Jul

11

2018

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

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

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

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

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

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

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

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

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

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

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

TYPES OF ENGINEERING

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

They called it Stomach Infrastructure.

They shared the money that could have changed our lives.

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

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

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

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

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

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

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

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

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

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

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

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

Enugu- Onitsha road was dilapidated.

Work had stopped on the Second Niger Bridge.

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

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

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

Some Contractors are now back to university roads.

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

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

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

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

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

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

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

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

President Buhari is determined to change that.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The future for jobs is promising.

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

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

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

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

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

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

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

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

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

Jul

10

2018

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Privatization has changed this.

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

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

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

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

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

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

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

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

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

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

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

A. A distribution company (DISCO)    

B. A bulk trader (NBET)    

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What is government doing?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The investment of GENCOs is threatened because they cannot utilize the capacity they have installed.

In order to improve service to small businesses, Government, acting through the Rural Electrification Agency (REA) is linking Small Power Entrepreneurs with markets like Ariaria in Aba, Sabon Gari Market in Kano, and Sura Market in Lagos.

The markets contain approximately 37,000, 13,000, and 1,047 shops respectively, which are being metered by the small entrepreneurs who have offered to replace their generators with more efficient power and meters.

There are 15 (fifteen) markets in all which if successfully implemented would provide power to 85,485 shops, empower 205,000 SMEs and create 2,000 jobs during the installation and after in operation and maintenance.

The DISCOs are agitating that this should not happen , yet they offer no solution. I want to use this opportunity to refer to Section 71(6) of EPSRA, which I will discuss later and say clearly that the Law did not anticipate exclusivity for any DISCO.

Clearly, unless the DISCOs have a license that is endorsed as EXCLUSIVE, it is clear that no DISCO has exclusivity over its franchise area.

It is obvious that the law did not intend to replace Government monopoly of PHCN in the Power Sector, with a private monopoly of businessmen.

Whenever there is poor service, Government, as a matter of Policy and Public Interest is able and entitled to act and invite new players to fill the gap.

The truth is that the generator sellers, inverter sellers are already filling this gap without protest.

What these entrepreneurs therefore bring is, to replace multiple, inefficient, unhealthy and expensive generators with simple efficient and environment friendly solutions and meters.

This is what the public interest demands.

Policy Directions and Next Steps

It is not my intention, or that of Government, to take over the business of DISCOs. On the contrary, it is Government’s desire to see DISCOs thrive and flourish in a competitive environment.

In the period when they are not yet ready, willing, or able, life must go on and we must find solutions and substitutes as we have seen in other sectors. Therefore, pursuant to the provision of Section 33 of the EPSRA which provides that:

33 (1) The minister may issue general policy directions to the commission (NERC) on matters concerning electricity, including directions on overall system planning and co-ordination, which the commission shall take into consideration in discharging its functions under Section 32 (2) provided that such directions are not in conflict with this Act or the Constitution of the Federal Republic of Nigeria.

And

Section 32 (1) (a) – (g) provides for what the commission (NERC) is set up to do, which includes:

(a) to create, promote and preserve efficient industry  and market structures and to ensure optimal utilization of resources for the provision of electricity services;

(c) to ensure that an adequate supply of electricity supply is available to consumers;

And

Section 32 (2) (a) – (g) which specifies functions for the commission (NERC) to:

(a) promote competition and private sector participation, when and where feasible.

(d) license and regulate persons engaged in the generation, transmission, system operation, distribution and trading of electricity.”

It is clear that a  combined reading of these provisions show that it is necessary to direct NERC to step in to:-

Ensure that DISCOs improve on their distribution equipment and capacity to take up the available 2,000MW in order to optimize the use of the electrical resource produced by the GENCOs, and I direct NERC to immediately act in this regard.

Enforce the contract of DISCOs to supply meters and act to ensure the urgent speedy supply and installation of meters with a view to eliminating estimated billing and promote efficient industry and market structures;

Stop DISCOs from threatening private entrepreneurs from entering the market to supply consumers whom the DISCOs cannot supply and to license such persons subject to terms and conditions in order to “promote competition and private sector participation” and avoid a private monopoly of power.

3a) Section 71(6) dealing with Terms and Conditions of licenses clearly shows that no exclusivity or monopoly was intended for a license holder such as GENCOs or DISCOs when it provides that:-

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

To the best of my knowledge, the commission (NERC) has not issued any exclusive license.

If we take into consideration that after 5 (FIVE) years of privatization, there are still people and businesses who do not have power or enough power, common sense and public interest demands that we must not resist ordinary people, small businesses like shops and markets from seeking alternative sources of energy.

The truth is that they already have these sources of alternative energy, in small petrol and diesel generators that cost them about N100 per kilowatt hour.

If the DISCOs are not resisting the generator sellers who are contributing to pollution, what is the logic of resisting small entrepreneurs bringing mini gas plants to supply a market need?

I am not unmindful of concerns about loss of market or customers by DISCOs but this must be balanced against our national interest and my belief that as their businesses steady and improve, they will be in a position to use their economies of scale of large volumes of power to buy out or outprice these small entrepreneurs.

For now, our developmental needs cannot wait for businessmen who are not yet ready to serve.

National interest, public good, the need to support small business, provide access to power for ordinary people and increase productivity inform the policy statements 1, 2, and 3, that I have made above; and I expect NERC to act with dispatch.

Let me implore members of the public who seek more information to get a copy of EPSRA and read its simple provisions.

They confer extensive regulatory powers on NERC ( not on the Ministry or the Minister) including the power in Sections 73 and 74, to amend or  cancel a licence if the licensee is unable it "...discharge  the duties and obligations imposed by the licence."

In order in to promote stability, I also direct NBET the bulk trader, to work with Bureau of Public Enterprises (BPE), to fashion out ways to ensure that the DISCOs improve their collection remittance and also start to pay their debts.

This business cannot progress if debtors do not pay their debts.

In conclusion let me thank all players for their commitment thus far and express my commitment and that of my Ministry to continue to work towards the progress and success of the sector to deliver service to the public.

Thank you very much.

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

Jun

29

2018

BRF At 55 : Greying Gracefully, Going On With Gusto
By HAKEEM BELLO

In November 2010, in a tribute to Stephen J. Solarz, a former nine-term New York congressman, Douglas Martin wrote that he was a “torrent of activity” supporting it with a statement issued by the late lawmaker’s office that “during his first six months in Congress, he made 12 speeches on the House floor, co-sponsored 370 bills, held 11 news conferences, made 24 trips to his district and attended 99 events there, visited 23 subway stations, sent constituents 513,720 pieces of mail and took an 18-day tour of the Middle East.”

In October 2015, Babatunde Raji Fashola, SAN, was honoured amongst seven distinguished personalities with an award named for Stephen J Solarz by the International Crisis Group.
From his eight-year tenure as the governor of Lagos State to his two-year-plus as Nigeria’s minister of Power, Works and Housing, our own BRF has, as the global conflict-prevention organisation acknowledged in conferring the honour on him, been a “relentless fighter for the improvement of people's lives….” 

Barely a month after the global recognition of BRF’s “commitment to resolving social, economic and security challenges in one of the world’s most challenging urban environments”, President Muhammadu Buhari tapped him to join him in tackling the nation’s multifarious infrastructural challenges.

Ever since, the three-in-one ministry has witnessed a “torrent of activity” towards the making life more meaningful for Nigerians of all strata.

Has he lived up to the recognition of the ICG and the confidence reposed in him by President Buhari to deliver?

His 55th birthday on 28 June affords us the opportunity to not only answer that question but also look at The Essential BRF. 

For BRF, results rather than excuses should count towards measuring a leader’s gravitas. So, not for him any argument which suggests that , comparing an executive position with an appointive capacity within a complex federation such as Nigeria is like comparing apples with oranges. Not even if you illustrate with the now-common fiasco over the national budget as an example of a barrier to effective delivery of much-expected services to the people.

Any unbiased but informed observer would, unhesitantly, proffer that, within those constraints, and with the unwavering support from his principal, the minister has demonstrated unflinching commitment to reducing Nigeria’s infrastructural deficit to the barest minimum, one project at a time, across Nigeria’s 36 states.
One thing you can’t take away from BRF is his penchant for, to use a favourite word of his, dimensioning any problem, no matter how seemingly gargantuan. He is the master of drilling down. His staff at the ministry will attest to how, from the day of his inauguration, he has been engaging everyone in marathon consultations, sometimes into the night, to be able to put every problem in proper perspective and then ensuring that the job gets done - without any short-cut.

A DEVELOPMENT MATRIX
For him, nothing should be done superficially. Let’s take work on roads. He starts with the premise that good roads will help reflate and grow the nation’s economy, reduce travel time, cost of transportation of goods and services, and create jobs which will provide the economic means for the worker to live meaningfully. To achieve this, in the short term, would mean starting with roads which can be quickly completed to facilitate connectivity. This should further be guided by choosing first the roads which connect states together and bear the heaviest traffic such as the Lagos-Ibadan expressway, and working the way across Nigeria gradually. By sticking religiously to, and developing this plan, enunciated with his team in the Ministry with necessary policy and budgetary support from the Cabinet led by the President and National Assembly, albeit, with all the “constituency complications,” Fashola has been delivering on his mandate.

On Power, Fashola believes that predictable supply achieved through incremental, stable, and, ultimately, uninterrupted supply of electricity, availability will be a critical and defining component of our economic renaissance, job creation, GDP growth and reduction of income inequalities. This has formed the basis of the Federal Government’s Roadmap to Power with the accompanying policies and plans like the Power Sector Recovery Programme (PSRP) aimed at strengthening the responsibility of the Ministry as a regulator through the National Electricity Regulatory Commission (NERC), so that the GenCos and DisCos can be held to their contracts with citizens; getting the support needed to complete stalled power projects in the generation, transmission and distribution value chains; and improving the liquidity in the sector.

Coming with a practical experience from Lagos, Fashola believes the construction of houses will complement the economic growth drive by direct and indirect jobs in the housing value chain from construction companies, to artisans, labourers, vendors and many more. The Federal Government’s housing project is currently going on in 34 States of the Federation which have provided the required suitable land for the programme, currently at its pilot stage and poised to address the issues of affordability, acceptability and climatic/cultural diversities which have been the bane of the previous housing programmes. 

What used to be the standard question about how one man can cope with the leadership of three ministries comes less frequently in its monotony now because Fashola has continually demonstrated that tackling challenges is his second nature. Never mind that he has had to sleep less than the averagely-required hours and do unusual things - for instance in 2017 during an inspection of projects in the North East, he led the team to drive on the road by the dreaded Sambisa Forest in the thick of the night - whilst greying graciously but achieving results. By the way, Hamza Idris of the Daily Trust, who was on the trip, had asked him what gave him the courage to travel at that time, he answered as only a BRF would: “Well, I don’t think it is courage. I have a job to do and it has to be done well. If you are building and managing roads, you can’t manage them from slides, you can’t manage them remotely. You must at least see how good or bad those roads are. It gives a sense, either of urgency, enthusiasm, or a combination of both, to be able to really deal with it. The Ministry of Defence is aware that we are here, but the security arrangement is just precautionary. We have seen ordinary Nigerians travelling in their buses. I have seen the Taraba Mass Transit Services, Adamawa Express, Bauchi Express and others. So, life is going on and we just have a job to do.”

There is no better way to end this birthday tribute to this quintessential man who is extremely loyal to his principal, political party and his principles, than quoting his answer to another question on that North East inspection trip:    “I am never satisfied with anything I am involved in; I just keep going. It’s difficult to satisfy me, and if you ask me to assess myself, I would continue to push myself.”

Jun

21

2018

FG DIRECTS IMMEDIATE REMEDIAL WORKS ON  COLLAPSED BRIDGE IN TARABA STATE

The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola SAN, wishes to notify commuters and the general public of a bridge collapse at Maraban Gassol in Taraba State which occurred towards the evening hours of today Wednesday 20th June, 2018 after a heavy downpour. The bridge links Jalingo and Wukari and further into Benue State.

Fashola has directed the Federal contractor on that axis to mobilize immediately to site and commence emergency remedial works by tomorrow, Thursday 21st June, 2018 in order to normalize the flow of traffic.

Motorists are advised to use the alternate route through Jalingo - Garba Cheda - Bali - Takum - Katsina Ala.

Meanwhile, the Corps Marshal, Federal Road Safety Corps, Dr. Boboye Oyeyemi has deployed Road Marshals from Mutum Biyu Unit Command to divert, control and ease traffic on that route.

Motorists and the general public will be informed of further developments on the route as work will commence immediately.

Jun

11

2018

FG Restates Its Commitment To Deliver On East West Road - Niger Delta Minister

The Federal Government has once again reiterated its commitment to deliver on critical infrastructure especially the East West road despite lean resources that is being generated.

According to the Minister of Niger Delta, Usani Uguru Usani, the Federal Executive Council has given preference to the timely completion of the East West Road because of its importance to the region and the nation at large. He added that government is poised to deploying available resources towards its actualization and delivery, hence, the setting up of an inter-ministerial committee comprising, Ministries of Power, Works and Housing, Niger Delta Affairs, Transport and Aviation and Information and Culture to see to the speedy completion of the road.

While conducting journalists on a road tour of the alignment, Usani stated that contrary to the general opinion that work is not progressing on the road, ‘you can see for yourself driving from Warri, Delta State where the road begins to section iv which is Oron, Akwa Ibom State, that substantial work has been achieved’.

The Minister added that though there are some remedial works to be carried out on some of the completed sections of the road, he could attest to the fact that there is an improvement and immense progress recorded compared to 2016 when the inter-ministerial committee visited.

He also acknowledged in his address that section v, which is the last section of the East West road will soon be awarded, stressing that government might in future consider the inauguration of the completed sections of the road as work progresses.

Usani was accompanied by his colleague, Minister of Transport and Aviation, Rotimi Ameachi, Permanent Secretary, Niger Delta, Alhaji Aminu Bisalla alongside with Director, Highways South-South, Engr. Charles Okonmah from Federal Ministry of Power, Works and Housing and Director, Infrastructural, Engr. Uche Uzoegbu, Ministry of Niger Delta and other government officials.

The East West road is an arterial route conveying heavy traffic of goods and services especially those used in the exploration and exploitation of oil and gas in the Niger Delta region. The road is connecting Warri in Delta State to Oron in Akwa Ibom, through Kaiama in Bayelsa State and Port Harcourt in Rivers State.

The 338Km dual carriages equivalent to (676km single carriage way has 4 nos bridges) was initially awarded in 2006. The project is in four sections.

Section I of the road is 87.4km from Warri to Kaiama was awarded to Sectraco Nigeria

Section II, 101km is from Kaiama to Port Harcourt was also awarded to Sectraco

Section III with 99km is from Port Harcourt to Eket is been handled by RCC Nigeria Ltd, while

Section IV with 51km from Eket to Oron was awarded to Gitto Construczioni Nigeria Ltd.

The dualization of the East West road was transferred from the defunct Federal Ministry of Works (FMW) to Ministry of Niger Delta (MNDA) in 2009 to fast track the progress of work and the development of the Niger Delta region.

It is important to note that, the major challenges confronting the completion of the road is due to the short dry season period and unavailability of fund, as budgetary provisions alone cannot meet up with the demand and magnitude of the project.

May

23

2018

Up Your Game, Zarma Urges Indigenous Contractors

- Osun Government Commends FG on Massive Infrastructure Delivery

Minister of State 11, Power, Works and Housing, Suleiman Hassan Zarma has urged indigenous contractors handling Federal Government projects to “up their game” by improving on their pace of work in order to deliver their projects on schedule.He said Government has much confidence on indigenous contractors and disclosed that the present administration is determined to encourage and promote indigenous contractors.

The Minister who is on inspection of the Ministry’s projects to the South-West Zone, however expressed displeasure at the slow pace of work at the the 27.6Km Oshogbo- Ilesha Road, Section 1 handled by  Messers Horizon Construction Limited. He said it was appalling for a 27Km road Rehabilitation project awarded since 2010  to exceed its completion date by 104 per cent in 2018. He asked “if it takes you 8 years to rehabilitate a road, how many years will it take you to build one”.

Zarma challenged the contractor to prove his capacity to deliver the job and stop giving excuses for the delay. He said, ‘government gave you the job with the assurance that you can deliver, you asked for extension after a long delay, your request is not approved, you have to mobilize every resource to meet up the extended October 2018 completion date”.

Meanwhile, the Federal Government has been highly commended for the massive execution and monitoring of its infrastructure projects across the nation particularly on roads, housing and power. Speaking during a courtesy visit by the Minister to the Governor of Osun State, Ogbeni Rauf Aregbesola who was represented by his Deputy, Chief (Mrs) Grace Titilayo Tomori, said the Minister’s inspection of on-going projects in the state and across the nation laid credence to the commitment of the present administration to deliver basic infrastructure to the people. She said, “your visit to the state has confirmed the seriousness the federal government attaches to road construction in the state and the nation at large”. She  further applauded the Minister for undertaking the tour by road to see things for himself and ensured that the contractors are working.

The deputy governor disclosed that the state was also complimenting the federal government effort by constructing over a 1000km of roads across the state. According to her, the state governor was well known to be a “ constructor of roads”.

Briefing the Minister at the Oshogbo- Ilesha road inspection, the Federal Controller, Works, Engr Omorekpe Njoku said, that the contract was awarded in 2010 at a contract  sum of .N2.69b but was later reviewed  to N2.88b to accommodate the drainage works on the road. He affirmed that the contractor is indeed slow in delivery on the project.

The Contractor, Messers Horizon Construction however explained that the reason for the prolonged delay in the completion of the project was due to the non budgetary appropriation for the project by past administrations for about three years leading them to stop work at a time. He however commended the present administration for including the project in its appropriation since last year and promised to mobilize fully to meet the completion deadline.

May

22

2018

FG Commences Rehabilitation of Ikorodu-Sagamu Road, Says It Will Boost Economy

The Minister of Power, Works and Housing, Mr Babatunde Fashola, on Monday said the rehabilitation of the Ikorodu-Sagamu Road would boost agriculture and the economy of Lagos. Fashola said the road was strategic to industrailisation and agricultural development which were the priorities of the Buhari administration. He added that the road was strategic and would promote the growth of agricultural activities, boost business for industries in the axis and create employment opportunities. He listed the Odogunyan Industrial Estate, the NNPC Mosimi Depot and other firms as some of the beneficiaries of the project.

“The present government is very strong on agric and very strong on industrialisation and, indeed, on energy,” he said. According to him, the project had a national outlook and urged politicians to shun sentiments and focus on the developmental goals when constructing projects. “President Muhammadu Buhari has said I should tell you that not only are you getting Ikorodu-Sagamu Road, work has also started on Lagos-Ota Road to Abeokuta. And work would continue on Lagos-Ibadan expressway. “And if we get approval in the 2018 budget, hopefully, we would be able to start work on the last part of the Lagos-Badagry Expressway,” he said. He said the contractors’ first priority was to stabilise the road before the rains start.

He urged residents to be patient and cooperate with the contractors as the construction was likely to cause them some inconveniences. General Manager, Arab Contractors Nigeria Limited, Mr Wael Salem said, “We would try our best to make the road motor able.” The Ayangburen of Ikorodu, the traditional ruler of Ikorodu, Oba Kabiru Shotobi, represented by Otunba Ayodele Elesho also thanked President Buhari for making the project a reality. “I have the mandate of Kabiyesi to thank you,” he said. He assured the contractors of the cooperation of residents of the community. Sen. Gbenga Ashafa, Mrs Abike Dabiri-Erewa, President Buhari’s senior special Assistant on Foreign Affairs and Diaspora, Mr Jimmy Benson, Federal House of Representatives member representing Ikorodu Federal Constituency and others commended the Buhari administration.

They all noted that the important road had been abandoned by previous administrations and appealed to the contractors to deliver the project on schedule. The News Agency of Nigeria (NAN) reports that the 30.1-kilometre road links the Ikorodu round about in Lagos and Sagamu in Ogun State. The project is being handled by ARAB Contractors Nigeria Limited and has a completion period of 36 months.

Source: (NAN)

May

22

2018

Minister Decrys Contractors’ Low Level Engagement Of Nigerian Engineers On Projects

The Honourable Minister of State I for Power, Works and Housirang, Hon. Mustapha Baba Shehuri has admonished contractors handling various road projects in Nigeria to engage more indigenous Engineers.
The Minister stated this while on official tour to road, housing and power projects in the Norths East geo-political Zone comprising Bauchi, Gombe, Adamawa,Taraba,Yobe and Borno States, recently in order to supervise as well as make sure that government’s mandate concerning the development of critical infrastructure is achieved.

Baba Shehuri expressed his displeasure over the low level of employment to Nigerian Engineers “I am disappointed that you employ a few Nigerian Engineers. There are qualified graduates and Government has embarked on these projects to meet the needs of Nigerians, as well as, reduce the high rate of unemployment among the youth”.

The Minister, who was accompanied on the inspection tour by the Director, Highways, North East Zone, Engr. Mohammed Rufai, Ag. Zonal Director, Housing, Arc. Waziri Micah Mshelia and other top Officials of the Ministry explained that the focus of the present Administration is for the contracts to be local content oriented by employing qualified engineers and artisans on the various construction sites, thereby boosting the socio-economic activities of the host communities.

Hon. Shehuri inspected the following projects within the zone;
1. Bauchi States - the construction of roads on Burga-Dull-Mbati-II-Tandum- Gobbiya-Badagari-Gwarangar-Sum, Ningi-Yadagungume-Fuskar Mata, Phase III, Tudun Wuss-Wundi-Baraza-Durr-Zumbul- Polchi-Dot-Kwanar.
2. Gombe State - the rehabilitation of Bridges and roads along Bauchi and Gombe road, Emergency re-instatement of a failed section between kilometer 33 + 800 and kilometer 37 + 700 on the Gombe- Bauchi road.
3. Adamawa State - Completion of Gombe-Numan-Yola road, Phase II, the Rehabilitation of Yola-Hong-Mubi Road, the Rehabilitation of Numan-Jalingo Road Rehabilitation of Gombe-Biu Road. Borno State - the Rehabilitation of Damaturu- Biu Road.
4. Borno State-Inspection of the Construction of Sub-Station and Installtion of 1x150MWAat Bama Local Government Area (LGA),Inspection of Dualization of Kano-Maiduguri Road, Section V (damaturu-Maiduguri) in Borno State. C/No 5880, Inspection of Dualization of Kano-Maiduguri Road, Section IV (Potiskum-Damaturu) in Yobe State. C/No 5881, Inspection of Dualization of Kano-Maiduguri Road, Section III (Azare-Potiskum) in Yobe State. C/No 5871, Inspection of Dualization of Kano-Maiduguri Road, Section II, Azare-Shuarin.

According to the Minister, the Government, determined to address housing deficit in the country, developed a National Housing Programme by constructing affordable houses that will also take care of socio-cultural setting of Nigerians. The houses, which are at different stages of completion, include One Bedroom, Two Bedroom, Three Bedrooms and Semi Detached Bungalow. The construction sites inspected are; the National Housing Programme (NHP) site along Ningi Airport Road, Bauchi, NHP, Sangere Village, along Yola-Numan Road, NHP, Auno, Borno State.

Power Projects inspected includes the 49 megawatts Hydro Power Project in Dakin Kowa, Yamaltu- Deba Local Government Area, the installation of 2 x 60 MVA transformers, 132 KVA Substation at Billiri, Maiduguri TCN at Molai.

Various constraints and challenges experienced by the Roads, Housing and Power Contractors, particularly those working in Borno axis, include security, non-availability of materials, as well as payment. The Minister promised to look into all the issues raised, he, however, urge them to work according to the projects specifications and timelines.

While on the inspection, the Minister paid courtesy visits on His Excellency, the Executive Governor of Bauchi State, Mohammed Abdullahi Abubakar and his counterpart in Adamawa States, Alh. Bindow Jubrilla. Governor Abubakar hailed the School Feeding Programme of the Federal Government, saying that it has conquered hunger in the rural environment.

His Excellency, the Deputy Governor of Adamawa State, Mr.Martin Babale appreciated the Federal Government for siting various projects in the State, while calling on Nigerians to support the good work of President Buhari by re-electing him 2019.

Various indigenous and non-indigenous vendors took their turns to appreciate the effort of the Federal Government in improving their lives. Many reported upgrade in socio and financial status and commended President Buhari for a work well done

May

11

2018

FG Threatens To Terminate Abaji-Koton-Karfe Dualisation Road Project

The Ministry of Power, Works and Housing  on Wednesday threatened to terminate the contract for the dualisation of the Abaji-Koton-Karfe road due to “negligence” by the contractor for five months.
The Director of Highways Constructions and Rehabilitation of the ministry, Mr Dayyabu Mamman made the recommendation on Wednesday during an inspection by the Minister of State II for Power, Works and Housing, Suleiman Zarma.

The News Agency of Nigeria (NAN) reports that the minister in the company of some ministry’s officials was on an inspection of the Federal highways projects in Kogi state, including housing projects.

The project which is being handled by Bulletine Construction Company Ltd at the cost of N15. 1 billion is part of the dualisation of the Abuja-Lokoja Road; section III (Abaji-Koton-Karfe) C/No.5884.

The 49.40 km road construction which began on Oct. 12, 2006 with initial completion date of April 11, 2009 but extended completion date of March 12, 2014 has 159.72 as per cent time lapse. “The site has been inactive since December 2017, labourers have not been deployed on site, I recommend for the termination of the project. “The project is giving us sleepiness nights, all effort to make them work to hasten the completion of the dualisation proved abortive for the past five months,’’ the Director noted while briefing the minister.

Mamman, also the North-Central Zone Director noted that the contractor who has spent 12 years on the project with only 54.48 per cent completion and has applied for extension of contract period. “The contractor has an advance payment of N1.6 billion only to pay back. None rendering approved services which the contractor has received payment for also amounted to the sum of N414.2 million,’’ he said.

He identified another challenge facing the project as the “Rutting on the carriage way’’ report which the department of Materials and Geotechnic has conducted pavement evaluation test to certify the reason for the failure but has not been submitted. The Engineer also ascribed delay in the project to high rate of accidents on the road due to untidiness of the site.
Mamman recalled that the contractor has been issued warning letters for poor performance and series of meetings have equally been held with the contractor to encourage increase performance but it yielded no result. Meanwhile, thethe company’s site agent, Mr Peter Omenye confirmed that the contract was abandoned because of labour related issues concerning workers salaries and entitlement. According to him, the workers have refused to work until they are paid all their entitlements.

Reacting to this, the minister noted that there was every reason to terminate the contract because the contractor has not been on site for five months because of domestic issues. “It is not because we have any issue with them, we do not have any issue with them rather they have issues with their employees; I understand that they have not been paid salaries or allowances. “We do not owe, so we want construction to continue, we have no reason to be held hostage by any contractor in an event where we are not in default. However, Zarma who is also a Surveyor noted that in terms of contractor’s conditions, the ministry would go into the documents to look at the contractor’s conditions before making categorical statement.

Zarma also inspected the dualisation of Abuja-Lokoja road, section IV (Koton-Karfe-Lokoja) Obajana junction, C/No. 5885 being handled by Gitto Construction Company with 61 per cent completion. The minister had earlier inspected the dualisation project of Abuja-Abaji-Lokoja road (section 1), contract No. 5862 including spur to Airport junction. He lauded the road work progress, emphasising that there was fulfilment of President Muhammadu Buhari’s commitment to fix infrastructure deficit in the country. He said road project were always costly due to outsourcing of raw materials such as granite and cement including conducting soil test before actual project execution commenced.

NAN reports that the percentage completion of the project being handle by Dantata and Sawoe construction Ltd. as at April 2018 is 90 per cent while the financial expenditure as at January 2017 is 88 per cent. The major works completed include the construction of new road (11.4km) along Airport road Spur, rehabilitation of existing road (10.04KM), and construction of interchange at Giri and Gwagwalada among others.

Source: (NAN)

May

11

2018

Minister Summons Road Contractor Over Poor Performance

The Minister of State for Power, Works and Housing, Alhaji Mustapha Shehuri has summoned the contractor handling rehabilitation work on Bauchi-Gombe road, Enerco Nigeria Ltd., over poor performance.

Shehuri gave the order on Thursday in Bauchi during an inspection of ongoing Federal Government projects in the North-East. He expressed dissatisfaction over the slow pace of work on the project, adding that Nigerians were becoming impatient with unserious contractors. “We have visited other construction sites in the state before we arrived here, while I am satisfied with the level of work by other contractors, I am disappointed with the pace of work here.

“I have summoned the contractor to come over to Abuja to sort out issues because if they are not ready for business they should let us know. “Nigerians are becoming very impatient, they need this project because apart from the road, we are also interested in the employment content and other benefits that will come with it,” he said. Mr Charles Ezike, the Federal Controller of Works, Bauchi State, said that the 81.5 kilometres rehabilitation road project was awarded in 2017 with completion period of 24 months.

He said that the contractor was adequately mobilised and had achieved 1.88 per cent completion after 49.72 per cent time lapse. “This to us is a dismal performance because when the contractor primed the first stone base section, they were unable to cover it with asphalt. “This resulted to deterioration on the surface that we are witnessing and the reason is that the contractor’s asphalt plant is not in working condition.
“They have been battling to fix it and I have severally advised that if their own cannot function well that they should buy asphalt from other company,” he said. Mr Jamil Nasser, the Project Manager, Enerco Nigeria Ltd blamed the delay in the project on the bad state of the company’s asphalt plant.

He said efforts were being made by the management to change the plant and pledged that the new plant would be ready for work within days.
Source: (NAN)

May

04

2018

Fashola Inaugurates NERC Chairman, Charges Commission On Customer Service

* Says having fully constituted NERC with the inauguration of the Chairman, the focus would now be on Metering
* Expresses delight that between 2015 and now, many consumers have  experienced better, longer power supply
* Azura Power Plant now ready to go into full operation says the Minister
* New Chairman promises collaboration with Commissioners, Ministry and legislature to take Power Sector to the next level

The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, Thursday inaugurated the Chairman of the Nigerian Electricity Regulatory Commission (NERC) charging the Commission to focus more on Customer Service as the critical component that would move the Power Sector forward.

Speaking after the brief but colourful ceremony at the Conference Room of the Ministry, Fashola, who said Customer Service was a challenging bridge that must be crossed, said it was the duty of the Commission to make Consumers understand what was going on with their metering, what are their rights and so on and so forth as well as who to hold accountable when things went wrong with service delivery.

The Minister told the new NERC Chairman, Professor James Momoh, “Consumers must understand what is going on with their metering, what are their rights and so on and so forth; who do they hold accountable, where are the NERC field offices to which they can complain; what is the process of getting remediation for service that is not in sufficient quantity and of quality?”

Promising to make himself available to render assistance in terms of “policy guidelines, policy directions and helping to move the wheel of bureaucracy to make progress to get the work done”, he added that the Commission also had to do a lot of enlightenment among the customers in terms of making them understand who and where to complain when they needed service.

“I want to thank the Permanent Secretary and all the members of the team. I continue to receive those text messages; I like to thank the Director of Distribution and her team; they are the ones I send those texts of complaints, ‘Our meter has failed, etc’ and they respond as best they can all over the country and I get feedbacks from those who have received service”, he said.

Fashola, who described the Commission as the Policeman of the Power Sector, expressed delight that it now has the full complement of its membership with a Chairman, added, “I am one of the happiest people today and I will tell Nigerians why. Since Privatization took place, one of the things that have happened is that the size of the Ministry of Power shrank significantly”.

“I think our staff strength before I came was in the region of 15,000 and all of that is now less than a thousand people because most of the staff some retired as a consequence of the Privatization and transfer of ownership to the GenCos and the DisCos. Today, unlike the old Power Holding Company of Nigeria (PHCN), this Ministry does not own any Gencos or DisCos”, he further explained adding that the Ministry only supervises the Yola Disco where, according to him,  privatization became problematic and force majeure was declared.

According to the Minister, “The truth is that we don’t buy meters and we don’t supply meters. Really and truly our role now is just to make policies; our quality of energy, type of energy; whether it is hydro, thermal, and solar or wind and to make sure that if there are problems we go and solve them. And that is in terms of government activities”.

Reiterating that owners of the power assets today are the GenCos and DisCos, Fashola pointed out that the power industry was now a business where the aforementioned investors are now responsible for providing electricity to Nigerians, adding, “The owners of the DisCos are the ones who now have the challenge and responsibility of distributing electricity to Nigerians”.

The Minister added that the Transmission Company of Nigeria (TCN), owned by the government, was now run as a business to transmit electricity pointing out that all of the organizations, both private and public, were subject to the regulatory power of NERC whose Chairman was being inaugurated. “So that is the Policeman of the Power Industry”, he said.

Describing Metering as a “big issue” in the industry, Fashola, who noted that the Commission has already issued regulations concerning the problem promised that government was working hard on how quickly meters could come, adding that for those people not connected to the grid, NERC has also issued regulations for mini-grids and how it would happen.

The Minister thanked the Commissioners of NERC for their collaborative working relationship without a substantive Chairman adding, “I value the work that you do; but sadly I just have to ask you to do more. Nigerians need to experience the full benefit that Privatization can bring. I am convinced that it will happen. Irrespective of what we see, what matters most now is what people are experiencing”.

He expressed delight that between 2015 and now, many consumers have  experienced better supply by way of having power for longer hours compared with before, buying less diesel and running their generators for shorter periods adding, however, that in some places people would still say that their experience was not good. “So that means there is still a lot of work to do”, he said.

On the progress being made in the sector, Fashola declared, “By increasing generation to 7,000MW, increasing transmission to over 7,000MW and increasing distribution from 2,690MW to an average of 4,900MW and 5,000MW, clearly that is progress and that is what we must do more”.

The Minister, who acknowledged that there were challenges that came with the Privatization of the industry such as metering and governance issues, said that was why government came up with the Power Sector Recovery Programme (PSRP) as a component of its Economic Recovery and Growth Plan (ERGP) to solve the challenges and put the sector on the path of sustainable growth.

“What we see is that like every policy, Privatization will have its challenges. We have gathered all the challenges together and that is what we have put in the PSRP; from meters to governance and one of the governance issues is the full constitution of the NERC with the appointment of the Chairman and today one item in the list of to-do items of the PSRP is now completed and we can proudly report that”, he said.

The Minister said, having solved that governance problem, other items to be faced include metering and expansion of distribution network adding that although there is an existing  capacity of 2,000MW of power that could not be distributed, government was working to see what it could do quickly to solve the problem before the end of the year.

He disclosed that the Azura Power in Edo State just sent a message that their plant was now completed and was ready to run full operation, adding, “That is 459 MW of power. We are expecting another 240 MW from Afam and another 215 MW from Kaduna and also from Kashimbila. There is a lot of power coming. So, the distribution end is where our real challenge lies”.

The Minister, who noted that the mini-grid regulations issued recently by NERC have started producing results with impacts in markets, pointed out that later this year, places like Sura Market in Lagos, Sabon Gari Market in Kano, Ariaria Market in Aba and about 13 other markets across the country were going to be energized.

“So the progress we are making inspires us to continue. It reinforces the methods that we have formulated and the choices that we have made, that clearly we are on the right part. This is clearly an elephant and so we are going to break it bit by bit because you can’t eat an elephant whole”, he said.

Thanking President Muhammadu Buhari for the choice of Professor Momoh as Chairman of NERC, Fashola also thanked the Chairman for deciding “to find his way home to come and be part of fixing what may be wrong instead of pointing fingers at what is wrong”.

“I think that it is always easy to complain about what is wrong; but it is much more challenging to volunteer to be part of the problem solving team and that is what Professor Momoh has done in accepting this nomination to serve his country”, the Minister said adding that the new Chairman while needing the help of God in fulfilling his oath of office would also need his own resolve, the help of his wife, friends and family for the same purpose. 

Also singled out for special thanks were the Vice-Chairman of the Commission, Mr. Sanusi Garba, who also acted as Chairman in the absence of the substantive Chairman, Mr. Frank Okafor, Mr. Musiliu Oseni and other commissioners of the Commission who held the fort till the inauguration as well as the Senate who, according to him, although they delayed the confirmation, “It is better late than never”.

In his acceptance remarks, the new Chairman, Professor James Momoh, pledged to abide by the oath of office which he had earlier taken, adding that he was proud to return and serve his country in the capacity he had been chosen after serving in the United States for so many years.

“I understand that I have been given a trust. My job is a trust. I want to assure you that I am a team player. I will work with the Commissioners of NERC; I will work with the Ministry and I will work with the legislative arm of government so that together we will forge a relationship where we understand we have been given a trust to move the power sector to the next level”, he said.

Also present at the occasion were the Vice Chairman of NERC and other Commissioners of the Commission while on the Ministry’s side were the Permanent Secretary Power, Mr. Louis Edozien, Directors and Special Advisers to the Minister.

Apr

09

2018

Remarks By H.E, Babatunde Raji Fashola, SAN At The 26th Monthly Power Sector Operators Meeting At The Ohiya Transmission Substation, Umuahia, Abia State  On Monday The 9th Of April 2018

I am pleased to chair this month’s Power Sector meeting and to welcome all of you here present.

This is the 26th meeting we are holding and its continuing nature is consistent with our road map of incremental, stable and, eventually, uninterrupted power.

We are on a journey to a destination of promise and eventual prosperity and I use this occasion to salute the efforts and contributions of all those who have brought us this far.

Even if those who were most vocal in condemnation when the situation appeared very dire are now uttering some muted acknowledgment that it has improved, we must continue to draw inspiration from well-meaning and right thinking Nigerians who were gracious enough to publicly acknowledge that:

They are saving some money from Diesel they used to spend for generators;

They are running their generators for fewer hours; and

They are getting comparably more power than before.

It is because of those gracious and well-meaning and right thinking Nigerians that we must dig deeper, work harder and be more determined to improve service delivery.

In order to improve service, we must accept our respective responsibilities and this is important for the purpose of identifying our respective roles and tasks.

At the risk of repetition and for the sake of clarity, let me state that since the privatisation process of 2013, Generation of Power and Distribution, which is supply to homes, offices and markets, factories and consumers generally is now a private sector business.

The exceptions are the NIPP Projects, which the Federal Government is trying to complete and dispose of, and Yola Distribution Company, which the investor surrendered.

Otherwise, the role of Government is to buy Bulk Power through NBET and vest in Distribution Companies to retail to consumers, and to transport the power from the generation companies to the distribution companies.

Government, through NBET and TCN, is executing these tasks by signing Power Purchase Agreements (PPAs) with Prospective Power Generators, where the terms are agreeable.

It is investing in the expansion of the Transmission Capacity through TCN, by building more Substations and expanding existing ones, to improve service capacity where the Consumer demand has increased, and reinforcing the capacity of existing transmission lines.

At the moment, there are over 90 (ninety) TCN projects for transmission expansion, which TCN will be commissioning nationwide in the next few weeks and months. Some are completed and some are nearing completion.

Today, we will commission two of such projects, namely:

a. The expansion of Umuahia sub-station with a new 40MVA transformer to increase transmission capacity from 80 MVA to 120MVA to  serve  Umuahia, Isikwutor, Isukwuato, Bende, Umunneochi, Ikwano, Obowo, Ohafia and parts of Arochukwu  among other places ; and

b. The expansion of Aba Sub-station with a new 60MVA to increase service capacity from 127. 5 MVA to 187.5 MVA to serve Aba North and South, Ukwa East and West, Osisioma, Obioma-Ngwa,  Isi ala Ngwa  and environs.

And these are examples of our commitment to service delivery.

The same is also true of NDPHC, who have over 100 (one hundred) Distribution Projects in various stages of completion, under the NIPP.

Over the next few weeks and months, they will be going out to commission and energize those projects.

They will help the DisCos improve power supply and service delivery to those communities, and I appeal to the DisCos involved to take ownership of these facilities and put them to use.

On my part, I will do my best to keep track of developments and report them to the meeting.

NBET, on its part, must also improve on the timelines it takes to process payment to the DisCos and, in addition, adopt a business orientation of ensuring that it collects as much as it can from the DisCos, who help her to retail the Bulk Power.

The truth is that if NBET cannot pay her bills to the GenCos, the DisCos will have no business because the bulk of their power comes from NBET.

Therefore, the DisCos must, in their own very best interest see NBET as the goose that lays their golden egg, who must not die.

While NBET, TCN and NDPHC act for Government to implement its enabling role, the immediate tasks of the DisCos, in my view, are to:

A) Improve the quality and capacity of the distribution equipment to improve power supply and service to stimulate consumer willingness to pay;

B) Improve collection of revenues without extortion through estimated bills or hostility;

C) Remit what they collect in accordance with the agreement with NBET;

D) Take ownership of the Meter Asset Provider Regulations to improve supply of meters; and

E) Respond to consumer complaints and resolve them in a business-like manner.

On this last matter of consumer complaints, let me say that we are getting a number of them in the ministry in Abuja, from different parts of the country.

They should appropriately go to the DisCos and the private investors who own them.

Government has handed over these assets as a business and no longer collects revenue for power from consumers since the sale of PHCN in 2013.

Those who bought the DisCos and bill consumers must rise up to the responsibility of resolving consumer complaints.

Ladies and Gentlemen, these are some of the things that we all must do to improve service delivery, but they are not exhaustive.

Citizens and communities where we are building transmission lines must help to give us access to land.

I am happy to say that some Governors have responded admirably across party lines.

While it will be invidious of me to try to catalogue what different Governors have done, let me here acknowledge what Governor Okezie Ikpeazu of Abia State has done with his team to help us link a power provider with the traders and consuming business community in Ariaria Market, comprising of 30,000 shops.

Progress is being made on that project, under the joint supervision of Rural Electrification Agency and Abia State Government, and it should be completed this year.

The same is true in Sabon Gari Market in Kano, and Sura market in Lagos.

For these traders, stable power supply for their businesses will no longer be a mirage. It will happen.

It will happen because President Buhari is prepared to work across party lines to serve the ordinary people who work very hard daily and contribute to the task of building Nigeria.

Ladies and Gentlemen, my closing comment in these remarks is to the DisCos.

Get your employees out on the field.

Get them to inspect lines, breakers, transformers and other distribution equipment.

Get them to visit consumers and ask if they have problems, and fix them.

Get them to do preventative maintenance and notify your consumers in advance if it will result in disruptions of service, and state very clearly how long it will take.

I know that it may be difficult, but that is why we took our jobs; to do difficult things and improve people’s lives against the odds.

I know that you can do it, and I wait eagerly with other Nigerians as you roll out to prove us right for vesting these assets in you.

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

Monday 9th April 2018

Mar

20

2018

Stakeholders Laud FG For Improvements In Nation’s Road Sector

* As Fashola presents Federal Highways (Control of Dimensions, Weights and Axle Load) Regulations 2018
* NURTW, NARTO, PTD, other transport unions applaud FG for the on-going rehabilitations and reconstruction of roads across the country, pledge support
* The road sector in the country never had it as good as is being currently experienced despite the shortfall in the nations revenue generation NURTW National President
* From 2015 to date, my administration has constructed several hundreds of kilometres of inter-state federal roads and bridges- Buhari

Stakeholders in the nation’s road sector, Monday in Abuja lauded the improvements on the roads across the country, commending the Federal Government, the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, and his team for the innovative approach to road management since the inception of the Buhari Administration.

Speaking at a One-Day Public Enlightenment on the Developments in the Road Sector, the stakeholders, who included the National Association of Road Transport Owners (NARTO), the National Union of Road Transport Workers (NURTW), and Petroleum Tanker Drivers Association among other road users, noted that the Minister has done a lot to restore confidence of Nigerians on the nation’s road sector.

In his goodwill message at the Nigerian Air Force Conference Centre venue of the event, President of the National Union of Road Transport Workers (NURTW), Alhaji Najimdeem Yasin, congratulated the Minister for his  efforts in executing the 2017 budgetary proposals as regards to the development of road network across the country.
Represented at the occasion by Alhaji Nasiru, the NURTW President also expressed appreciation to the administration of President Muhammadu Buhari for the prudent management of the nation’s scarce resources noting that since the beginning of the present administration, the road sector in the country never had it as good as is being currently experienced despite the shortfall in the nation’s revenue generation.

The NURTW boss, however, pointed out that as the efforts and actions of the government to improve the roads were being applauded, it was also necessary to direct its attention to a lot more of the roads that still needed urgent attention  urging the Minister to put in place a mechanism to institutionalize the culture of construction, rehabilitation and maintenance of Federal roads as well as putting necessary instruments that would guide against the abuse of the roads by the road users.

Such mechanisms, the Union leader said, included weighbridges, transit parks and provision of other road furniture adding that as a transport workers’ union occupying the leadership of the International Transport Federation (ITF) and the Global Vice President, the leadership of the National Union of Road Transport Workers had taken the sensitization and training of its members very seriously as it could not afford to operate short of international standard.

Disclosing that the NURTW, in collaboration with the Federal Road Safety Commission (FRSC) and Vehicle Inspection Officers (VIO) regularly organized series of enlightenment campaigns for the union members in order to encourage them to maintain good driving culture, the Union boss declared, “I want to assure you of our continuous support and loyalty to every initiative that will improve the safety and sustenance of roads in the Federation”.

In his goodwill message on behalf of his association, the President of the National Association of Road Transport Owners (NARTO), Alhaji Kassim Bataiya, expressed appreciation to the Minister for matching his words with action recalling that on the first of February 2018, the Minister, at a meeting with the various transport unions in his office, did promise that he would convoke such an enlightenment Workshop.
Represented by the Executive Secretary of the Union, Mr. Aloga I. Okpobo, the NARTO President, who was last week elected President of the African Road Transport Union in Marrakech, Morocco, commended the Minister for keeping his words applauding him for the on-going rehabilitations and reconstruction of roads across the country.

Noting that the government was currently raising  funds from various sources to meet the required funding of roads in the country, the union President declared, “This has demonstrated that in a very short time  Nigerian roads will meet the expectations of Nigerians”.

He also recalled that during the last meeting with the Minister, the unions made various recommendations including the issue of Axle Load, which, according to him, was on the front burner of the discussions adding that the recommendations which were both in the short, medium and long terms, included the banning of the importation of 60,000 litres capacity trucks into the country as they were negatively impacting the roads in the country.

Alhaji Bataiya also recalled that the Unions recommended to the Minister that those constructing such trucks above 60,000 litres in the country should be warned to desist forthwith adding that the Unions also asked government to give a five year moratorium to enable owners of such vehicles to recoup their investment before the final phase out.

Other recommendations, he said, include that the Federal Government should ban the use of steel trucks and replace them with aluminum trucks “because aluminum trucks are lighter in terms of weight capacity” and for the Government to continue the road rehabilitation and expansion it has earlier started as, adding that while the ban of the use of steel trucks would address the issue of axle load, the rehabilitation and expansion of roads would “go a long way in bringing relief to Nigerian roads”.

Pledging the support of the association to the Federal Government “in all its efforts to put Nigerian roads on course”, the NARTO boss declared, “We are also here to say that we are totally in support of this workshop and to commend the Hon. Minister for putting the workshop together because in doing so he has matched his words with action”.

In his own goodwill message, the National Chairman of the Petroleum Tankers Drivers Association, Mr. Salimon Akanni Oladiti, commended the Minister for “his courage” in organizing the Workshop pointing out that it is only when one is courageous and doing something right that such a person could invite the public to brief them of such action.

Noting that the workshop would give participants a further insight into the developments in the road sector, the Chairman declared, “As major stakeholders in the Nigerian road sector, we have in recent times witnessed tremendous efforts on the part of the President of the Federal Republic of Nigeria and the Minister of Power, Works and Housing which has made us to believe that the dark and horrible days of bad roads will soon be over”.

“It is also important to use this opportunity to commend the Federal Ministry of Power Works and Housing under the headship of Mr. Babatunde Fashola SAN, for the increased strides his Ministry has been making since he mounted the saddle as the Hon. Minister in his stride to improve the road network. His efforts to reactivate road signage for the safety of road users is unparalleled in the history of Nigerian roads”.

Others who gave good will messages included the President Road Transport Employers Association of Nigeria,  High Chief Musa Shehu Isawere, represented by Comrade Henry Ejioffor, who also commended the Minister for the innovations he has introduced into the management of the nation’s road sector and the Minister of Labour and Employment, Senator Chris Ngige, who said in identifying with the convocation of the Workshop, he would be the ultimate beneficiary pointing out that the impressive turnout of the trade unions only signified the fact that they were in full support and in alignment with the Minister adding, “ It means less agitations and strikes”.

In his Keynote address, President Muhammadu Buhari, who was represented at the occasion by the Secretary to the Government of the Federation, Mr. Boss Gida Mustapha, said the convocation of the Workshop was an indication of the important role that road transportation plays in the nation’s economic development adding that the critical place of road transportation in the country’s evolution and the national life had never been more alive than presently.

“Presently the haulage of industrial goods, agricultural produce and industrial raw material, petroleum products, power plant components and other economic materials required in the manufacturing sector, are carried out using the road network”, the President noted adding that it was this realization that underscored the promise of change by the present administration in May 2015 with infrastructure as a priority.
Pointing out that this has been fulfilled by the administration “by policy and action, President Buhari further declared, “It is on record that this administration has raised the budgetary allocation for Capital project from 15 per cent to a minimum of 30 per cent and committed to physical stimulus targeted at infrastructure”.

“The result is the revival of construction activities and other projects nationwide. From 2015 to date, my administration has constructed several hundred kilometres of inter-state federal roads and bridges to ease the movement of persons, goods and services”, he said adding, however, that in order to take the full benefit of the projects, when finally completed and get value for the investment “we must change our ways and this government has signed on for that change”.

Earlier in his welcome address, the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, said the Workshop was meant to reflect and agree on the need for change about how Nigerians have used their Road infrastructure adding that the country’s Economic growth, National productivity and job opportunities would be impacted by the conclusions and resolutions of the meeting.

Noting that there are now existing treaty obligations within the West African sub region and beyond that regulate the amount of load any goods vehicle can put on an axle and by extension on the road in order to do business within ECOWAS and beyond, Fashola said the only way to optimize the opportunities that lie in road networks like Trans-Saharan highway that connects Nigeria to Chad, Niger, Tunisia, Mali and Algeria; the Lagos- Abidjan Highway through Benin, Togo and Ghana, or the Enugu- Cameroon Highway through Abakaliki – Ogoja , Ikom and Mfum was to sensitize road transporters and imbibe the existing treaties.

The Minister, who thanked the President for finally signing the instruments of ratification as soon as it was brought to his attention, after many years of delay prior to his tenure, added, “This meeting is critical to the achievement of our common goal for shared prosperity. Our compliance with these regulations will open a massive door of opportunity and prosperity of cross-border trade to Nigerians engaged in the transport business”.

“This is why this meeting was convened; because when President Buhari once said that “we will change our habits and we will change Nigeria,” I believe this is one of the things he had in mind. While it is true that we could have done better by way of massive investment in our transport infrastructure during the windfall of income from oil, this Government is now rapidly and aggressively addressing road transport infrastructure repairs, rehabilitation and construction as many of you who travel regularly will attest”, he said.

Fashola, who noted that there is no state in Nigeria today, where contractors would not be seen busy at work, added, “The crux of this meeting is to first acknowledge the President is only one man who cannot be everywhere, and secondly to recognize that we are the actors of the change that is required to take us to prosperity and thirdly to recognize that, the way we use the roads when finally completed will determine how long they last and whether they deliver prosperity or not”.

In a Communiqué issued after the Workshop, participants expressed appreciation to the Federal Government for the on-going rehabilitation and reconstruction of roads across the country, affirming the need for enforcement of axle load limit to safeguard the nation’s road infrastructure while also emphasizing the reintroduction of toll gates on federal highways as a means to improve revenue generation for the maintenance of roads.

Realizing the damaging effects of overloading on the nation’s road network, participants advocated that all Heavy Goods Vehicles (HGVs) owners and operators should abide by the the new Axle Load limit regime in Nigeria in line with the ECOWAS Supplementary Act/SP.17/02/12 relating to the harmonization of standards and procedures for the control of dimensions, weight and axle load of goods vehicles within the ECOWAS Member States.

Other highpoints of the Communiqué are reaffirmation of need to operationalize the weighbridge stations on Federal roads to check overloading, recognizing the need for adherence by motorists to road signage for safety, need for all stakeholders to join hands to halt the abuse on Nigerian roads and agreement that tank farm owners and sea port operators should comply with the axle load limits by installing weighbridges at their depots/ports.

Also present at the occasion were the Minister of Transportation, Right Hon. Chibuike Amaechi, represented by Dr. (Mrs.) Anthonia Ekpa, FCT Minister represented by the Executive Secretary FCDA, Engr U.G. Jibrin, Corps Marshal of the Federal Road Safety Commission (FRSC), Dr. Boboye Oyeyemi, among other dignitaries and stakeholders

Mar

14

2018

FG Inaugurates Governing Council For Federal School Of Surveying

The Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN has urged the newly inaugurated Governing Council of the Federal School of Surveying, Oyo to be mindful of the purpose for which they were nominated and ‘be problem solvers, solution finders and peace builders” in the onerous task ahead of them.

While inaugurating the Governing Council on Tuesday, March 13, 2018, Fashola explained that the Council will be responsible, as provided by the Act establishing the School, for the general management of its affairs, control of its properties and finances. He added that the purpose of the Schoo, is to “provide instructions, training and research in survey and related courses”.

The Minister explained that the objective for which the School was established, which is to produce technical, professional and other skilled manpower necessary for surveying and  mapping, requires it to function properly in carrying out its mandate. He further added that part of the Ministry’s mandate to formulate and implement the policies of the Federal Government of Nigeria is to survey and map out both internal and international boundaries and this, he said would require appropriate contributions from skilled manpower, without which the task will be difficult to achieve.

Fashola urged members of the Governing Council to always deal with the challenges of producing skilled manpower and professional surveyors. He reiterated President Buhari’s commitment to infrastructure development, citing the security challenges facing some schools as there would be need to plan how to rebuild, merge and protect such schools, especially those destroyed by the Boko Haram insurgency in the North East. He encouraged them to cultivate the spirit of team work, reflect transparency and accountability so as to properly represent the Federal Government.

In his remarks at the occasion, the Honourable Minister of State II, Surv. Suleiman Hassan Zarma stated that as an Alumus of the School, its standards has drastically dropped, thereby charging the newly inaugurated members to do their utmost zest in restoring the past glory of the School.

The Chairman of the Governing Council and Surveyor-General of the Federation, Surv. Ebisintei Awudu, in his acceptance speech, on behalf of other members, thanked Mr. President as well as the Ministers for the confidence repose in them, while promising that the Council will not disappoint the Ministry in carrying out its assignment.

The Permanent Secretary of the Ministry, Mohammed Bukar, Directors of the Ministry and family members of the newly inaugurated Governing Council were in attendance at the occasion.

Mar

13

2018

FG Creates Long Time Funding For Infrastructural Development- As Fashola Inspects Roads And Mass Housings Projects

The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, has said that the federal government is working hard to ensure the creation of infrastructural funding to finance roads, power and mass housing projects among others across the nation. According to him, ‘’funding of critical infrastructure will prevent the inherited and reoccurrence of abandon projects due to lack of budgetary provision’’. He added that departments of government agencies are already working closely to put in place, a structure for long time funding of federal projects.

The Minister on arrival in Kano paid a courtesy visit to Governor Abdulahi Ganguje and commended the state government for its critical role in economic development of the country. He stated that the construction of the 360 kilometers Abuja-Kaduna-Zaira-Kano roads has been awarded to Julius Berger, adding that while the contract is been formalized, a routine maintance is been undertaking by the Metropolitan and Mothercat construction companies.

In his remarks, the Deputy Governor of Kano, Prof. Adis Abubakar, on behalf of the governor, thanked the Minister for significant federal government ongoing projects in the state and expressed the readiness of the state government to continue to partner with the ministry.

Fashola also paid a courtesy visit to the Emir of Kano, His Royal Highness, Mohammad Sanusi Lamido in his palace, stating his mission is to attend a Top Management Retreat organised by the ministry in Kano and that he has deemed it necessary to pay homage to him. He stated that on his way to the palace, he stopped over to inspect the Tamburawa Bridge project which has been damaged by artisanal and illegal sand mining activities and erosion. He enjoined the emir to appeal to the illegal miners to move farther away from the construction location to enable the contractor undertaking the repair works deliver appropriately on the project.   

In his response, His Royal Highness, Mohammad Sanusi Lamido applauded the efforts of President Mohammadu Buhari for paying attention to critical infrastructural development projects across the country since assumption of office. He added that electricity and power generation has significantly increased, which has translated into the creation and revival of more industries in Kano and the country at large.

According to him, ‘’Kano as a city and state, is experiencing about 16 to 18 hours uninterrupted power supply in the last one year or so’’.

In a similar development, the Minister also inspected the National Housing Programme undergoing construction at Rigachchukwun, Kaduna North. He said that government is running a pilot scheme of housing prototypes to test the level of acceptability and affordability of Nigerians before embarking on a large scale construction of mass housing programme.

The Minister added that the gains of the present administration is getting people to work and restoring their dignity. He cited the case of one of the labourer in Kaduna site called Ado, who has earned a living and even married a wife by productively engaged in the construction of the housing project some 8 months ago. ‘’We are starting an eco system of activities such as sand; paint, gravel and roofing sheet’’. According to him, ‘’if you imagine 10 of these sites in Kaduna and 10 in each state of the federation and thousand of Ado who can go to work every day, that is a victory to me and I can say to the government’’.

Jul

12

2018

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

Protocol

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Jul

10

2018

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Jul

05

2018

FEC Approves N230billion For Roads Construction

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Jun

28

2018

FG Flags-Off Reconstruction Of Abuja-Kaduna-Zaria-Kano Road

The Federal Government has flagged-off the reconstruction of the 375.4 - kilometre Abuja-Kaduna-Zaria-Kano Dual Carriageway, a vital link between the South and the North of the country.

The existing road which has outlived its service life span of 20 years was approved by the Federal Executive Council (FEC) on December 20, 2017 to Messrs Julius Berger (Nigeria) Plc at a contract sum of N155, 470, 626, 078.07 (One Hundred and Fifty-Five Billion, Four Hundred and Seventy Million, Six Hundred and Twenty- Six Thousand, Seventy-Eight Naira and Seven Kobo) with a completion period of three years.

The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, performed the flag-off ceremony on behalf of President Muhammadu Buhari, at Chiromawa Town, Kano State, recently.

Fashola pointed out that President Buhari requires the support of well meaning Nigerians to deliver on the mandate of rebuilding the nation. According to him, ‘’one of the objectives of the Economy Recovery and Growth Plan (ERGP) of the present Administration, lunched by Mr. President in 2016, is in fulfilment of the  promise to make Nigeria a globally competitive country’’.

He added that a major critical action point of the ERGP was to renew, improve and increase the stock of infrastructure, particularly in the road sector. He stressed that the Abuja-Kaduna-Zaria-Kano road project will reduce the cost and time of travelling, as well as stimulate economic and social development in the country.

The Minister noted that in the face of limited resources, the President approved the SUKUK bond to improve economic activities on 25 arterial roads spread across the six geo-political zones, adding that construction works are ongoing with teeming population of youth gainfully employed on these road projects being funded by the SUKUK bond.

Earlier in his opening remarks, the Permanent Secretary, Works and Housing, Alh. Mohammed Bukar, while thanking dignitaries that graced the flag-off ceremony, stated that the Ministry is vigorously pursuing the mandate of this Administration in the delivery of critical infrastructure across the nation.

Alh. Bukar noted that the inauguration of the road project is a milestone achievement in the effort of the present Administration in bridging the infrastructural gap in the country. He said “the completion of the reconstruction works will no doubt reduce vehicle operating cost, improve travel time, reduce road accidents and stimulate the socio-economic growth and the general security of towns and cities along the corridor.”

The Managing Director, Julius Berger (Nigeria) Plc, Engr. Wolfgang Goetsch, in his vote of thanks at the occasion, stated that the road is a high priority infrastructure of national significance which form an important part of the nation’s highways. He assured that with a strong and experienced workforce coupled with adequate equipment to fast track the execution of the project, the Company will deliver on schedule.

In attendance, were the two Ministers of State I and II, Hon. Mustapha Baba Shehuri and Surv. Sulieman Hassan Zarma, mnis respectively, the Executive Governor of Kano State, His Excellency Abdullahi Umar Ganduje, represented by the Deputy Governor Prof. Hafiz Abubakar, the Executive Governor of Kaduna State, His Excellency, Mallam Nasir El-Rufai was represented by the Commissioner for Works and Transport, Hajiya Balaraba Aliyu Inuwa, the Chairman Senate Committee on Works, Senator (Arc). Kabiru Gaya, the Chairman, House of Representatives Committee on Works, Hon. Toby Okechukwu represented by Hon. (Engr) Maren were among the high profile dignitaries that graced the occasion.

His Royal Highnesses in attendance took turns to deliver goodwill massages, the Emir of Kano, Alhaji Mohammadu Sanusi II commended the Federal Government for the project and urged the Ministry and Contractor to speed up the delivery of the project. Emir of Zazzau, His Royal Highness, Alh. (Dr). Shehu Idris also pledged his support and that of his people to safeguard the significant infrastructure. They both appreciated President Buhari and the Ministry in the award of the project and urged the Federal Government on road maintenance.

Members of the National Association of Road Transport Owners (NARTO) and Tanker drivers who were well represented at the ground breaking occasion made an appealed to the Minister for a separate parking space.

Jun

11

2018

Remarks By H.E, Babatunde Raji Fashola, SAN At The 28th Monthly Power Sector Operators Meeting Hosted By Kaduna Distribution Company

Once again, permit me to welcome you all to another monthly meeting of operators in the Power Sector.

This is the 28th monthly meeting and it is hosted by Kaduna DisCo,  to whom we are grateful for accepting to host us.

In the last few months, I have used the opportunity of this meeting to focus attention of Operators, GenCos, Transmission Company and DisCos, who are the points of public interface, on the need to pay more attention to service delivery, repairs, and maintenance of equipment.

My focus in this meeting will not be different. We are beginning a different weather season that will see more rainfall, thunderstorms, lightening and windstorms.

All of these will affect regular supply one way or another. Trees will fall and disrupt lines, poles and lines may be damaged, and service will be disrupted.

In all these situations, we must prepare our staff to anticipate, plan, and respond.

Most importantly, we must inform the public about the problems and what we are doing to restore service whenever there are disruptions.

As a consumer myself, nothing gives me more comfort than when my service provider shares information about service disruptions.

It tells me quickly that at least somebody knows that there is a problem, and gives me hope that something is being done about it.

Apart from service issues of supply, there is the bigger and compelling issue of estimated billing and lack of meters.

Meter supply has become the big issue of the moment that consumers want us to resolve.

As a Government, we hear them loudly and clearly, and as service providers, we hope that you can hear them too.

As power supply continues to increase in Generation, Transmission and Distribution, the demand for meters will increase because more power supply and consumption will likely result in increased  bills.

Estimated billings in these circumstance will become a major cause of distrust and conflict between consumers and DisCos, and meters are the easiest way to build the bridge of trust.

On the Executive side of Government, we are responding by taking advantage of the Meter Asset Provider (MAP) Regulations to deploy a fund of N37bn towards supplying meters through private sector.

I urge all DisCos who have not taken benefit of this opportunity to quickly do so, or make their own funding arrangements to contract  their own meter providers to supply and install  meters.

On the Legislative side of Government, there is a clear intention to intervene by Legislation.

The Executive and Legislative response show that Government is committed  to  addressing this issue of meters.

Let me be clear that every DisCo is affected, and every DisCo needs to respond by providing meters quickly and seeking to end estimated billing, which is subjective, discretionary, and prone to abuse.

In closing, let me also point out that our commitment to better service delivery by improving infrastructure, as mandated by President Buhari, continues.

Yesterday, I visited the historic city of Zaria to commission the 60MVA Transformer added to the Zaria 132 KV substation to increase the transformer capacity from 140 MVA to 200 MVA.

This will improve service to customers of Kaduna DisCo, our host, in places like Zaria City, Sabon Gari, Samaru, Giwa, Yakawada, Tudun Wada, Markafi, to mention a few.

This morning, I also visited the Power House 132 KV Transmission Substation in Kaduna to commission 2 X 60 MVA Transformers to increase the transformer capacity from 190 MVA to 240 MVA.

This will hopefully improve service of Kaduna DisCo to customers in places like Kaduna Township, Rigasa, Kakuri, Rigachukwu, Chikun, Sabon Tasha, to mention a few.

I must commend TCN for these interventions that are being undertaken nationwide.

Substation by substation, one by one, city by city, we are bringing incremental power close to the people, and this is change.

Thank you all for attending, and for your attention.

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

May

31

2018

Abeokuta Substation Gets New 60MVA Transformer To Improve Electricity

The yearning to ensure qualitative and stable power to Nigerians has made the Federal Government to upgrade the 132/33KVA Abeokuta Transmission Substation with the installation of a new 60 Mega Volt Ampere (MVA) capacity transformer to boost electricity supply in Abeokuta and its environs.

Addressing the Minister of State II Power, Works and Housing, Surveyor Suleiman Hassan Zarma, who was on an inspection tour to the substation recently, the Assistant General Manager Transmission, Papalanto Sub – Region of the Transmission Company of Nigeria (TCN), Engr. Adeonipekun Adesina said the transformer upon its complete installation would complement the three existing ones at the station.

According to him, the station has 3 transformers of 30MVA each, making a total of 90MVA. But with the new one, the station will now have a 150MVA wheeling capacity.  “It used to be a 90MVA Substation. But with the introduction of the new transformer, there will be more power to deliver to the masses and there will be steady supply of electricity”, Adeonipekun said.

Adeomipekun disclosed that the transformer when energized, would improve power supply to Abeokuta Township, Imeko, and Lagos Road, part of Sagamu and University of Agriculture, Abeokuta. In his address, the Minister re-affirmed the Federal Government’s commitment to increasing power supply in the country. Saying “the Federal Government is investing in the expansion of transmission capacity through the TCN by building more substations and expanding existing ones”, adding that the transformer which is installed by the Transmission Company of Nigeria (TCN), under the National Integrated Power project (NIPP) of the Federal Government is aimed at driving the industries, boosting the economy, creating employment opportunities to our teaming youth in Abeokuta and the country in general.

May

22

2018

Minister Scores Osun NHP High

Minister of State 11 for Power,Works and Housing, Surv. Suleiman Hassan Zarma has expressed satisfaction over the quality and speed of work at the National Housing Programme (NHP)site located at Abere, Ede North Local Government Area of Osun State and commended the team leader, Arc Mrs Lola Onwubalili and her team for a good supervision and execution of the project.

Speaking after inspecting the project in continuation of his inspection tour of the Ministry’s projects in the South-West Zone, the Minister said the site is a “big success story”, adding that it is really a site to visit. He noted that “Osun NHP is near delivery and I can see active Nigerians on ground here”.

The 68 units housing comprise: 4 nos 1 bedroom, 44 nos 2 bedroom units and 20 nos 3 bedroom units including a 1 no Condominium block consisting 24 of 1,2, and 3 bedroom units

The Minister reiterated his stance against the building of perimeter fencing at the NHP sites, explaining that security is not about walling but about exploring other proactive measures to stay secured. According to him, “fencing is not in our thinking but think of other ways to secure the site”.

Zarma further explained that the essence of the National Housing Programme is to build communities that will integrate with one another both within and around the estates.

The Minister also expressed delight at the pace of work of the infrastructure projects at the site. These include: the water project which has attained 90 per cent completion, electricity and the road network which are on- going.

Team leader of the project, Mrs Lola Onwubalili described her success story commendation by the Minister as a result of dedicated contractors who worked tirelessly and obeyed supervising directives to deliver quality and timely projects and also the commitment of members of her team and the entire workforce.

She said the project is 75 per cent completed with a slight delay on the Condominium which is on the second floor already and hoped that in the next two months, the Condominium would be completed 8 out of the 12 contractors have already completed and handed over their houses while the remaining 4 are at various finishing stages.

May

22

2018

FG Committed To Even National Development – Fashola

The Minister of Power Works and Housing, Babatunde Raji Fashola, has reiterated the commitment of the administration of President Muhammad Buhari to even national development as opposed to partisan politics and would be willing to work with all state governments irrespective of their party affiliations or ethnic divide.

He made this remark when he paid courtesy calls on Governors of Ebonyi State, Engr. David Umahi, Enugu State, Ifeanyi Ugwuanyi and Anambra State, Chief Willi Obiano, at their various Offices during his three-day working inspection tour of Federal Government projects in the South East zone of the country.

Fashola commended the Governor of Ebonyi state for keying into agricultural initiative of the Federal Government while assuring him of the present administration’s readiness to link Ebonyi and Cameroon through road boarders, which would facilitate international trade for the South Eastern States. The Governor in his response thanked the Minister for his visit and pleaded with the Minister to facilitate the payment of fund owed his state, which was incurred for maintaining the Federal roads within his domain.

While at the Enugu Government house, the Minister enjoined the Governor to work in mutual cooperation with Electric Distribution Company of Nigeria (DISCO) towards having regular supply of power as Federal Government has provided a window for states and corporate bodies to buy power directly. He also added that the window also provides for individual or state production of private power up to 1 megawatt without conditions attached.

Similarly, in Anambra State, the Minister gave account of all the Federal Government projects he had inspected in the state, and on the indebtedness of Federal Government to the state on Road maintenance, the Minister said that what is left is appropriation from the National Assembly. He, however, warned that states must observe due process before they embark on rehabilitation of Federal roads to avoid loss of their investment.

Projects inspected in the South East before rounding off his working visit included National Housing Programme in all South East states, Energising Economy Electrification of Ariaria Market in Aba., Rehabilitation of Calabar -Itu-Ikot Ekpene -Aba Road ,Section III, Enugu -Port Harcourt Dual Carriageway Section II among others.
The Site of Zik’s Mausoleum and Library Complex in Awka including Second Niger Bridge in Anambra State were also inspected.

May

15

2018

Remarks By H.E, Babatunde Raji Fashola, SAN At 27th Monthly Power Sector Operators Meeting Hosted By Yola Distribution Company

I welcome you all very warmly to this meeting, which is the 27th in the series of monthly meetings that has taken us to virtually all parts of Nigeria.

I thank the Managing Director of Yola Distribution for hosting us.

Many of you will remember that in 2015, Yola DisCo was the only one of the 11 (eleven) privatized DisCos that was given up as being unviable.

But this Government did not give up on Yola DisCo. The Government appointed Engr. Mustapha to manage this DisCo.

Month after month, from reports we have all received about performance and monthly rating of DisCos, it is obvious that Engr. Mustapha and his team have proven that Yola DisCo is not unviable.

At this forum, I will repeat what I have said about change, that it is not a matter of chance but a matter of choice.

Similarly, it is not an event but a process that involves the application of methods and the making of choices, some of which are difficult, but very often resourceful, even if sometimes misunderstood.

The story of Yola DisCo epitomizes change and it speaks eloquently to our roadmap of incremental power.

From my very first visit to inspect the resumption of work at the Maiduguri TCN substation, which had been damaged by insurgents, to the completion of the Mayo-Belwa TCN substation and the installation of Distribution Infrastructure by Yola Disco, incremental power is returning to the customers within the Yola DisCo franchise.

Eighty per cent (80%) of damaged 33KV lines have been restored in areas like Damboa, Madagali, Maiduguri, Damasak, Gombi, Mubi, Wukari to mention a few.

Change means providing incremental power against the odds, and nothing is truer than the story of one Agricultural enterprise in Adamawa, whose proprietor visited to tell me that since the completion of the Mayo-Belwa sub-station, he has drastically reduced his purchase of diesel and the use of his generator.

For him, change means reduced operating cost at his farm, and for consumers of his Agro products, change means reduced food prices.

As you will have heard in the news, economists are predicting a further reduction in inflation and they are attributing it to reduction in food inflation and food prices.

As you might have also heard, I visited Kebbi last week to inspect our road projects, and the Governor,  Atiku Bagudu, reported that most of the local governments in his State are getting 18 to 20 hours of power supply, from Kaduna DisCo.

This is what change means, and it is consistent with our roadmap of incremental power.

While we are inspired by the news of progress, especially coming from those who receive the service, we remain mindful of those we have not yet reached, and remain committed to get to them, whether on the grid or off the grid.

In this regard, let me report some progress made within the last month, as I usually do, in order to keep all of us abreast of what our members are doing and what the industry as a whole is experiencing.

I am pleased to inform the meeting formally that a substantive Chairman, in the person of Professor James Momoh, is now in place for the NERC, following confirmation by the Senate, and his swearing in on the 3rd day of May 2018.

This means that another issue under our Power Sector Recovery Programme (PSRP), relating to Governance, has now been resolved.

Also, within the last month, particularly, on the 7th of May 2018, I had the privilege to Commission the Odogunyan Transmission Substation completed by TCN to serve customers in Lagos and Ogun States, under the Ikeja DisCo franchise.

I can also report that we are making progress on the Federal Government’s planned intervention in the Distribution Value Chain to help deliver the 2,000MW that is constrained by distribution equipment.

The advertisements for quotation by original equipment manufacturers for Transformers, Breakers, and Associated Equipment compiled by the DisCos have been published, and we await responses.

The Azura Power Plant is now fully completed and ready for commercial operation to deliver more power to boost incremental power.

On the off-grid side, His Excellency, the Vice President, recently commissioned a market intervention in Ondo State, delivered by Rural Electrification Agency, another boost to our incremental power and provision of access to previously unserved people.

The progress we are making will require us to increase our commitment to further improving service.

This will be more demanding as the rains come down in the next few months.

The rains will bring more water supply to the Hydro Electric facilities, and they will bring more challenges to Transmission and Distribution by way of storms, heavy winds, falling trees, damage to towers, lines and installations.

We must rise up to these challenges better than we have done in the past.

Some of what we must do are:

Promptly issue notices when there are known damages that interfere with power supply;
Promptly send our maintenance men out to repair and replace damaged equipment or clear fallen trees;
Send information to the public on multiple platforms of conventional and social media to report faults that we may not be aware of;
Painstakingly hold ourselves out as available, ready, and willing to resolve customer problems and provide better service.

Ladies and Gentlemen, our journey of change and incremental power continues, and I thank you all for your commitment.

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

May

11

2018

Keynote Address by the Hon. Minister of Power, Works and Housing, At the 4th Quadrennial Delegates Conference of the Petroleum Tanker Drivers Branch of NUPENG

To the National Executive Council of the Petroleum Tanker Drivers Branch of NUPENG, I say thank you for inviting me to deliver this keynote address at your 4th Quadrennial Delegates Conference.

I also wish to thank you for attending in large numbers, the one-day stakeholders meeting my Ministry convened in Abuja recently, to discuss our policies about how to make your work easier and your businesses more efficient, through the management of the Federal Highway Right of Way and the enforcement of axle load regulations.

As I said to you at the conference, while those who cheat by overloading axles may make quick gains, in the long run, it is everybody that loses when the roads fail.

This is the background of our previous relationship and interactions from which I intend to discuss the subject of the keynote address, which is: ‘Road Infrastructure in Nigeria: Impact on Petroleum Product Distribution’.

I think the proper place to start is the Economic Recovery and Growth Plan launched by President Muhammadu Buhari, in which he identified Energy Sufficiency and Infrastructure Development as critical action points.

These action points are not accidental; on the contrary, they reveal a clear thinking and understanding of what must be done to rebuild our economy and underline the interconnectivity between availability of quality infrastructure and the delivery of energy from petroleum products to drive our economy.

But it is one thing to have a plan, and yet another thing to commit to a faithful implementation of that plan.

If you think this is not important, let me remind you that in 2015, only N18 Billion was budgeted for all Nigerian roads in the Ministry of Works. Only N9 Billion was funded at the time, when Nigeria’s oil was selling at close to $100 per barrel.

This was at the time of the Transformation Agenda, when commitment fell significantly behind stated objectives.

What has changed under the Economic Recovery and Growth Plan (ERGP) is that the Buhari Government has committed close to N300 Billion to roads, and funded about N260 Billion at a time when oil prices are manifestly below the 2015 figures.

So, if people ask you what change means, please tell them it means doing more with less.

What are the results of this change?

The results mean reduced journey times on the sections of roads where work has now resumed.

Those of you who ply Ilorin-Jebba will now admit that from spending 7 (seven) days on that road, you now spend less time while works are rapidly progressing, not only on the road but also in the Emergency Repairs on the Tatabu Bridge, which suddenly collapsed as a result of massive rainfall, flooding, and lack of maintenance.

Those of you who ply the Suleja-Minna Highway where there are strategic NNPC Depots at Minna and the PPMC Depot at Diko, will now acknowledge that the contractor is back to work.

I must, of course, acknowledge the support we have received from the Niger State Government, and the impact of the Sukuk, an initiative of the Federal Ministry of Finance, wholesomely supported by Mr. President.

Those of you who take products from the NNPC Depot at Gusau will acknowledge that our contractor is now back to work after years of absence due to lack of payment for work done on the Zaria-Gusau-Sokoto Road.

Those of you who use the NNPC Depot in Ibadan will also now acknowledge that our contractor is back to work on the Ibadan-Abeokuta Highway.

And work has been completed on the Enugu-Abakaliki and Kaduna-Jos Roads to provide access to the NNPC depots at Enugu and Yola.

So, if they ask you what change means to tanker drivers, please tell them that it means the revival of construction works and the return of contractors to access roads to petroleum depots, from which you do business and support your families.

Tell them that your journey times on these roads is gradually improving and the presence of contractors at the work site gives you hope that it will get better.

Ladies and gentlemen, I know that they will ask more of you as they seek to enlist your support.

When they do, please tell them that you are right thinking and well meaning Nigerians who also see a commitment to support pubic transport with Rail.

Tell them that you see change in the work that the Ministry of Transportation is undertaking on the Lagos-Ibadan-Kano Rail.

Tell them that after many years of broken promises, the Buhari Government has acted by starting the construction of the Lagos-Ibadan section of the project which will link to the Apapa Port.

Tell them that change means the employment of about 7,000 Nigerians now working on that section of the project, and that you now believe that those who started it are better positioned to complete it.

Tell them that you see change because there is a clear difference between unfulfilled promises of yesterday and a commitment that is backed by visible action today.

Tell them that while you did not believe what you heard in the past, you cannot disbelieve what you can now see.

If there is anyone of you who still doubts the importance of Road Infrastructure to Energy Security and its impact on Petroleum Products Distribution, I believe the list of some of these critical Roads where work is going on, and recent announcements of additional works on Lagos-Ibadan Expressway must erase the doubt.

Although this is a summary from a very long list of critical roads that support Petroleum distribution, I cannot fail to mention the recent award of the Ikorodu-Shagamu Road that services Mosimi Depot, where work will soon commence.

Similarly, our Ministry is working to finalise the procurement and award of the Apapa, Tin Can, Mile 2, Oshodi to Oworonshoki Highway.

But the impact of Road infrastructure to your business does not start and end with access to good roads and improved journey times.

The commitment to infrastructure development and renewal by President Buhari also means more demand and supply of petroleum products which means more trips for tanker drivers and more income.

I just returned from road project inspection in Kebbi and Jigawa States last night where our contractors informed me that Bitumen producers and suppliers are now struggling to cope with demand.

These are clear signs of a business boom and employment not only for transporters of the products like your members, but also for the manufacturers.

I must now conclude by stating that the Buhari Government understands your contribution to the National Economy and is acting to improve the ease with which you do business.

While the results are beginning to manifest, the type of harvest you will reap depends on the choices you will make in the near future.

Think well, and choose wisely.

Thank you for inviting me and for listening.

I wish you fruitful deliberation at this 4th Quadrennial Delegates Conference and a very successful election.

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

May

04

2018

Protection Of National Assets: A Pinnacle To Nation’s Development

The Honourable Minister of State II for Power, Works and Housing, Surv. Sulieman Hassan Zarma, mnis, has called for community participation in the ownership of public assets and critical infrastructures in the country, stressing that people in the communities need to be sensitized to take personal responsibility for the protection of public infrastructures.

He added that at a time like this, the federal government still consider as a matter of priority, spending the nation’s meagre resources to provide its citizens with necessary and critical infrastructures.
Hassan stated that ‘It is sad to note that there are lots of damages and inadequate maintenance of these public assets which are yet to meet the need of the citizenry’.

Declaring the workshop opened, the Minister said this at a one Day Stakeholders Conference on Preservation, Protection and Community Ownership of Public Assets and Critical Infrastructure organised by the National Orientation Agency (NOA) in Abuja.

He commended NOA for choosing the topic for discussion, adding that the forum will help inform, educate and enlighten the people on the efforts the government is making towards the provision of adequate infrastructures and the need to encourage stakeholders to cherish and preserve them for posterity.

The Minister also stated that the Ministry will continue to make concerted efforts in ensuring that the three Sectors meet up with the mandate of delivering critical infrastructures to Nigerians in the areas of improved power generation, adequate funding and resuscitation of abandoned/new road projects and provision of mass housing across the country.

Earlier, in his remarks, the Director General of the National Orientation Agency, Dr. Garba Abari, stated that infrastructure development, preservation and protection are critical element in measuring the level of development of a nation.

According to Abari, ‘’If we accept this as a fact, it then stands to reason that no nation can be said to be truly developed, unless it continues to invest not only in the development of new infrastructures, but also in the protection and preservation of existing ones’’.

The NOA boss called for collaboration and synergy between stakeholders in Nigeria’s infrastructure and the National Orientation Agency, for the protection and public ownership of national infrastructures in the country.
The function was graced with notable discussants who presented relevant papers on the topic and key note addresses.

Apr

23

2018

Indigenous Construction Contractors Commend FG For Transparent, Stress-Free Payment At Works Ministry

* This is one of the things that Change means to us - FASHOLA
* Says Indigenous Companies comprise all companies registered under the Nigerian law to do business in the country
* Advocate improvement in the capacity of the local contractors in terms of equipment  and specialization in order compete
* AICCON President says there is no member that did not receive at least two payments last year without lobbying anybody

The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, was on Monday presented an award of recognition by the Association of Indigenous Construction Contractors of Nigeria (AICCON) for the regular payment of Federal Government construction contractors in the last one and a half years even as the Minister described the development as one of the pointers to the Change philosophy of the administration.

President of AICCON, Otunba Lekan Osifeso, who led the Association on a courtesy visit and presentation to the Minister, said the award was in recognition and appreciation of the fact that for the first time in many years, the Contractors were getting paid after submission of their invoices without having to lobby anybody or come to the Ministry to canvass for it.

In his brief remarks before the presentation, Otunba Osifeso said, “There is none of our members working with the Federal Ministry of Works, for the first time in a very long time, who did not receive at least two payments last year and none of us came to the Ministry to talk to anybody or lobby anybody. So in that respect, Sir, we think you deserve an award and recognition”.

Receiving the award, the Minister, who thanked the Association for the gesture, expressed delight that some people appreciate the “modest” contributions the Ministry was making in rebuilding the country adding that while the gesture showed that there were right-thinking and well-meaning Nigerians who value service, it also challenged the Team to do more.

The Minister, who handed the recognition plaque to the Permanent Secretary Works and Housing, Mr. Mohammed Bukar, noted that every member of the team has a role to play in the work being done.  “Our sense here is to build a team and show that Change means something. So this is one of the things that Change means to us; that Contractors don’t need to lobby our government to get paid for the work that they have done and we will continue to do more of that”, he declared.

Earlier, while responding to the opening remarks of the AICCON President, Fashola commended the Association for the contributions they have made and are still making in the overall effort to rebuild the country, which, according to him, is at the core of President Buhari’s commitment and undertaking as made clear by the President in his New Year Address.

Fashola recalled that Mr. President had in his New Year Address made it clear that as part of its diversification strategy for the economy, his Government would be focusing, not only on Agriculture and Mining but also on Infrastructure adding that as already acknowledged by the AICCON President, the Executive Order Five issued by the President placed high priority on local content and local capacity, which, according to him, is where the Indigenous Construction Contractors come in.

He, however, observed that given the general conception and use of the word ‘Indigenous’, there was need to throw more light on the conception adding, “It is important to define who really is an indigenous company; because to the best of my knowledge, I doubt whether there is any company that is not registered under our laws that does business here.

He declared, “Unless we intend to change our laws, once you are registered as a Nigerian company with certain amount of shareholding, I think about 51 per cent, you are a Nigerian company. So with that background, who chooses the Managing Directors of the companies?”

Pointing out that if a Nigerian owns a company and takes a foreigner as Managing Director, it was not the responsibility of the government to choose that for him, the Minister told the Association, “So I think you should look into the mirror and ask yourselves some of these questions”, adding that some of the Nigerian owned companies register and employ foreigners as their Managing Directors while they sit as Chairmen with the role of leveraging business to the companies while the Managing Directors and Technical Partners do the execution.

“If a company registers and wins a bid to do construction work in the country, it was not in the rights of the government to now say it could not execute such project for any other reason other than it was not registered as a Nigerian company”, he said adding that even if there was such a provision, there was also the consideration for specialization.

Using the Medical and Legal Professions as examples, Fashola posited that there are certain projects that require specialized execution and would, therefore, need the handling of a company specialized in that area adding, “You cannot rule out specialization in any industry, even in football”.

“So let us understand that within the realm of open and competitive bidding, that certain specifications will require us to ask for certain specialization”, the Minister said adding that even among the members of the AICCON, there were differentiations in terms of experience and equipment.

He added, “What I want to see and what Mr. President wants to see is a continuous improvement in capacity. We want to see more buildings, we want to see more roads, we want to see more infrastructure built by Nigerians and that means then that you must have the right equipment”.

Fashola suggested to the contractors that they should look seriously into the idea of equipment leasing that would help in providing easy access to equipment adding that it would enable the indigenous contractors to then compete adding that sometimes the difference between one company and another was the difference in equipment and sometimes equipment and previous experience.

The Minister, however, assured the Association of Government’s support in areas where they have capacity adding that government would appreciate it more if they get the right equipment . He noted that another area where massive scope exists for partnership was in the Maintenance sector where, according to him, the Ministry was already working on setting up a maintenance framework. “Whatever we build is built to a design life subject to certain types of maintenance and that is an area that we haven’t really done enough”, he said.

Fashola, who disclosed that the Ministry was working to develop a pilot maintenance framework starting with government buildings and from there build out, adding, “Hopefully may be in 2019 Budget, if we are lucky, we will be able to put a sizeable global Maintenance Budget for the first time and see how to engage labour and contracting companies to help grow the economy”.

Advocating improvement within the framework of the indigenous companies, the Minister declared, “You have to compete and you have to improve your capacity”, adding that in defining who was really an indigenous company, there was need for the AICCON to research the existing construction companies who, he noted, have Nigerians on their boards.

Earlier in his opening remarks, President of the Association, Otunba Lekan Osifeso, said the Association was on the courtesy visit to the Minister to both commend him for the paradigm shift within the construction industry under his watch in terms of regular payment of contractors, a situation which, according to him, was an experience coming after so many years.

Otunba Osifeso, who put the size of the Construction Industry in Nigeria at one Trillion Naira annually with the Federal Ministry of Power, Works and Housing contributing in excess of N200 Billion  annually, noted that unfortunately most of the sum was lost through capital flight as a result of non-patronage of local contractors over the years.

He posited that if the indigenous contractors were adequately patronized and made to participate increasingly in the industry, capital flight cases would drop by as much as 60 per cent and would boost the economy and increase employment opportunities within the country adding that it would impact the Gross Domestic Product of the country and boost government investment.

He declared, “Our mission is in line with Mr. President’s Executive Order Five that clearly supports the participation of the indigenous construction contractors by the government by way of commitment to patronage”, adding that on the long run, the Association’s aim was to build a formidable indigenous construction industry that is capable of attracting funding from financial institutions locally and internationally.

Accompanying the AICCON President on the visit included the General Secretary of the Association, Otunba Muyiwa Ibeun, Head of Public Relations of the Association, Mr. Ibrahim Sukobir, Mr. Chinedu Igwonye (Member), Chief Mrs. Essien (Member) and Mr. Yomi Obitola, among others while with the Minister to host the visitors were the Permanent Secretary Works and Housing, Mr. Mohammed Bukar, Director Highways Construction and Rehabilitation, Engr. Oluyemi Oguntominiyi and Director Highways Planning and Development, Engr. Chuks Uzo represented by Engr. Funso Adebiyi. Others are Director Highways, Designs, Engr. Adetokunbo Sogbesan, Special Adviser Works, Dr. Femi Hamzat and Special Adviser Housing, Mr.  Biodun Oki, among others.

Mar

27

2018

PDP's Apology To Nigerians: Move To The Next Step, Return Looted Funds - FG

The Federal Government has asked the Peoples Democratic Party (PDP) to go the whole hog with its apology to Nigerians by returning all the funds looted from the public treasury under its watch during its 16 years in power.

In a statement issued in Abuja on Tuesday, the Minister of Information and Culture, Alhaji Lai Mohammed, also challenged the party to show the genuineness of its apology through a discernible change of.attitude.

''The PDP presided over an unprecedented looting of the public treasury, perhaps the worst of its kind in Nigeria or anywhere else in the world. Therefore, the best evidence of penitence for such a party is not just to own up and apologize, but to also return the looted funds. Anything short of that is mere deceit.

''Even with the paucity of funds, this Administration has spent anunprecedented amount of money on infrastructural development and Social Investment Programme, among others. Returning looted funds will provide more money for these programmes and make life more meaningful for Nigerians. There is no better apology than that,'' it said.

Alhaji Mohammed also reminded the PDP of the quote: ''If you find your self in a hole, stop digging,'' saying it applies to the PDP at this time.

''PDP, press the reset button. Stop sabotaging the work of this Administration, which is packing the mess you left behind, through your reckless statements and unfounded allegations. Play responsible opposition politics. Put Nigeria's interest over and above partisan interest. Temper your desperation to return to power. Spend quality time in the purgatory and you will be forgiven,'' he said.

Mar

19

2018

Welcome Address Delivered By H.E, Babatunde Raji Fashola, San At The One-Day Public Enlightenment On Developments In The Road Sector At Nigeria Air Force Conference Centre, Abuja On Monday 19th March 2018

On behalf of the Ministry of Power, Works and Housing, I welcome you all very warmly to this one day public enlightenment meeting on developments in the road sector.   

Especially, I welcome the representative of the President, Boss Mustapha, the Secretary to the Government.

This meeting is critical to the achievement of our common goal for shared prosperity.

It is a meeting to reflect and agree on the need for change about how we have used our Road infrastructure.

Our Economic growth, National productivity and job opportunities will be impacted by the conclusions and resolutions of this meeting.

For example, how do we optimize the opportunities that lie in road networks like Trans-Saharan highway that connects Nigeria to Chad, Niger, Tunisia, Mali and Algeria; the Lagos- Abidjan Highway through Benin, Togo and Ghana, or the Enugu- Cameroon Highway through Abakaliki – Ogoja , Ikom and Mfum.

For the benefit of those who may be unaware there are now existing treaty obligations within the West African sub region and beyond that regulate the amount of load any goods vehicle can put on an axle and by extension on the road in order to do business within ECOWAS and beyond.

I must thank you Mr. President for finally signing the instruments of ratification as soon as it was brought to his attention, after many years of delay prior to his tenure.

Our compliance with these regulations will open a massive door of opportunity and prosperity of cross-border trade to Nigerians engaged in the transport business.

This is why this meeting was convened; because when President Buhari once said that “we will change our habits and we will change Nigeria,” I believe this is one of the things he had in mind.

While it is true that we could have done better by way of massive investment in our transport infrastructure during the windfall of income from oil, this Government is now rapidly and aggressively addressing road transport infrastructure repairs, rehabilitation and construction as many of you who travel regularly will attest.   

There is no state in Nigeria today, where you will not see our contractors busy at work.

And I must acknowledge what the State Governments are also undertaking with regard to states and some federal roads.   

The crux of this meeting is to first acknowledge the President is only one man who cannot be everywhere, and secondly to recognize that we are the actors of the change that is required to take us to prosperity and thirdly to recognize that, the way we use the roads when finally completed will determine how long they last and whether they deliver prosperity or not.

All over the world, one common thread of prosperous societies is their level of compliance with laws and regulations.   

So in those societies, you will see trucks parked in proper parks which creates jobs, and not on the highways, which impede access and opportunity.

In those societies, you will see trucks carrying specified tonnage of cargo because it protects the road, and allows for it to be used again and again.

Therefore, while the temptation to overload and carry more with one truck, against regulation and good practice may be appealing it is ultimately a barrier to prosperity.   

Such practices may provide cheap and perhaps corrupt riches and income, but they do more damage to the roads from which the cheap income is made.

This means that in the short run, the road is lost, the opportunities diminish or are lost totally or they become very expensive to access until the road is rebuilt.

The expense and cost to all of us, when the road is damaged by misuse or abuse, manifests in longer travel hours, more fuel consumption, expensive delivery of goods and services which every member of the community including transporters have to bear.   

This is not what we want. The process to change this has begun with the construction of roads but it will not be complete unless we embrace change.   

We must now hearken to our President and some common sense by resolving from this day to change ourselves, about how we use our roads and transport infrastructure.

Our Ministry is convinced that voluntary compliance by stakeholders takes us further and nearer to the prosperity that is beckoning; and this is why we convened this meeting before the process of enforcement commences.

We are pleased with your enthusiastic attendance and look forward to your commitments to voluntary compliance.

Ladies and gentlemen, I thank you very much for your attendance, and in anticipation of your active participation as we continue to engage later today and beyond.

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

Mar

13

2018

Remarks By H.E, Babatunde Raji Fashola, SAN At The 25th Monthly Power Sector Operators Meeting Held In Uyo

I welcome you all once again to our monthly meeting, and I thank our hosts Ibom Power and the Government and people of Akwa Ibom.

I am happy to again chair this month’s meeting because our Power Sector Recovery Programme (PSRP), the set of policies, actions and programmes meant to solve the Power Sector problems, continues to make progress and deliver results.

Over the last one month since our last meeting, I am pleased to report the following progress.

A) Financial: We have secured the World Bank approval for $486 Million TCN transmission expansion funding, while progress is being made with the same bank for the Rural Electrification and Distribution Expansion Funding.

B) Operational: TCN has completed the following sub-station transmission expansion to improve their capacity to supply power to the DisCos : Uyo, Calabar, Keffi, Karu, Abeokuta, Nasarawa to mention a few.

C) Distribution: While it is no longer news that we have reached a 7,000 MW Generation Capacity and have a 5,000 MW Distribution Capacity, what is newsworthy is that in the last month, we have met with Manufacturers Association of Nigeria (MAN), DisCos, and GenCos on how to implement the Eligible Customer Policy and increase connectivity to the 2,000 MW that is available.

The meeting was productive and we are seeing positive responses. Reports reaching me indicate that what is outstanding is an agreement on the tariffs that will be paid by the eligible customer.

In many parts of the country connected to the grid, citizen feedback is positive, even though all the problems are not solved. Citizens acknowledge more power in dry weather, reduced hours of running their generators and reduction in fuel (diesel and petrol) purchase to power generators.

D) Off-Grid Power: In terms of off-grid supply, I am happy to report that citizens are already embracing the mini-grid policy and regulations to provide power for different uses.
    i) In Ogun State, a renewable energy project was completed and commissioned last month.
    ii) In Kano State, I commissioned a 73KW Solar Hybrid System developed by Rumbu Industries to support its mat production in a factory that employs 1,400 people.
    iii) Within the same period in Kano, I inspected the Solar system being deployed in Sabon Gari Market, that has 12,000 shops.  About 3,000 shops have registered, and 486 shops have been connected to cheaper and more efficient solar power. More shops are being wired by 120 technicians employed by the project.
    iv) In Abia State, work has commenced to connect and meter 31,000 shop owners in Ariaria Market to cleaner and more efficient power.
    v) We are moving away from theorizing about power to actual provision of efficient power to support trade and business, especially small and medium enterprises, who are the drivers of our economy.

E) Meter Asset Provider: On the meter supply side, I am happy to announce that NERC has concluded the Regulations that will provide the framework to license a new class of meter asset providers to complement the efforts of DisCos to supply meters to citizens.

Government decision to pursue an out-of-court settlement on a meter contract awarded since 2003, which was held up in Court until 2017, has made available about N39 Billion to kick off this process.

I am aware that Yola DisCo is already positioning to take up 400,000 meters once the contract and process formalities are concluded. I am told that Abuja, Ibadan, Kano, Ikeja and Benin DisCos are also embracing the initiative, which has reserved a 30% local content for the meters to be supplied under the Regulations.

Ladies and Gentlemen, our incremental power initiative is well underway. Some results are manifesting, and the promise of steady power is real. If we persevere, I am certain that we will witness uninterrupted power, which is the final destination of our journey.

But (and this is a big BUT), our journey will not be without difficulties, and some of them are self-made.

Lately, I have read reports that some Generation Companies (GenCos) (not Ibom Power) have gone to court, filing claims against the Government. That is their right and their prerogative. It is better than self-help, and it is consistent with the rule of law, which underpins our democracy.

While they seek refuge in a court of law, they must be ready to face scrutiny in the court of public opinion.

The court of public opinion is a court of conscience and morality. In the court of public opinion, they must be ready to tell the citizens how they felt when other groups went to court to stop the implementation of Tariffs approved by NERC in 2016.

They must explain to this public court whether they went to court before government approved a N701 Billion payment Assurance Guarantee to pay their monthly power bills.

They must disclose to this court that they owed debts, from the pre-Buhari era, because their income had reduced to less than 50%.

They must disclose to this court that they now receive about 80% income, and that this Government is now paying them revenues collected from international customers from the Republics Benin, Niger and Togo, in Dollars, as against the Naira payment they used to receive.

In both courts, they must disclose how they felt when some DisCos went to court to stop the enforcement of Provision of Promissory Notes, which was a condition that denied them access to the CBN NEMSF low interest loans.

They must tell the court of public opinion that the reason for going to court is because Government is making 100% payment to a new GenCo who has a different contract with a Partial Risk Guarantee, which they do not have.

They must also disclose to both courts that they held a meeting with Government and tabled their demands, which Government promised to look into one week before they went to court.

They must, in good conscience, tell the two courts whether one week was enough time, to go to court and whether this action at the time when the sector is making progress does not suggest an intention to blackmail Government and hold the citizens hostage.

Let me say very clearly to all operators that I get reports of many of the clandestine meetings that some of them are holding with a view to disrupt supply for political capital.

I will close by imploring those that are truly ready to run the business they have acquired voluntarily to continue to do so with the assurance of Government support and partnership.

As for those who entered the business without understanding it, please brace up for hard work and help us rebuild this country.

Those who choose to hide temporarily in the courts of law can do so, but the court of public opinion will scrutinize you and its verdict may be very scathing, unkind, and enduring.

I say this because you may not have noticed that Nigerians are increasingly taking their destiny in their hands.

This is the essence of privatization. If you bother to look up and around you, you will see solar panels on rooftops. The mini grid regulations allow them to procure 1MW without license. This is bigger than what many traditional generators supply. There is no law that compels them to take public power.

I am not afraid of the law courts, and will meet you there to vigorously defend our position.

Thank you for listening.

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