By The Hon. Minister Of Power, Works And Housing,

Mr Babatunde Raji Fashola, SAN

Before perception becomes reality, I feel compelled to make this Statement in response to allegations bordering on financial impropriety raised on the Floor of the Senate against the Ministry of Power, Works and Housing, my Office as Minister, the staff of the Ministry and by extension my person.

The sum and substance of the allegations to which the Ministry will provide full, factual and detailed response when formally invited are that:

1.   An amount in the region of $350million being part of a $1billion Eurobond facility taken in 2013 has gone missing or has been diverted.

2.   That the Ministry, had procured a contract for Afam Fast Power and paid $26million or thereabout for it.

With all emphasis, I state that there is no factual basis for the allegations.

The Ministry, my staff and I have done nothing wrong and we will collaborate fully with the Investigating Committee when called upon.

For now, it suffices for members of the public to note that I wasn’t a Minister in 2013, and that when Government raises a Debt like the Eurobond, it is the Debt Management Office that manages the Debt and not the Ministry.

The Nigeria Sovereign Investment Authority (NSIA) had on Monday, 6th November 2017 issued a Statement on the Front Page of The Nation Newspaper explaining that the money was not missing, stating also that the $350 million had been invested and that interest had even accrued on the money.

If there was no ulterior motive for the allegation, this was enough reason for a reconsideration of the presentation of the Motion on the Floor of the Senate on the 8th of November 2017.
But the story seemed to have changed from “missing money” last week, to a “desperate attempt to retrieve the money “, this week.

As for the Afam Fast Power, the sum and substance of it is that , it was an investment by the General Electric, a globally reputed Original Equipment Manufacturer (OEM), to invest in our country and support our effort to get good quick power under our Roadmap of Incremental, Steady and Uninterrupted power.

They offered to do this by providing Nigeria with mobile turbines of 600MW if we could find a location with Gas and Transmission evacuation infrastructure. The Afam Power Station fitted  because it had transmission and evacuation facilities but all its turbines had been virtually run down.

The investment was contingent on paying $27,990,000 million which was 15% of 8 (eight) units of 30MW turbines each totaling 240MW valued at about $186,600,000:00.
This payment of $27.9m was made without breaching any law.

At this moment, the turbines have arrived Nigeria and currently at the Onne Port. This is verifiable just as works are on going on the site – civil and engineering – preparing to receive the turbines , and install other equipment already at site.

All of these are verifiable by all well meaning Nigerians who may want to undertake the inspection. We expect that the project will be commissioned soon enough to add 240MW to the Grid.

This will be one of the fastest power projects when delivered, compared to inherited power projects before this Administration.

Investors to the best of my knowledge do not require Parliamentary approval to invest in our Country.

All of these facts could have been easily verifiable by a simple letter from the Senator to the Ministry without the furore and suggestions of wrong doing and malfeasance.

We must be careful about what we say and do with regards to investments and investors which we clearly need in all sectors of our developmental life and in particular in infrastructure and power.
Unverified allegations such as the ones under discussion constitute an imminent threat to our investment climate.
 
For the avoidance of doubt, there has been no wrong doing whatsoever.

Nov

07

2017

NERC Formally Presents Eligible Customer Regulations To Fashola

•As Minister urges, public, stakeholders to take NERC consultations, notices seriously
• Says Regulations will help improve capacity for electricity distribution to consumers who need the utility
•Urges NERC to speed up work on the regulation on Meter

The Minister of Power Works and Housing, Mr. Babatunde Fashola SAN, Monday received the regulations guiding the Eligible Customer policy in the electricity sector with an appeal to members of the public to always take seriously the consultations and Stakeholder notices being issued from time to time by the Nigerian Electricity Regulatory Commission (NERC).

In his remarks after the formal presentation of the document, Eligible Customer Regulations 2017, to him by Engr. Sanusi Garba, the NERC Vice Chairman, Fashola said such consultations were necessary as decisions taken thereafter would affect both members of the public and consumers as well as stakeholders in the sector.

Citing an example with the Eligible Consumer Regulations just presented, the Minister, who noted that the regulations came by consulting with as many people as possible who will be affected by it and the declaration which he made, pointed out that while the DisCos would be affected in terms of potential revenue impact, consumers would be affected with regards to how they could possibly build distribution assets and how they would get compensated.

“Members of the public must, therefore, understand that whether it is tariff setting, whether it is Eligible Customer declaration, NERC works, first by consultation, before it makes decisions so that all interests are carried as much as possible”, he said adding, “I want to use this opportunity to say that whenever consultation notices, stakeholder notices are issued by NERC, members of the public should take them seriously”.

Describing the regulations as “a very important rule”, Fashola, who said it has been much awaited, added, “It will help us to improve the capacity for electricity distribution to consumers who need them; consumers also who are willing to make investments in providing distribution assets in a way that it then helps them to recover their costs and so on and so forth”.

“But I will like members of the public to know that the process of making these rules did not come by sitting in the office. It came by consulting with as many people as possible who will be affected by the regulations and by the declaration that I have made; and I know that DisCos will be affected in terms of potential revenue impact and I believe that this has been taken care of in the regulation”, he said.

The Minister, who also described the Eligible Customer Regulations as one of the steps in furtherance of the Power Sector Recovery Programme, declared, “This will assist the distribution end when it becomes implementable, the metering programme when the regulations come, when approved, the settlement of DisCo debts, MDA debts and solving the liquidity problem”, adding that everything being done in response to the power value chain was a step to the furtherance of the PSRP.  

Commending the NERC Management for its efforts in the production of the Regulations, the Minister expressed delight at the presentation promising to familiarize himself with the document and appealing to the Commission to upload the document on its website for the benefit of the public as well as share with the Ministry “so that all the agencies of government can help you to propagate and advertise this”.

He, however, called on the Commission to speed up work on the regulation on Meter, adding, “Much as we welcome this (Eligible Customer Regulation), I think the regulation that everybody is waiting for is the regulation on Meter. It will be a good thing if you can complete that before this month is over and let us see then how quickly that can stimulate licensing of meter suppliers”.

In his own remarks before presenting 10 copies of the document to the Minister, the NERC Vice Chairman, Engr. Sanusi Garba, recalled that after the declaration of the Eligible Customer policy in May and the modifications in October this year, the Commission constituted a Committee which made consultations through the six geopolitical zones of the country adding that the Commission took as much of the recommendations possible to cover the larger interest of the people.

He said in arriving at its final position, the Commission benefitted from the technical advisory support from the USAID because, according to him, “We needed to leverage on the experiences of other emerging economies in the area of Eligible Customers”, adding on November 1, the Commission received the report from its Committee from which the Commission compiled the Regulations.

While the Minister was joined at the event, which took place at the Conference Room of the Ministry of Power, Works and Housing, Mabushi, by top officials of the Ministry, including the Permanent Secretary, Power, Engnr. Louis Edozien, the Interim Managing Director of the Transmission Company of Nigeria, Mr Usman Gur Mohammed, Directors and Special Advisers. On the side of NERC, aside the Vice Chairman were Dr Moses Arigu, the Commissioner for Consumer Affair; Prof. Frank Okafor, Commissioner for Engineering Performance and Monitoring; Mr Musiliu Oseni, Commissioner for Planning , Research and Strategy; and Dr Usman Arabi, Head Public Affairs Department.

Hakeem Bello
Special Adviser, Communications To The Hon. Minister

Nov

01

2017

FG Grows Housing Sector For National Development –Fashola

The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, has disclosed that the Federal Government is committed to growing the housing sector and harnessing its vast potentials for sustainable national development, stating that housing has been a driver of economic growth throughout the world and that there is no reason why Nigeria cannot achieve same.

In his keynote address delivered at this year's World Habitat and World Cities Day commemoration in Abuja, the Minister, represented by the Minister of State II in the Ministry, Surv. Suleiman Hassan Zarma, mnis, said that the dual theme of this year's celebration : ' Housing Policies: Affordable Homes' and 'Innovative Governance, Open Cities, is a "reflection of a strong attempt to follow up on Agenda 2030 and the New Urban Agenda adopted in Quito, Ecuador in 2016". He added that it will afford policy makers in Nigeria the opportunity to review and evaluate past housing policies and assess their impact as well as strategize for the future.

He said that government has put in place the necessary machinery to jump- start a housing revolution through the innovative nationwide National Housing Programme. According to him, “the pilot implementation stage has already created opportunities for 634 contractors, created 13,689 direct jobs and 41,000 indirect jobs’’. He noted that if the Programme could be replicated on a yearly basis and also successfully implement the housing cooperatives, leverage private sector capacity, strengthen FHA and FMBN to play their roles, we will be creating an affordable housing economy that will fortify and transform our nation in the nearest future.

The Minister stated that, "to complement these efforts, we have activated the Road map for Nigeria's Housing and Urban development Sector, and are in the process of producing a strategic National Physical Development Plan to integrate physical planning with economic development,” adding that the National Building Code was also being revised to curb incessant building collapse in the county and to ensure proper alignment with the International Building Code.

In his welcome remarks, the Minister of State I for Power, Works and Housing, Hon Mustapha Baba Shehuri, reminded stakeholders in the housing sector of their duties to develop policies capable of providing basic infrastructures and social services that could be lacking due to rapid urbanization of cities. He said, "We are therefore duty bound to generate responsive policies which are capable of turning around the current poor state of our cities and guarantee efficient delivery of infrastructure and basic social services."

In a message from the UN Secretary General, Dr. Joan Clos, delivered by the UN- Habitat Country Programme Manager, Mr Kabir Yari, he   said that, "addressing the housing needs for the poorest and most vulnerable, especially women, youths and those who live in slums must be a priority in the development agenda of nations. He also noted that addressing affordability issue in the provision of housing is of strategic importance for development, social, peace and equity in the society and that promoting sound housing policies is crucial for climate change, resilience, mobility and energy consumption".

In a paper titled “Cities for all Nigerians:  Policy and Implementation of the Global and the New Urban Agenda.” delivered by Professor Banji Oyelaran- Oyeyinka, former Director, Regional Office for Africa, UN-Habitat, he stated that member states, in the New Urban Agenda, agreed “to promote housing policies based on the principles of inclusion, economic effectiveness, and environmental protection.” He noted that for government to ensure the provision of suitable affordable housing for all, it has a large number of policies to develop, ranging from planning problem, zoning issues, funding and constructing adequate transport linkages to other implementation policies.

The World Habitat and World cities Day Commemoration is an annual event that comes up in the month of October. It presents an opportunity for nations to review and evaluate their housing policies and their political commitment by providing affordable and sustainable housing for all.

Oct

30

2017

Road Infrastructure: FEC Approves Tax Relief Scheme for Private Sector

The Federal Executive Council on Thursday approved a tax relief scheme to attract private sector involvement in the provision of Federal road infrastructure across the entire country.

The approval was the outcome of a Memorandum for the setting up of a Road Trust Fund (RTF) presented by the Honourable Minister of Finance, Mrs. Kemi Adeosun, to the council at its meeting presided over by President Muhammadu Buhari.

The Road Trust Fund concept was jointly developed by the Federal Ministry of Finance and the Federal Ministry of Power, Works and Housing.

The RTF is expected to mobilise significant capital into road provision in order to unlock socio-economic development as well as facilitate investment across all areas of Nigeria to achieve inclusive economic growth.

Federal roads carry more than 80% of national vehicular and freight traffic, accounting for 17 per cent of the total national road network.

Addressing State House correspondents at the end of the FEC meeting, the Finance Minister explained that the RTF would facilitate and incentivise private sector involvement in Nigeria’s Federal road infrastructure.

The Minister of Power, Works and Housing, Mr. Babatunde Fashola and Minister of Information and National Orientation, Alhaji Lai Mohammed, were also at the post-FEC briefing of the State Press Corps.

Adeosun said, “It is a form of Public Private Partnership that will accelerate the provision of Federal Roads by allowing private sector operators to collectively fund road provision in exchange for tax credits. This will complement Federal Government’s budgetary allocation to roads.

“Private sector participation is being incentivised through a Tax Credit Scheme that enables all participating companies to claim tax relief based on the amount of capital contribution (on a pro-rata basis).

“We have already consulted with the private sector in the development of the RTF and some companies have already identified roads they wish to reconstruct and are organising their funding. However, this scheme is designed such that Financial Intermediaries will be promoting Road Trust Fund projects and soliciting commitments from interested companies.”

Under the tax relief scheme, companies will be allowed to recover 100 per cent of costs incurred on road infrastructure as a tax credit against total tax payable (including up to 10 per cent for cost of funds).

Adeosun further noted that the tax relief would allow for cost recovery within a single year instead of three years for economically disadvantaged areas.

When completed, the Minister said the roads would be handed over to the Federal Government who may decide to toll the roads in accordance with the National Tolling Policy.

On the role of the Federal Ministry of Power Works and Housing, she explained that the ministry would be responsible for approving the road designs, monitoring all approved Road Trust Fund Projects by managing costs and timelines as well as ensuring that equal development across Nigeria by rebalancing the Federal budget, where necessary.

She added that all costs and contractors would be scrutinised and approved by the Bureau of Public Procurement in line with legal requirements.

“This will ensure that costs are not inflated and that unqualified contractors are not used on the projects,” she stated.

Oct

23

2017

Shehuri Solicits Support From Development Partners

The Minister of State  for Power, Works and Housing, Hon. Mustapha Baba Shehuri has solicited for more support from Development Partners in the areas of technical and financial assistance to help his Ministry fully implement the Power Sector Recovery Plan (PSRP) initiatives.

Shehuri stated this at a meeting between Officials of the Ministry of Power, Works and Housing (Power Sector) and the African Development Bank (AfDB), in his office.

The Minister disclosed that the crux of the meeting was to appraise progress made on the implementation of the Power Sector Recovery Plan (PSRP) embarked upon by the Ministry as an integral part of the Nigeria Economic Recovery and Growth Plan (NERG).

Shehuri lamented the challenge being faced by the sector as that of strengthening the Distribution Infrastructure within the electricity value-chain in order to make it perform optimally.

The Minister revealed that with the support of the Development Partners especially, the African Development Bank (AfDB), generation and transmission capacities in the country has increased to an all-time high of 7,001MW and 6, 800MW respectively. He added that the only area that needs more attention from the Development Partners is that of expansion of distribution network.

The Minister commended the African Development Bank (AfDB), while assuring them of Federal Government’s co-operation on the full implementation of the Power Sector Recovery Plan (PSRP).

Earlier on, the Leader  of the delegation from  the AfDB and Chief Evaluation Officer, Penelope Jackson, said the objectives  of the meeting with the Ministry is to assess the level of achievement so far recorded in the implementation of the Power Sector Recovery Plan (PSRP), which the Bank supports.

In attendance at the Meeting were the Permanent Secretary, Federal Ministry of Power, Works and Housing (Power Sector) Lious Edozien, Directors of the Ministry of Power, Works and Housing (Power Sector),Leader of the Implementation Team of the PSRP and representatives of Transmission Company of Nigeria (TCN) and Rural Electrification Agency (REA), among others.