Federal Ministry of Works (FMW)
... building the backbone for Development ...
Follow Us:
Fashola Charged Stakeholders To Complement Government’s Effort In Housing Deliv...
Jul
18
2017

Fashola Charged Stakeholders To Complement Government’s Effort In Housing Delivery

The Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, has charged stakeholders in the housing sector to focus more on how to solve the problem of housing deficits in the country rather than magnify the problem. He said inspite of the housing challenges; Nigeria will over time come out if consistent right policies are put in place.

Fashola stated this at the opening ceremony of the 11th Abuja International Housing Show with the theme, Solving Nigeria’s Housing Challenges through Innovative Finance and Infrastructure Solution.

The Minister noted that financing is not only the problem in the housing industry but also the issue of affordability and acceptability, adding that it is important to build to the satisfaction of the off - takers. He said that the Ministry is currently building in 33 States of the federation to respond to the climatic and cultural demands of the people under the National Housing Programme, adding that this will be used as a pilot to interface with the private sector.

While commending the vision and tenacity of Fesadeb Communication Ltd, the organiser, the Minister said that it is important to have a housing economy, an economy that delivers on a value chain that will impact on people’s economic lives like the artisans, mason, plumbers, welders and food vendors.

Earlier in his address, the Chairman of the All Progressive Congress (APC) and Chairman of the Abuja International Housing Show, Chief John Odigie-Oyegun, noted that the choice of the theme for this year’s event is not only apt but appropriate. Oyegun stated that the Buhari administration promised to provide decent and affordable housing to Nigerians through the establishment of the National Housing Programme with a target of raising enough finance to build 1 million housing estates annually within the next decades.

He said that the APC-led government is also committed to bridge the gap of housing deficits by providing affordable housing for low income earners who are the most marginalised due to access to finance. He added that a new housing social project has been included in the economic recovery plan recently launched by the federal government with the objective to reduce the housing deficits and stimulate economic growth of the country.

The Abuja International Housing Show over the years has proved to be a veritable platform that brings stakeholders’ in the built industry together to chat a way forward in solving housing problem in Nigeria.

Auwalu A. Koko At The 23rd Meeting Of The National Council On Works...
Jul
18
2017

Auwalu A. Koko at the 23rd meeting of the National Council on Works

Welcome address by the director, Planning, Research & Statistics (Works and Housing Sectors), Federal Ministry of Power, Works and Housing, At NAF conference center, Abuja on Monday 17th July 2017.

PROTOCOL

It is with great pleasure and gratitude to Almighty God that I welcome you all to this memorable event, the 23rd Meeting of the National Council on Works with the theme: Adequate Road Signage – An Essential Key for Highways Infrastructure and Comfort holding from today, Monday 17th to Thursday 20th  July, 2017.

2.    I wish to express our profound gratitude to the Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, the Honourable Minister of State for Power, Works and Housing, Honourable Mustapha Baba Shehuri, the Permanent Secretary, Alhaji Mohammed Bukar, the Directors and entire staff of the Ministry for their support in organizing this meeting.

3.    As you are aware, the Meeting of the National Council on Works is an annual event where stakeholders in the Road Sector deliberate on issues concerning the Sector. 

4.    May I on behalf of the Federal Ministry of Power, Works and Housing apologise to you for whatever inconvenience caused by the change of venue of this meeting from Minna, Niger State to Abuja, the Federal Capital Territory. It was due to reasons beyond our control.  I Hope that you will find your stay in Abuja worthwhile and pleasant.

5.    At this juncture, I would like to assure you that all necessary arrangements have been made to ensure the success of this year’s Council Meeting.  The Secretariat is available for any possible assistance.

6.    Once again, I welcome you to this occasion and wish you fruitful deliberations.

7.    Thank you.

Osinbajo Visits Site Of Collapsed Bridge On Ilorin-Mokwa-Jebba Road...
Jul
11
2017

Osinbajo Visits Site of Collapsed Bridge on Ilorin-Mokwa-Jebba Road

*Inspects Ongoing Repair Works & Assures Motorists, Residents Of FG’s Commitment To Address Their Plight

The flow of vehicular traffic on the Ilorin-Mokwa-Jebba road would be normalized within two weeks according to Acting President Yemi Osinbajo, SAN.

Already the Federal Government has commenced work to make the road passable pending the commencement of work on re-construction of the collapsed Bakino bridge at Tatabu community near Mokwa in Niger State.
Prof. Osinbajo who visited the site for an on-the-spot assessment earlier today gave the assurance having received assurances from top government officials including Power, Works & Housing Minister, Mr. Babatunde Fashola and the contractors on site.

Specifically the Ag. President received briefs from relevant officials on site including the site engineers and supervisors from the Federal Ministry of Works. He also embarked on a tour of the collapsed bridge.

Prof. Osinbajo then told newsmen at the site that government was fully committed to ending the difficulties on the Ilorin-Mokwa-Jebba road by addressing the remote causes of the deterioration on the road.

According to the Acting President, ``the Minister of Works is working on a lasting solution but in the interim we have assurances from  the contractors and engineers working here that this road will be made passable in about a fortnight.’’

He assured that construction work on building a new bridge would commence but that it would take some time for it to be completed due to the slow movement of material from Ilorin to the site.

According to him, ``The contractors have informed me that movement of material to this location would be difficult and slow because of the deplorable nature of the road but with the commitment and support of the Federal Road Safety Corps and other agencies, the job would be done in good time.’’

He added the Federal Ministry of Power, Works and Housing in collaboration with the Ministry of Transport were both working on a more lasting solution that will reduce the over -dependence on the highway especially by diverting the movement of heavy duty cargo from the roads to the railways.

While speaking to youths who had gathered at the site of the collapsed bridge, Prof. Osinbajo conveyed the greetings of President Muhammadu Buhari to the community and urged for patience while government's efforts are in top gear to fix both the collapsed bridge and the road.

The Acting President was companies on the visit by Mr. Fashola, the Minister of Power, Works and Housing; the Governor of Niger State, Abubakar Bello, the Estu Nupe, HRH, Dr Yahaya Abubakar and other senior government officials.

BRF: RESOLUTELY FOCUSSED AT 54 BY HAKEEM BELLO...
Jun
28
2017

BRF: RESOLUTELY FOCUSSED AT 54 BY HAKEEM BELLO

May 2017 was appraisal time of the mid term of the administration of President Muhammadu Buhari in office.

Expectedly, much attention was on the Ministry of Power, Works and Housing, as it controls the fulcrum, which the country’s development revolves around. While Power plays a vital role in its industrial development, Works (roads, bridges) facilitates the transaction of business and social activities across its boundaries and cultures while Housing gives both stability and security to its human resource.

There were, and there will still continue to be truths, half-truths, and outright falsehoods. Indeed, in a clime where some people earn political patronage or keep their positions by how savagely they can disparage the subject of this discourse, certain outlets and their tendencies have simply become predictable. 

However, as C.P Scott wrote in 1921, “comments are free, but facts are sacred.” The fact is that with a reputation built not on quick fixes but enduring solutions and far sightedness, Mr Babatunde Raji Fashola SAN remains resolutely focused. As he turns 54 today, it would still be in tune with the spirit of mid term assessment to look at what BRF has been doing with the tax payers time as a public officer. 

Flag-off
The stewardship of Mr Fashola at the helm of the Ministry of Power, Works and Housing started in November 2015 when President Buhari inaugurated his Cabinet. Shortly after, the Minister held a media briefing where he outlined the Ministry’s focus in the three sectors. In Power, the promise was to increase power availability (Incremental Power), then advance it to steady supply and ultimately to uninterrupted supply nationwide. This he followed up with a Roadmap clearly setting out how he and his team intend to achieve this. In Works (Infrastructure), the promise was to increase road connectivity, decrease journey time and improve journey experience by completing on going projects; and in Housing, it was to build acceptable and affordable houses for the citizenry.   In summary: galvanize the economy through infrastructure development.

Power: Plants and all
Fact: at inception, the administration inherited 2,690 MW of power and only oversight through regulatory agencies instituted by law and on transmission of electricity which it is carrying out through the Transmission Company of Nigeria (TCN); the 26 power plants (23 gas and three hydro) having been privatized.

What’s being done to achieve Incremental Power? With provision of funds and determination to fulfill the promises made at the media briefing on Incremental Power, resuscitation of the 29 MW Dadin Kowa Hydro-Power plant in Gombe State should be completed in November, going by the assurance given to the Minister in March this year, by the project manager. The 132KV lines to evacuate the power are in place. The 40 MW Gurara Power Station is expected to finish in the first quarter of next year and with the arrival of its standardization equipment, the 10MW Katsina Wind Mill is expected to finish before quarter two. The diesel and gas dual fired 215MW power plant in Kaduna is also expected to finish this year.   There is also another Power Emergency Project that President Buhari approved for General Electric to give 240MW of power in Afam, Rivers State. It is also expected to finish this year.  The  40 MW Kashimbilla Hydro Power Plant, in Taraba State, has been revived and now 99% completed . The works on the evacuation of power including transmission lines , switchyards and substations from the power plant to Takum , Wukari and the existing substation in Yandev is expected to be completed by the second quarter of 2018 subject to availability of funds.

Work has resumed on the 700MW Zungeru hydroelectric power plant in Niger State, which was stalled by litigation for over three years .The nation moves closer to achieving power security with more alternatives to Gas fired plants. Work on the 450MW Azura Power Plant in Benin, was also stalled because the approvals and agreements required by the private companies to source for funds could not be signed for more than one year. President Buhari finally signed the required on assumption of office and this enabled the investors to commence construction. So also, the Mambilla hydro plant, which had been on the drawing board long before the coming of this Government.  The Minister in an interview with the Daily Trust last week explained that significant progress had been made in terms of project planning by working with various stakeholders and with a “No Objection “ certificate secured from the Bureau of Public Procurement on Monday 19th June ,work is set to commence on this long drawn yet all important project..

Energy Mix                      
Against the backdrop of the country’s vulnerability on account of its over reliance on a single fuel source –Gas- for Power, perhaps, one of the best things that has happened to the  Power Sector since the present administration took office is  the development of an Energy Mix.

Developed by the Ministry and unveiled at the National Council on Power Meeting held in Kaduna in July last year, the initiative has since set off a chain of activities on the diversification of the power generation. For example, the Nigerian Bulk Electricity Trading Plc (NBET) on behalf of the Federal Government in July last year signed Power Purchase Agreements with 14 solar power developers to produce over 1,000MW of solar power. As a follow-up, two of the developers, Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited, on 13th April signed the Put/Call Option Agreements (PCOA). Co-ordinated by NBET, the PCOA is a key aspect of the PPA to deal with any premature termination. Afrinegia Nigeria Limited plans to deliver 50MW while CT Cosmos will deliver 70MW to the grid.  There is also a plan for a new solar farm in Jigawa State, which is under procurement and planning. It is expected to add a minimum of another 1,000MW to the grid. In conjunction with other stakeholders discussions are also in progress with two coal developers who will add significant coal power to the grid.

Individuals and businesses in the country are also being encouraged to partake in investing in small captive solar initiatives. The objective is to create an Energy Security for the country by diversifying the energy source. In addition, the policy encourages the siting of power plants close to the source of energy. At the Council meeting in Kaduna, a target of 2030 was set for the achievement of 55 per cent gas,16 per cent, solar, 15 per cent, large hydro project; 4 per cent, wind; 3 per cent, biomass and 3 per cent, coal. Government has led from the front in this aspect with the completion of the 1.2MW Clean Energy Photovoltaic System, a solar energy plant and first of its kind in Nigeria, to power the Lower Usman Dam power treatment plant, the main source of potable water to the Federal Capital Territory. Built in collaboration with the Japanese International Cooperation Agency (JICA), the project’s first phase, commissioned in August 2016, is producing 1.2MW of solar energy.

Policy actions
From the outset, Fashola, a firm believer in the sanctity of contracts was not persuaded by call in some quarters for the outright cancellation of the privatization of the power sector. Rather, he believes that the process and the sector should be methodically reviewed and reformed. This is the sum and substance of the Power Sector Reform Programme  which focuses on introducing reforms, reducing losses in the distribution companies, enhancing the sector’s financial viability, increasing access to electricity services, and mobilizing private sector investment. With support secured from the Federal Executive Council, members of the National Assembly heading the Power Committees and the World Bank Group, the Programme is already being implemented, though many are still awaiting a “formal” launch. These policies include the inauguration of Commissioners for the National Electricity Regulation Commission (NERC) and the Rural Electrification Agency Board on the governance side as well as  the  NBET’s  N701 billion two-year Payment Assurance Guarantee approved  to ensure that all those who generate power to the grid are paid .  The Minister has, in exercise of his powers under Section 27 of the Electric Power Sector Reform Act 2005 directed NERC to permit four categories of customers to buy power directly from a licensee other than their electricity distribution companies, once they are dissatisfied with the performance of the latter. As Fashola puts it, “ it is like going to Nestle to get your products directly instead of waiting for the distributor.” (Please visit www.nercng.org, on “Eligibility in the Power Sector”.)

Boosting transmission
In terms of transmission capacity over which the public continues to express much anxiety, although the Ministry inherited over 100 uncompleted transmission projects, TCN is expanding and maintaining the transmission lines and completing projects started before the privatization. It has paid contractors and obtained the necessary approvals for them to return to work. The projects include the Irrua and Okada Transmission Projects, both in Edo State; Itu-Calabar Transmission Line,  Ikot Ekpene-Calabar, Ikot Ekpene-Alaoji, and Ikot-Ekpene-Ugwuaji Transmission Lines and the Damboa Transmission Power in Borno State which was stopped at the peak of insurgency.

Also shipping companies and warehouse owners, who kept custody of containers abandoned by unpaid contractors for almost a decade, have begun releasing them. In fact, the first batch of over 387 containers was released to the contractors due provisions made in the 2016 budget.

There is also a five-year plan to boost power transmission capacity to 20,000MW beginning from 5,500MW to 10,000MW in the next three years. The plan targets transmission capacity of 8,200MW by 2018 and 10,000MW by 2019. To achieve this, the Federal Government is working on actual numbers of transmission towers that would take the nation from 7,000MW to 20,000MW in each growth plan; how many kilometers of cables, wires, breakers and tons of steel would be required in each stage as well as securing Right of Ways, settle compensation issues and every other issue that could possibly impede the implementation plan. Meanwhile, 59 expansion projects are currently being worked on across the country.  The various transmission projects under the National Integrated Power Project (NIPP) are also being completed.

As Fashola promised during the first anniversary of the administration, attention has recently been directed at rolling out the Rural Electrification Implementation Programme “to improve access to power for rural communities”. On 2 May, , the Minister inaugurated the Board of the Rural Electrification Agency (REA) and charged it with increasing access to electricity in the shortest possible time for the millions of Nigerian rural communities and villages as well as some urban cities yet to access electricity from the national grid. These communities lack access partly because the 330/132 KV and 132/33 KV lines (popularly called the high-tension wires), which the connection is often made through, run over long distances; the high cost of extending the lines to these communities, most of which are sparsely populated, and tariff being fixed, investment in them was not attractive. The Electricity Sector Reform Act, passed in 2005, set up the REA and mandated that the Implementation plan for rural electrification should be prepared within a year for Presidential Approval. That approval came 11 years late, with President Buhari’s stroke of the pen.  The implementation Plan which recommends a combination of grid extension and development of independent grids, using new technology such as solar, to make these communities, see light, so to speak, had been anchored on some existing projects such as the completion of over 2,000 uncompleted or abandoned grid extension projects which started life in 1999 as constituency projects.

Government intends to resuscitate six of the over 50 small hydro dams across the country and activate their power component, which, the Minister says had received Federal Executive Council’s approval, had also been advertised, and had received Expressions of Interest which were now being evaluated. The third anchor is the development of Independent Power Plants (IPPs) in 37 federal universities and seven teaching hospitals in rural areas and the building of independent power grids from there to connect adjoining rural and unconnected communities. The Rural Electrification Agency (REA) signed the Memorandum of Understanding (MOU) on Tuesday, 20th June 2017 with eight (8) Federal Universities and one Teaching Hospital for the first phase of the Federal Government’s Energizing Education Programme (EEP) which is also being used as anchor for the electrification of rural communities in the areas where the tertiary institutions are located.

Safe, smooth roads
It was in June 2016 that contractors were mobilized to return to   sites they had abandoned for over two years because of non-payment of contract fees. Today, work is going on in all states of the Federation in terms of road rehabilitation and reconstruction. , Between February and April the Minister had undertaken an inspection tour of these road projects in 34 States across the six geopolitical zones of the country. In the South-East, which was the first port of call, at least 600 kilometers of roads are under rehabilitation/ construction across the zone’s five states. They include the Enugu-Aba- Port Harcourt Expressway, which runs through Anambra, Enugu, Imo, Abia and Ebonyi States covering about 31 roads as well as construction of pedestrian bridges and flyovers, traffic signs and lights; the outstanding section of Onitsha-Enugu Road being handled by Reynolds Construction Company (RCC); Umana-Ndiagu-Adaebele-Udi Road in Ndiagu, Nsukka—Oboloafor -Ihamufu Road, Ninth Mile-Nsukka-Oboloafor Road, among others in Enugu State;Ohafia-Oso Road (In Ebonyi and Abia States: 11.7 km), Nnenwe-Uduma-Uburu Road, Section1 (14 km in Enugu/Ebonyi), rehabilitation of Abakaliki-Afikpo Road; Section 1 (20.5 km), rehabilitation of Abakaliki-Afikpo Road Section 11 (19.5 km) and Construction of Obubra-Ikwo-Onueke-Nkomoro-Agba-Ezekuna-Ogboji-Nara-Cross River Border Road (7 km), among others in Ebonyi;   Aba-Port Harcourt Dual Carriageway (section 11), Umuahia Tower-Aba Township Rail/Road Bridge Crossing (56.1Km), rehabilitation of Lokpanta-Umuahia Tower (59.5km) and rehabilitation of Calabar-Itu-Ikot-Ekpene-Aba-Owerri Section 111: Ikot-Ekpene-Ikot Umuoessien-Aba Road in Abia/Akwa-Ibom (43.2km), among others in Ebonyi while in Imo State, federal road projects currently on-going include the Owerri-Umuahia Road, Sections 1,11 and 111, the Ikot-Ekpene Border: Aba-Owerri Dualisation Road Section 1, Phase 1 (11.26km), Mbaise-Ngwa Road Ohase 1 (14 km), Amanwaozuzu-Uzoagba-Eziama-Orie-Amakohia Road (10km) and Oba-Nnewi-Okigwe Road Section 11, among others. On the Second Niger Bridge in Onitsha, Anambra State, the contractor is working to re-mobilize to site, having stopped due to lack of payment.

In the North East, six federal roads are, among others, undergoing reconstruction or rehabilitation in Bauchi State, including the Suare-Azare, Azare-Potiskum Road, Ningi-Ajalokuna-Fudulamata Road, Jukun-Zaero Road and Zaero-Bassa-Ningi Road. In Gombe State, the two on-going road projects are the Gombe-Bauchi Federal Highway and the Gombe –Numan-Yola Road while in Taraba, Yobe and Maiduguri, the major roads under construction include the Kano-Maiduguri Dual  Carriageway that traverses three States. In the South-West the on-going road projects include the Ogbomosho-Oshogbo Road that connects Oyo State with neighbouring Osun, the Oyo-Ogbomosho Road that connects the State through to Kwara, the Lagos-Ibadan Expressway that connects Ibadan to Ogun and to Lagos and Lagos-Shagamu Expressway among others . Similarly, there are projects going on in the North-Central, the North- West and the South –South. When Fashola says the Federal Government is present in all States of the Federation, he means it because he has been on the roads to see the projects.

Affordable, Acceptable houses
In the Housing Sector, construction of houses under the National Housing Programme has commenced in 33 states, which have allocated land for the purpose. And in line with the decision to build houses which will suit the climatic, socio-cultural and land use peculiarities of the people, the designs of one, two and three-bedroom bungalows have been adopted for the Northern states while the designs of one, two and three bedroom blocks of flats have been adopted for Southern states. In addition, the Ministry has also identified inputs such as doors, windows, tiles, paint and roofing materials that could be made locally and as earlier resolved by the Minister that only Made-in-Nigeria inputs will be used unless there is no local production capacity. To provide investment information for local manufacturers, the ministry has done some inventory of quantities of materials needed in the project. Based on that inventory, 22,288 doors; 27,849 windows; 3,502 water cisterns; 3,502 wash hand basins; 2,830 kitchen sinks; 261,299 sq. metres of floor tiles; 178, 680 Sq. metres of wall tiles; 561,119 litres of paints; and 342,960 Sq. metres of roofing materials would be needed in the first phase of construction which will also require 413,000 man days of skilled labour, and 440,000 man days of unskilled labour. This, of course, means continuous job for local manufacturers and artisans.

Job creation
The whole essence of the on-going infrastructure renewal, whether in the Power, Works or Housing sector, is, first, to stimulate jobs. This purpose has been achieved to a very significant extent. As announced by the Minister recently at an account of stewardship rendering Town Hall Meeting, the Ministry generated 193,469 jobs (9,000 direct and 60,000 indirect in Power; 17,749 direct and 52,000 indirect in Works and 13,680 direct and 41,040 indirect in Housing) while also empowering 542 local contractors during the 2016 budget year.

During his tour, the Minister engaged with these young men and women, working to deliver on the contracts, delivering service which will touch the lives of the greatest number of the people and in so doing restore the country’s economy to the path of growth and prosperity. On each of the stops Fashola would also dutifully deliver the message of his principal, President Muhammadu Buhari’s gratitude and commendation to the teeming young men and women for working hard to rebuild Nigeria and contributing to the economic recovery from a recession spun by several years of profligacy.

Incredible strength, work ethic
Whether sitting through grueling meetings to make peace and get projects or contracts (which had stalled for years before his assumption of office), moving from one power plant or Transmission station to chair going again, chairing the monthly meetings of the Power Sector Operators, in different cities and states or enduring hours of bus travelling by road to inspect roads, housing or power projects under his watch, Fashola displays a remarkable strength of character and intellect as well as energy. Often asked how he manages his naturally crowded schedule, the Minister would respond to the effect that he takes himself and any assignment he accepts seriously. Now, you can’t be focused without being serious and so l am closing by wishing my Boss many more years of focused service to our fatherland in sterling health. Happy Birthday BRF!

 

FG Welcomes Private Sector Initiatives In The Delivery Of Affordable Housing...
Jun
21
2017

FG Welcomes Private Sector Initiatives In The Delivery Of Affordable Housing

The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN has reiterated the efforts of the present administration to provide affordable housing delivery to the teeming Nigerian population.

The Minister in his keynote address delivered at the opening ceremony of the 2nd Abuja Housing and Investment Expo, noted that the theme of this year’s event "Housing and Investment for Economic Recovery’’ is most tropical and apt, considering the present government’s position for the provision of affordable housing, investment and promotion, job creation are all efforts targeted toward ensuring economic recovery.

Fashola stated that the ministry is willing to collaborate with private sectors ready to invest in housing and urban development, adding that this will invariably create enabling environment for the citizens to purchase affordable houses of their choices based on their income.

The Minister added that the Ministry of Power, Works and Housing will always welcome and continue to encourage new concept of decent and affordable mass housing for the people towards the full realization of government's ultimate goal as contained in the National Housing Policy.

He commended the Abuja Chamber of Commerce and Industry (ACCI) and Shelter Aid Limited, organizers of the event for their consistency and commitment in ensuring that adequate and affordable housing provision through massive investment in the sector is actualised.

The Chairman of the occasion and the Chairman Senate Committee of Federal Capital Territory, Senator Dino Melaye, regretted that corruption is an impeding factor that has hindered the development and growth in the housing sector and therefore urged stakeholders to have a change of heart and put the interest of the people first.

Melaye stated that his committee is already working on ‘Rent Edit’ in Abuja that will protect tenants and landlords and help checkmate incessant increase of rents in Abuja.

He added that while "not everybody can own a house", the rent edit will help to tele-guide and curb excessive rent in the Federal Capital City and the nation at large’’. He however promised that the committee will ensure that the rent edit will be passed into law before the end of the 8th Senate.

Earlier in his remarks, the President of Abuja Chamber of Commerce and Industry, Mr Tony Ejinkeonye welcomed participants and invited guests to the occasion. He urged everyone to take advantage of the technical and plenary sessions and also interact with the exhibitors so that the economic recovery plan of the government is given a face-lift by private sectors’ participation.

Fashola Charges Quantity Surveyors To Educate The Public On Cost And Quality Of Infra...
Jun
13
2017

Fashola Charges Quantity Surveyors To Educate The Public On Cost And Quality Of Infrastructural Delivery

The Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, has charged the governing board of Quantity Surveyors Registration Board of Nigeria (QSRBN) to educate the public on the importance of cost and quality in the delivery of infrastructures across the nation. He stated this at the inauguration ceremony of the newly constituted board of Quantity Surveyors in Abuja.

The Minister said it is imperative for the board to embark on the process of enlightening the public using more of simple and regular words devoid of professional terminologies which might not be understood by a layman.

Fashola noted that the elites, which include professionals in the built environment have significant role to play in terms of the aggregate quality of life in the society. He added that the assumption of the cost of project delivery are sometimes faulty but with Quantity Surveyors, who are the custodian of information on effective costing of projects delivery, can lead the debate by informing the society on the process and importance.

The Minister also urged the board to develop and intensify relationship with institutions of higher learning where Quantity Survey is offered as a course and ensure that the next generations of Quantity Surveyors are professionally trained in order to be gainfully employed and self reliance.

In his remarks, the president of the board of Quantity Surveyors Registration Board of Nigeria, Mr.  Murtala  M.  Aliyu, FNIQS appreciated the enormity of responsibility, task ahead and the associated challenges. He added that the immediate past board under the leadership of his predecessor, Hussaini Dikko PPNIQS had done very well to upscale the role of the relevance, growth and development of the profession but however noted that this present board will surpass their achievements.

Mr. Aliyu stated that to deal with the enormity of challenge facing the country, Quantity Surveyors should be part of the pre-budget input preparation in order to have a prudent and efficient budgeting. He added that this will bring about correct cost effective template in Nigeria.

He assured the Minister that the newly inaugurated board will do their best in ensuring that ethical code and lay down rules and regulation in the profession is upheld with dignity and in accordance to best practices around the world.

FG’s National Housing Programme To Achieve Affordability And Acceptability........
May
31
2017

FG’s National Housing Programme To Achieve Affordability And Acceptability.......Fashola

The Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola, SAN, has said that the on -going National Housing Programme is a new Housing Policy conceived by the present administration with the aim of achieving acceptability and affordability by Nigerians. The Housing policy is geared towards providing affordable housing for Nigerians in both private and public sectors.

He said this in an interview on Sunrise Daily, Channels Television, while appraising his performance in the housing sector in the past two years of President Muhammadu Buhari’s administration.

The Minister further noted that for houses to be appreciated by Nigerians, they must pass the test of acceptability because Nigeria is a country with multifaceted ethnic and cultural background and climatic conditions. What is acceptable to a Northerner may not be to a southerner.

Fashola noted that the Ministry is currently constructing about 2,000 pilot scheme Housing Units in 33 States of the country with targeted beneficiaries within an income bracket of grade level 8 - 14 in both private and public sectors.

He also disclosed that the Minister of State, Mustapha Baba Shehuri, had undergone inspection tour of houses under construction in the 33 States and expressed satisfaction at the work done so far, adding that some of the housing constructions are at the roofing and lintel stages.

The Minister advised Nigerians to embrace and key into the concept of mortgages as a means of financing home ownership because that is the practice in other countries. He said the Federal Mortgage Bank of Nigeria (FMBN) and Federal Housing Authority (FHA) being Parastals of the Ministry    are alive to their responsibilities of meeting the housing needs of Nigerians with construction of Housing Estate across the nation.

Fashola Charge Estate Valuers On Ease Of Doing Business In Nigeria...
May
29
2017

Fashola Charge Estate Valuers On Ease Of Doing Business In Nigeria

The Minister of Power, Works & Housing, Mr Babatunde Raji Fashola, SAN, has challenged the newly reconstituted board of Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) to come up with harmonized code of charge that will promote ‘’real estate’’ as this will impact on the ease of doing business in Nigeria.

He stated this at the inauguration ceremony of the new board at the ministry’s headquarters in Abuja. The Minister charged them to develop an open and nation-wide valuation of real estate database across the nation in order to greatly improve and grow the nation’s economy.

Fashola congratulated the chairman and members of the Board and expressed confident in the broad mix of experience and values the Board is bringing to the nation. The Minister added that ‘’these are people, whose professional mandate is really putting value to light in the area of over seeing how land is turned from dormant into a valuable asset’’.

In his remarks, the Chairman of Estate Surveyors and Valuers Registration Board of Nigeria, Esv. Olayinka Sonaike, on behalf of the 21 newly inaugurated board members expressed appreciation to be called upon to serve in a rather different capacity of regulating the practise of the profession.

Sonaike stated that the profession is willing to collaborate with the Ministry in the on-going construction of Housing Units across the nation under the National Housing Programme of the Buhari’s administration. He urged that the board be given necessary support to play its regulatory role as expected.

The Estate Surveyors and Valuers Registration Board of Nigeria among other responsibilities is charged with registering persons who are fit and qualify to serve and practice as Estate Surveyors and Valuers; and also regulate the knowledge and the general practice of the profession in the country.

Apapa Is A Priority Area For FG, We’re Very Close To Starting Enduring Work On ...
May
21
2017

Apapa Is A Priority Area For FG, We’re Very Close To Starting Enduring Work On The Roads - Fashola

*  Minister appeals to residents, those earning livelihood from Apapa for patience
*  Design, other requirements for reconstruction of Wharf road with concrete to last for at least 30 years ready
*  Procurement details, Heads of Agreement ready for signing of MOU with Companies supporting project ahead of presentation for FEC approval

The Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, has reiterated that the Apapa Area in Lagos is a priority for the Federal Government under the Ministry’s programme to solve the issue of roads leading to critical ports in the country.

According to the Minister, who was interacting with newsmen in Abuja at the weekend, at the end of Day One of the Federal Ministry of Power Works and Housing’s Retreat, arrangements for the deployment of an enduring solution on Wharf road were near closure.

Fashola who explained that a couple of private companies had offered to work with Government in terms of fixing Wharf Road, said the design and other requirements for the road were ready adding what was left now was to sign a formal Memorandum of Understanding before proceeding to the Federal Executive Council for approval.

“ I just want to appeal to residents of Apapa, to people whose livelihood depends on Apapa, that Apapa is one of the priority roads under our priority of Works to solve roads that lead to critical ports. We also have Calabar on our radar. But one by one there would be an enduring solution. We’ve done the design, we’ve done everything for Apapa, it’s ready. It’s going to be a concrete road, I believe, that will last another 30 years. So we are close to starting work,” Fashola said.

The Minister, who was certain that work would start in a couple of weeks, pointed that irrespective of the fact that the fund of the Companies, offering to support the project,was private money there had to be some transparency on how to procure it adding that those procurement guidelines were being followed because, according to him, “In government, if you receive a gift, it must have a value and you must declare that value”.

“So we needed to get certification of all these prices before we get approval from the Federal Executive Council to allow this to happen, that is the only delay. But we are very close; we have held two meetings in the last 10 days with the companies. We have agreed Heads of Agreement. What is left now is to sign a formal Memorandum of Understanding before which we can then proceed to Council”, he said.

Fashola also explained that government wanted to be clear whether what the companies were offering was simply Corporate Social Responsibility (CSR) or they wanted a tax refund for what they were offering adding that the challenge of inadequate budgetary allocation had affected the roads over the years.

“Year on year , you will see that the provisions for the budget funding of Apapa and the Tin Can Island and Mile 2 – Oworonsoki Roads, all of which evacuate the Port have not been sufficient really to deal with the cost”.

Appealing to residents and other users of the road to exercise a little more patience, Fashola explained further, “The cost that we are getting from the contractor there is in the region of about N100Billion and above and the annual budgetary appropriation that is approved for us is about N7 Billion. And then there are debts that we met”.

The Minister also noted that the problem of the Apapa area has been compounded by the excess tonnage on the access routes due to the absence of a rail link which used to take the tonnage off the roads which is also being looked at.” Apapa has many problems one of which is the excess tonnage. There used to be a rail link there to evacuate the Port. From the time we stopped using the rail link and went on to the road, we started degrading the quality of the road. There is only so much tonnage that you can put onto a road”, he said.

On the purpose of the Retreat for Directors, Heads of Departments and Agencies which focussed on “Teamwork for Optimal Productivity”, the Minister said it was for team building for service delivery adding, “A good team where members know their strength and weaknesses, know their strong points and their common purpose is likely to deliver more results in quicker time and more effectively”.

Power Sector Tackles Energy Theft As EFCC Investigates Collusion By Staff, Customers,...
May
14
2017

Power Sector Tackles Energy Theft As EFCC Investigates Collusion By Staff, Customers, Meter Manufacturers To Bypass Ibadan Disco’s Meters

*  As Sector Operators report progress in project executions to boost supply : Community connection projects in Magboro completed by NDPHC, currently undergoing testing by IBEDC

*  Katampe 60MVA substation in Abuja restore , 40 MVA mobile substation in Damboa, Borno State commissioned by TCN

*  Makeri to Pankshin 132kV and Okpella lines to be switched on in August, installation of new circuit breaker in Egbin slated for May 19

Efforts to curb the incidence of energy theft in the Nigerian Electricity Supply Industry (NESI) is being intensified with the on going investigation of the collusion by some staff, customers and meter manufacturers to bypass meters under some of the areas covered by the Ibadan Electricity Distribution Company.

This development along with significant progress in on going electricity generation and transmission projects execution across the country were some of the highlights captured in the Communique of the 15th Monthly Meeting of the Power Sector Operators presided over by the Minister of Power Works and Housing, Mr. Babatunde Fashola SAN, at the NIPP Injection Substation, Lamingo, Jos.

According to the Communiqué, ”Ibadan Electricity Distribution Company noted that collusion by some of its staff, customers and meter manufacturers to bypass meters has been reported to Economic and Financial Crimes Commission (EFCC) and is under investigation.”

The Niger Delta Power Holding Company (NDPHC) also announced the completion of host community connection projects in Magboro, which is currently undergoing testing by Ibadan Electricity Distribution Company and the progress being made in the community connections in Egbema, Okija, Oronta, Ihiala, and Nnewi in the South-East.

On its part, the Transmission Company of Nigeria (TCN) reported that Katampe 60MVA substation in Abuja was restored on April 11, 2017 and the 40 MVA mobile substation in Damboa, Borno State was commissioned on May 7, 2017, while the Makeri to Pankshin 132kV line in Plateau and Okpella line in Edo State were both expected to be switched on in August 2017 adding that the installation of new circuit breaker in Egbin was scheduled for commissioning on May 19, 2017.

In the area of customer service, while the Nigerian Electrical Regulatory Company (NERC) announced its intention to reduce the number of days required to access electricity connections in new buildings from an estimated 198 to 30 days through a regulatory Order to be released shortly, Jos Electricity Distribution Plc (JED) reported on complaints on fast reading meters in its coverage areas which were forwarded to the Minister and agreed to resolve the issues to the satisfaction of consumers.

Hope of a boost in liquidity in the sector rose also as the Nigerian Bulk Electricity Trader (NBET) reported on international customer payments, stating that the Republic of Niger (NIGELEC) and Republic of Benin (CEB) had made payments for power of $159,773, 116.61, with a combined balance still outstanding of $92,315,986.20, adding that payments had been duly remitted to the Generating Companies and Service Providers who, it said, had provided the generation and transmission services.

In the same vein, the Senior Special Assistant to the President on Power, and Managing Director of the Rural Electrification Agency (REA) reiterated the commitment of the Federal Government to paying verifiable power debts, and announced the completion of physical verification of the top 100 MDA locations in Abuja Electricity Distribution Company (AEDC) with plans to visit Eko and Ikeja DisCos for physical verification as a prelude to payment.

In terms of payment performance for service provision among the DisCos, the Market Operator reported that Eko DisCo was the best performer at 89 per cent while Kaduna DisCo recorded the worst performance at 13 per cent. And in terms of registration as power market participants amongst DisCos, Abuja Electricity Company, APL Electricity Company, Kaduna Electricity Company and Geometric Power have not completed registration while amongst GenCos, Delta Power, Okpai, Omoku and NIPP plants are yet to complete registration.

In the Communiqué, the operators, who noted that the Monthly Meeting serves as forum for Providing an opportunity to inspect electricity assets and for power sector decision makers to take critical decisions in unison to move the sector forward as well as providing correct sector information to the public noted that while the first and second objectives had been largely achieved, the third had not been achieved.

Blaming it on the inaccurate information often disseminated by the Association of Nigerian Electricity Distributors (ANED) regarding the plan to escrow accounts earlier agreed by the DisCos themselves as a condition before accessing low priced loans from the Federal Government, the Communiqué averred that by failing to mention the fact that the conditions of the loans were not mandatory, but were terms of the credit facility, information advertised by ANED were misleading.

Additionally, the Communiqué stated, lack of corporate governance displayed by some DisCos, evidenced by failing to provide audited accounts, improved services and urgent response to customer complaints, meters and network investment had shown inconsistencies in DisCo statements, pointing out that the Federal Government had expended income to verify any claims accurately made against them, to the knowledge of the DisCos.

The meeting also noted that the failure of Distribution Companies to remit payment as owed to NBET led to the approval by the Federal Government of Nigeria of N701billion Payment Assurance Guarantee to Generating Companies, to fill the payment gap.

Expressing regrets over the electrical accident which occurred on April 20, 2017 in Calabar, Cross River State for which it observed a moment of silence, the Meeting reiterated the need to prioritize safety regulations and emphasized the need for the support of the sector regulators.

In order to avert similar incident in the future, the Meeting announced, for the information of the public, applicable regulations for setback saying for 330kV lines a total of 50 metres setback was required consisting of 25metres on each side from the centre while 132kV and 33kV lines required a total 30 metres (15 m on each side) and a total 3.5 metres setback respectively.

For 11KV lines, a total 3 metres setback is required while 41kV lines require 1.5 metres setback and underground cables are to be buried at least 3 metres below the ground surface, the Meeting said while also agreeing that buildings and structures built beneath ‘high tension’ power lines should be disconnected from power supply systems as already issued by NEMSA to DisCos for reasons of safety.

Enjoining the public to halt the practice of illegally constructing structures beneath and illegally connecting to power lines, the Meeting said it would encourage prioritisation of investment in education and communication on electrical safety measures through the creation of a task force within the sector, adding that it would work with state governors to reduce accidents as a course of action.

According to the Communiqué, the Governor of Plateau State, Mr. Simon Lalong, highlighted the work being done in various areas of Plateau State to supply power using solar, wind and other renewable resources saying they were complimentary to the Federal Government’s projects.

The Governor acknowledged, with gratitude, the importance of the Federal Government projects in the state, particularly the 132kV line from Makeri to Pankshin and their potential to boost tourism, agriculture and power to rural communities, as well as various rural electrification projects being undertaken by the Rural Electrification Agency.

The Meeting, chaired by the Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, was hosted by Jos Electricity Distribution Plc at NIPP Injection Substation, Lamingo, Jos and had in attendance the Plateau State Governor, Hon. Simon Lalong as well as the Chairman of Jos Electricity Distribution Plc, Alh. Yayale Ahmed.

Focused, as usual, on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry, the Meeting also had in attendance Power Sector Operators who were fully represented at the highest executive management levels, including Commissioners of the Nigerian Electricity Regulatory Commission (NERC).

Also in attendance were the Managing Directors and CEOs of Generating Companies (GenCos), Distribution Companies (DisCos), and the Transmission Company of Nigeria (TCN), Gas Companies (GasCos) and other government agencies such as the Niger Delta Power Holding Company (NDPHC) and the Nigerian Bulk Electricity Trader (NBET).

Others were the Managing Director and CEOs of the Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA) responsible for the regulation and development of the electricity industry as well as the Nigerian National Petroleum Company (NNPC) and the Central Bank of Nigeria (CBN).

Remarks By Babatunde Raji Fashola, SAN At The 15th Monthly Power Sector Operators Mee...
May
09
2017

Remarks By Babatunde Raji Fashola, SAN At The 15th Monthly Power Sector Operators Meeting Held In Jos

I would like to start my opening remarks at this 15th Monthly Power sector meeting by expressing my sympathy, and that of the Electricity Industry represented by the participants at this meeting, to the families of our brothers and sisters who were victims of the unfortunate electrocution accident in Cross Rivers state.

While we pray for the full recovery of the survivors who suffered various forms of injuries, we pray for the peaceful repose of the souls of the departed and may I request that we all rise to observe a moment of silence in honour of our dear departed brothers and sisters.

Whilst the accident is regrettable and the consequences very saddening, they were clearly man-made and avoidable, and if we must learn any lessons from the accident, it is to honestly and truthfully admit that it occurred as a result of non-compliance with laws and regulations. And if there is a time to learn the lesson, there can be no more auspicious moment than now.

Yes, I know that there are difficult challenges and people are struggling to eke out a living. But every business set up in a place of danger is a threat to life,that ultimately defeats the essence of survival.

We must admit as a People that the time to stop cutting corners and violating regulations has come upon us, and the time to change those non-compliant conduct is now, for our own long term benefit.

This is because the situation in Calabar, where a building was located under or close to an electricity line, exists in almost all cities in Nigeria and they are all accidents waiting to happen unless we prevent them.

The burden of preventing them, rests with all of us -  Government and the governed.

TCN, the Discos and NEMSA all have roles to play. Their success however will depend on the will, support and collaboration of state governments who have the responsibility for granting construction permits and removing illegal structures.

For the information of the general public and the benefit of the state planning authorities, the applicable regulations for set back and approval of structures are as follows:

* For the 330 KV lines the set back is a total of 50 meters, that is 25 meters on both sides from the centre of the line.

B. For the 132 KV the set back is a total of 30 meters, that is 15 meters on both sides from the centre of the line.

* For the 33 KV lines which come close to our homes the buildings should observe at least 3.5 meters from the closest line and For the 11 KV lines, it is at least a 3-meter set back.

* For 415 volt lines it is 1.5 meters.

* For underground cables they should be buried at least 3 meters below the ground surface.

I know that there may be a debate about whether or not it is fair to relocate those noncompliant structures. Indeed, there will be arguments about whether it was the transmission line that got there before the buildings were erected or vice versa.

My response is that we need to keep people alive and we also need the electricity to improve our lives.   

Therefore logic dictates that it is those non-compliant structures that must give way to save lives and to keep electricity on.

It is this logic that ensures there will be no repeat of the Calabar incident and that those who lost their lives would not have done so in vain.   

I will now return to the subject and agenda of the meeting proper first by thanking our hosts the owners of the Jos Electricity Distribution Company for hosting us.   

I will like to recall your attention to the purpose that I set out to achieve when I mooted the idea of these meetings.

The first was to provide an opportunity for me to visit one power asset or installation at least once a month to familiarize myself with their status, capacity, challenges and requirements in order to enable me make proper decisions without the need to be on the road for days on end.

I can say that this objective for me has been largely achieved. I now know most if not all of the power assets and I can visit and inspect the remainder at my convenience.   

The second objective was to provide a monthly meeting for 2 (TWO) representatives each of every power distribution and generation company who could make decisions.   

You will have to decide whether this objective has been achieved, because whilst I, the Honorable Minister of State and the Permanent Secretary have endeavored to attend all meetings some of you have sent junior officers who had no powers to bind your company to the meetings.   

Nevertheless, I acknowledge that some problems have been solved and we remain committed to solving more as proof of our commitment to enabling businesses.

The third object was to provide a monthly forum where accurate information could be disseminated to the members of the public about what we are doing to resolve the problems of electricity and provide service to them.

I regret to announce that at best this objective is not being fully achieved or at worst is being frustrated by the Distribution Companies who have formed themselves into an Association of Distribution Companies, and have persistently issued statements on issues they either did not present for discussion at the meetings, or which contradicts the communiqué that is jointly agreed and released after each meeting.

The latest of such statements, which are wholly misleading and substantially untrue, because they conceal facts from the public, was issued and published on April 18 in the This Day newspaper.

I will come to the content of the statement shortly; but before doing so, I wish to state very clearly that while the right of association is a constitutional right which you are entitled to exercise, as is the right to free speech, the Ministry of Power, Works and Housing reserves the right to recognize or deal with you as an association.

As head of the Ministry, I regret that I will not deal with an association because the Bureau of Public Enterprises (BPE) acting for the National Council on Privatization (NCP) did not contract the asset sales and performance agreements with an association and neither did Nigerian Electricity Regulatory Commission grant you licenses as an association.

The Government contracted with 11 (ELEVEN) investors in the distribution companies and the Commission licensed 11 (ELEVEN) distribution companies. Government will continue to relate with you as such, through meetings such as this, or individually to ensure that you discharge your duties to consumers.

I am certain that NBET (the Bulk Trader) and the Nigerian Electricity Regulatory Commission (NERC), your regulator, will communicate a similar position to you.

Now I will address some of the issues raised in the statement you issued.

A. Centralization and escrowing of Disco revenues and Regulations to guide your procurement

Under this heading the statement alleges that attempts to escrow your accounts amounted to “nationalization or expropriation” of the Discos, and that attempts to make regulations to guide the pricing of your procurement was at best an intrusion into your business.

What you failed to say in the statement was that the escrow condition was agreed by you with Central Bank as a condition for offering you stabilization funds by way of loans to fund the business you invested in because commercial banks were reluctant to do so.

What you also failed to state was that the loan was at 10% interest which is well below commercial rates.

What you also failed to state is that you also agreed under that arrangement to establish letters of credit to guarantee future payments to NBET and TCN Market Operations, that the agreed commercial terms of the letters of credit authorizes NBET and TCN Market Operations to draw on the letters of credit for any default in payment to them, and that such defaults have occurred and continue to occur.

Any right-thinking person will accept the principle that any person lending you money must have the right to know what you are doing with the money especially when under collection and under payment has been a major feature of many Disco performances.

As far as the regulation on your procurement is concerned, what the public needs to know, which your statement was silent on, is that you are entitled to fully recover your costs and investment by law and this is the function of how tariffs calculated.

Since Government holds 40% of the shares of Discos on behalf of states and local governments and the Nigerian people, it has a duty to ensure that you buy parts and other equipment at reasonable and competitive market prices and not through inflated contracts to relatives as we have seen in some Discos in respect of which NERC will take action in due course and sanction those who are involved.

Declaration of eligible customers

Your statement claims that this provision, which allows certain classes of consumers to deal with the generation company directly is premature and results in extra cost to consumers.

Your statement is silent about the inability of some of your members to invest in feeders and distribution equipment to get power to consumers.

This has led to the emergence of the terminology of load rejection for an economy that does not have enough.

As you rightly acknowledge, the power to declare eligible customers is provided by law, and what it does is to entitle certain types of customers to deal directly with their power provider or Genco once they can bear the cost of constructing the distribution facility in cases that we currently have, where their Discos cannot or will not invest the money to do so.

Your statement does not address the ill-logic of standing in the way of a consumer seeking to get by himself what the service provider Disco has failed or is unable to give them.

As for the alarm and panic which your statement seeks to raise about increased tariff, eligible customer declaration is not compulsory and applies only to those who elect to benefit from it, and they are in a position to decide whether a tariff of over N60 per Kilowatt hour of generation by diesel which they currently use is preferable to investing in a distribution asset that gives them power at a lower tariff.

What is important is that the law is followed, consultations are held with prescribed and decisions are taken.   

No Disco has exclusive rights over any area and its ability to retain an area must be consistent with the ability to provide service to the area.

Corporate Governance at Disco level

Your statement alleges that the complaint about lack of corporate governance in the Discos is not as important as other issues like payment of MDA debts, ensuring cost reflective tariffs and so on.   

The statement is silent on the efforts being made at these monthly meetings to help you ascertain and prove the debts that you claim that Government owes you.

The statement is silent on your failure to provide up-to-date audited financial statements as required by your licenses.

If a company cannot produce all the records of its transactions and accounts does that not allude to gaps in its governance?

Your statement is silent about the number of times your consumers have contacted the ministry in Abuja about failure of service.

Does the fact that consumers go beyond their service provider who collects the money monthly to complain to Government who does not collect money for their power not call for a look in the mirror about your corporate governance?

If corporate governance was not an issue, your statement will not be silent about plans to improve service to consumers that by supplying them meters and rebuilding the trust that has been damaged by estimated billing.

Good corporate governance will ignite the conscience of an electricity business to first provide meters to its customers before seeking tariff increases so that a metered consumer will at least have the ability to fairly measure from his meter how he is being billed.

In order not to take any more time than I have done, I will only say about the other issues addressed in your statement relating to:

* The N701.9 Billion intervention

* Load rejection

* The Nigerian Electricity Market stabilization fund and;

D. Disco performance under which you allege the power infrastructure you inherited is old and that some progress has been made by you that I am the first to publicly defend your contributions to the sector, but to the extent that consumers are not yet satisfied, you must do more to improve service.

Rather than complain about old infrastructure, I wish to remind you that nobody forced you to buy those assets and you knew what you were buying.

The N701.9 Billion intervention fund is consistent with Government's policy and determination to enable businesses flourish, and it was intended to save the Gencos, the gas companies and their financiers who were providing service, from collapse.

Your statement did not tell members of the public that these companies were not getting paid because you were not remitting all of what you should remit to NBET and the market operator, admittedly because of reasons that are partly and not partly your fault.

As I said when I convened the first of these monthly meetings, it is entirely voluntary and nobody is under compulsion to attend.

As I have done at almost every previous meeting, I will now ask you all again to vote whether we should continue the meeting.

If the outcome of the vote is to discontinue the meetings, this will be my valedictory statement to the meeting.   

If the outcome of the vote is to continue the meetings, then I will demand that this meeting must remain the platform for ventilating and resolving issues relating to the sector without prejudice to other meetings that the regulator may convene.

I will also, in that event, issue statements like this as the need arises where any group within the industry seeks to mislead or misrepresent our common actions.

Thank you very much for listening.

Babatunde Raji Fashola, SAN
Honourable Minister of Power, Works and Housing
Monday 8th May 2017

Vocational Education: A Pathway To Building A Prosperous Nation - Fashola...
May
07
2017

Vocational Education: A Pathway To Building A Prosperous Nation - Fashola

The Minister of Power, Works and Housing, Babatunde Raji Fashola, has indentified among many other factors the need to focus on vocational education for a speedy and prosperous future.

Fashola said this at a one day stakeholder’s meeting organized by the Council for the Regulation of Engineering in Nigeria on how to proffer solutions to the decline of Technical Education in Nigeria with the theme “Technical Education Manpower Shortage” at Nicon Luxury Hotel, Abuja.

The Minister who was represented by his Special Adviser on Works, Engr. Femi Hamzat, drew his reference from three different countries: - Singapore, South Africa and Canada and advised all the educational policy makers to emulate those countries, saying for example, that Singapore has consistently transformed its educational system to meet its required needs. He further stated that Singapore credits her competitive and growing economy to the nation’s approach to education by identifying areas in the economy that require skill-based education.

The Minister said, in South Africa “vocational technical education is recognized as an important factor in developing its economy and as such, its development has been used to heal the past divisions by improving the standard of living leading to a more successful nation.”

Fashola also stated that Technical Vocational Education systems are dynamic and the challenges thereof are unique. As such he opined that efforts must be geared towards the system that will address the national needs and economy, if actually the nation is yearning for development it desire. The Minister called on the Federal Government to articulate effective and responsive Technical and Vocational education system, which will accommodate Nigeria’s vast social, economic, educational and cultural conditions for national development

Fashola also said that plan is on-going on how to strengthen Federal Emergency Road Maintenance Agency, (FERMA) to be more responsive to the needs of national growth through legislation. The reasons for doing this he noted are to engage artisans and craftsmen to fix roads and to make FERMA a big employer of labour to different categories of manpower.

Earlier, the President of Council for the Regulation of Engineering in Nigeria, (COREN), Engr. Kashim A. Ali, said the theme for the meeting was informed by dearth of technical colleges which has led to non-existence of qualified Craftsmen and Technicians in Nigerian engineering sector and the needs to fine tune ways of addressing the issue.

Engr. Kasim stated that Artisans and Technicians constitute a very important manpower of the value chain in the engineering service delivery, stressing that “the dearth of indigenous artisans and technicians in the engineering sector has negative impact on economy, and as the skills gap continues to widen, there has been huge capital flight as expatriates come in to fill the lacuna at the detriment of the country.”

In his goodwill address, the Chairman, House of Representative Committee on Works, Hon. Toby Okechukwu, charged the stakeholders to gear up their efforts in addressing the shortage of artisans and technicians within the profession, otherwise the issue of hiring expatriates will continue to exist because the vacuum cannot be left unfilled.

Remarks By Babatunde Raji Fashola, SAN At The Inauguration Of The Board Of The Rural ...
May
01
2017

Remarks By Babatunde Raji Fashola, SAN At The Inauguration Of The Board Of The Rural Electrification

Although today is only scheduled for the inauguration of the reconstituted board of the Rural Electrification Agency, I feel obliged to make a few comments that I believe shed some light on the plan of the Buhari Administration on our understanding of the purpose and role of this agency.

Before I do so, let me express the gratitude of the Federal Government of Nigeria to the immediate past acting Managing Director and his team and all those who have served in this agency since its inception, for their service and contribution.

It is my expectation that the new team will be able to build on whatever you have left behind, improve on it and ultimately achieve the purpose for which this agency was set up, which is to provide access to electricity for millions of Nigerians who are yet to be connected to the grid.

Although it is called a 'Rural' Electrification Agency, there are many urban and suburban communities that still lack access to power because they have not been connected to the national grid.

Part of the reason for this lack of access is that the 330/132 KV and 132/33 KV lines (popularly called the high-tension wires), by which this connection is often made, run over long distances covering several hundreds of kilometers.

The cost of extending these lines to communities is expensive and where the population in such communities is not large, the price of their electricity will be high because it will be borne by a few people.

Because public tariff is fixed, investments in these lines are not considered attractive and it is easy to pass over these communities or simply attempt grid extensions which have not covered the field and have resulted in many people being left behind.

All of this is about to change and that is why we are here. REA is the champion of these unconnected communities, who have have been left unserved. REA will bring them to mainstream of electricity connectivity by providing and promoting off grid connections.

Let me point out that when the Electricity Sector Reform Act was passed in 2005, it set up the Rural Electrification Agency and mandated that the Rural Electrification Implementation plan should be prepared (within a year) for Presidential Approval.

It is that plan that will set out how to reach the unconnected communities that I spoke about, through a combination of grid extension and development of independent grids, using new technology such as solar, which will mitigate the cost of the long 330/132 KV and 132/33 KV lines which I spoke about.

Unfortunately, nothing was done between 2005 and 2016 about the Rural Electrification Implementation program until 2016 when President Buhari approved this plan. That was a period of inaction of 11 (ELEVEN) years.

Thankfully, all that is behind us. We must look to tomorrow and the promise of increased access to electricity that President Buhari’s approval heralds.

The anchors for implementing Rural Access are:

A. Completion of over 2000 Grid extension projects that started life as constituency projects since 1999 but have now either been abandoned or uncompleted;

B. Resuscitation of 6 (SIX) small Hydro dams and activation of their power component, which have received Federal Executive Council (FEC) approval, have been advertised, and we have received Expressions of Interest which we are evaluating.

C. Development of Independent Power Plants in 37 (THIRTY-SEVEN) federal universities and seven teaching hospitals in rural areas and the building of independent power grids from there to connect adjoining rural and unconnected communities.

Most of these IPPs, at least 27 (TWENTY-SEVEN), will be solar powered and this is the heart of the matter.

This is because President Buhari understands the increasing emergence of renewable energy sources, like solar power from the fringes of the energy debate to the mainstream.

This is why he was one of the first leaders to append his signature on behalf of Nigeria to the Paris agreement.

Most importantly he understands the appeal of renewables generally and Solar in particular to the global youth population and Nigeria's youth.

He understands how impactful a small solar plant can be to a barber, hairdresser, small food processing plant and small businesses generally where our youth are participating in making their contribution to our national development.

He understands and appreciates the role that young people played in building the nation and driving the economy.

This is why he has appointed young people to the leadership and management of this agency, to deliver not only on the promise of their generation but also on the expectation of millions of unconnected people who are living without electricity.

This is why he has constituted a Board of Experience and Youth in this critical agency.

I hope and expect that all of us will rally round and support this new team to deliver on their mandate.

On behalf of the Ministry of Power, Works and Housing, I promise our fullest support.

It is therefore with pleasure that I formally inaugurate the Board of the Rural Electrification Agency and wish them success in the implementation of the Rural Implementation program.

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

Washington, DC, April 22, 2017 – The World Bank Group And The Federal Governmen...
Apr
26
2017

Washington, DC, April 22, 2017 – The World Bank Group and the Federal Government of Nigeria today had a high level consultation meeting to discuss World Bank Group support for the Government’s Power Sector Recovery Program, which was approved by the Federal Executive Council of Nigeria on March 22, 2017. The current status of the power sector characterized by poor service and lack of liquidity is a source of macro-economic imbalances and a binding constraint to the revival of growth for the country. The Power Sector Recovery Program focuses on supporting implementation of power sector reform, reducing losses in the distribution companies, enhancing the sector’s financial viability, increasing access to electricity services, and mobilizing private sector investment.

“The approval of the Power Sector Recovery Program by the Federal Executive Council demonstrates that the Federal Government is committed to the sustainable development of the power sector.   The implementation of the Program is critical to achieving the objectives of the Government’s Economic Growth and Recovery Plan,” said H.E. Babatunde Fashola, SAN, Minister for Power, Works and Housing.

“There is need for well-designed derisking in order to attract private investors to the sector,” said Mrs. Kemi Adeosun, Minister of Finance.   “All the agencies of Government will work in concert to ensure implementation of the Power Sector Recovery Program.”

“The legislative arm of the Nigerian government is fully committed to the successful implementation of the Power Sector Recovery Program,” said Senator Enyinnaya Abaribe, Chairman, Senate Committee on Power, Steel and Metallurgy.

“We will make sure our oversight functions focus on the completion of projects and initiatives that support the effectiveness of the Power Sector Recovery Program” said Honourable Dan Asuquo, Chairman, House of Representatives Committee on Power.

The World Bank Group congratulated the Government on its commitment to the Recovery Program, stressing the critical importance of the power sector for Nigeria’s development and for restoring macroeconomic resilience and growth.   The meeting discussed the action plan set out in the Program, stressing the need for strong interagency coordination to ensure that it attains its aims.

"Controlling the cost of electricity supply is a critical element of the Recovery Program that will require close attention to prioritizing investments based on least cost power development investment planning principles,” said Riccardo Puliti, World Bank Senior Director for Energy and Extractive Industries.

“A turnaround of the power sector will require the expertise and financing of the private sector,” said Bernard Sheahan, Global Director for Infrastructure and Natural Resources at the International Finance Corporation.  “This would require continuous improvement in the investment climate in Nigeria and strong communications among stakeholders of the sector reform plan during its implementation.”

“A full range of instruments will be deployed to help the Government mobilize investments directly from the private sector and through private sector guarantees,” said Sarvesh Suri, Director of Operations at the Multilateral Investment Guarantee Agency.

The World Bank Group reaffirmed its strong partnership with the Government of Nigeria in addressing the challenges in power sector, that include bringing its experience in developing financing solutions and attracting private sector capital in Nigeria. The meeting resulted in agreement on the next steps in developing the World Bank Group’s support, recognizing the need for concerted efforts to accelerate its preparation.

“The World Bank Group is committed to supporting the implementation of the Government’s Power Sector Recovery Program to re-establish financial sustainability in the power sector,” said Rachid Benmessaoud, World Bank Country Director for Nigeria.

Contacts:

In Abuja (Federal Government of Nigeria): Permanent Secretary, Ministry for Power, Works and Housing: Louis Edozien, louis.edozien@power.gov.ng

In Abuja (The World Bank Group): Olufunke Olufon, 08149921055,  oolufon@worldbank.org

In Washington (The World Bank Group): Ekaterina Svirina, (202) 458-1042,  esvirina@worldbank.org

For more information on the World Bank’s programs in Nigeria, visit:

http://www.worldbank.org/en/country/nigeria

Join us on:

https://www.facebook.com/worldbank

Follow us on Twitter:

https://twitter.com/WorldBankAfrica

Find us on YouTube:

http://www.worldbank.org/africa/youtube

Listen to us on Soundcloud:

https://soundcloud.com/worldbank/sets/world-bank-africa

 

Deployment Of Solar Energy Attains Milestone As FG Signs PCOA Agreement With Two Deve...
Apr
18
2017

Deployment Of Solar Energy Attains Milestone As FG Signs PCOA Agreement With Two Developers

*   Agreement is key aspect of the finalization of the PPA signed last year between Federal Government and 14 Solar Power developers

*  Fashola presides at event, reiterates importance of Nigerians investing in the nations economy

*  Assures Nigerians that the aspirations to see more renewable energy are being met with results  imminent

The Minister of Power Works and Housing, Mr Babatunde Fashola SAN, Tuesday in Abuja presided over the signing of the Put/Call Option Agreements (PCOA) with two Solar Power developers. – Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited.

The Agreement, which was co-ordinated by the Nigerian Bulk Electricity Trading Plc (NBET), is a key aspect of the finalization of the Power Purchase Agreement which the Federal Government signed with 14 Solar Power developers in July/August last year to deal with any premature termination of the PPA. Afrinegia Nigeria Limited will deliver 50MW while CT Cosmos will deliver 70MW to the Grid on completion.

Making his remarks at the event, the Minister who described the signing of the PCOA as a milestone, again stressed the importance of Nigerians investing locally as a way of supporting the ongoing efforts by Government in rebuilding the country. He noted that experience had shown that whenever the investment weather got stormy and cloudy in the country, it was the persistence, perseverance and indomitable spirit of the indigenous investors that would support Government adding that the moving investors would simply look for calmer investment weather.

According to the Minister, “Sometimes when the weather gets stormy and cloudy, like it has been a few months back, some of the first people to go are the moving investors as they look for calmer weather. It is the persistence and perseverance and the indomitable spirit of Nigerians who have invested in Nigeria that will help to support the efforts that Mr President and the Vice President and the Nigerian Government are making to rebuild the Nigeria that we want to see”.

Thanking the two local investors for their confidence in the nation’s economy, Fashola said the Solar development initiative was in line with the Federal Government’s Economic Recovery and Growth Programme pointing out that one of the five priority actions of the 60 interventions in the Plan was Energy Supply which was the responsibility of his Ministry.

The Minister said the initiative also sat well with the objective of his Ministry to get Incremental Power wherever it was available, safe and environmental friendly adding that it also agreed appropriately with the Global trend in renewables and Nigeria’s commitment as a signatory to the Agreement to seek more sources of renewable Energy and deliver energy “in the way that it sustains the Planet and human life for a more enduring period”.

“It sits very well with our Ministry’s Energy Mix to deliver 30 per cent of our total energy capacity through renewables by 2030”, he said adding, “So it has ticked all of the right boxes; what remains now is to tick the final box to get power to peoples’ homes”.

Recalling a similar ceremony when Government signed the Power Purchase Agreements sometime last year, Fashola, who noted that he made it clear that it was the starting of a journey that could take several months or a couple of years, declared, “We have reached a major milestone in that journey today”.

The Minister, who again thanked the investors and wished them success, assured Nigerians that all of the aspirations to see more renewable energy were being met “with Policy Initiatives, action backed movements”, adding, “The journey has started and the results are imminent”.

He noted that Solar represented only one of the sources of renewable energy that government was currently pursuing adding that there were also hydros and Government was similarly procuring six more hydro dams as well as working in Dadin Kowa, Zungeru and Gurara.

According to Fashola, “We also are very near close to concluding the signing of the contract to commence the biggest hydro plant in Nigeria-the Mambila. So the road to renewables here is really exciting and I am looking forward to seeing what the road will look like in a couple of months”.

The Minister, who expressed the hope that “sooner rather than later” Nigerians would begin to feel the impact of the companies with energy supply especially to communities that were yet to experience and benefit from access to energy, also on behalf of the government and people of Nigeria, thanked the companies for their investment belief and investment commitment.

Earlier in his remarks, the Permanent Secretary (Power), Mr. Louis Edozien, expressed joy at the signing ceremony which he said marked a very important day in the Power Sector describing the event as the last bus stop in the process of getting a grid solar power.

According to the Permanent Secretary, the event represented the last bus stop as the Ministry had, in the last one and a half years surmounted several hurdles leading to the day’s event including getting the PPA signed and getting the projects to financial closure adding that the last bus stop to the Financial closure was the signing of the Put/Call Option Agreement (PCOA)which was the day’s event.  
Edozien, who said he would be happy to work with the two indigenous companies declared, “Here we are; this is the last bus stop and we hope and expect that after this, the next stop in the journey will be power on the grid”.

In her remarks, the Managing Director/CEO of NBET, Dr. Marilyn Amobi, also described the day as a very important one for both NBET and the entire Power Sector expressing delight that the process was now at a very high level of conclusion leading to the actual execution of the contract.

Also present at the signing ceremony, which, according to NBET “marks the end of the development stage of Nigeria’s quest to deploy grid solar to the nation’s energy mix” were the Chairman of Afrinegia, Mr Bestman Uwadia who signed on behalf of Afrinegia and his CT Cosmos counterpart, Mr Phillip Chukwueke, who signed on behalf of his organisation. The event was also witnessed by the companies’ international lenders group led by European International Bank and AfDB and also their Engineering Procurement Contractors, AEE Power of Spain as well as their International legal advisory team led by Jones Day Solicitors. While Afrinegia has its solar project at Onyi Kokona LGA of Nassarawa State, CT Cosmos is developing its own project at Panyam, Mangu LGA, Plateau State.

Alhaji Mohammed Bukar At The Opening Ceremony Of The 23rd Meeting Of The  Nation...
Jul
19
2017

Alhaji Mohammed Bukar At The Opening Ceremony Of The 23rd Meeting Of The  National Council On Works

Opening Remarks by the Permanent Secretary, Federal Ministry of Power, Works and Housing (Works and Housing Sectors) at NAF Conference Center on Monday 17th July, 2017

PROTOCOL

It is my great pleasure to welcome you to the 23rd Meeting of the National Council on Works being organized by the Federal Ministry of Power, Works and Housing with the theme “Adequate Traffic Signage - An Essential Key for Highways Infrastructure, Safety and Comfort”.

2.    The Meeting of the National Council on Works provides a forum in which stakeholders in the Works Sector deliberate issues concerning the road sector with a view to coming up with decisions on how to solve problems associated  with the construction and maintenance of highways/roads in Nigeria.  This year’s theme addresses the need for adequate traffic signage on our roads in order to ensure the safety and comfort of road users. 

3.    The 23rd Meeting of the National Council on Works begins today with the first Plenary Session which involves the meetings of Directors of Works (federal and states) under the Chairmanship of the Directors, Highways Planning and Development, Federal Ministry of Power, Works and Housing. The Meeting shall continue tomorrow. I wish to implore all participants to contribute meaningfully as the discussion on this session will play a vital role in subsequent days of the meeting.

4.    The Meeting of the Permanent Secretaries of Works (federal and States) will hold on Wednesday 19thJuly, 2017 to consider the report of the Directors’ Meeting and to come up with recommendations for consideration by the National Council on Works on Thursday 20th July, 2017.

5.    I urge all participants to come up with ideas and contributions that can help to achieve the goals and objectives of this year’s Council Meeting. That is, to ensure the provision and maintenance of standard and Adequate Traffic Signage on our Highways/Roads for the Safety and Comfort of road users. 

6.    At this juncture, I would like to conclude by wishing you fruitful deliberations and a pleasant stay in Abuja.

Thank you.

Fashola Advocates A Housing Economy For Rebuilding Economy, Country...
Jul
18
2017

Fashola Advocates A Housing Economy For Rebuilding Economy, Country

*      Minister commends private sector participants in the Housing Sector at the 11th Abuja International Housing Show in the FCT
*      Says FG is now building models that respond to nation’s cultural and climatic diversities in 33 states “as a pilot to then interface with the Private Sector”
*      We remain committed and we will deliver and improve what we met, he declares

The 11th Abuja International Housing Show kicked off in the Federal Capital Territory Monday with the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, advocating a Housing Economy as a viable means of rebuilding the nation and its economy.

In a keynote address at the International Conference Centre venue of the three-day event, Fashola, who explained the concept of Housing Economy to mean “an economy that delivers on a continuous basis at every spectrum of the value chain”, starting from the construction sites. He said such continuous construction would impact mostly on the lives of artisans, labourers, builders and others at the construction sites, whom he described as “the most vulnerable members of the society”.

Stressing that the society has a duty to support such people, the Minister pointed out that the construction site has provided a major source of income for, not only construction workers such as plumbers, welders, bricklayers, retailers, but also suppliers of building materials and food vendors, adding, “It is the place where we can impact most on peoples’ lives”.

“Those are the most vulnerable members of our society that we must continue to support”, he said adding that the kind of response that could be received from creating a sustainable housing construction through building on a continuous basis would be “almost unbelievable”.

Recalling his inspection of Housing sites in Taraba, Gombe, Ekiti, Oyo and other states across the country earlier in the year, Fashola declared, “the story I can tell you is that plumbers, welders, bricklayers, food vendors, all say,  ‘Thank Buhari for us because we are back to work’. And that is the story; that is where it starts”. 

Particularly recalling his visit to the Oyo State site where he met a couple working at the site with the husband as a mason and bricklayer while the wife sold food to workers, the Minister, who noted that the couple relocated from Lagos to the site on learning of the project, added, “Let us just continue to build because the opportunities that it provides for rebuilding the economy and for rebuilding our country are simply prolific”.

On plans to include members of the informal sector in the Housing programme, Fashola said his Ministry was currently working on how to expand and register cooperatives and assist people to key into the programme adding that work in that regard has almost been concluded.

The Minister said the plan had become necessary because within the financing sector it had become important to ensure that those who have legitimate assets and income but were not in the formal recorded form could still be assisted to participate in home ownership.

Using the level 07 or 08 Civil Servant, who earns N50,000, as example, the Minister said although the amount may not be enough, he may have other assets like a farm or his wife’s business that they could put together adding that the plan was to expand the frontiers of how to determine what was affordable and the kind of income that could come into the programme.

“What we are currently working on now is how to expand and register cooperatives and assist people; because we have seen that the formal sector has its own structured organization where they contribute money, they help each other to build it. How can we use that to help them to build for themselves? We are almost completing work in that regard”, he said.

Fashola, who acknowledged that there is a challenge in the nation’s Housing sector, however, said the way to solve it was not to look at the size but to focus on how to solve it urging that the size of the problem should not dampen the enthusiasm to seek for solutions.

Debunking the estimated size of the nation’s housing deficit as not based on any audit or accurate census, the Minister, who stated that life without problems was unimaginable, added, “I always say that it is because there are problems that opportunities also arise, whether in public or the private sector”.

“I think the most important thing I want to say here is that the size of the problem should not dampen our enthusiasm to find solutions. Let us focus more on what we can contribute, what we can do rather than how big the problem is”, he said adding, “I will say this in the context of every time I hear 17 million Housing deficit; who did the census; who did the audit?”

The Minister recalled that barely 15 years ago Nigerians needed to get international direct dialling to be able to call somebody outside the country adding that although it was a big problem, the country just focussed on how to find a solution and, indeed, found a solution with many Nigerians now owning phones.

According to him, although not everybody in Nigeria today has a telephone, “But inch by inch, step by step, village by village, community by community we are connecting”, adding, “That must be the same attitude here”.

Still emphasizing the need to focus on solutions, Fashola, who recalled the time in the country when the only television station available was the Nigerian Television Authority, stated that Nigerians now have more channels than they could watch, adding that Nigerians must adopt the attitude that having overcome many problems in the past, the housing problem could be overcome.

The Minister commended Nigerians for their innovativeness pointing out that the  banner, depicting the many brands of exhibitors at the Housing Show was a demonstration that Nigerians were not idle. He declared, “Look at all of those brands, it means that Nigerians are doing something. So we are not idle, we are not inactive and step by step we will get to our destination”.

On the theme of the Show, “Solving Nigeria’s Housing Challenges Through Innovative Finance and Infrastructure Solutions”, Fashola, who said the financing problem would remain for as long as humanity, explained that the growth of global population was not proportionate with the increase in availability of funds.

The Minister explained further, “The public Housing programme in the United Kingdom started since 1918. Next year it will be 100 years old. And, you know what, not everybody in the UK owns a house. There are people who still sleep on the streets. They have only managed to achieve about 65 per cent home ownership”.

“And it varies depending on the economy because even home owners also lose their homes. They have reduced rental and increased ownership; but from 1918 till now, not everybody owns a home and that is just about 65million or 70million people”, he said.

Also, according to the Minister, Singapore, with barely five million people, started her Housing programme in 1962 and has achieved a home ownership of 80 per cent of their population after about 60 years while in Hong Kong, one of the biggest financial centres in the world, people live in cages; in flats cut into pieces “because the average cost of a house is 19 times higher than the average wage”.

“And this is the context in which I said the issue of financing will remain for a long time. But within that we can improve the quality of our lives if we focus on what we can do, if we focus on major progress, if we understand that housing delivery is a long time commitment”, he said.

Expressing the commitment of the Federal Government to deliver on its promises of affordable housing for Nigerians, Fashola declared, “We remain committed and we will deliver and improve what we met”, adding that in discussing financing it should also be understood that there are many other problems such as issues of affordability and issues of acceptability.

The Minister declared, “We have empty houses in many states of the Federation. Why are they not occupied? Can people afford them? Where they can afford them, do they like the way they are built?” adding that these were the problems that must be addressed in order to build for the choice and demand of the off taker.

Fashola commended his team in the Ministry for the work they have done in the last one year during which, according to him, “they have designed a National Housing model that responds to the cultural and climatic diversities of Nigeria”, adding that the Ministry was now building in 33 states of the Federation “as a pilot to then interface with the Private Sector”.

Also present at the Opening Ceremony of the Housing Show which is featuring hundreds of exhibitors and stakeholders in the Housing Sector, include, the Minister of State in the Ministry of Power, Works and Housing, Hon. Mustapha Baba Shehuri, Chairman of the All Progressives Congress (APC), Chief John Odigie Oyegun, who was Chairman of the Opening Ceremony, Minister of Labour and Productivity, Dr. Chris Ngige, Legislators, Governors, Traditional Rulers and other stakeholders in both Public and Private Sectors.

 

Power Sector Reforms- Challenges And The Way Forward...
Jul
14
2017

Power Sector Reforms- Challenges And The Way Forward

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Generating incremental power from all viable sources.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

For the record, there are 11 Distribution Companies namely:

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

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

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

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

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

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

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

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

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

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

 

 

 

 

 

 

 

 

 

 

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

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

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

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

Eligible Customer

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

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

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

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

The success of this initiative offers many prospects for success:

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

Tariff

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This is what the Buhari administration has to contend with.

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

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

Meters

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

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

What the public must know about meters are:

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

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

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

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

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

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

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

N37 Billion meter contract

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

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

Gas supply

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

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

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

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

Power Sector Recovery Programme (PSRP)

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

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

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

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

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

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

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

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

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

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

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

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

N701 Billion NBET payment assurance programme

Metering plan (already discussed)

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

Change of Government Representatives in DisCos

Procurement and Capital Requirement Guidelines for Discos by NERC

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

Tariff Computation Reform

Communication and Advocacy

Technical capacity and equipment upgrade by DisCos for loss restriction

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

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

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

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

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

Have you ?

Thank you for your attention.

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

Fashola To Goje : Don’t Trivialize The Issues Raised On Budget 2017...
Jul
06
2017

Fashola To Goje : Don’t Trivialize The Issues Raised On Budget 2017

*  Says Senator’s language is unparliamentary, therefore  not deserving of a reply
*  I need a better budget as a tool to do my work and that is why l am speaking out  Minister

The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN on Thursday said it was regrettable that the Senate Committee Chairman on Appropriation, Senator Danjuma Goje would seek to trivialize the issues he raised about the unilateral slashing of the budgetary allocation to key national infrastructure by the National Assembly.

In a Statement personally signed by the Minister and sent in from Zimbabwe where he is currently attending the 35th Annual General Meeting of the Shelter Afrique, Fashola said he was responding only for the purpose of refocusing attention to the issues at stake.

According to the Minister, the Senator’s reference to the patriotism of legislators should not be spoken but demonstrated as regards his calls for a more developmental budgeting approach.

Explaining this further, the Minister declared: “In this context, it is left for Nigerians to then decide whether budgeting for constituency roads is more patriotic than budgeting to complete the Kano-Maiduguri Road that connects 5 states, the Lagos-Ibadan road that connects 3 states and helps to move food, imported goods and fuel across the country; or the 2nd Niger Bridge that connects the East and West geopolitical zones of at least 11 states together.

“I will also leave Nigerians to judge whether it is more patriotic to budget for the Mambilla Power Project that will contribute to more power across Nigeria or reduce the budget to build street lights in legislative constituencies.”

The Minister noted that the response to the issues he raised certainly should not have been accusations of his blackmailing the Legislature or referring to  those who shared his views as his “surrogates”.

Reiterating his respect for the Parliament as a house where very vigorous debates about development should take place, Fashola advised Senator Goje to acquire the temperament for such debate and disagreement.

“Let me Let me reiterate that I see Parliament as a house where very vigorous debates about development should take place and it is important for Goje to acquire the temperament of debate and disagreement”.

Decrying the Senator’s admonition that he should learn how to “behave” like a “Minister” and the reference to the Senate awaiting how he would be “handled” by the House of Representatives, the Minister declared, “ I think first that the language  is unparliamentary and therefore not deserving of a reply”.

Noting that Goje’s faux  pas gave a clearer insight into how the Senator and those who may be minded like him may be thinking having transited from the Executive arm to the Legislative arm , the Minister called for caution.

” It seems that it is such people who need a behavioural prescription about legislative function,” Fashola said.

According to the Minister, a good budget remains a necessary tool for the Executive to do its work because when services are inadequate, the members of the public often  look to the Executive arm for answers.

“ I need a better budget as a tool to do my work and that is why l am speaking out”, he said.

National Assembly’s Recourse To Personal Attacks Fails To Address The Issues I ...
Jun
26
2017

National Assembly’s Recourse To Personal Attacks Fails To Address The Issues I Raised In The National Interest – Fashola

*  Says nation in trouble if lawmaker mistakes budgetary appropriation as cash
*  Minister insists no concession agreement exists on Lagos-Ibadan Expressway, Second Niger Bridge
*  Asks Lawmakers to address the slashing of budgetary allocation to key power, infrastructure projects nationwide

The Minister of Power, Works and Housing, Mr Babatunde Fashola SAN has expressed deep concern over the recourse of the National Assembly’s Spokespersons to name calling over his observations on the 2017 Budget.

In a Press Release signed by his Special Adviser on Media, Mr Hakeem Bello, the Minister said he was worried that the National Assembly Spokespersons failed to address the fundamental points about development- hindering whimsical cuts in the allocations to several vital projects under the Ministry of Power, Works and Housing as well as other Ministries.

Fashola had, in a recent interview while acknowledging that Legislators could contribute to budget making, disagreed with the practice where the legislative arm of Government unilaterally alters the Budget after putting members of the Executive through Budget Defence Sessions and Committee Hearings to the extent that some of the projects proposed would have become materially altered.

While acknowledging the need for legislative input from the representatives of the people to bring forward their developmental aspirations  before and during the Budget production process, the Minister had observed that it amounted to a waste of tax payers money and an unnecessary distortion of orderly planning and development  for all sections of the country, for lawmakers to unilaterally insert items not under the Exclusive or Concurrent lists of the Constitution like boreholes and streetlights after putting Ministries , Departments and Agencies  (MDAs) through the process of Budget Defence.

Specifically with regards to the Ministry of Power, Works and Housing, Fashola listed the Lagos- Ibadan Expressway, the Bodo- Bonny road, the Kano-Maiduguri road, the Second Niger Bridge and the long drawn Mambilla  Hydropower Project among others as those that the National Assembly materially  altered the allocations in favour of scores of boreholes and primary health care centres  which were never discussed during the Ministerial Budget Defence before Parliament.

In their responses both the Spokespersons of the Senate and the House of Representatives accused the Minister of spreading “Half-Truths” and making “Fallacious “ statements because he (Fashola) should have known that they only interfered with projects that had concession agreements and private sector funding components. They also accused the Minister of wanting to hold on to such projects in order that he may continue to award contracts.

However, while dismissing the allegations in the course of an official trip outside the country, Fashola said it was sad that the lawmakers would resort to name calling even without understanding the facts of what they were getting into. Taking the projects which the lawmakers chose to focus on one after the other, the Minister insisted that there is no subsisting concession agreement on the Lagos – Ibadan Expressway adding that what the Infrastructure Construction Regulatory Commission (ICRC) has is a financing agreement from a consortium of banks which is like a loan that still has to be paid back through budgetary provisions.

There is no fallacy or half truth in the allegation that the budgets were reduced. The Spokespersons admitted this much and now sought to rationalize it by a concession or financing arrangement that has failed to build the road since 2006. The biggest momentum seen on the road was in 2016.

In the case of the Second Niger Bridge where one of the Spokespersons alleged that the provision in 2016 budget was not spent and had to be returned, Fashola said that this displays very stark and worrisome gaps in knowledge of the Spokesperson about the budget process he was addressing.

According to him, a budget is not cash. It is an approval of estimates of expenditure to be financed by cash from the Ministry of Finance.

The Ministry of Finance has not yet released any cash for the Second Niger Bridge, so no money was returned.

Three phases of Early Works of piling and foundation was approved and financed by the previous Government in the hope that a concession will finally be issued, which has not happened because concessionaires have not been able to raise finance.

The continuation of Early Works IV could not start in May 2016 when the budget was passed because of high water level in the River Niger in the rainy season.

The contract was only approved by the Federal Executive Council in the first quarter of 2017 and the contractor is awaiting payment.

Dismissing the allegation that the Ministry under him was holding on to projects that could be funded through Public Private Partnerships (PPP) so that he could award contracts as a tissue of lies, the Minister said from Day One of his assumption of office, he made it clear publicly and privately that his priority would be to finish as many of the several hundreds of projects that his Ministry inherited which had not been  funded for close to three years.

According to Fashola, if the Spokesperson   was in tune with the Public Procurement Law which the National Assembly passed, he would realize that the Minister has no unilateral power to award such contracts whose values are in Billions of Naira, adding that all the new projects presented to the Federal Executive Council for approval were either Federal roads requested by State Governments or those put in the Budget by the Legislators to service their constituencies.

Fashola stated that the focus on contracts by the Spokesperson is probably a Freudian slip that reveals his mindset and interests; when indeed he should be focused on Developmental projects that strengthen the economy, which is the focus of the Economic Recovery and Growth Plan endorsed by the legislature.

Also responding to the issues that the Budget for the Mambila Power Project was slashed because it contained a “ whooping N17 bn” for Environmental Impact Assessment (EIA), the Minister said there was indeed a mis-description of that particular Expenditure Head which could have happened during the classification of so many thousands of Budget heads in the Budget estimates.

According to him, what was described as a Budget Head for EIA was actually the nation’s counterpart funding to the China- EXIM loan to fund the building of the Mambila Project , adding that this was brought to his attention only after it had been slashed and that  if the intention was not to slash arbitrarily it should have been brought to his attention to explain.  “At a joint meeting convened at the instance of the Budget Minister when I complained that the budget was slashed, the issue of EIA was brought to my attention and I explained what it was meant for,” Fashola said.

On the issue of the N20 Billion provision in the Ministry’s Budget which the Spokesperson alleged that the Minister failed to give details of, Fashola said the Spokesperson is hiding behind a finger.

The Minister explained that it was a very basic principle of good planning to make provision for unforeseen contingencies adding that in the 2016 Budget , a similar provision  enabled the Ministry to respond to the failures of the Tamburawa Bridge in Sokoto, the Ijora Bridge in Lagos and the Gada Hudu Bridge in Koto Karfe along the Abuja – Lokoja Highway. Similarly, the Ministry was able to pay N1BN to the Contractor handling the Suleja to Minna road.

The recent failures caused by flooding along Tegina-Mokwa-Jebba road and Tatabu in Niger State could not have been provided because they were not foreseen and there may be more. “ This is what good planning is about ,“ Fashola said.

Noting that the Senate Spokesperson missed the point in the haste to cast aspersions on him because he was not at the meetings he was speaking about, Fashola said he would have expected a more sober approach to the matter. “ In any event, allegations of half truth is only a flawed response to the constitutional and developmental issues that have plagued Nigeria from 1999 about how to budget for the critical infrastructure in Nigeria. It shows the conflict between the Executive that wants to build big Federal Highways; Bridges ; Power Plants;  Rail; and Dams on one hand and Parliament that wants to do small things like Bore holes , Health Centres , Street lights and supplying grinding machines ,” he said.

According to the Minister, being an institutional and not a personal issue, it won’t be out of place to seek a resolution of the conflict at the Supreme Court in order to protect the country’s future, because it is a clear conflict about how best to serve the people.

“As long as Budgets planned to deliver life changing infrastructure are cut into small pieces, Nigeria will continue to have small projects that are not life changing , and big projects that have not been completed in 17 years . If a project would cost N15 Billion and the contractor gets only a fraction of that, then things won’t move. Success should be defined by how many projects an administration is able to complete or set on the path of irreversible completion and not how many poorly funded contracts are awarded,” he said.

FEC Approves $186.6m For Completion Of AFAM Power Plant, N500million For Baro Port...
Jun
14
2017

FEC Approves $186.6m for Completion of AFAM Power Plant, N500million for Baro Port

The Federal Executive Council presided over by Acting President Yemi Osinbajo on Wednesday approved 186.6million dollars for the completion of the AFAM Power plant.

The Minister of Works, Power and Housing, Mr Babatunde Fashola stated this while briefing State House correspondents alongside the Minister of  Transportation, Rotimi Amaechi and Minister of Finance, Mrs Kemi Adeosun, on the outcome of the Council’s meeting in Abuja.He said that the AFAM project was part of the ministry’s roadmap for incremental power to the grid.

``Council ratified the earlier approval given for GE to undertake that project so that we can complete 240MW of emergency power through 830MW turbines this year.’’

Fashola also revealed that the Council also approved ``2.2million dollars for the construction and rehabilitation of the sub-station to enable the evacuation of the power, once the turbines are installed’’.

In his contribution, Amaechi revealed that the Council approved N500million for the completion of Baro River Port in Niger state.

``We hope that in the next four to six months we should be able to complete the Baro River Port.

He said the Council directed the Minister of works, Power and Housing to look into possibility of reconstructing the roads leading to the River Port while the Ministry of Transportation would look at the revival of the narrow gauge to the Port.

The Minister of Finance, Kemi Adeosun, disclosed that the Council granted permission to the ministry to sign a multilateral convention to implement tax treaty related matters to ``prevent tax erosion and profit shifting’’.

She said: ``The benefits are the convention will swiftly modify existing bilateral tax treaties to implement tax treaty related matters in a cost efficient manner instead of individual negotiation and amendment of
the treaty.

``It will address tax treaty abuse, promote transparency and drastically curtail illicit financial flows and ultimately it will increase the tax revenue of the government.’’

Prospects For Incremental Power Brightens As Fashola Inspects AFAM Power Plants...
Jun
11
2017

Prospects For Incremental Power Brightens As Fashola Inspects AFAM Power Plants

*  Calls for peace in the area as important precondition for successful completion of projects
*  All of the turbines and equipment needed for the completion of Afam III are now in the country, says Fashola
*  Assures Shell, other major gas suppliers that product supplied to the plant henceforth will be paid for

Given the availability of sufficient gas to power it, the Afam Thermal Power Plant in Port Harcourt, Rivers State, will before December this year, deliver 340 Megawatts of electricity to the National Grid towards the consolidation of the Federal Government’s drive to achieve Incremental Power for the country.

The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, who disclosed this in Afam in the Oyigbo Local Government Area of the State at the weekend, said with the work on the 240MW capacity Afam III Plant at   advanced stages and the burnt transformer for the 100MW Afam 1V now repaired, the two should deliver a combined 340MW energy to the grid before the end of the year subject to the availability of sufficient gas to fire them.

Interacting with newsmen after inspecting the Power Station, Fashola, who said all of the turbines and equipment needed for the completion of Afam III were already in the country, added that the only problems left included the provision of access roads and logistics while the burnt transformer that would evacuate the 100MW from Afam 1V had been repaired and in good condition with the turbine.

The Minister, who noted that Government has been working at the Plants in the past 17 to 18 months to restore the place back to its optimum capacity, expressed delight at the progress of work assuring that before the end of the year, 340MW would be added to the National Grid from the facility. “That is part of our Incremental Power Initiative”, he said.

He told the newsmen, “What we have behind us is the Afam III and that is the Fast Power programme in collaboration with General Electric to restore 240MW to that place. All of the turbines and equipment needed for that project is already in Nigeria. So the only challenge we have now is roads, logistics and a few other problems; those are the things I have come to assess here”.

Noting that Afam 1V, “is the only surviving generation unit”, Fashola, who said the surviving Generation units 17 and 18 have a combined output of 100MW, added, however, that the power could not be evacuated due to the damaged transformer which, according to him, got burnt in January 2015.

“That was what was handed over to the Buhari government. So we have worked, we have restored and we have replaced the transformer and it is ready to go”, the Minister said adding, “We are here to assess the progress of the work that we have been doing here in the past 17 to 18 months to get this place back to its optimum capacity. But we now have issues with gas“.

On the steps taken by Government to solve the gas issue, the Minister, who said that the Buhari Government inherited a lot of debts owed to all the gas companies who, according to him, said they would no longer supply gas without payment, recalled that Government recently approved N701Billion under its Payment Assurance programme to ensure that henceforth all suppliers of gas to the nation’s power plants were paid.

He disclosed, “So we are telling Shell to let us separate the previous debt and create a programme to deal with it under the Central Bank of Nigeria programme”, adding, “And now that we have a Payment Assurance programme, we are assuring them that every gas they supply to this place now will be paid for”.

“We have already paid for power produced in January; we have got approval to pay for power produced in February because the bills come in arrears. So they are looking at that and they will come back to us; so hopefully we should add another 100MW to the grid from here (Afam 1V) very soon.”

For Afam V, which, he said, was the last one to be built, Fashola said the plant could not be maintained for four to five years after it was built resulting in so many things being damaged inside it adding that Government was now trying to get it into procurement and fix that.

Assuring that the project would be completed next year, the Minister added, “I think they both have 276MW combined; that is a lot of power again to the grid and that will happen over the next 12 to 15 or 16 months if we can start quickly”, pointing out that he was at the site to assess progress of work in order to deliver the project as soon as possible.

Responding to a question as to how soon the facility would be restored to optimum power delivery, the Minister declared, “As soon as the gas issue is sorted out, Afam 1V, with the capacity to deliver 100MW behind you as soon as we sort out the gas issues; it is the 240MW Afam III behind me if we meet our deadline, we want to finish before December; that will give you 340MW.”

“Then at the back there, Afam V, that is 276MW that will roll into next year; we can’t finish that this year. By December, we should get to 340MW; these are now engineering issues and time tabling and also, of course, continued peace. We have 100MW now that we can’t evacuate because there is no gas to fire it, we have fixed the problem which was a burnt transformer. It has been repaired; the turbine is good, the transformer is good, now we have to go and get fuel to fire the car”, he said.

On the plan of Government for the implementation of the Economic Recovery and Growth Plan recently launched by the President as it concerns the Power Sector, Fashola declared, “Now the programme to deliver this is the Power Sector Recovery Programme which again was approved by the Federal Executive Council”, adding that the programme involved a lot of policies and actions including payments.

“Again you see Government is beginning to implement some of it. The Payment Assurance Programme is one of them; my trip to Washington to negotiate with the World Bank is one of it, the constitution of Boards- the new Chairman Designate of NERC which is pending before Senate is part of this, the constitution of the Rural Electrification Agency’s management and board is part of it; so we are beginning to implement all of the actions and policies”, the Minister said.

Describing the development of the Power Sector as a journey rather than an event, Fashola again declared, “If you are looking for an event, then you are not looking for power. We will get to many bus stops; good bus stops. One bus stop is 100MW behind you; another bus stop is 240MW behind me; another bus stop is 276MW somewhere behind the line. And we will do more of this”.

Responding to a question on the Bonny Road project, Fashola, who assured that it was on the Government’s programme, pointed out that the partnership was on explaining that some issues with the Budget which had apparently delayed the project, had been resolved at a meeting with the leadership of the National Assembly to enable the Federal Government contribute its own counterpart funding with the Nigerian Liquefied Natural Gas (NLNG).

“So we are working with the contractor; I still met the contractor last week. People should be patient; we will deliver on the road to Bonny. The contract hasn’t been awarded. We need to see the final framework when the contract is awarded and that won’t happen until we have a budget. We can’t award contract without a budget. Hopefully we should start this year”, he said.

Earlier, in his opening remarks Fashola had called for peace in the area as an important precondition for successful completion of the Afam Power and other projects saying for people to leave their countries far away and come and build a facility that they could not take away in another country was a leap of faith.

Explaining how it would benefit the community, Fashola said aside the economic benefit to the country, the first investors who experienced a peaceful and safe environment for their assets would spread the word round the investing and business world that the environment was peaceful and safe for investment and the communities would be the better for it.

The Minister assured that the major gas supplier to the plant – Shell- would soon resume supply adding that he had a very intense discussion with the company over the modalities to henceforth pay for gas supplied and how to arrange for the payment of the backlog.

He told members of the host communities, “I have spoken to Shell and explained that under the Payment Assurance programme they will now be paid for any gas supplied while government sequences the old debts and work out plans to pay them. I told them that they should not allow payment of the old debts to stand in the way of new transaction”.

“I have had an extensive discussion with them. We cannot allow 100MW of electricity to stand idle. If 1MW can power as much as 200 to 250 homes, you can imagine what 100MW can do. That is the case I have had to share; they are responsive to that case, they will come back to me on the way forward, “ he said.

On the demand for good roads, hospitals and schools by the host communities, the Minister pointed out the Federal Government has prioritised the roads based on those that carry heavy traffic and beneficial to more people hence the focus on the completion of the Enugu – Port Harcourt Highway traversing the five states of the South-East of the country.

Noting that the Enugu- Port Harcourt Highway was another road that had fallen into disrepair for many years due to lack of maintenance, Fashola declared, “That is the Nigeria that this administration inherited and we are trying to change. So our focus first is on building the highways that even lead to Rivers State before we now start going into the heart of Rivers State”.

He added, “But we will get there if we are allowed to systematically implement our plans”, adding that the challenge of resource allocation and resource mobilization has made it necessary to prioritise.

“Those are the hard choices that we have to make and we have started by dealing first with the road that comes into Rivers State first, that connects Rivers State with other States in the South Eastern Nigeria so that more people can benefit and if you are patient I am sure it will happen”, he said.

The Minister while noting that there is a procurement plan to fix the road that leads to the Afam facility added that it would be better to wait until the project was completed before working on the roads to avoid damaging them when the heavy equipment for the project would be brought in.

As to the hospitals and schools, Fashola asked the communities to identify the sites to build and forward the survey plans to him promising to see what he could do to assist adding that it made “eminent common sense” that the people that were going to settle in the area would have families who would need the facilities.

On allegation of ill-treatment, Fashola declared, “I don’t think any government sets out to deliberately ill-treat its people. It may not have responded as adequately as you want. Even in our own homes that we don’t always have what we ask for from our parents does not mean that they set out to ill-treat you. So, I think that the understanding of why those gaps exist is important in how we communicate it”.

Giving a brief history of the Afam Power project, Fashola who said the privatisation of the Plant was not completed, added that the plant was developed in 1962, started life with 20MW, grew to almost 1,000MW but was now struggling to deliver only 100MW.

“This is what the Buhari Administration met. Even Afam V that was built in 2001 worked for just a few years and collapsed. Those are the things that this administration is determined to change by a regime of maintenance, by a regime of professionalism”, he said adding that government intends to develop a programme of maintenance so as create jobs from there. 

Also in his welcome remarks, the Member representing the Constituency in the House of State’s House of Assembly, Hon. Promise Chisom Dike expressed delight at the visit of the Minister, commending him for his commitment and dedication towards revamping the nation’s Power Sector.

Praising the achievements so far recorded by the Minister, the Honourable Member declared, “I am delighted to say that after more than 50 years of electricity in this country, we are blessed as a community, as a people, to have you here at so short a notice.

“This is an opportunity to meet with you first to say that the community is very happy with your efforts, your bold efforts in the Power Industry in this country. Personally, Honourable Minister, I have been following all the efforts you are making in terms of intervention funds to ensure that this time around we are going to have a sustainable power generation that would be sustained”, he said.

Reconcile Nation’s Land Evaluation System With Economic Realities, Fashola Char...
May
29
2017

Reconcile Nation’s Land Evaluation System With Economic Realities, Fashola Charges Estate Valuers

*  As Minister inaugurates reconstituted Estate Surveyors and Valuers Registration Board
*  Urges them to make the practice of estate valuation simple enough and responsive to the man on the Street
*  Tasks new Board to spearhead development of open, nationwide valuation for real estate in different parts of the country

The Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, Tuesday inaugurated the reconstituted Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) with a charge on the Board to reconcile the disparity between the country’s land evaluation system and the current economic realities.

In his remarks before the brief ceremony at the Ministry’s Headquarters in Abuja, Fashola also urged the professionals to develop an open evaluation for the different parts of the country as well as evolve means of making the practice of estate valuation simple enough and responsive to the man on the street.

Noting that because of the global economic slowdown property owners in some other jurisdictions were offering discounts on their properties to ensure optimum occupancy, the Minister wondered why the reverse was currently the case in the country where, according to him, the economy was being greatly challenged by tight capital.

He told his guests, “For me, I think the most important lessons that I like to share at this inauguration is to pose the question to you whether the current land evaluation system and values are consistent with the realities of our economy. You, as experts, must answer that question”.

“In a very challenging economy where cash is clearly tight, is the market value really responding appropriately? Are these values consistent with reality? Why are we not seeing rates and rents and values drop? Why are we having many houses unoccupied where people are looking for accommodation?”, Fashola further asked.

The Minister, who noted that property owners in the country had often argued that the properties were valued higher so they could have an “impact on percentages and commissions”, added, “As we reconstitute the new board and as we work together to rebuild our economy, those are the questions that I would like to leave you with to respond to”.

Recalling recent news that property sellers in the United Kingdom were, because of BREXIT, offering discounts to citizens, Fashola, who cited as proof that markets react to policies, added, “Many years ago our Stock Market was immune to policies. But you see today that we have a stock exchange that ranks with some of the best in the world because it reflects the realities of our economy in many respects”.

The Minister charged the Board, “So I will like to see, therefore, that as you take up the mantle of leadership today after inauguration, these are issues that I think you should put into the front burner agenda in terms of how you regulate the practice and also  the quality of people that you admit to the practice”, expressing regrets that in real estate transactions in the country the customer was clearly not king even with his money.

Emphasizing the importance of Estate Surveyors and Valuers in the economic growth of the country, Fashola declared, “These are people whose core professional mandate is really putting value on land. The main business that they undertake is the business of how land is turned from a dormant asset really into a valuable asset”.

According to him, “All of those who are involved in one form of enterprise or the other must first of all appreciate the value of land as a major capital formation asset; whether it is for small businesses, whether it is for large corporations, whether it is for markets or motor parks. I can’t really think of a business that one wants to undertake where land is not a critical part whether it is just to own a small office or a small kiosk where you can sell very basic things, even to roast corn”.

He continued, “The Ministry of Power Works and Housing employs a number of Estate Valuers for many reasons, as you all know. Whether you are building new roads where we need to acquire Right-of-Way, sometimes compensations have to be paid for farmlands and all of that, you are the people we turn to for evaluation”, adding that some of the members were currently involved in the Second Niger Bridge project as valuers for the government.

Some of the members, the Minister said, have also been recruited to the Power side now in the development of the Mambila Hydro Power Dam in terms of assessing the land that needed and ultimately quantifying for compensation to be paid while some were employed in the new Transmission Company of Nigeria (TCN) where the Ministry had to acquire Right-of-Way for its transmission lines.

Charging the Board to ensure greater transparency in the Built Industry, Fashola further charged the members to evolve means to make the practice of Estate Valuation simple enough and responsive to the man on the street pointing out that other jurisdictions have evolved property calculators where all one needed to do was to index one’s location and that of his property to have a fair value of what his asset was worth.

The Minister said one of the areas where Nigeria’s Ease of Doing Business ranking could improve was in the area of real estate valuation, “especially how to develop a harmonised code of charges” adding, “We had this problem back at state level where we found out that we were charging about 10 per cent gross on fees and taxes while other countries close to us were charging one and two per cent. But the truth was that the values were not real”.

“They were not market values and the solution was to invoke market values so that within its jurisdiction you have a fair market value of what the rate applicable to each piece of real estate, whether it was developed or undeveloped, there was a floor and a ceiling per square metre and on that basis, we crashed the rate to about three per cent”, he said.

The Minister argued that although it may look profitable to charge X values as fees today, when considered that out of every ten possible businesses, the competition would take about six, “because of more competitive rates”, adding, “Are you really doing good business?”

He challenged the members “to develop a very open and possibly nationwide valuation for real estate in different parts of the country”, adding “So that at least in Jabi, for example we can know what is the minimum rate of undeveloped property is per square metre and what the maximum rate should be if it is not developed”.

“If it is developed, at least we will have an idea as distinct from Maitama, Asokoro; as distinct from may be GRA Ibadan or GRA Kaduna and so on. At least there will be some database and I don’t think that this in any way imperils your ability to continue to render professional service”.

Congratulating the Chairman and members of the reconstituted Board, Fashola who noted with pleasure the broad mix of experience and value that were brought to the Board, Fashola declared, “This Board has, among many other responsibilities, the responsibility for registering persons who are fit and qualified to serve and practice as Estate Surveyors and Valuers and also to the responsibility to regulate the standard and the knowledge and the general practice of the profession in our country”.

“These are the people whose core professional mandate is really putting value on land. The main business that they undertake is the business of how land is turned from a dormant asset really into a valuable asset and then all of those who are involved in one form of enterprise or the other must first of all appreciate the value of land as the major capital formation asset”, he said.

In his remarks, Chairman of the of the Board, Mr. Olayinka Sonaike, thanked the Minister and the Federal Government for the opportunity and privilege given the members to serve on the Board adding that the members of the profession were in a fit position to contribute to the economic growth of the country.

Requesting that the budgetary allocation to the Board be released to it expeditiously after the signing of the 2017 Appropriation Bill, the Chairman pledged that with the collaboration of the Ministry of Power, Works and Housing, the Board would carry out its job effectively.

He said the Institute of Estate Surveyors and Valuers of Nigeria had already completed a database of properties in Lagos State with the intention to work in other states of the Federation promising that the Board would continue to work toward reconciling the disparity between land evaluation system in the country and her economic realities.

Also at the brief ceremony were the Director for Land and Housing Development, Rev. Olurotimi Onabanjo and Director Information, Mr Adebisi Agbonhin, Specially Advisers as well as other top officials of the Ministry while the Chairman of the newly inaugurated Board was accompanied by the Vice Chairman of the Board as well as other top officers and members of the Board.

Grow What You Eat; And Produce What You Use – Osinbajo...
May
24
2017

Grow What You Eat; And Produce What You Use – Osinbajo

The Acting President, Professor Yemi Osinbajo, SAN has called on Nigerians to “Grow what they eat and Produce what they use” day to day. He made this call during an Interactive session he held with Public Servants on salary Grade levels 8-14 at the International Conference Centre Abuja.

He added that the future of Nigeria is in the hands of Civil and Public servants, because they are the engine room that provides and prepares for every sitting administration; noting that it is only the Public Servants that determine if jobs can be created; bearing in mind if resources are available to accommodate the new hands and this can be determined through the taxes and revenues generated.

Osinbajo stated that Nigerians need to promote economic diversification and boost the non-oil sector in the face of the current global economic realities; therefore “Made-in-Nigeria” initiative is committed to increase the production of locally manufactured goods and services.

The acting President called on Ministries, Departments and Agencies of the government to grant preference to locally manufactured goods and services, adding that such support for local content in Public Procurement will strengthen the Naira, expand the country’s entrepreneurial capacity and thus lead to greater competition thereby improving the quality of goods and services.

The acting president said the Federal Government is counting on the support of the Public servants to drive the initiative because Information about government’s requirement for products and services will be easily accessible by the general public in order to improve the Nigerian business environment.

Earlier in her welcome address, the Head of Service of the Federation, Mrs Winifred Oyo-Ita, thanked the acting President because it is the first of its kind in the history of the Nation that Officers within these grade levels (8-14) will be meeting with the top Head of Government.

She encouraged public servants to be good ambassadors at their various MDAs and informed that as the Government is handling the abandoned projects, it is also committed to settling the outstanding arrears in all the sectors.

Also present at the occasion where Ministers of Power, Works and Housing Babatunde Raji Fashola; Interior, Gen Abdulrahaman Danbazua (Rtd) Industry Trade and Investment, Okechukwu Enelamah; Foreign Affairs, Geoffrey Onyeama; Head of Service, Mrs Winifred Oyo-Ita and Permanent Secretaries. 

National Housing Programme : FG Assures Of Political Will...
May
18
2017

National Housing Programme : FG Assures Of Political Will

The Minister of State, Power, Works and Housing, Hon Mustapha Baba Shehuri has commended the efforts of the President Buhari led administration for implementing the National Housing Programme (NHP), stating that it is a "demonstration of the political will of the administration to deliver on critical infrastructure in fulfillment of its electioneering promise to Nigerians" . He said the programme "will have direct impact on the people as many professionals, contractors, artisans and vendors are being engaged in the value chain".

The Minister who is on inspection  tour of the Housing project sites in the North-West geo-political region, spoke at the Kastina State NHP site located at Kwakwa, near the state capital. The Minister expressed satisfaction at the speed and level of work at the site, noting that the contractors are quite on schedule to meet the completion date of the Project.

He assured the contractors that government is committed to addressing whatever complaints they have at the moment especially on the issue of delayed payments and the supply of products. The minister appealed to the contractors and other workers to see the issues as the "teething problems" associated with initial projects of this magnitude and promised that such will be resolved as the Programme progresses.

One of the contractors, APLS  Global Link Ltd, Mr Martins Nnodu who spoke on behalf of others, applauded government on the implementation of the Housing Programme. He said that it was a welcome development in addressing the poverty rate in the country as it has created jobs and employment for Nigerians. He however appealed to the Minister to compel relevant authorities to facilitate prompt payment of contractors as well as  resolve issues bothering on specifications of the building materials,  explaining that it is slowing down the pace of work.

Zonal Co-ordinator of the Programme for the North -West in the Ministry, Arc Mohammed Dadi, while briefing the Minister said, Kastina was a pace setter in the Programme as the contractors have shown great commitment to meeting up with the timelines for completion of the houses.

The site has a total of 76 units comprising of  4 units of 1 Bedroom, 48 units of 2 Bedrooms and 24 units of 3Bedrooms. Also,19 contractors are handling the projects. Over 1,454 labourers are engaged at the site and 112 food vendors with 80 suppliers supplying various building materials to the site.

The  Minister  also inspected the site at Dutse, Jigawa State where  he  expressed satisfaction with the work so far done at the site and urged the contractors not to relent on their efforts to deliver. He said the Federal government was committed to reducing the housing deficit in the country and implored Nigerians to continue to support government's effort in delivering democratic dividends especially in the housing sector.

Also,briefing the Minister, the NHP Team leader and Federal Controller, Jigawa State, Arc Felix Ohiambe said, 19 contractors were engaged with over 400 labourers working at the site including food vendors and petty traders. Professionals,artisans which include: plumbers, carpenters, electricians, etc.are also not left out.

He said the Programme is a "job creating project" and thanked the administration for implementing the NHP.  He added that the project has boosted the economy of the state and increased the quantum of money in circulation.

A total of 76 housing units is also being constructed comprising: 4 units, 1 Bedroom, 48 units, 2 Bedroom and 24 units, 3 Bedrooms in Jigawa too.

Fashola To Journalists: Be Impartial In Your Reportage...
May
10
2017

Fashola To Journalists: Be Impartial In Your Reportage

The Minister of Power, Works and Housing, Babatunde Raji Fashola, has urged journalists to be objective and unbiased in carrying out their responsibility, saying that the world is changing and Nigeria cannot be left behind, therefore, he charged them to take up the challenge by informing the public rightly and investigating their sources of news thoroughly and balancing their stories before going to public domain.

Fashola gave this advice when he received in audience, the Executive Members of the Nigerian Union of Journalists, Oyo State Council in his Abuja office late yesterday.

The Minister said that the present administration under President Muhammadu Buhari, is leaving no stone untouched on how to make life better for Nigerians in the face of the economic meltdown, adding that government is also committed to security of lives and properties, fight against corruption and improving the nation’s economy.

Fashola stated that the decision of the Federal Government to repositioning the economy through infrastructural development has begun to yield positive result; mentioning “that the contractors on many of the federal roads across the country are back to construction sites engaging host communities by creating  employment to Nigerians and generating wealth.” This he added has improved economic status of most Nigerians along such road alignment.

Earlier, the Chairman, the Nigerian Union of Journalists, Oyo State Council, Comrade Adewumi Faniran, had expressed the council’s appreciation to the Minister and the Ministry’s Officials for their unalloyed commitment in making sure that the interest of Nigerians is protected, saying that the council has been monitoring the performance of the Ministry under the leadership of the Minister and that the council is satisfied.

Faniran promised the Minister of the Council’s readiness to make itself available for any media assistance whenever the case arose. The council also used the occasion to inform the Minister about the forth-coming 50 Years Anniversary of the Council on June 12, 2017 and the Minister has been selected as a Guest Speaker and will be decorated as the Man of the Year.

Power Sector, Major Contributor In Getting Nigeria Out Of Recession - Fashola...
May
07
2017

Power Sector, Major Contributor in getting Nigeria out of Recession - Fashola

The Minister of Power, Works and Housing, Babatunde Raji Fashola SAN has stated that the Power Sector will continue  to be a major contributor in getting Nigeria out of the economic recession by improving electricity supplies to industrial, commercial and small and medium enterprises in the country.

The Minister stated this at the presentation of a book to him titled "Power Sector Under President Muhammadu Buhari" in his office in Abuja recently.

He revealed that the Power Sector is one of the 5 key intervention programmes of the Federal Government’s Economic Recovery and Growth Plan (ERGP) recently launched by the government. The Minister commended the author of the book, Mr. Uche Aneke for his in-depth knowledge of the sector and simplifying the knowledge of electricity to the ordinary Nigerian.

During the monthly operators tour meeting, Babatunde Raji Fashola explained that power sector need to engage everybody so as to reveal to Nigerians government's effort.

The author of the book, Mr. Uche Aneke earlier disclosed that the book makes an effort to document activities in the power sector, especially the giant strides the Minister made since coming on board.
The author appreciated the Senior Special Adviser to the President on Media and Publicity, Mr. Femi Adesina who took time out of his busy schedule to write the forward of the book.

Federal Executive Council Approves N54 Billion For Reconstruction Of Road Linking Akw...
May
03
2017

Federal Executive Council Approves N54 Billion For Reconstruction of Road Linking Akwa Ibom and Cross River States

The Federal Executive Council (FEC), presided over by Vice-President Yemi Osimbajo, on Wednesday, approved N54billion for the reconstruction of Odukpani Itu-Ikot Ekpene road linking Akwa Ibom and Cross River states.

The Minister of Power, Works and Housing, Babatunde Fashola, disclosed this when he briefed State House correspondents on the outcome of the FEC meeting held in the Presidential Villa, Abuja.

He stated that the road, which was constructed over 40 years ago, would boost socio-economic activities and improve the performance of the economy by reducing journey time, the cost of doing business and also create more job opportunities.

Fashola added that this is consistent with the promise of this administration to create employment opportunities from construction works and stimulate the economy.

“We will do the best to quickly mobilise the contractor to site with the onset of the rainy season and I am sure that by this time next year, it will be a better story, a better journey time experience in that area of the country,” he said.

Also addressing the reporters, the Minister of State for Aviation, Hadi Sirika disclosed that the Council approved N1.5billion for projects in the aviation sector.

He disclosed that the Council approved the appointment of transaction advisers to carry out advisory services on establishment of national carriers, establishment of aviation leasing company and establishment of maintenance repair and overhaul centre.

He said advisers were also approved for the establishment of Aerotropolis or airport city and for the concession of the nation’s airports.

The Minister of Water Resources, Alhaji Suleiman Adamu told the correspondents that the Council approved contract verification of the dairy irrigation project located along Kano and Jigawa states. He noted that the project, which is about 2,300 hectare, was abandoned after reaching 50 per cent completion about 17 years ago.

According to the minister, there is already a provision for the project in the 2016 budget and it has also been included in the 2017 budget.

Minister of Information and Culture, Lai Mohammed also explained that President Muhammadu Buhari’s absence at the Wednesday’s Federal Executive Council (FEC) meeting followed medical advice from his doctors.

The minister stated that the President, who was in office on Tuesday, was asked to take some rest by his doctors, today.

He thanked Nigerians for their concern and prayers for the quick recovery of the president.

Mohammed dismissed as wicked and ungodly the insinuation that the President’s health had deteriorated to the extent that he was being assisted before taking his meals.

According to the minister, President Buhari deserves commendation from all well-meaning individuals and groups for being transparent and upfront in the matter concerning his health.

World Bank Group Support For Nigeria’s Power Sector Recovery Program...
Apr
26
2017

World Bank Group Support for Nigeria’s Power Sector Recovery Program

Washington, DC, April 22, 2017 – The World Bank Group and the Federal Government of Nigeria today had a high level consultation meeting to discuss World Bank Group support for the Government’s Power Sector Recovery Program, which was approved by the Federal Executive Council of Nigeria on March 22, 2017. The current status of the power sector characterized by poor service and lack of liquidity is a source of macro-economic imbalances and a binding constraint to the revival of growth for the country. The Power Sector Recovery Program focuses on supporting implementation of power sector reform, reducing losses in the distribution companies, enhancing the sector’s financial viability, increasing access to electricity services, and mobilizing private sector investment.

“The approval of the Power Sector Recovery Program by the Federal Executive Council demonstrates that the Federal Government is committed to the sustainable development of the power sector.   The implementation of the Program is critical to achieving the objectives of the Government’s Economic Growth and Recovery Plan,” said H.E. Babatunde Fashola, SAN, Minister for Power, Works and Housing.

“There is need for well-designed derisking in order to attract private investors to the sector,” said Mrs. Kemi Adeosun, Minister of Finance.   “All the agencies of Government will work in concert to ensure implementation of the Power Sector Recovery Program.”

“The legislative arm of the Nigerian government is fully committed to the successful implementation of the Power Sector Recovery Program,” said Senator Enyinnaya Abaribe, Chairman, Senate Committee on Power, Steel and Metallurgy.

“We will make sure our oversight functions focus on the completion of projects and initiatives that support the effectiveness of the Power Sector Recovery Program” said Honourable Dan Asuquo, Chairman, House of Representatives Committee on Power.

The World Bank Group congratulated the Government on its commitment to the Recovery Program, stressing the critical importance of the power sector for Nigeria’s development and for restoring macroeconomic resilience and growth.   The meeting discussed the action plan set out in the Program, stressing the need for strong interagency coordination to ensure that it attains its aims.

"Controlling the cost of electricity supply is a critical element of the Recovery Program that will require close attention to prioritizing investments based on least cost power development investment planning principles,” said Riccardo Puliti, World Bank Senior Director for Energy and Extractive Industries.

“A turnaround of the power sector will require the expertise and financing of the private sector,” said Bernard Sheahan, Global Director for Infrastructure and Natural Resources at the International Finance Corporation.  “This would require continuous improvement in the investment climate in Nigeria and strong communications among stakeholders of the sector reform plan during its implementation.”

“A full range of instruments will be deployed to help the Government mobilize investments directly from the private sector and through private sector guarantees,” said Sarvesh Suri, Director of Operations at the Multilateral Investment Guarantee Agency.

The World Bank Group reaffirmed its strong partnership with the Government of Nigeria in addressing the challenges in power sector, that include bringing its experience in developing financing solutions and attracting private sector capital in Nigeria. The meeting resulted in agreement on the next steps in developing the World Bank Group’s support, recognizing the need for concerted efforts to accelerate its preparation.

“The World Bank Group is committed to supporting the implementation of the Government’s Power Sector Recovery Program to re-establish financial sustainability in the power sector,” said Rachid Benmessaoud, World Bank Country Director for Nigeria.

Contacts:

In Abuja (Federal Government of Nigeria): Permanent Secretary, Ministry for Power, Works and Housing: Louis Edozien, louis.edozien@power.gov.ng

In Abuja (The World Bank Group): Olufunke Olufon, 08149921055,  oolufon@worldbank.org

In Washington (The World Bank Group): Ekaterina Svirina, (202) 458-1042,  esvirina@worldbank.org

For more information on the World Bank’s programs in Nigeria, visit:

http://www.worldbank.org/en/country/nigeria

Join us on:

https://www.facebook.com/worldbank

Follow us on Twitter:

https://twitter.com/WorldBankAfrica

Find us on YouTube:

http://www.worldbank.org/africa/youtube

Listen to us on Soundcloud:

https://soundcloud.com/worldbank/sets/world-bank-africa

Fashola Urges Professional Builders To Develop Effective Strategies And Framework To ...
Apr
20
2017

Fashola Urges Professional Builders To Develop Effective Strategies And Framework To Ensure Project Quality

The Hon. Minister of Power, Works and Housing, Babatunde Fashola has urged members of the Council of Registered Builders of Nigeria (CORBON) to develop for implementation, effective strategies, framework and benchmarks for ensuring the proper application of the project quality management plan of building projects in Nigeria. He said this will guarantee the attainment of quality in project delivery as well as regulate and control the practice of the building profession.

The Minister said this today at the 15th Induction / Investiture ceremony of New Builders held in Abuja. The Minister who was represented by the Director, Public Building and Housing Department in the Ministry, Arc. Sani Gidado, said that the present administration was determined to ensure the enactment of enabling legislation on the National Building Code which includes Project Quality Management Plan in contract documentation for full implementation.

Fashola identified cases of building failures and collapse in Nigeria as a clear manifestation of failings of the designs and the construction processes and stated that the onus lies with the critical stakeholders to undertake a conscientious overhaul of the present system to curb the menace.

He commended the Council for its contributions in the quest to achieve sanity in the built industry especially on its consistency in contributions and recommendations to the National Building Code and the National Council on Housing.

In his welcome address, Chairman of CORBON, Bldr.Prof. Bala Kabir said the Council has the primary responsibility of establishing and implementing standards of education and practice for Building Technology provided in the Builders Registration Act. He said some of the specific functions in the Act include: to regulate the activities of Builders through registration and licensure; define the scope of practice of building technology; set standards for practice and continuing education of Builders and discipline registered and license holders.

He said that the induction is another effort to disenfranchise quacks from carrying out their illegal activities in the industry and admonished the inductees to be building production managers who will ensure good quality project delivery at all times.

Guest speaker at the occasion, Prof Akin Akindoyeni also urged the Builders to maintain standards and quality and also go for expertise in the profession, adding that it is incumbent on the inductees and others to keep abreast of modern technology in the industry.

A total of 106 members were inducted into the Council.

 

PHOTO NEWS

Nov
13
2024

THE HONOURABLE MINISTER OF WORKS AND THE EXECUTIVE GOVERNOR OF NIGER STATE, H.E. MOHAMMED UMARU BAGO AT THE TOWN HALL MEETING AND STAKEHOLDERS ENGAGEMENT ON THE CONSTRUCTION OF THE 127-KILOMETRE, 3-LANE, SINGLE CARRIAGEWAY (NIGER STATE COMPONENT) OF THE 1,068-KILOMETRE SOKOTO - BADAGRY SUPERHIGHWAY IN MINNA, WEDNESDAY, 13TH NOVEMBER, 2024

1

Click To View More Pictures

PHOTO NEWS

Jul
17
2024

PICTURES FROM DAY 2 OF THE 29TH MEETING OF THE NATIONAL COUNCIL ON WORKS

Image 1

Click To View More Pictures