Nov

30

2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

That is not true.

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

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

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

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

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

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

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

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

We are preparing remedial action to restore these sections.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

It stands for ‘Safety’.

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

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

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

Nov

17

2017

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

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

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

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

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

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

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

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

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

Nov

15

2017

FG Recovers $64.6m Electricity Debt From International Customers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Nov

10

2017

Before Perception Becomes Reality

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

Mr Babatunde Raji Fashola, SAN

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Nov

07

2017

NERC Formally Presents Eligible Customer Regulations To Fashola

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

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

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

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

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

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

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

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

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

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

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

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

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

Hakeem Bello
Special Adviser, Communications To The Hon. Minister

Nov

01

2017

FG Grows Housing Sector For National Development –Fashola

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

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

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

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

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

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

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

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

Oct

30

2017

Road Infrastructure: FEC Approves Tax Relief Scheme for Private Sector

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Oct

23

2017

Shehuri Solicits Support From Development Partners

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

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

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

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

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

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

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

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

Oct

20

2017

Fashola campaigns for external borrowing to finance Capital Projects

The Minister of Power, Works and Housing,Babatunde Raji Fashola, SAN has thrown his weight behind external borrowing to finance capital projects. The Minister made the disclosure while delivering his address at the 2nd Annual Nigerian Mining Week at the Nigerian Air Force Conference in Abuja on Tuesday 17th October, 2017.

Fashola, who recalled that in 2016, the Federal Government committed the sum of N1.2 trillion on capital projects, which is an increase from 15% to 30%, emphasized the need to source for loans to finance the development of critical infrastructure for the Federal Government to fulfill its campaign promises.

While commending the leadership of the Mines sector for the amazing milestones recorded within “so short a time”, the Minister noted that very little can be achieved within the Power industry without inputs from the sector. He said, “as we roll out transmission stations, towers, we install transformers, whether it is steel casing for the transformers, whether it is copper winding inside it, all of these stem from the operations of the mining industry”.

The Minister of Mines and Steel Development, Dr. Kayode Fayemi, earlier on commended the “Nigerian Mining Week,” as a networking platform and a learning turf for existing businesses.

Fayemi noted that a recent World Risk Report published by the Mining Journal indicated that Nigeria has made remarkable improvements in both hard and perceived risk factors. He added that, “the Nigerian mining jurisdiction is now considered to have a better investment risk profile than Russia, China, India and several other leading jurisdictions”.

Various stakeholders took their turns to discuss the challenges facing the sector and the need to collaborate amongst themselves towards the sustainable development of the sector.

In attendance were the Governor of Taraba State, Darius Ishaku, the Ohinoyi of Ebiraland, Alhaji Ado Ibrahim, Senior Partner, PriceWaterhouse Coopers (PWC), Uyi Akpata, representative of the Kaduna State Governor, Mallam Nasir El-Rufa’I, Mrs. Amina Sijuade, amongst others.

Oct

16

2017

Nigeria won’t be reckless with foreign borrowings – Adeosun

….IMF, World Bank project higher growth for Sub-Saharan Africa, Global Economy in 2018

The Honourable Minister of Finance, Mrs. Kemi Adeosun, disclosed on Sunday that the Federal Government would not be reckless with foreign borrowings as it maintains an expansionary fiscal policy.

The Minister also revealed that the International Monetary Fund (IMF) and the World Bank Group have projected a positive outlook of higher growth for the Sub-Saharan Africa and global economy in 2018.

Adeosun made this known in Washington D.C. at a Joint Media Briefing with the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, at the end of the 2017 Annual Meetings of the International Monetary Fund and the World Bank Group.

She stated that the Federal Government adopted an expansionary fiscal policy with an enlarged budget in order to deliver a fundamental structural change to the economy, thereby reducing the country’s exposure to crude oil.

“Why are we borrowing? Mobilising revenue aggressively was not advisable, nor indeed possible, in a recessed economy. But as Nigeria now reverts to growth, our revenue strategy will be accelerated.

“This is being complimented by a medium-term debt strategy that is focusing more on external borrowings to avoid crowding out the private sector.

“This would also reduce the cost of debt servicing and shift the balance of our debt portfolio from short-term to longer-term instruments. This Government will be very prudent around debt. We won’t borrow irresponsibly,” said Adeosun, who led the Nigerian delegation to the 2017 Annual Meetings of the IMF and the World Bank.

The Minister participated in both the International Monetary and Financial Committee (IMFC) and Development Committee (DC) meetings, the two highest decision making organs of the Bretton-woods Institutions.

She revealed that developments in the global economy since the Spring meetings were reviewed, noting that growth had picked up in 2017 even though not even.

“Global growth is estimated to be 3.6 per cent for Fiscal Year 2017, while Sub-Saharan Africa (SSA) is projected to grow at 2.6 per cent and outlook is for higher growth in Fiscal Year 2018.

“However, down side risks remain in the medium-term with high policy uncertainty, geopolitical tensions. Inflation remains subdued,” she added.

Providing further details on the IMF and World Bank meeting, Minister Adeosun said the overarching policy priorities for the entire membership was to boost potential output and improve income distribution while improving financial sector resilience.

The two Bretton-wood institutions, according to her, urged commodity exporters like Nigeria, to pursue structural policy reforms to unlock the country’s potentials and stimulate aggregate supply as well as enhance the diversification process.

On the Development Committee (DC) meeting, she said members discussed the need to enhance the capacity of the International Bank for Reconstruction and Development (IBRD) and International Finance Corporation (IFC) to meet their obligations of supporting the financing needs of client countries and to prevent a slowdown in lending.

“At the DC where I spoke on behalf of Angola, Nigeria and South Africa, I urged the international community particularly the Bretton-wood Institutions to change the narrative on Africa which always portray the continent as Low Income Countries (LIC).

“Indeed, there are some Middle Income Countries represented by this constituency and so there is the need for the Bank to deploy instruments, policies and programs that will address the peculiar needs of these countries,” she said.

Responding on the issue of investing in women, Adeosun remarked that the women remained the best investment any nation could make.

“The multiplier effect of such investment is significant. We need to make more opportunities available to our women. They are the economic drivers of our nation. We have enormous talents in Nigeria, and the Federal Government will invest in human capital,” she added.

The CBN Governor, Mr. Godwin Emefiele, who also participated at the IMF and World Bank meetings, confirmed improvement in the Nigerian economy.

“The fundamentals we are seeing show that there is a lot of stability in the foreign exchange market, and having come down from high level to the level we are now, and the currency is just fluctuating between N359/N365 to dollar.

“We think it is good level compared to where we are coming from. We think it is important to note that as reserves get stronger, as economic fundamentals get stronger, there is no doubt that the naira will get stronger and we will see more appreciation in the currency,” Emefiele said.
 
He assured that the CBN would continue to focus on the banking system to ensure there were no significant threats that would affect the strategic health of the banking system.

He further said that the CBN would continue to support the Federal Government’s efforts to reduce unemployment and create jobs.

END

Oct

13

2017

Senate Committee Appraises 2016 Budget Implementation Of The Housing Sector

The Senate Committee on Lands, Housing and Urban Development paid an oversight visit to the Ministry’s Headquarters in Abuja to appraise the level of implementation of the 2016 budgetary provision to the Ministry. This is however the first time the Committee is visiting the Ministry to carry over its constitutional responsibilities of oversight of the Ministry’s operations of year 2016.

The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, who was represented by the Minister of State II, Surv. Suleiman Hassan Zarma, mnis, received and welcomed the Senate Committee to the Ministry.

Suleiman expressed pleasure of the Ministry to have the Chairman, Senator Barnabas Gemade and other members of the committee on the oversight visit and solicited for their cooperation to guide and correct appropriately where necessary, so that the Nigerian electorates will enjoy the dividends of democracy under the present administration.

He enjoined the Upper and Lower Chambers of the National Assembly to work in synergy on the implementation of Special Intervention of Constituency Projects in their various localities.

In his remarks, the Chairman of the Senate Committee on Lands, Housing and Urban Development of the 8th Assembly, Senator Barnabas Gemade, thanked the Ministry for the warmth reception given to them. He stated that the principle of separation of powers in a constitutional democracy requires that law makers carry out this oversight function regularly on the Executive Branch of the Government.

The chairman added that this vital function of the Parliament with the cooperation of the Executive arm of government will no doubt boost development and good governance in the country.

According to him, ‘’our nation is in dire need of improved level of housing delivery to our people as the need remains enormous.  We are keenly looking at how you are implementing new policies in enhancing this’’.

Gemade also said that the Committee have paid similar visits to Federal Mortgage Bank of Nigeria (FMBN) and Federal Housing Authority (FHA) as Agencies under the supervision of the Ministry and stated the need for higher support to boost their operations in order to achieve their mandates.

The Permanent Secretary (Works & Housing) Mohammed Bukar informed the Senate Committee that presentation of the 2016 budget implantation reports are segmented into seven parts and presented by directors and heads of the various units as follows:  2016 Budget Performance by the Director (Finance & Accounts), National Housing Programme by Director (Public Building), Provision of Infrastructure to the National Housing Programme by Director (Construction).

Others are Public-Private Partnerships (PPP) in Housing Development by Head (PPP Unit), Lands under the Ministry’s Sites and Services Programme and the List of Titles issued by the Ministry Nationwide by Director (Lands & Housing) and Status of the Implementation of Special Projects by Head (Special Projects Units).

In his presentation, the Director, Finance and Accounts, Ibrahim Tumsal informed the Senate Committee that only 43.7 per cent of budget implementation was recorded in 2016 based on funds released to the Housing sector of the Ministry.

The Committee members took time to asked questions and clarifications on some grey areas of the budget implementation and necessary recommendations were made by the law makers for further improvement in subsequent budgetary provisions.
 
Olatunji John
Principal Information Officer (Housing)
For: Director (Information)

Oct

10

2017

Presentation of N100 Billion DMO Sovereign SUKUK; Each Geo- Political Zone to Receive About N16.67Billion, 25 Road Projects to Benefit

The much –awaited N100 billion Debt Management Office (DMO) subscribed Sovereign SUKUK (bond) cheque has been presented to the Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN by the Minister of Finance, Mrs Kemi Adeosun.

While presenting the cheque, the Minister of Finance disclosed that the Sovereign SUKUK is the first of its kind to be floated in Nigeria adding that the United Kingdom and South Africa had in past used such SUKUK bonds as a financing option.

2. The Minister of Power, Works, and Housing   stated that during his maiden meeting with Contractors handling various projects for the Ministry, on assumption of duty, lack of funds and vagaries of weather were identified as major stumbling blocks to the delivery of projects. The introduction of this novel idea in project financing, apart from the annual budgetary allocation to the Works sector, is, therefore, a panacea to bridging the funding gap, according to the Minister.

3. Fashola who received the cheque, on behalf of the Contractors, hailed the over subscription of the bond as a clear demonstration of investor –confidence in the Nigeria’s economy and, most importantly, exponteneous  economic growth to be recorded with the successful delivery of the affected projects which will open vistas of economic activities.  

4. The Director General of the Debt Management Office (DMO), midwife of the process, Mrs. Patience Oniha alluded the success of the offer to the support and commitment of all the parties involved, especially the unrelenting efforts of the Ministers of Power, Works and Housing, as well as, Finance. She identified it as an example of “how we, Nigerians, can make things work”, adding that the only viable option is to invest in infrastructure.

5.  The Financial Advisers to theFacility, Messrs FBN Capital and Lotus Capital, while thanking the Federal Government for the opportunity to participate in the process, assured Nigerians that the additional funding will unlock potentials for economic growth.

6. A breakdown of the 25 prioritized road projectsto benefit from the additional funds, as given by the Director, Highways, Planning and Development, Engr. Chukwunwike  Ogonna Uzo, are as follows;

i. Rehabilitation and Reconstruction of Enugu-Port Harcourt Dual Carriageway, Section II (Umuahia Tower-Aba Township Rail/Road Bridge Crossing  in Abia State) - Arab Contractor Nigeria Limited,                      N3,750,000,000.00

ii. Dualization of Lokoja-Benin Road: Obajana Junction-Benin, Section I Phase I (Obajana – Okene in Kogi State) - CGC Nigeria Limited,                     N2,500,000,000.00

iii. Dualization of Kano - Katsina Road Phase I: Kano Town at Dawanau(round about to Katsina State Border with Kano State.)- CCECC (Nigeria) Limited,                     N 3,000,000,000.00                       

vi. Rehabilitation Of Enugu-Port Harcourt Road Section IV,(Aba-Port Harcourt in Rivers State) - CCECC Nigeria Limited ,       N 3,500,000,000.00                       

V. Dualization of Yenegwe Road Junction-Kolo - Otuoke - Bayelsa Palm in Bayelsa State. –CCECC (Nigeria) Limited,                     N 3,500,000,000.00                          

vi. Dualisation of Kano-Maiduguri Road linking Kano-Jigawa – Bauchi - Yobe and Borno States,   Section V,(Damaturu -Maiduguri)- CCECC Nigeria Limited,                     N 5,000,000,000.00

 vii. Dualisation of Suleja-Minna Road in Niger State, Phase II, Salini  (Nigeria) Limited,                      N3,521,958,532.49                       

viii Reconstruction and Asphalt Overlay of Benin-Ofosu-Ore-Ajebandele-Shagamu Dual Carriageway Phase IV, ( Ajebandele-Shagamu) in Ondo and Ogun States) - Reynolds Construction Company (Nig) Limited, NN6,000,000,000.00                       

xi. Reconstruction of the Outstanding Sections of the Benin – Ofusu – Ore –Ajebandele - Shagamu Expressway, Phase III,  Reynolds Construction Company (Nig) Limited,                     N 5,000,000,000.00                       

x. Dualisation of Ibadan - Ilorin Rd Section II, (Oyo-Ogbomosho Road in Oyo State- Reynolds Construction Company (Nig) Limited,                      N5,666,666,666.67                       

xi.  Rehabilitation Of Outstanding Section Of Onitsha - Enugu Expressway: Amansea - Enugu State Border - Reynolds Construction Company (Nig) Limited,                     N 5,166,666,666.67                       

xii. Rehabilitation and Reconstruction of Enugu-Port Harcourt Dual Carriageway Section I,( Lokpanta - Umuahia Tower ) in Abia State,  Setraco (Nigeria) Limited ,                    N 4,000,000,000.00                       

xiii. Dualization of Abuja- Abaji - Lokoja Road Section I (International Airport link Road Junction - Sheda Village Junction) - Dantata & Sawoe Construction Company (Nig) Limited,               N 3,000,000,000.00                          

xiv. Dualisation of Kano-Maiduguri Road linking Kano - Jigawa –Bauchi - Yobe and Borno States,  Section I, (Kano - Wudil -Shuari) in Kano and Jigawa States-Dantata&Sawoe Construction Company (Nig) Limited,                 N5,000,000,000.00                       

xv. Construction of Kano Western Bypass as an Extension of Dualisation of Kano - Maiduriguri Road Section 1-Dantata&Sawoe Construction Company (Nig) Limited ,   N 4,000,000,000.00                          

xvi.  Dualization of Lokoja-Benin Road, Obajana Junction -Benin Section III Phase I, (Auchi - Ehor, Edo States) - Dantata & Sawoe Construction Company (Nig) Limited,     N 3,166,666,666.67                          

xvii.  Rehabilitation Of Enugu-Port Harcourt Road Section III ( Enugu-Lokpanta, Enugu State) - CGC (Nigeria) Limited,   N 3,750,000,000.00                       

Xviii Construction of Kaduna Eastern By-pass in Kaduna State -Eksiogullari Nigeria Limited,       N4,666,666,666.67                       
xix Dualization of Lokoja-Benin Road: Obajana Junction-Benin Section IV, Phase I,(Ehor-Benin City, Edo States)- Reynolds Construction Company (Nig) Limited,         N 3,500,000,000.00                        

xx.  Dualization of Lokoja-Benin Road: Obajana Junction-Benin Section II Phase I, (Okene-Auchi, Kogi and Edo States)-Mothercat Limited,      N3,000,000,000.00                          

xxi. Dualisation of Kano-Maiduguri Road linking Kano-Jigawa-Bauchi-Yobe and Borno States.  Section II, Shuari-Azare (Bauchi State)-Setraco (Nigeria) Limited, N 4,166,666,666.67                       
xxii. Dualisation of Kano-Maiduguri Road linking Kano-Jigawa-Bauchi-Yobe and Borno States.  Section III, (Azare-Potiskum, Bauchi and Yobe States) Mothercat Limited,  N3,500,000,000.00                       

xxiii.  Dualization of Kano-Maiduguri Road linking Kano-Jigawa-Bauchi-Yobe and Borno States. Section IV, Potiskum-Damaturu Road (Yobe State)- CGC Nigeria Limited,  N 4,000,000,000.00                       

xxiv.  Construction of Oju/Loko - Oweto Bridge over River Benue to link Loko (Nasarawa State) and Oweto (Benue State)- Reynolds Construction Company (Nig) Limited,    N 4,144,708,134.18  

xxv. Dualization of Abuja - Abaji-Lokoja Road Sect. IV (Koton Karfe-Lokoja), (Kogi State)-Gitto Constrizion Generali Ltd,  N3,500,000,000.00                      

7. Giving  a Vote of Thanks at the Presentation Ceremony, the Permanent Secretary, Federal Ministry of Power, Works and Housing (Works and Housing Sectors), Alhaji Mohammed Bukar expressed appreciation to the drivers of the process, while admonishing the Contractors to make judicious use of the money, insisting  that they will be closely monitored.

Sep

28

2017

FG Pledges Partnership with Investors to Address Housing Deficit

Vice President Yemi Osinbajo says the Federal Government will partner with genuine investors in the housing sector to bridge the country’s housing deficit.

Osinbajo made the pledge in Abuja on Tuesday at the opening ceremony of a Housing Summit with the theme: “Addressing Housing Stock Deficit in Nigeria: A Holistic View.”

The summit was organised by the Housing Circuit Magazine in collaboration with the Senate Committee on Land, Housing and Urban Development.

The vice president, represented by Mr Suleiman Hassan, the Minister of State, Power, Works and Housing assured Nigerians that the government would continue to provide enabling environment for investment in the housing sector.

He said that the Federal Government, through the Ministry of Power, Works and Housing was leading the drive on land and housing reform to ensure easy access to land for housing.

According to him, the ministry has produced the revised and updated National Housing and Urban Development Policies as well as the National Building Code.

He said the National Housing Programme of the Federal Government through the construction of houses across the country was a commitment to make significant and lasting changes in the sector.

Osinbajo said the adoption of the National Housing Policy for sustainable housing delivery and the Housing Development Programme facilitated under the public private partnership were other interventions of the Federal Government.

In his remark, Sen. Barnabas Gemade, the Chairman, Senate Committee on Housing said the theme of the summit was appropriate in view of the increased mass housing programme of the Federal Government.

He said the upward review from N35 billion in 2016 to N40 billion in the 2017 budget was a clear demonstration of the Federal Government commitment to tackle housing challenges in the country.

He pledged the commitment of his committee to fast track the reform and commercialization of the Federal Housing Authority through legislative process.

Gemade said the delay in the release of budget resulting to frustration of work because of lack of funds and clear mortgage system were the major challenges facing the nation’s housing sector.

“In addressing some of these challenges, we must take a critical look at the mortgage system.

“We must also seek ways of how funds can be freed from certain sectors of the economy with much capital that can be deployed to the housing sector,” he said.

Sep

27

2017

FG Invests N100b On 25 Arterial Roads Nationwide- Fashola

The Federal Government is reconstructing and rehabilitating 25 arterial roads with an aggressive plan to spend about N16.7b for each geopolitical zone across the country. The fund, which is a safe and low risk investment, is a Debt Management Office (DMO) Sovereign Sukuk (bond) with a 7-year tenor to the tune of N100b.

The Minister of Power, Works and Housing, Babatunde Fashola, SAN, disclosed this today while addressing members of the Manufacturers Association of Nigeria (MAN) who paid him a courtesy call, in his office.

The prioritized 25 road projects include the Dualisation of Ibadan-Ilorin Road, Suleja-Minna Road, Kano-Maiduguri Road, Lokoja-Benin Road, Rehabilitation of Enugu- Port-Hartcourt Expressway and the Construction of Kaduna –Eastern Bye- Pass, amongst others.

The Minister also stated that the Ministry is in the process of re-introducing the tolling system on completed Federal Highways in order to sustain the maintenance of these roads.

Earlier in his address, the President of MAN, Dr. Frank Udemba Jacobs, MON, commended the Minister for the novel idea in road financing, while specifically praising him for the on-going rehabilitation of Lagos-Ibadan, Onitsha- Enugu Expressways and other strategic roads across the country.

He also expressed delight for the approval of N213b Nigerian Electricity Market Stabilization Facility (NEMSF) aimed at easing some of the challenges in the electricity industry value-chain.

On a final note, he applauded the Federal Government for its recent measures at getting the economy out of recession and the provision of an enabling environment for business to thrive.

In attendance at the meeting were the Minister of State II for Power, Works and Housing, Surv. Suleiman Hassan Zarma, the Permanent Secretary, Power Sector, Engr. Louis Edozien, Directors and Chief Executives from the Ministry.

Sep

14

2017

Keynote Speech Of The Honourable Minister Of Power, Works And Housing At The Guardian Power Summit

Keynote Speech At The Guardian Power Summit: "Beyond Rhetoric: Turning Nigeria's Power Sector Value Chain Potentials To Profit" Delivered By Babatunde Raji Fashola, San At Four Points, Lagos On Thursday 14th September 2017

I would like to start by thanking Lady Maiden Alex-Ibru, the chairman and publisher of the Guardian newspaper for inviting me to speak at this forum.

In particular, I have been invited as keynote speaker with the task of "setting the context" around the theme of turning Nigeria's power sector value chain potential to profit.

I welcome the opportunity this platform provides because it provides the Buhari led government a forum of expression to well-meaning and right-thinking persons who want to know what is going on about power.

As my invitation rightly acknowledges, context is important. It provides a rational basis for assessment and a fair determination for deciding whether progress is being made.    

So, let us start by going back to May 29, 2015 when this government was inaugurated.    

The amount of power available on the grid on that day was 2690 MW.  The transmission capacity was around 5000 MW and was then infamously described as the weakest link.

The distribution capacity existing at around 750 33/KV trading points, from where power is received by the DisCos and sent to us, was about 4000 MW.

Clearly, the power then being generated at 2690 MW was not up to the transmission capacity of 5000 MW and was insufficient to fully optimize the distribution capacity of 4000 MW.

Within a few months after President Buhari’s assumption of office, power improved and we all acknowledged. We credited it to the President's ‘body language.’

But the truth was that it had little to do with body language, and more to do with a sense of purpose that people sat up and began to do what ought to be done.

In addition, the rains were upon us in July 2015 to September 2015.

There was Gas supply which allowed the Thermal plants to produce power.

Therefore from Hydro and Thermal sources we reached an all time peak power production of 5,074MW before the damage to the pipelines started and we started losing power.

We cannot damage power and gas assets and still expect them to provide service to us.

It does not make sense.

Instead of rhetoric, this government set to work.    

a. Government engaged the aggrieved communities where the attacks were taking place to restore peace.    

b. Government repaired the damaged gas pipelines and gradually restored gas supply.    

c. Government launched an economic recovery and growth plan which made power supply one of 5 (FIVE) critical pillars.

d. Government launched a Power Sector Recovery Programme to work out and implement policies and actions such as:    

i. Constituting the regulatory commission, the Nigerian Electricity Regulatory Commission (NERC); except the Chairman, now awaiting the confirmation of Senate and the Rural Electrification Agency (REA) to Champion solar power development and rural electricity  deployment and access.

ii. Payment of debts to specific DisCos, and verification of debts to all others.    

iii. Payment assurance guarantee scheme of N701 Billion to give confidence to GenCos, gas suppliers and their financiers that we mean business.

iv. Declaration of eligible customers, to encourage people to invest in building and expanding distribution assets.

v. Development of mini grid regulations to encourage individuals and communities to build their own mini power generation and distribution facilities.    

vi. Awarding contracts to complete and expand transmission facilities and building new ones across the country.

Ladies and gentlemen, all of these policies and action go beyond rhetoric.

They are well thought out decisions, consistent with law and informed by a thorough diagnosis of the problems in the sector that have produced a clear set of solutions to deliver incremental power.

The result is that as at 4 September 2017 the available power that can be put on the grid was 6619 MW (the incremental power we sought to achieve from 2069 MW in 2015); the transmission capacity was simulated at 6,700 MW (up from 5,000 MW in 2015) but the distribution capacity was 4,600 MW which was what was put on the grid.

On September 12, 2017, production of power reached an all time level of 7,001 MW.

Clearly this is evidence-based progress, because we now produce more power then we can distribute. This does not mean that we have enough yet. It means that policies are working, but all the problems are not resolved.    

We must continue the Power Sector Recovery Programme to impact the distribution end of the value chain so that we distribute and sell everything that we produce as an incentive to more power production and supply.    

The recent GDP growth results by NBS, announcing Nigeria's exit from recession, and its detailed sector analysis, shows and I quote:

"Electricity production as well as financial services and construction also grew strongly..."    

It went further to provide details by stating that:    

"Other sectors the did very well in the second quarter 2017 include electricity and gas and financial institutions, with electricity and gas growing by 35.5%."    

I acknowledge that there will be cynics who will say, it was because of the rains. True enough, the rains contributed to the Hydro power increase, but the total Hydro capacity available with the rains from Jebba, Kainji and Shiroro as of 4th of September 2017 was about 1,000 MW, so it is the gas thermal plants, arising from peace efforts and pipeline repairs that made up the difference that made the total available power of 6619 MW that was produced.

Therefore, beyond rhetoric, our next step is to solve the distribution problem.

This involves the sustained implementation of the Power Sector Recovery Programme.    

Before I speak to the programme, let me say that although the power sector has been substantially privatized, and therefore it is the private sector that we must look to lead us through this. The sector is a regulated sector, governed by law, the Electric Power Sector Reform Act of 2005, and the regulations made by NERC (the Nigerian Electricity Regulatory Commission) which makes rules and regulations that govern the conduct of all participants in the value chain of power including TCN, the government owned company.

It is these rules and regulations that ensure confidence and predictability in the sector.    

Therefore, one of the decisions under the Power Sector Recovery Programme is the enhancement of governance, like the constitution of NERC (that I have referred to), who have issued regulations to guide the development and deployment of mini grids of 100 KW -1 MW which will help distribution as they come on stream.

Another decision is to strengthen the governance of DisCos by reconstituting our board representation in all the discos, a process that is also underway.    

Next is the implementation of eligible customers, which is awaiting the finalization of regulations by NERC based on consultations with stakeholders.

The successful implementation of this policy will help heavy power consumers, who are denied power because of defective distribution, to make the investment by building the distribution equipment under arrangements and agreements with the DisCos.    
We are also looking at licensing some private power plants who have generation licenses and excess power, but no distribution license, to grant them permits to willing buyers especially in industrial clusters under regulations made by NERC.

Ladies and gentlemen, the Power Sector Recovery Programme also involves producing more power, like:    

a. Completing the first phase of  9 (NINE) federal universities out of a planned 37 (THIRTY-SEVEN);

b. The completion of the 240 MW Afam power plant; the 10 MW Kasina wind farm, the 29 MW Dadin Kowa Hydro plant, 30 MW Gurara Hydro plant, the 40 MW Kashimbilla Hydro power plant, the Kaduna 215 MW plant, the Zungeru 700 MW Hydro plant and the Mambilla 3050 MW Hydro plant which was just approved for award;

c. Completing several transmission projects across the country; and

d. Implementing the meter supply and installation plan through licensing of service providers, franchise holders, rural communities meters to be implemented on the regulations by NERC this year.

My time constraints prevents me from going further into detail.    

However, I believe that the much I have said reveals that this Government has undertaken a clear diagnosis of the problems, clearly understands them, has evolved solutions to address them, and some of them are already bearing fruit.

Successes so far recorded in power generation and transmission have revealed that the work is far from finished, but the capacity that achieved the success in generation and transmission can demonstrably be transferred to solve the distribution problems.

Finally, I believe that well-meaning and right-thinking Nigerians will agree, that the Buhari Government has gone way beyond rhetoric.

We have evolved solutions that are already contributing to GDP growth, and the promise to do more, unlock the power value chain potential for enterprise and profit clearly lies ahead of us, with the successful implementation of the Power Sector Recovery Programme.

Thank you for listening.

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

Thursday 14th September 2017

Dec

12

2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This is a new problem that we must resolve.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

I have taken the first steps towards collecting the data.

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

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

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

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

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

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

This is what the eligible customer seeks to do.

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

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

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

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

Thank you for your attention.

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

Monday 11th December 2017

Nov

28

2017

We Have Clearest Pathway to Reform Power Sector – VP Osinbajo

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

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

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

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

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

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

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

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

Nov

17

2017

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

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

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

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

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

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

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

Nov

14

2017

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

Dear members of the Nigerian Electricity Sector Industry:

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

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

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

Within the last month:

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

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

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

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

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

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

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

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

The REA will publish details of guidelines and eligibility.

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

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

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

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

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

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

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

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

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

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

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

There are other challenges that we must also overcome together:

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

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

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

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

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

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

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

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

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

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

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

Thank you for your attention.

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

Nov

08

2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hakeem Bello
Special Adviser, Communications To The Hon. Minister

Nov

03

2017

Fashola Charges Universuty DONS To Produce Competitive Graduates

-Challenges them on provision of affordable housing for indigent students

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

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

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

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

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

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

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

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

Oct

31

2017

Road Trust Fund (Press Information Package)

1.    What is a Road Trust Fund?

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

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

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

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

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

Provides alternate funding to the Government for road infrastructure development.

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

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

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

3.    Why is the Government focusing on roads?

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

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

4.    How does the Road Trust Fund work?

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

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

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

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

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

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

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

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

8.    Would the scheme negatively affect Government revenues?

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

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

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

10.    Will the Roads be tolled?

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

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

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

12.    How does Government ensure costs are not inflated

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

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

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

Oct

27

2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Oct

20

2017

Fashola calls for support to end Apapa gridlock, port congestions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: NAN

Oct

17

2017

Keynote Address Delivered By Babatunde Raji Fashola, SAN At The Africa Today Summit On October 17th At The Transcorp Hilton

TOPIC: The Outlook for Nigeria - Energy options in a Low-cost and Low Carbon World: Which Way Nigeria and Africa.

Distinguished Ladies and Gentlemen:

I apologise and regret my inability to be personally present and I welcome the compromise by Africa Today and Mr. Kayode Soyinka that I should be represented.

This is an important gathering that contributes to increasing the attention we pay to the critical role of electricity in our developmental aspirations.

Until about the last decade, we appear not to have paid enough attention to the need for more power, (and I dare say more water supply) even as our populations in and across Africa grew.

Yes, we were concerned about poverty and about growth, but we seem to have dwelt more overtly on them than on development.

Growth can occur in Economies as we have seen in commodities-driven economies when prices rise; but they do not necessarily bring about development which has a correlation with infrastructure, such as power.

It is important therefore to keep in mind the clear difference between Growth and Development; as I think most African economies, including Nigeria, are now doing as they focus on investing in Infrastructure especially power.

This summit is part of that focus and call to attention; and I am enthused to share not only my thoughts but our road map.

First let me start with the road map.

If you look at news reports in 1999, 2007, 2010 and 2011 in the first few months of the emergence of a new administration at our Federal Government level, you will see different statements of commitments to produce certain Megawatts of power ranging from 10, 20, to 40 thousand megawatts by a certain date.

None of those targets was met; but that is not the problem. The problem is that the scientific basis for deciding those targets was not explained.

I also know that what consumers want (and I am a consumer), is predictable energy when they need it.

Therefore, this time, we are not talking Megawatts, we are addressing a journey.

Our roadmap is to get incremental power because we do not have enough, make that steady, because that is what consumers want, and aim toward uninterrupted power through conservation, elimination of waste and use of technology.

We are currently at the Incremental Power stage of our roadmap, and megawatts are useful to demarcate milestones by showing that we started at a base of 2,069 MW in May 2015 which has increased to 6,911 MW in September 2017.

As recently as September 2017 we recovered and restored 100 MW to the grid from the Afam power station IV which had been out of commission since January 2015 due to a burnt transformer. Most of the power, until recently has been from gas fired turbines, and this is where I will proceed to address the OUTLOOK for Nigeria and opportunities for Renewable Energy in a low cost and low carbon world; as requested by Africa Today.

Let me be clear and unequivocal by saying upfront that our commitment as a Nation and Government to pursue renewable and low carbon energy at low cost is CLEAR, FIRM and UNSHAKING. But this is not all. It is a commitment driven by NECESSITY, CONTRACT and POLICY about which I will now speak.

NECESSITY  
As I pointed out earlier, our take off point of available power in MAY 2015 was 2,690 MW. On the 22nd of May 1999, the amount of power on the grid was 2,345 Mw out of which 85% was gas fired power and 15% was hydro power.

This made us very vulnerable as a nation whenever there was a gas shortage or failure for any reason including wilful damage to Gas pipelines and assets.

This much was evident in 2016 when we had no less than 20 attacks on our Gas pipelines.

Our response of course has been to diversify our energy sources and optimize other assets for power production by producing an Energy Mix that targets a 30% component of renewable energy out of the Gross energy we produce by 2030.

That document also provides investment information about the areas where renewable energy such as solar and hydro are most prolific.

We have also matched our intent with actions such as signing 14 solar Power Purchase Agreement (PPAs) with 14 Developers with the potential to deliver over 1,000 MW of solar power.

We have resolved problems that stalled work at the Zungeru 700 MW hydro power plant with a new completion date of 2019 and we have also now awarded the 3050 MW Mambilla hydro power plant after over 40 years of its initial conception.

In addition, we are in advanced stages of procurement for 6 small hydro dams for private sector operation. What remains therefore is the faithful implementation of these projects to bring on stream their stock of renewable solar and Hydro Power.

Even before all these other sources of renewable power come on stream, we are seeing better results through maintenance, repairs and investment in the hydro power plants.

On the 22nd of May this year, the percentage of hydro power on the grid has gone up to 26% from 15% that it was in May 2015 and the gas fired power has reduced proportion now respresents 74% of our energy mix from 85% in the same month in 2015, even though total power has increased.

This is progress that we must sustain to get more renewable energy

CONTRACT
In addition to the necessity to diversify our energy sources from Gas and provide some energy security, we are also driven to pursue renewable energy by contract.

You will all recall that Nigeria is one of the early signatories to the Paris Climate Change Agreement, which signatories were committed to low carbon energy sources as a contribution to helping the global community protect our climate.

The Solar and Hydro projects I have referred to are parts of our contribution to this global commitment. We have also moved to seek to improve efficiency by completing the Energy Efficiency Building Code that will form part of our National Building Code, to help us develop energy efficient buildings and reduce our carbon foot print.

POLICY
Beyond necessity and contract, our commitment is driven by policy embedded in the Economic Recovery and Growth Plan (ERGP), where one of the 5 pillars is Energy sufficiency in power and petroleum products.

As far as the power component of this Pillar goes, while we have expanded the National Grid capacity for on- grid power from 5,000 MW in 2015 to 6,900 MW in September 2017, we are mindful that quick access to power will be easier to achieve by off-grid connections.

Therefore, through the Nigerian Electricity Regulatory Commission (NERC) we have issued mini grid Regulations to guide registration and licencing for small consumers and off-grid developers seeking to produce up to 100 kilowatts and over 100 kilowatts and up to 1 megawatts respectively.

This is already producing results as more people are now developing their own grids or developing to supply others without connecting to the National grid.

As a conscious measure to incentivize developers, the national policy for pioneer status has been revised by the Ministry of Industry Trade and Investment and approved by the Federal Executive Council to include solar panels, solar Home Systems, light emitting diodes, batteries other components that support solar systems which can be manufactured in Nigeria.

Finally, I will like to also state that the Buhari Administration has approved and started the implementation of Rural Electrification Strategy and Plan for Nigeria in 2017 and constituted the board and management of the Rural Electrification Agency early this year.

Their mandate is to champion and drive rural electrification and penetration with the bias to use solar and mini grids. This should have been done since 2006, one year after the Electric Power Reform Act was passed in 2005.

Ladies and Gentlemen, this is the outlook of renewable energy in Africa and the options we have chosen in pursuit of low cost and low carbon energy.

I am confident that we can deliver on what we have conceived, planned and are implementing. I therefore now have the pleasure to declare this summit open and invite you to join us in the implementation of and delivery of our commitments.

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

Tuesday October 17th 2017

Oct

13

2017

Infrastructural Devt: Nigeria asks World Bank, IMF to scale up Renewable Energy

Nigeria has asked the World Bank Group and the International Monetary Fund (IMF) to scale up the provision of and access to renewable energy in order to deliver development results and meet global climate goals.

Nigeria’s position on renewable energy and regional integration was presented by the Honourable Minister of Finance, Mrs. Kemi Adeosun, during the G24 Finance Ministers and Central Bank Governors meeting in Washington D.C., United States.

Adeosun stated that scaling up renewable energy was a “win-win area” to deliver development results and contribute to the global climate goals.

She said, “We have a major energy infrastructure gap to meet the needs of industrialization. Providing access to energy to all parts of Nigeria, both urban and rural, is a priority.
“If we succeed, we estimate that this could unleash the development potentials of two-third of our population of 180 million.”

The Minister added that generation of renewable energy was a financially attractive option for reaching rural populations.

She further emphasized the need for business models from other countries to serve as a template in the provision of affordable energy.

While canvassing the reinforcement of regional integration process by the World Bank and the IMF, Adeosun said the process would boost trade between countries and serve as a potential growth driver.

“We believe that part of the solution must be regional, multi-country initiatives on infrastructure development. Though complex and often not easy to undertake, there are also successful cases of such projects.
“For instance, a coastal super highway from Lagos to Dakar in West Africa would cut across 11 economic territories. Another Trans-Sahel highway from Northwest Nigeria to Mauritania would provide access and boost economic activities of land-lock countries like Niger, Burkina Faso and Mali,” stated Adeosun while speaking on behalf of Nigeria and 30 other countries during the G24 Ministers and Governors meeting.

The IMF Managing Director, Christine Lagarde, advised low-income countries to be very cautious in dealing with investors, noting that there was a huge surge yields on the path of investors.

The Chief Executive Officer of the World Bank, Kristalina Georgieva, urged developing countries to look at other sources of finance rather than dependence on the Paris Club.
Georgieva said, “It is imperative for us to maximize finance for development and also critical for us think of comparative strength for significant finance to flow into developing countries.”

On energy deficiency, she counselled developing countries to identify what could be done to create favourable environment for renewable energy.

In a communiqué at the end of its meeting, the G24 Ministers and Governors urged the World Bank Group and the IMF to continue strengthening their assistance in improving domestic resource mobilisation and enhancing its contribution to inclusive growth through progressive tax policies, as well as more efficient and better targeted public spending.

The Body reiterated the importance of scaling up infrastructure investments to achieve sustainable development goals.

“We welcome the support of the IMF, the World Bank and other international Financial Institutions in increasing the efficiency of public investments in infrastructure, as well as their impact in improving connectivity, including at the regional level, and addressing distributional and climate objectives,” it stated.

The G24 Ministers and Governors also called on Multilateral Development Banks (MDBs) to deliver on their ‘Joint Declaration of Aspirations on Actions to Support Infrastructure Investments’, including through concrete and time-bound actions.

This, it added, will help to develop new risk mitigation instruments and infrastructure investment as an asset class.

“We support a quota-based, adequately-resourced IMF that is less dependent on borrowed resources. We call for at least maintaining the current lending capacity of the IMF,” the group said.

The group also called for strengthening the efforts of the IMF and the World Bank towards greater representation of under-represented regions and countries in recruitment and career progression, including at the managerial levels.

 END

Oct

12

2017

Fashola Allays Fears Of Discos About Investments In Solar, Other FG Policy Initiatives To Improve Service In The Power Sector

As Minister chairs the 20th Monthly Meeting of Power Sector Operators in Owerri.

Says initiatives, including outsourcing of meter supply, licensing of eligible customers, and others are aimed at improving service to Nigerians.

Reports recovery of 100MW from the damaged Afam IV Power Plant, energizing of Jebba-Kainji 2nd 330KV line and the 2nd Ajaokuta-Abuja 330KV line by TCN, others.

Gives kudos to Judiciary for various interventions and support toward development of Sector

The Minister of Power Works and Housing, Mr. Babatunde Fashola SAN, has allayed the fears of the Electricity Distribution Companies (DisCos) over the promotion of the deployment of more solar power through mini-grids and other Federal Government initiatives aimed at improving service in the Power Sector.

Fashola, who spoke while presiding at the 20th Monthly Meeting of Power Sector Operators in Owerri, Imo State, said that the Sector had made noteworthy progress since the 19th Meeting held in Lagos and collectively the challenges that lay ahead in the roadmap to incremental, stable and uninterrupted power would be engaged.

The initiatives over which the DisCos wrote a letter to the Government dated 27thSeptember 2017 and titled, “Federal Government of Nigeria’s Initiatives in the  Electricity Sector and the Impact on Electricity Distribution Company Activities”, include the provision of meters to consumers through licensing of meter suppliers and provision of more power to consumers through licensing of eligible customers.

Other initiatives are the provision of Independent dedicated Power to Universities, promotion of the deployment of more solar power through mini-grids and expansion of the Distribution Network of the DisCos so that they can take additional 2,000 MW of power now available for supply.

Fashola, who noted the concern of the DisCos about the impact of the initiatives on their businesses, however, pointed out that the initiatives were targeted at improving service to the people. He, however, commended them for the decision to channel their complaints to the Nigerian Electricity Regulatory Commission (NERC) by a jointly signed letter, a decision he described as “a welcome departure from the previous order”, which should to be encouraged.

“It is my understanding that you fear that you will lose some income or some customers if Government proceeds; and on the question of meters, you seek to have technical compatibility with what the licencee will operate. In respect of possible investment in Distribution equipment you seek that Government should route the investment through the DisCos. Understandably you are concerned about investment recovery and in your views, the solution is a tariff review”, the Minister noted.

He, however, pointed out that while their concerns about business viability, financial stability and cost recovery were well understood and indeed supported by the Electric Power Sector Perform Act of 2005 (EPSRA) which Government would respect, Government’s focus was also strong on the issue of service to the people, adding, “There must be a balance somewhere in the middle”.

Fashola said as far as the promotion of solar and other sources of independent power was concerned, they were not only supported by the ESPRA, but were “consistent with our Paris Climate Change Agreement Obligations and with emerging global practice”.

Pointing out that Government was yet to take position on the best way forward on the issue of channelling investment into Distribution assets through the DisCos, the Minister declared, “DisCos have nothing to fear about solar. It is a space in which they are entitled to play but in which they cannot exclude others from playing”.

He added, “The ESPRA did not contemplate a monopoly for any licensee, unless it is expressly stated in the license”, pointing out, however, that Government was clear that a solution must be found quickly to the inability of DisCos to take about 2000 MW of power that would imminently increase as the sector got more incremental power.

Fashola, who maintained that the concerns contained in the letter under reference could and would be managed through consultations by NERC “ to help to build consensus about how best to serve customers, instead of festering gulfs of Disagreement”, added, however, that as a 40 per cent shareholder of the DisCos (on behalf of the Federal, State, Local Governments and Workers), “Government has a self-benefitting interest in the wellbeing and efficiency of the DisCos”.  

The Minister noted that while the letter and concerns of the DisCos focussed first on their business, the Government initiatives focussed more on service, adding, “Consensus should give us both the service and the business”.

Reviewing the progress made in the sector in the last one month, Fashola informed the meeting that in the last month the sector has recovered 100Megawatts from the damaged Afam IV Power Plant, which he recalled, had been inoperative since January 2015.

The Minister also reported that the Transmission Company of Nigeria (TCN) has energized the Jebba-Kainji 2nd 330KV line and the 2nd Ajaokuta-Abuja 330KV line both of which were inoperative since 2015 while in the last one month, “specifically on Wednesday 4th October 2017”, the Federal Executive Council has approved the verified sum of Federal Government MDA debts of N25.9Billion, and its payment by setting it off against the debts owed by the DisCos to the Nigerian Bulk Electricity Trader (NBET).

The Minister, who promised to communicate soon to the Meeting how the amount has been applied to reduce debts owed by DisCos to NBET, informed also that promising progress was being made in recovering debts due from international Customers adding that the Meeting would also “be notified of how much has been received when the appropriate accounts confirm that they have received value for the credits we have been notified of”.

Also recalling the progress report of the last meeting, Fashola listed the successful connection of power to Magboro, Ibafo and neighbouring communities in Ogun State, the metering of 196 out of 244 customers on Ajijedidun, Adamolekun and Abiola Alao Streets in Ijeshatedo in Lagos, particularly and the progress made to restore power to 16 out of 36 communities in Ondo North (Akoko Communities) and the challenges in Okitipupa.

The Minister gave kudos to the Judiciary for its various interventions and support towards the development of the Power Sector, particularly commending it for its judicial support to stop corruption, enforce the law and promote liquidity in the sector as well as the recent practice directions issued by the Chief Justice of Nigeria for the full enforcement of Arbitration clauses in power contracts.

Noting that the practice direction would take such Arbitration cases out of the tedium of regular trial and place them in the hands of commercially sensitive adjudicators, Fashola also welcomed with delight the conviction and sentencing to three years’ imprisonment by the Federal High Court, Abakaliki, Ebonyi State, of one Okechukwu Anoke for tampering with electricity fittings.  

Also welcomed with delight by the Minister was the intervention in the Court of Appeal in the case involving the tariff review, which the Trial Court had earlier set aside declaring the tariff setting process illegal, but which, according to him, the Appeal Court has reversed and ordered that the case be tried afresh.

Emphasizing the critical role of the judiciary and law enforcement in the power sector, Fashola pointed out that the efficacy of the practice directions issued by the CJN for the strict enforcement of Arbitration clauses did not rest with the Judicial officers alone adding the Nigerian Bar Association has a pivotal role to play in ensuring that Arbitration clauses were enforced.

“This is because it is often the Lawyers, not the clients that file and initiate processes that invoke the jurisdiction of the Court”, the Minister said, adding, “It seems to me that there might be something that potentially crosses the line of ethics which should arouse the interest of the Bar Association if one of its members fails to avail a client of his rights under an Arbitration agreement”.   

On the report that the Yola DisCo has not been actively participating in the affairs of the Association of Electricity Distribution Companies, the Minister, who reiterated his position about the right and freedom of individual DisCos to associate, pointed out that Government also has the right to associate or dissociate with the DisCos “by lack of recognition or grant of recognition; because rights are not absolute and because they impose duties”.

“All I need say is that we must respect the right of Yola DisCo to also choose whether it wants to associate or not. That is a duty we all have if we must enjoy the freedom and right to associate”, he said.

Thanking the Plateau State Governor, Mr Simon Lalong for hosting and the Operators for participating in the 3rd National Council on Power, which he described as very successful, Fashola, noted that the State used the opportunity offered by the occasion to present its Rural Electrification Roadmap to all. He urged the Operators to “follow up with the State Governments to assist you in enforcing the law against energy theft, right of way protection, metering of state government offices and buildings, the verification and prompt settlement of bills”.

On the Order signed by the Nigerian Electricity Regulatory Commission (NERC) which reduced the timeline for making (New) Electricity connections from 145 days to 40 days, the Minister declared, “While DisCos are also expected to comply and file reports of compliance to NERC and copied to my office, the Presidential Enabling Business Environment Council (PEBEC) has advised that the focal DisCos that will affect Nigeria’s ease of doing business rating will be Lagos, Ikeja, Kano and Kaduna because of the sample size that the population they serve represent”.

Oct

10

2017

Remarks By Babatunde Raji Fashola, SAN At The 20th Monthly Power Sector Operators Meeting Held In Owerri, Imo State

Once again it is my pleasure to chair this monthly meeting to review the progress we have made from our last monthly meeting in Lagos in September, and to collectively engage the challenges that lie ahead in our roadmap to incremental, stable and uninterrupted power.

At our meeting in September, we received reports of:
a.    The successful connection of power to Magboro, Ibafo and neighbouring communities in Ogun state who had not been connected for about 10 years.
b.    Provision of more meters to customers in Ijeshatedo, particularly on Ajijedidun Street, Adamolekun Street and Abiola Alao Streets where 196 out of 244 customers had been metered.
c.    We also got reports of the progress that has been made to restore power to 16 out of 36 communities in Ondo North (Akoko Communities) and the challenges in Okitipupa.

Another other piece of information that is worth sharing is the conviction of one Okechukwu Anoke by the Federal High Court Abakaliki and sentencing him to 3 years’ imprisonment for tampering with electricity fittings.

We welcome this judicial support to stop corruption in the power sector, enforce the law and promote liquidity in the sector. This comes on the heels of similar support from no less an office than that of the Chief Justice of Nigeria who has issued practice directions for the full enforcement of Arbitration clauses in power contracts so as to take such cases out of the tedium of regular trial and place them in the hands of commercially sensitive adjudicators.

On behalf of the entire sector we welcome the intervention in the Court of Appeal in the case involving the tariff review.

The order of the Trial Court which declared the tariff setting process illegal has been reversed and the case is now to be tried afresh.

Before I leave the issue of the critical role of the judiciary and law enforcement in the power sector, let me point out that the efficacy of the practice directions issued by the CJN for the strict enforcement of Arbitration clauses does not rest with the Judicial officers alone.

The Nigerian Bar Association has a pivotal role to play in ensuring that Arbitration clauses are enforced. This is because it is often the Lawyers, not the clients, that file and initiate processes that invoke the jurisdiction of the Court.

It seems to me that there might be something that potentially crosses the line of ethics which should arouse the interest of the Bar Association if one of its members fails to avail a client of his rights under an Arbitration agreement.

That said, I will proceed to inform members that in the last month, we have recovered 100MW from the damaged Afam IV Power Plant which was inoperative since January 2015.

Similarly, TCN has energized the Jebba-Kainji 2nd 330KV line and the 2nd Ajaokuta-Abuja 330KV line both of which were inoperative since 2015.

In the last month also, specifically on Wednesday 4th October 2017, the Federal Executive Council approved the verified sum of Federal Government MDA debts of N25.9Billion, and its payment by setting it off against the debts owed by the DisCos to NBET.

You will be receiving official communication of how these have been applied to reduce debts owed by DisCos to NBET.

We are also making promising progress in recovering debts due from international Customers and you will be notified of how much has been received when the appropriate accounts confirm that they have received value for the credits we have been notified of.

It is against this background that I now move to the challenges which we still have to overcome; the more pressing of which is how the DisCos can quickly increase their capacity to take power and distribute to the consumers.

I think that this is the issue that is captured in your letter of 27th September 2017 titled, ‘Federal Government of Nigeria’s Initiatives in the Electricity Sector and the Impact on Electricity Distribution Company Activities,’ which was addressed to NERC and copied to me.

Let me commend DisCos for the decision to channel their complaints to NERC by a jointly signed letter. This is a welcome departure from the previous order and it is to be encouraged.

The substance of Government initiatives which prompted that letter can be summarised as follows:

a.    Provision of meters to consumers through licensing of meter suppliers
b.    Provision of more power to consumers through licensing of eligible customers
c.    Provision of Independent dedicated Power to Universities
d.    Promotion of the deployment of more solar power through mini-grids
e.    Expansion of the Distribution Network of the DisCos so that they can take about additional 2,000 MW of power now available for supply

Without a doubt, the initiatives are targeted at improving service to the people. In your letter under reference copied to me, you expressed concerns about the impact of these initiatives on your businesses.

It is not my understanding that you oppose them, which is commendable.

It is my understanding that you fear that you will lose some income or some customers if Government proceeds; and on the question of meters, you seek to have technical compatibility with what the licencee will operate.

 In respect of possible investment in Distribution equipment you seek that Government should route the investment through the DisCos.

Understandably you are concerned about investment recovery and in your views, the solution is a tariff review.

While your concerns about business viability, financial stability and cost recovery are well understood and indeed supported by the Electric Power Sector Perform Act of 2005 (EPSRA) which Government will respect; I must point out that Government’s focus is also strong on the issue of service to the people.

There must be a balance somewhere in the middle.

As far as the promotion of solar and other sources of independent power are concerned, please note that not only are they supported by the ESPRA, they are consistent with our Paris Climate Change Agreement Obligations and with emerging global practice.

DisCos have nothing to fear about solar. It is a space in which they are entitled to play but in which they cannot exclude others from playing.

The ESPRA did not contemplate a monopoly for any licensee unless it is expressly stated in the license.

As for channelling investment into Distribution assets through the DisCos, Government has not yet taken a position on what the best way forward will be.

However, Government is clear that a solution must be found quickly to the inability of DisCos to take about 2000 MW of power that will imminently increase as we get more incremental power.

But the point that must be made is for all of us to remember that, Government is a 40% shareholder of the DisCos (on behalf of the Federal, State, Local Governments and Workers) and therefore has a self-benefitting interest in the wellbeing and efficiency of the DisCos.  

Most importantly, the concerns contained in the letter under reference can and will be managed through consultations  which NERC has been undertaking to my knowledge. Consultations will help to build consensus about how best to serve customers, instead of festering gulfs of Disagreement.

At this preliminary stage therefore, you letter and concerns focus first on the business, while the Government initiatives focus more on service.

Consensus should give us both; the service and the business.

Still on the matter of DisCos, my attention has been brought to the fact that Yola DisCo has not been actively participating in the affairs of your association.

My position about your right and freedom to associate has been publicly stated and so is the right of the Government to associate or dissociate with you by lack of recognition or grant of recognition.

Because rights are not absolute and because they impose duties, all I need say is that we must respect the right of Yola DisCo to also choose whether it wants to associate or not. That is a duty we all have if we must enjoy the freedom and right to associate.

I will also want to report the successful holding of our National Council on Power, the 3rd in the series hosted by Plateau State who used the opportunity to present Rural Electrification Road Map to all of us.

I will like to thank Governor Simon Lalong for hosting us , and all of you for participating and urge that you follow up with the State Governments to assist you in enforcing the law against energy theft, right of way protection, metering of state government offices and buildings, the verification and  prompt settlement of bills.

Finally, I would like to refocus our attention to the order signed by the NERC which reduced the timeline for making (New) Electricity connections from 145 days to 40 days.

While DisCos are also expected to comply and file reports of compliance to NERC and copied to my office, the Presidential Enabling Business Environment Council (PEBEC) has advised that the focal DisCos that will affect Nigeria’s ease of doing business rating will be Lagos, Ikeja, Kano and Kaduna because of the sample size that the population they serve represent.

Thank you for your attention.

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

Monday 9th October 2017

Sep

28

2017

FG Woos Investors To Increase Housing Stock

The Honourable Minister of State for Power, Works & Housing, Surv. Suleiman Hassan Zarma, mnis, has said that Federal Government will not relent in its efforts toward providing enabling environment for genuine investors to invest in the Housing Sector of the economy. He added that this will in effect radically increase the housing stock and bridge the Country’s housing deficit.

The Minister, who represented the Vice President at 2017 Housing Summit Conference organized by Housing Circuit Magazine in collaboration with the Senate Committee on Lands, Housing and Urban Development, noted that the theme of the Conference: Addressing Housing Stock Deficit in Nigeria requires a holistic view.

Suleiman informed the gathering that the Federal Government, through the Ministry is taking the lead on Lands and Housing reforms to make land readily accessible and provide shelter for the teeming Nigerian population.

The Minister commended the organizers of the conference and urged participants to focus more on the challenges facing the housing sector of the economy. He enjoined them to come up with strategies aimed at repositioning and reinvigorating the facilitation of affordable housing delivery in the country.

Earlier, the chairman Senate Committee on Lands, Housing and Urban Development, Sen. Barnabas Gemade remarked that the Conference is coming at time President Buhari’s led Administration has put in place an increased public mass housing programme that covers the 36 States of the federation, adding that this is the first action by any Government since the Shagari Administration of Mass Housing Scheme of 1979.

According to Gemade ‘’with an upward review from 35 billion naira budgetary provision in 2016 to 40 billion in 2017 budget, one would be safe to say that President Buhari is tackling housing challenges, but this is to some extent, as more needs to be done.’’

In his goodwill message, the chairman of the occasion and chairman Dangote Group of Company, Alhaji Aliko Dangote represented by Executive Director, Stakeholders Management Services, Engr. Mansur Ahmed stated that the housing sector is one of the most critical sectors to the nation’s economy, adding that the importance of this sector cannot be overlooked as it is one of the major indicators of underdevelopment.

He challenged key stakeholders in the built industry to come together and share experiences, knowledge and perspectives that will bring lasting solution to the problem of housing deficit in the country.

Sep

21

2017

Speech Delivered By H.E Babatunde Raji Fashola, SAN At The National Council On Power On Thursday 21st September 2017 In Jos, Plateau State

I welcome the opportunity to speak to you at this year’s National Council on Power, holding in the famous city of Jos in Plateau State.

Mining, Agriculture, the High Altitude and Climate, Tourism and brands like the Hill Station Hotel, The Rock Beer are some of the very proud heritage that have put Jos city on the global map.

This city of Jos is also famous for its contributions to Nigeria’s power history, through NESCO, the first privately run Power service in Nigeria that started producing power since 1920s, before the ECN (which became NEPA and PHCN.)

We have recently admitted NESCO to our monthly meetings and I believe we have something to learn from them.

I thank the Governor and the Government for their good work in ensuring that this conference holds despite the recent threats to public peace and order.

The proactive statements and actions have shown that Plateau state Government takes its primary responsibility of safety of lives and property very seriously.

I am also pleased to inform you that TCN has a major transmission sub-station in Panskshin in this state which will improve power service when completed. I have previously visited that site and our monthly power meeting gets periodic progress updates.

The sustenance of peace and order are critical to the completion of this and service delivery.

Ladies and Gentlemen, the theme of this Year’s council meeting on power is not accidental. It is deliberate and purposed. The theme is “Completing the Power Sector Reform.”

It follows logically and sensibly from last year’s our achievements at last year’s meeting, the highlight of which was to launch the country’s energy mix, to diversify our energy resources beyond gas and hydro to coal, solar and other sources.

That is already bearing fruit as we are gradually seeing an increasing foot- print of solar power systems especially at mini and off-grid levels and many more are afoot.

And as is now well known, this Government has finally approved the award of the 3,050 MW Mambilla hydro power project after over 40 years of starts and stops.

The solar foot print is growing slowly but surely, not just because of what the FGN is doing but because of what Nigerians are doing in their states, and this is why this theme at this meeting was chosen because all the states are expected to be represented here.

Let me set the context by once again reminding all of us that the power sector has been privatized and is largely in the hands of the private sector. Therefore, the work that needs to be done is largely the responsibility of the private sector.

Our role as governmental institutions at Federal and State levels is to implement the laws, enunciate Policies and take actions that help the private sector play its part effectively.

Our roles in this regard are well set out in the Electric Power Sector Reform Act 2005 pursuant to which the privatization of the power sector took place. That law, which I urge everybody to read, clearly sets out my role as minister which is to administer the Law in section 100.

As we are all aware, there have been comments about how effective privatization has been in the power sector and some people have called for its cancellation which I disagree with.

However, I agree that there are problems, I understand that 4 (FOUR) years post privatization is a transition period, and some more work needs to be done before the expected benefits of privatization come to fruition.

That is why we developed the Power Sector Recovery Programme (PSRP) which are a set of policies, programmes and actions aimed at solving Generation, Transmission, Distribution, Liquidity, Metering, Estimated Billing, Energy Theft, Safety and other challenges.

While we are beginning to see results of increased generation up to 7001MW on 12th September 2017, Transmission up to 6,700 MW and Distribution 4,600, it is not yet enough.

The theme of this meeting therefore provides opportunity to share with state representatives and other participants what the PSRP is about.

Let me state emphatically that everything in the PSRP is based on the 2005 Law and that is why I urge everybody to read it.

So, the N701B payment assurance guarantee which has driven up power Generation is consistent with Section 76(2)(b) of the Law which seeks to ensure that producers of power recover their investment and some profit.

Similarly, the constitution of the Board of NERC another objective set under the PSRP is a requirement of section 34 of the law, while efforts being made by NERC to;
a.    Develop a new multi- year Tariff order Template
b.    Develop regulations for meter service provided, meter Franchise operators
c.    Develop regulations for Eligible Customer

are requirements of Section 76; 67(1); 68(2) and 100 of the Law.

The issuance of mini-Grid Regulations by NERC in August of 2017 to allow people provide their own power from 1KW-1 MW and ease the pressure on grid distributed power and improve access to power is a requirement of section 62(2) of the Law.

The constitution of the Board and management of the Rural Electrification Agency by President Buhari in March 2017, to deepen access of Rural communities to power and champion deployment of Solar Power is in accordance with section 88(1)-(4) of the Law.

Ladies and Gentlemen, these are some of the reform actions contained in the Power Sector Recovery Programme being undertaken at Federal Government level.

But there are other areas of Reform where progress will be defined by what happens at the state and Local Government and this is one of the reasons why we chose to discuss this theme at this council where all the states are represented.

For example, out of the estimated MDA debts of about N90Billion claimed by the DisCos, only about N27Billion has been verified as debts owed by the FGN.

There are invoices which show that other parts of the debt are attributable to service points at States and local governments.

I will urge first that states and local governments insist that their buildings are metered so that they can budget for and pay for energy they use. It will turn out to be cheaper than diesel generated power.

It will also help reduce loss of income by DisCos.

Furthermore, I urge state Governments to set up small teams with audit capacity to verify debts owed by them and their local governments, ascertain the quantum and develop a payment plan which can then be budgeted for. This will help to reduce the liquidity issues and contribute to the reforms.

More importantly the challenges of inadequate power manifests itself in households, businesses, service centres and other points of need that are located in states and local Governments.

Therefore, the impact of insufficient power is manifest at municipal level and so will be the benefit of improved power.

Therefore, it is only logical and necessary for states and local Governments to own and participate in the implementation of the 2005 Law and the PSRP.

Therefore instead passing votes of no confidence in the DisCos who serve them, I will urge that they take a more important role of engagement and consultation to help the DisCos serve them better.

Communities and states who want to see improved power must also sacrifice and contribute some of their land for this service to be provided.

The land will not finish but the prosperity that comes from better power will only help improve the quality of life, the value of their land and the use of their land.

Ladies and Gentlemen, the list of things that states can do to help improve power supply, reform the sector and implement the 2005 Law and the PSRP are only limited by imagination.

I will conclude by urging states to pay more attention to the provision of the Law, the PSRP, and to consult with the ministry and NERC should they need clarification.

I hope that when we meet next year, all states will be in a position to report actions taken, progress achieved, improved power service and better value, for attending this year’s National Council on Power

Thank you.

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

Thursday 21st September 2017