Federal Ministry of Works

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

May

2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

May

2017

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

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

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

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

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

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

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

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

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

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

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

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

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

* For 415 volt lines it is 1.5 meters.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Declaration of eligible customers

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

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

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

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

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

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

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

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

Corporate Governance at Disco level

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

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

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

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

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

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

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

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

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

* The N701.9 Billion intervention

* Load rejection

* The Nigerian Electricity Market stabilization fund and;

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

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

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

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

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

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

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

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

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

Thank you very much for listening.

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

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

May

2017

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

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

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

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

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

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

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

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

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

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

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

May

2017

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

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

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

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

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

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

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

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

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

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

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

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

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

The anchors for implementing Rural Access are:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Apr

2017

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

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

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

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

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

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

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

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

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

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

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

Contacts:

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

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

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

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

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

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https://www.facebook.com/worldbank

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https://twitter.com/WorldBankAfrica

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

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

Apr

2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

FG Expresses Commitment To Self Sustaining Power Sector Tarrif, To Enforce Discos&rsq...

Apr

2017

FG Expresses Commitment To Self Sustaining Power Sector Tarrif, To Enforce Discos’ Metering Commitments

* As Fashola chairs 14th Power Sector Operators’ Meeting in Oshogbo

* Payment of MDA debts starts with initial tranche of N374,551,000 to Abuja DisCo for outstanding debts at the Federal Secretariat, Abuja.

* Aregbesola acknowledges gradual improvement of electricity supply especially in Osun State; underscores the importance of the Power Sector Recovery Plan

* NERC will issue red cards, yellow cards and where it is necessary award penalties-Minister

Power Sector Operators rose from their 14th Monthly Meeting with the Minister of Power Works and Housing in Osogbo, Osun State with the Federal Government expressing its commitment to tariffs that would ensure a self-sustaining power sector and supporting the Nigerian Electricity Regulatory Commission in applying sanctions where appropriate to ensure operators comply with the rules.

In a Communiqué after the Meeting hosted by the Transmission Company of Nigeria (TCN) at the National Control Centre, Osogbo, the Vice Chairman, Nigerian Electricity Regulatory Commission, who made the commitment also said the focus of the recently reconstituted commission would include enforcing DisCos’ metering commitments, prepaid meters for MDAs, centralised management of market revenues collected from all customers, appropriate capitalisation of DisCos, and prudent procurement.

According to the Communiqué, the Managing Director, Transmission Company of Nigeria, also restated the company’s commitment to expand transmission infrastructure and improve its operation and performance within the Power Sector value chain while encouraging the industry to take necessary steps to address the problem of unutilized load (previously described as load rejection) currently causing high system frequency on the National Grid.

Emphasizing that the purpose of the Nigerian Electricity Supply Industry (NESI) was to ensure that citizens could access power safely, reliably, and consistently, the Minister, who chaired the Meeting, said the Agency must remain committed to ensuring the achievement of these objectives tasking NERC with ensuring fair play for consumers and providers within the sector among other objectives.

The Minister also reiterated the Federal Government’s commitment to its responsibilities in the sector, through policies such as the Power Sector Payment Assurance Guarantee to ensure liquidity stability in the sector so that generating companies are paid for their services stating also that all stakeholders should remain committed to their various roles in supplying and distributing power to ensure that the power sector functioned effectively.

The Governor of the State of Osun, Ogbeni Rauf Aregbesola, who was also in attendance acknowledged the gradual improvement of electricity supply especially in Osun State which hosts the National Control Centre even as he also underscored the importance of the Power Sector Recovery Plan as critical to ensuring accountability for losses, improving customer service, customer accessibility, safety, and performance in the sector.

Urging electricity customers to play their role in the success of the industry, through the timely payment of bills, ending the vandalism of power assets, and the assault of electricity workers who seek to install or read meters, the Minister announced that Federal Government had started fulfilling its promise to pay verified debts by the payment of an initial tranche of N374,551,000 to Abuja Electricity Distribution Company (AEDC) for outstanding MDA debts at the Federal Secretariat, Abuja.

The meeting received confirmation from Independent System Operator (ISO) that the intention of Paras Energy (a private generating company) to sell 60MW internationally would not jeopardize the power purchased by the Nigerian Bulk Electricity Trader (NBET) for use in the domestic market while NDPHC provided updates on host community connections in Egbema, and announced significant progress on Oronta and Omotosho which were previously limited by funding challenges.

While progress was also announced on reconnecting Magboro community, subject to safety checks by the Nigerian Electricity Management Services Agency (NEMSA). Olorunsogo Power also stated that funding of road repairs in the host community has also been approved while TCN presented a report on the problem of unutilized load on the grid and committed to working closely with the DisCos to eliminate the occurrence of the problem.

While TCN announced a 9 per cent improvement in energy delivered to DisCos from the Transmission Company of Nigeria for the month of February, as compared to January, Ikeja and Yola DisCos showed improved remittance to the Market Operator for services rendered in the month of February even as TCN also encouraged sector participants to fulfil all their obligations to ensure the success of the Power Sector Recovery Plan.

Acknowledging incidents of insider malpractice and the negative impact on customers following a NEMSA report on its investigation of various customer complaints especially complaints related to the integrity of meters, the Meeting agreed on the need for vigilance to eliminate such cases.

TCN, which presented a brief on ongoing works to address specific challenges and limitations around the country, also acknowledged the delay in replacing the damaged 60MVA transformer at Katampe which caused prolonged load shedding and poor service in parts of Maitama, Wuse II and Jabi in Abuja while NERC reported on stakeholder performance for 2016.

DisCos were ranked based on metering progress, NBET and Market Operator remittance, amongst other indicators. Eko DisCo was ranked as the best performing Distribution Company, while Kaduna DisCo was ranked as the lowest. Okpai (Thermal Plant) and Jebba (Hydro Plants) were ranked as the best performing in their respective categories, based on indicators such as percentage availability and reporting compliance.

Earlier in his opening remarks, Fashola had urged operators in the industry to play their roles, honestly, accountably and efficiently as Government was now determined to enforce the rules in the sector saying with the reconstitution of the Board of the Nigerian Electricity Regulatory Commission (NERC), Government was determined to make the change required to reposition the sector for effective supply of electricity to Nigerian consumers.

Noting that the role of government, as represented by his Ministry, was now that of Policy formulation, Oversight functions and enablement for all of the operators to play their parts, the Minister added, “The regulator in this business is NERC; that is the official referee of the interactions. They will issue red cards, yellow cards and where it is necessary, award penalties”.

He told the Operators and Stakeholders, “I hope all of you the players in the industry will get ready for what is a change of behaviour, a change of attitude”, adding that after 60 years or more of a difficult Electricity Sector experience nobody should presume that it would be a walk in the park to make the change.

Reiterating the determination of Government to make the difference in spite of the past experiences, Fashola declared, “For Mr President, this Government is determined to make that change and it requires everybody to play their roles honestly, accountably and efficiently”, adding that in the last three weeks, especially since February, government was now “stepping up valiantly to its responsibilities and confronting the challenges in the sector”.

“Some of the things that happened since February, if we should and I will recap, is that the Regulatory Commission has been substantially reconstituted and they have briefed us now what they are doing. In terms of policy, Government has taken action to approve a Payment Assurance Guarantee that addresses the liquidity challenges in the sector”, the Minister said.

He, however, noted with regrets that “some Association of DisCos” was reportedly saying that N701Billion was not enough to provide for them pointing out that Government did not contract with an association but with 11 individual Distribution companies.

Acknowledging the right of the DisCos to associate as a constitutional guarantee, the Minister, however, reiterated, “We don’t have contract with an association and the regulator knows what to do in terms of the exercise of its rights and we leave them to take their decisions”.

He said what Government wanted to achieve was not to give anybody money but to guarantee to those who did their work diligently, honestly and performed their contracts “that their entitlements are receivable to be secured and paid” adding that it would enable others across the value chain to also perform their roles.

On the payment of debts owed the DisCos by government Ministries, Departments and Agencies, Fashola said lately Government was not only verifying DisCo debts as reported consistently in the Meeting, but recently paid about N374,551,000 debt owed by the Federal Secretariat in Abuja to the Abuja DisCo as proof of its commitment to paying debts that it could verify.

Assuring that government would continue to pay in that vein, the Minister, however, expressed regrets that some DisCos have still failed to furnish the government with all the information needed adding, “I have reiterated that we will not pay any debt that we cannot verify”.

The Minister also told the Operators that the Federal Executive Council has approved an Energy Recovery Programme, which, according to him, “cuts across the issues of gas, transmission, metering, loss reduction, contract enforcement, customer service and consumer protection to mention a few” adding, “What this means again is that Government is determined to enforce the rules including on itself. Government is not above the law”.

He declared, “The daily losses in the Power Sector are avoidable and they must be avoided. Every loss must be accounted for and paid for whether it be by cash or by sanction or by the combination of both and more. This is a business and I have had cause to say that in any business that is properly run, when losses begin to occur those who run those businesses pay for them either by losing their jobs, or making refunds or by resigning”, adding, “We are heading in that direction”.

“Whether it be in government, whether it be in the Private Sector; we will track every loss and we will apportion it at every door and we expect that those losses will be accounted for. So this is the time for everyone to sit up, to close up and be ready to assume his own role or ship out of the sector”.

Fashola said because a large part of the Power Sector was now in private hands it was important to emphasize that the burden of compliance would tilt heavier to the side of the Private Sector adding, however, that with the NERC Commissioners fully on board and demonstrating that they knew why Mr President appointed them to deliver the mandate given to them by law, there was high expectation that both his Ministry and the Operators’ businesses would succeed.

“It is good to now have the Commissioners of the Nigerian Electricity Regulatory Commission fully on Board and demonstrably showing that they know why Mr President appointed them and expectedly they will commit to delivering on the mandate given to them by law and by the appointment”, he said adding that if the Commission succeeds his Ministry would succeed while the Operators’ Businesses would do well and Nigerians would have better access to electricity.

* As Fashola Chairs 14th Power Sector Operators’ Meeting In Oshogbo...

Apr

2017

* As Fashola chairs 14th Power Sector Operators’ Meeting in Oshogbo

* Payment of MDA debts starts with initial tranche of N374,551,000 to Abuja DisCo for outstanding debts at the Federal Secretariat, Abuja.

* Aregbesola acknowledges gradual improvement of electricity supply especially in Osun State; underscores the importance of the Power Sector Recovery Plan

* NERC will issue red cards, yellow cards and where it is necessary award penalties-Minister

Minister Inspects National Housing Projects In The North Central Zone: Reinstates FG'...

Apr

2017

Minister Inspects National Housing Projects in the North Central Zone: Reinstates FG's Commitment to Deliver on Housing Mandate.

The Hon. Minister of State for Power, Works and Housing, Hon Mustapha Baba Shehuri has said that President Muhammadu Buhari's administration is unequivocally committed to addressing the housing needs of Nigerians through the National Housing Programme (NHP). He said the Programme was part of Federal Government's campaign promise to provide critical infrastructure that would enhance the socio- economic development of the country.

The Minister, who was in Minna, Niger State, on the first leg of his inspection tour of NHP sites in the North- Central geo-political zone, stated this during a courtesy call on the Governor of the State, who was represented by the Acting Governor, Alhaji Ahmad Muhammed Ketso. He informed him that the Ministry was constructing about 80 housing units in the state in the first phase of the Programme, while promising that the state would benefit more as government continues to drive the Programme. He thanked the Acting Governor for the magnanimity of the state in providing a 5 - acre plot of land for the NHP, adding that the location of the site is amongst the best in the country.

In his response, His Excellency said the state will continue to collaborate with the Federal Government in bringing development to the people geared towards improving their living standards. He, however, observed that local contractors in the state were not being considered in the Programme and appealed to the Minister to consider them in subsequent phases of the Programme in accordance with the "local content" component of the laudable initiative. He also advised that the Ministry should maintain quality supervision of all its projects in its quest to deliver enduring and quality services to the people.

The Federal Controller of Housing, Niger State, Mr Felix Appia, while commending the collaborative efforts between the State and the Federal Government in the execution of Federal Government projects, disclosed that the Ministry apart from the housing Programme, is also undertaking other projects such as solar - powered boreholes and construction of classroom blocks, under the Sustainable Development Goals (SDGs) projects and the renovation of the Federal Secretariat Complex.

The Minister later proceeded to inspect the construction site situated within the Three Arms Zone, where he met with contractors, artisans, suppliers of building materials, food and allied items vendors. They expressed appreciation to the Federal Government for the laudable initiative, stating that the Programme has opened up new vistas of opportunity for them to revive their means of livelihood.

Hon. Shehuri expressed satisfaction at the pace and quality of on-going works at the construction site, while urging the contractors to sustain the tempo and be consistent in the use of the best quality materials for the buildings. The 80 - unit Housing Estate comprises of 4 units of one-bedroom, 52 units of two-bedroom and 24 units of three-bedroom, which are at various stages of completion.

In Ilorin, Kwara State, the Minister, while on a courtesy call on the Executive Governor, His Excellency, Abdulfatah Ahmed, who was represented by the Deputy Governor, Elder Peter Kisira (JP) reemphasize the need for collaboration between the state and the Federal Government in the provision of affordable housing to Nigerians. He equally appreciated the effort of the state government in the provision of choice land for the NHP.

While at the 72-unit on-going construction site, Hon. Shehuri, in an interactive session with Ministry's officials, contractors, artisans, labourers, suppliers of building materials, food vendors and others, stated that the essence of NHP, apart from the provision of affordable housing, is to add value to the wellbeing of Nigerians by creating employment as well as encourage standardization of building materials which will boost local content.

The Federal Controller of Housing, Kwara state, Arc. Felix Ale, while briefing the Minister on progress of work, disclosed that the Estate comprise of 4 units of one-bedroom flats, 44 units of two-bedroom and 24 units of three-bedroom apartments, promising that with sustained funding of the project, speed and quality are assured.

Also, at the construction site of a 76-unit Housing Estate in Lokoja, the Kogi State capital, the Federal Controller of Housing, Arc. Veronica Enesi gave the break down as 4 units of one-bedroom, 48 units of two-bedroom and 24 units of three-bedroom apartments. The Minister assured the contractors of prompt payment for satisfied jobs, while admonishing officials supervising the project to adhere strictly to specifications and timelines of the contract.

“We Commit To Do More And To Make Your Lives Better”, Fashola Assures Nig...

Apr

2017

“We Commit To Do More And To Make Your Lives Better”, Fashola Assures Nigerians

* Says Administration is gaining momentum and results of Government policies, programmes and action are beginning to manifest
* Dedicates ‘Minister of the Year Award’ to President, Vice President, FEC, National Assembly, Judiciary, FMPWH Staff

Even as the nation begins to experience a gradual turnaround in its economic fortunes, Minister of Power Works and Housing, Mr. Babatunde Fashola SAN, has assured Nigerians of yet greater things to come saying the Federal Government was committed to making their lives better.

Fashola, who was represented in Lagos on Sunday at the 20th City People Awards for Excellence by his Special Adviser on Housing, Mr Abiodun Oki, said although the Government was gaining momentum as the results of its policies, programmes and actions were beginning to manifest, the All Progressive Congress, the architects of Change, knew that the work was not yet done but just beginning adding that even those working in the government also knew that it could be a lot better.

The Minister, who was presented the ‘Minister of the Year Award’ at the occasion, dedicated the Award to the entire Government body whom he likened to a football team saying just like in a football march, there would be no good striker, midfielder and defender in a team that did not do well.

Dedicating the Award, first to the President Muhammadu Buhari for “picking a team of Ministers whose commitment to change is unquestionable” and the Vice President for demonstrating “his ability to complement this vision of change and his dedication to help midwife it”, Fashola noted that “it is the team and the work they do together that allows any striker, midfielder or defender to thrive”.

The Minister declared, “Therefore collective success must be, and is indeed, more important than individual recognition”, adding, “A Government is no different from a football club, to the extent that they comprise individuals of different talents, passions and experiences who must work together to deliver service to the public”.

“A successful team is led by a Great and resourceful manager, who often has a dependable assistant. In our Government team, President Muhammadu Buhari has discharged that role effectively by picking a team of Ministers whose commitment to change is unquestionable and the Vice President has demonstrated his ability to complement this vision of change and his dedication to help midwife it. On their behalf I accept this Award”, he said.

Acknowledging that every goal scored by a striker was the result of co-ordinated team play, and interchange of passes, Fashola also dedicated the Award to the Federal Executive Council, the Secretary to the Government of the Federation, Cabinet Office and the Office of the Chief of Staff, saying his Ministry had benefitted from “a well-planned Budget, well-timed cash backing, very massive support and contributions to our Council Memoranda”.

And because of their support and cooperation in financing the various projects of his Ministry, Fashola also dedicated the Award “to those who exercise the power of appropriation in the National Assembly” the Senators, House of Representatives members and all their Committee Chairmen, members and staff, adding that they were the real owners of the Award.

Others on behalf of whom he accepted the Award, according to the Minister, were the Judiciary “as members of the team of change” without whose prompt and efficient determination of some court cases the progress so far achieved would have been hindered.

“No team is complete without the army of backroom staff who we never get to see, but who help the players enormously. The Ministry of Power, Works and Housing is blessed with an army of hardworking civil servants, led by two Permanent Secretaries, Directors, the Heads of our parastatals, Deputy Directors, Controllers and other staff who have signed up for change and are daily working towards it. I accept this Award on their behalf”, he said.

Reiterating that no individual recognition was worthy of note if the team was not delivering results, Fashola declared, “My Brother, the Hon. Minister of State in the Ministry of Power, Works and Housing, Mustapha Baba Shehuri and I accept this Award on behalf of Government as proof that our team is gaining momentum, and the results of Government policies, programmes and action are beginning to manifest”.

Thanking City People and its management for inspiring the administration to pursue change, the Minister also acknowledged the All Progressive Congress, whom he described as “the architects of Change”, saying that although some significant progress has been made, the Party knew that the work was just beginning. “We the team members also know this. We know that it can be a lot better, we commit to do more and to make your lives better”, he said.

Investors In Omotosho Power Plant Commend FG’s Efforts To Solve Gas, Liquidity ...

Mar

2017

Investors In Omotosho Power Plant Commend FG’s Efforts To Solve Gas, Liquidity Issues In Power Sector

* As Omotosho Community braces up for supply from Power Plant after years of black out
* Managing Director NDPHC assures that the community would be connected before end of April
* Fashola seeks factual reporting of Power Sector developments, commends confidence of Nigerian investors in their economy

The Managing Director of Omotosho Power Company, Engr. Samuel Itsekiri has commended the Federal Government for the steps being taken address the Gas and liquidity challenges as well as resolving the community issues affecting the performance of the Power Plant.

Giving a background of the Omotosho Power Plant after conducting the Hon. Minister of Power, Works and Housing, Mr Babatunde Fashola SAN round during his tour of Projects in the South West zone, the Managing Director said the Power Plant located at the Omotosho Forest Reserve in Okitipupa LGA, was commissioned on April 17, 2007, privatized on November 1, 2013 to Pacific Energy Company Limited, and is “an open cycle gas-turban power plant with a capacity of 335MW”.

But, according to him, under local conditions, the capacity is 304MWs, adding with eight turbines at takeover, the availability was very poor. “We had just three units available at that time running at minimal load. But as at today due to the efforts of the Pacific Group, who sourced for funds and the amount of money spent, we are happy to announce to you that the plant records (80) per cent availability”, he said.

He told the Minister, “We have all our units running and it might interest you to know that in December 2015 when we had enough gas we generated 307MWs, 2MWs above installed capacity. All the plants are still very healthy. This feat has been possible because of our technical experts”.

On some of the constraints the company has, the Managing Director who listed gas as the major one, however, thanked the Minister for the efforts he is making to address it adding that about three months back the company barely ran 1,2 or 3 units at reduced load.

“But as at today, because of the efforts you are making and that of the Government, we have six units running at full load and the other two are still available. The gas supply has been improving gradually; so as soon as the gas improves further we will add the other two”, he assured.

He commended the Minister for the efforts he is also making to make funds available for Generation Companies like Omotosho disclosing that he just returned from Abuja where he had gone for a meeting and learnt of the efforts the Minister has made to improve their fund supply.

On stability, which he also named as another major challenges, the Managing Director expressed delight that the Transmission Company of Nigeria (TCN) was now working on it because, according to him, the Minister has given them a marching order to look at it.

He added, however, “But that area has not been totally solved because we are still having some few tripping. Last week we still recorded some and this week I heard we’ve recorded one”, expressing joy that the level of tripping was reducing as work goes on. “We believe that in a short time from now that issue will also be resolved”, he said.

He thanked the Minister for his intervention on the community issue adding, “The power supply to the host community is an issue that has been there for a long time. But happily about a month ago we drew the attention of the Hon. Minister to it and he has taken it up. Presently the Niger Delta Power Holding Company is on it. A team visited me about a week ago to assess what is to be done and is being done”.

He commended the Minister’s commitment to the “onerous task of providing light for all Nigerians”.

After years of blackout in spite of playing host to two power stations (335 Megawatts Omotosho Phase I Power Plant now owned by Pacific Energy Limited and 500MW Megawatts Omotosho Phase II Power Plant developed by Niger Delta Power Holding Company Limited), the Omotosho Community will soon be beneficiaries of electricity supply from the Power Plants.

Earlier, while speaking with the staff of the company and members of the Omotosho Community at the premises of the company, Fashola disclosed that the Managing Director of Niger Delta Power Holding Company Limited, Mr Chiedu Ugbo has assured that the community would be hooked onto the power before the end of April.

Fashola, who noted that issue of the local community supply was an inherited problem, explained further that it took some time to solve because government felt that the larger national interest of protecting the power plant transmission substation, commissioned in 2007, was very important just like the need to supply light to the community.

The Niger Delta Power Holding Company Limited had constructed a 33kV distribution line from the power plant substation to the Omotosho Community. However, it could not be connected because of concerns that distribution faults arising from the line as a consequence of abnormal load connections could damage the Power Transformer in the Power plant substation, which will adversely affect the power plant itself.

Assuring the community that the issue was already being addressed, the Minister, said the Niger Delta Power Holding Company (NDPHC) had come to assess the situation and were doing what was necessary. He thanked the Omotosho Community for waiting and for forbearing, adding, “But help and solution is on the way”.

Fashola, who described the decision by Pacific Energy Company Limited to invest in the Omotosho Phase 1 Plant as “a big statement of confidence by Nigerians in their economy”, expressed delight that the reality would provide a basis for true and factual reporting for the media. He said the facts as witnessed during the tour proved wrong the tendency of some sections of the media whom he said sometimes indulge in over-generalization that the companies that bought the nation’s power assets were not investing.

The Minister declared, “I am happy that some of you the press men are here; because I hope that this will begin to provide the factual basis for your reporting; Because there has been too much generalization of what is happening and what is not happening and it is not helping the public to know the truth and facts from opinions”.

“This was an asset when they bought it, as you have seen, some of the turbines were not operational. Today all the turbines are now operational and it means they did something. So it is not correct, as some of you are reporting, that they have not invested any money. So, I think you need to correct that based on your experience”, he said.

He, however, explained that while the turbines have been fully repaired they, like the generators, needed fuel which, in this case, is gas adding, “The more gas we get, the more power we will get”.

Fashola commended the President, the Vice President, the Minister of State for Petroleum Resources, the Managing Director NNPC and all of those who are involved in producing and supplying gas and all the private investors “for the work, the commitment that we have seen, the Legislators, the Senators, Members of the House of Representatives and all in the family”.

“It is a family event not just our Ministry. Everybody is doing something and we want everybody to do more”, the Minister said adding that in order to achieve success it was important that those who indulge in breaking the gas pipelines desist from the act.

He declared, “But we must also appeal to our brothers who are breaking the pipelines; because it is important for all of us to understand that we can fix this problem some of which we have seen and which we have solved. There will be no life without problems. Our responsibility is to confront them, engage them and find solutions to them”.

Thanking the staff of the company, especially the Nigerian workers, whom he described as “the solution to our problem”, Fashola, who praised them for the work they are doing in the place, declared, “And on behalf of Mr. President I thank you. He continues to tell me to thank all of those who are helping to build Nigeria by working hard; he continues to tell me, ‘everywhere you go, thank them for me’ and I know you are qualified for that thanks from the President”.

Fashola Commissions 100 Housing Units, Commends Federal Controllers As Worthy Ambassa...

Mar

2017

Fashola Commissions 100 Housing Units, Commends Federal Controllers As Worthy Ambassadors

The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, has commissioned 100 Housing units in Ogbomoso, Oyo State.

The Ministerial Housing Scheme was financed by the Federal Mortgage Bank of Nigeria (FMBN) in collaboration with Viva International Limited. The Housing Estate is equipped with 50, 000 litres of water supply and reservoirs, 2 nos 500 KVA transformers, lush green recreational areas, fully asphalted road network with street light, walkways and drainages is expected to accommodate about 100 families.

The Minister acknowledged that, ‘’though construction of the housing estate started during the tenure of the last administration, but President Buhari has proven that change does not have to be dysfunctional as a result of ideological and political differences by completing this laudable housing project’’.

Fashola said that a lot of skill acquisition training programme for artisans are currently on-going in the country which in effect provides about 1,000 job opportunities to artisans who were employed during the construction of this housing project. He added that this present administration will continue to pursue infrastructural development as a way out of the nation’s economic woes.

The Minister applauded the present management and the leadership of the Federal Mortgage Bank of Nigeria (FMBN) for returning the bank to profitability and disclosed that the mortgage institution returned a surplus of 2.7 billion for the first time in 20 years in 2016.

Earlier in his speech, the Executive Governor of Oyo State, Senator Abiola Ajumobi represented by the Commissioner for Lands, Housing and Urban Development, Mr. Isaac Omodewu commended the efforts of the Federal Government through FMBN in bridging the housing deficit gap in the country.

Sen. Ajumobi stated that because housing plays a major role in human development and other sectors of the economy, his government took the initiatives of providing housing loan to Civil Servants in the state and also operates land discount policy to encourage private developers to build in order to add to the housing stock in Oyo State.

In his address, the Acting Managing Director of the Federal Mortgage Bank of Nigeria, Mr. Richard Esin, stated that this estate and other housing estates across the country are financed from the resources of the National Housing Fund (NHF) Scheme.

He informed NHF contributors that the Minister has graciously approved that NHF loans of N5 million and below will now attract 100 per cent funding for the purposes of affordability.

The Minister also paid a courtesy visit to the Executive Governor of Oyo State, Senator Abiola Ajumobi were he briefed the governor on the federal government intervention on housing and road projects in the state. He commended the Federal Controllers of Works and Housing, adding that they are good ambassadors and representatives of the Federal Government who should be accorded necessary support to promote socio-economy development.

Fashola Reiterates FG’s Commitment To Co-Operate With State Governments To Achi...

Mar

2017

Fashola Reiterates FG’s Commitment to Co-Operate with State Governments to Achieve Their developmental Agenda

The Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN has reiterated the commitment of the Federal Government to assist every state in the Federation towards the achievement of their developmental agenda within the scope of the nation’s Constitution.

Fashola stated this at the beginning of his inspection tour of road projects in the South-West geo-political zone with a courtesy visit on the Governor of Ekiti State, Ayodele Fayose.

The Minister who had travelled from Abuja by road to the state capital, Ado Ekiti said that help is on the way with the administration of President Muhammadu Buhari as far as road infrastructure is concerned; adding that the President is committed to redeem the expenses of state governments on federal roads. He explained that the Federal Government is in the process of raising bonds to ensure that states get their money back.

He expressed the optimism that the government at the Federal level will assist the state to achieve its agenda, as the ministry is collaborating with the Federal Ministry of Finance in providing the fund required for payment to construction companies.

Fashola also enjoined State Governments to treat the Federal Controllers of works and Housing in the various states as they treat Ambassadors in order to make the roads safe and motorable. He asked for seamless relationship and co-operation as the Controllers would be held accountable for the condition of federal roads within their domain.

He expressed appreciation to the State Government for the provision of land for the National Housing Programme which he said would be beneficial to the state as it would provide jobs and economic opportunies for indigenes of Ekiti State.

Earlier, the Federal Controller of Works, Engineer Hezekiah Kehinde, had briefed the Governor and senior officials of the State on the situation of the various Federal roads in the State.

Governor Ayodele Fayose, in his response stated that for the Minister to travel by road from Abuja to Ekiti, “to feel what the ordinary Nigerians are feeling on the road” is enough statement to convince people of the Minister’s passion and commitment to improve the status of the roads and the well being of Nigerians.

The Governor promised to remove the signposts which he had erected on federal roads in the state and to tone done his criticism of the Federal Government, hoping that the Minister will match words with action.

Mr. Fayose asked the Minister to revisit the issue of payment to the State Government for the intervention on the Akure-Ikere-Ado Ekiti federal road on which he had done a lot and spent a considerable amount of about N2billion.

Infrastructural Development: FG Promises Prompt Payment Of Contractors...

Mar

2017

Infrastructural Development: FG Promises Prompt Payment Of Contractors

The Federal Government under President Muhammadu Buhari, has assured the constrictors handling various road projects across the country of prompt payment of their money as soon as their works are certified for payment.

The Minister of Power, Works and Housing, Babatunde Raji Fashola, affirmed this during a press interview at Apapa Wharf in Lagos to mark the end of his inspection tour of the Federal Government projects in the South-West.

He said that unlike before when contractors were owed for more than two years “President Muhammadu Buhari has given marching order to relevant agencies to see that delaying contractors’ money after certification of their works is no longer tolerated. All hands must be on deck to ensure that ongoing projects nationwide continue apace with regular funding”

The Minister also stated that as soon as the third quarter capital allocation is released, government will fulfill its promise by paying the contractor’s. He further added that if fourth quarter capital allocation is released before 2016 rolling plan rolls out, they should also expect additional payment and if otherwise, the payment will roll over to 2017 rolling plan. He concluded by saying that all stakeholders are working tirelessly to meet up with Mr. President’s directive.

Fashola applauded the contractors for the level of the on-going road projects across the states he visited. According to him “in all the sites so far visited across the nation, works are moving progressively, and it will be unjust for any government official to hold back their money.”

The Minister explained that some of what used to be the federal roads now fall within the metropolitan areas or state. He called on the state governments to takeover such roads for proper managing. He added that this will avail Federal Government the opportunity of taking adequate steps to efficiently manage the federal roads nationwide and to serve Nigerians better.

He also said that the decision of the Federal Government to repositioning the economy through infrastructural development has begun to materialise; mentioning “that the contractors on many of the federal roads across the nation are back to construction sites and thus assisting in relating to the host communities and further generating employment for Nigerians.

Fashola said that government is working hard to strengthen the Federal Road Maintenance Agency, (FERMA), by constituting a governing board in line with the provision of its setup, as well as creating enabling environment where its mandate will be realised.

The Minister enjoined the state governments to embrace the policy on national housing by making land available for government. According to him “such provision however, should be accessible to people, otherwise it will be a fruitless effort for government to invest fortunes on a policy that people will not appreciate; people must be considered before allocating land for national housing policy.”

The Minister Of Power, Works And Housing, Babatunde Raji Fashola, Has Rekindled The H...

Mar

2017

The Minister of Power, Works and Housing, Babatunde Raji Fashola, has rekindled the hope of state governments across the nation that Federal Government is working assiduously to see that in no distant time, the money incurred by the states on Federal road projects will be paid back, saying that “Federal Government under President Muhammadu Buhari is committed to fulfill his promise by paying all expense incurred by the state governments on federal roads.”

Fashola revealled this in Osogbo while playing a courtesy call on the Governor of Osun state, Ogbeni Rauf Adesoji Aregbesola in his office during an inspection tour to Federal government projects under his ministry in the South-West geo-political zone recently.

He explained that the Federal Government is working hard to see that bond is raised so that states get their money back.
The Minister stated that the purpose for the Federal government to post the Federal Controllers to the state of the federation is not to engage in rivalry game but to strengthening the cordial relations between the Federal and the state governments, therefore they are partners in progress and they must be seen as the representative of Federal Government.

Fashola applauded Osun state government for its quick intervention on Gbongan-Kwara state boundary road, which will ultimately going to lead to economic recovery of Nigerians as well as reducing the travel time of the commuters plying along this corridor.

In his response, the Governor of Osun State, Ogbeni Rauf Adesoji Aregbesola, expressed his gratitude to the Minister and by extension to President Muhammadu Buhari for keeping to his promises since assumption of office.

The governor explained the seal for his administration to embark on infrastructural development. He said “his government appreciates importance of infrastructure development as one of the ways that will improve economic activities as well as employment generation of the people, hence the government took a giant step to intervene in many road projects across the state, whether Federal Government roads, state roads or local government roads”.

While at Ondo state governor’s office earlier in the day, the Minister used the visit to appeal to the government of Ondo State to co-operate with the Federal Controllers posted to the state because Federal Government realized that for Nigerians to fully feel the impact of government in terms of infrastructural development, there must be collaboration between the Federal and State governments, therefore, it must be noted that Federal Government is not in a game of rivalry with any state governments.

He solicited for endurable co-operation between the state government and Federal Controllers in the state; saying that “this is necessary because development anchors on peaceful co-existence among the key actors in the system.” He concluded by saying that the Controllers in the state would be held responsible should there be any deplorable condition of Federal projects within the purview of the areas of their assignments.

Fashola who was in Ondo State en-route Ekiti State said that help is on the way with the Federal Government led by President Muhammadu Buhari as far as road infrastructure development is concerned; saying that “the President is committed to refund all money spent by the state governments on federal roads.”

While responding, the governor appreciated the Minister’s visit, saying that it is a sign of many good things that await the new administration in the state. He appealed to the Minister on Owo-Akungba-Okene road and said “due to its strategic position of the road needed to be dualised as this is the only road connecting South West to Northern States from the Ondo axis.” He also called on the Minister to bailout some communities who have been experiencing total blackout for more than six months.

National Housing Programme : FG Assures Of Political Will...

May

2017

National Housing Programme : FG Assures Of Political Will

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

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

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

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

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

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

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

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

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

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

Fashola To Journalists: Be Impartial In Your Reportage...

May

2017

Fashola To Journalists: Be Impartial In Your Reportage

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

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

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

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

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

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

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

May

2017

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

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

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

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

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

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

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

May

2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Apr

2017

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

Contacts:

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

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

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

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

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

Join us on:

https://www.facebook.com/worldbank

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https://twitter.com/WorldBankAfrica

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Fashola Urges Professional Builders To Develop Effective Strategies And Framework To ...

Apr

2017

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

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

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

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

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

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

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

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

A total of 106 members were inducted into the Council.

Federal Government Repositions FMBN To Strengthen Affordable Housing Delivery In Nige...

Apr

2017

Federal Government Repositions FMBN To Strengthen Affordable Housing Delivery In Nigeria

The Minister of State for Power, Works and Housing, Hon. Mustapha Baba Shehuri, has commended President Buhari’s administration decision to recapitalize the Federal Mortgage Bank of Nigeria (FMBN) with additional 500 billion naira to make mortgage facilities accessible to all Nigerians, adding that the government's gesture would further reduce the housing deficit in the country.

The Minister stated this during a courtesy visit to the Executive Governor of Nasarawa State in continuation of his inspection of on-going works on the National Housing Programme (NHP) in the North-Central geo-political zone. The Governor, Alhaji Tanko Almakura who was represented by the Deputy Governor of the state, Mr. Silas Ali Agara, received the Minister as the later thanked the state government for the collaborative effort through providing land for the NHP project in the state.

Hon. Shehuri said that the federal government through the ministry was constructing 76 housing units in the state under the NHP as a fulfillment of Mr. President's Campaign promise to provide affordable housing delivery to the people.

In his response, the Deputy Governor appreciated the federal government for initiating the programme, adding that this will have a multiplier effect on the economy of the nation by creating employment; enhancing expertise on professionals in the built industry and creating local content market. He assured the Minister that the state will continue to partner with the ministry to ensure the successful completion of the project.

The Minister later proceeded to inspect the 76-unit Housing Estate comprising 4 units of one-bedroom, 48 units of two-bedroom and 24 units of three-bedroom apartments. He expressed satisfaction with the location and the level of works done so far.

Also, the Minister inspected the construction work which is at various levels of completion at the 80-unit NHP project site in Makurdi, Benue State, where he met with contractors, artisans, food vendors, masons and labourers. The Federal Controller of Housing, Engr. Patrick Nziwu gave the breakdown as 4 units of one-bedroom, 48 units of two-bedroom and 24 units of three-bedroom apartments.

In Jos, Plateau State capital, Hon. Shehuri also paid a courtesy call on the Executive Governor, Rt. Hon. Simon Bako Lalong, who was represented by the Deputy Governor, Prof. Sonny Gwanle Tyoden. The Minister condoled with the government and the people of Plateau State over the recent death of two of their illustrious sons, the Honourable Commissioner of Housing and Urban Development, Arc. Song Galadima and the husband of the former Deputy Governor of the state, Mrs. Paullen Tallen.

While stating his mission in the state, the Minister expressed appreciation to the government for providing land for the construction of the housing programme, nothing that inspite of the present economic situation of the country the administration is resolute in fulfilling its campaign promises to Nigerians including that of housing. The Minister appealed to the state government to expedite action on its promise to construct a feeder road to link the NHP project site to the major road.

In his response, Prof. Tyoden expressed gratitude to the federal government through the ministry for "deeming it fit to make Plateau State one of the beneficiaries of the National Housing Programme". He commended the government on its planned recapitalization of the Federal Mortgage Bank of Nigeria (FMBN) to the tune of N500 billion, nothing that this would encourage home ownership and affordability.

He assured the Minister that action would be taken on the construction of the feeder road to link the NHP project site location.

* Agreement Is Key Aspect Of The Finalization Of The PPA Signed Last Year Betwe...

Apr

2017

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

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

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

FG Commends Progress Of Work On National Housing Project...

Apr

2017

FG Commends Progress Of Work On National Housing Project

Federal Government has commenced the construction of houses across the country under the National Housing Programme. The construction works in the Phase 1 of the project tagged “2016 National Housing Programme” are at various stages of completion in the six (6) states of the North Central Zone of the country.

The Minister of state works, Power and Housing, Alhaji Mustapha Baba Shehu disclosed this on Sunday 09/04/2017 during the inspection of the project in Lokoja, Kogi State. Alhaji Baba, who was on inspection tour of the projects in the six states of the North Central came to Lokoja, from Ilorin, Kwara State where he had earlier carried out similar inspection of the project.

The Minister stated that the programme which is meant to provide houses for the people and ease their accommodation problem was a fulfillment of part of the electioneering promises to the people of Nigeria by the All Progressive Congress (APC).

According to him, the programme, apart from making houses readily available and affordable for any interested members of the public, would also help to create job opportunities as different categories of people are engaged to work at the construction site of the project to earn a living.

The Minister said the initiation of the programme by the present administration was a deliberate effort to create wealth for people adding that more Nigerians stand to benefit from the 2nd Phase of the programme in 2017.

While fielding questions from journalists, the Minister expressed satisfaction at the quality of job that has been done and advised the contractors to keep it up in order to complete the work on schedule. The Federal Controller of Works, Kogi State, Architect Hajara Enesi conducted the Minister round the 76 units of the houses which according to her is made up of 24 blocks of 3 bedrooms flats, 48 blocks of 2 bedroom flats and 4 blocks of 1 bedroom flats.

The controller also disclosed that a total of 12 contractors had been engaged to handle the project in the state. She stated that the estate, when completed, would be provided with social amenities like the police post, primary school and water supply.

The Architect averred that the project, which is schedule to be completed within 5 months, is expected to be handed over to the government in the next 2 months. Some of the contractors, who spoke to the minister commended the Federal Government for initiating the programme, in which they had been engaged to eke out a living.

They however said one of the problems being faced by them on the jobs is the lack of office accommodation and the need to review the cost of the project in view of escalating prices in the market. They appealed to the government to do something about these challenges quickly to enhance quality performance.

The Minister who was accompanied on the tour by some management staff of the ministry has since left the state in continuation of the tour to Nasarawa, Benue and plateau states respectively.

Ibadan Disco Commends FG, Fashola Over On Going Work On Lagos-Ibadan Expressway...

Apr

2017

Ibadan Disco Commends FG, Fashola Over On Going Work On Lagos-Ibadan Expressway

* Say rehabilitation has eased access to majority of its franchise, shortened travel times for its business and staff

* Expresses confidence that on completion the road will boost commercial activities, quality of life of Nigerians and neighbouring countries

With work rapidly progressing on the rehabilitation, reconstruction and expansion of the Lagos-Ibadan Expressway, acknowledgments of its benefits in terms of shorter travel times and better journey experiences and appreciation from road users have started coming the way of the Federal Government.

In a recent commendation letter, the Ibadan Distribution Company (IBEDC) expressed delight and gratitude to the Hon. Minister of Power, Works and Housing, Mr Babatunde Fashola SAN for the rehabilitation work being carried out on the road saying it had not only eased accessibility to the company’s franchise majority of whom, it said, could only be achieved through the road, but had also made it possible for most of its staff to enjoy shorter travel times and better journey experiences as they visit their families at weekends.

The commendation letter signed by the Managing Director of the Company, Mr. John Donnachie, also noted that the exigencies of the company’s business demanded that a number of official trips were often undertaken via the expressway which it described as one of the busiest within the country.

The letter read in part, “The entire Management and staff of the Ibadan Electricity Distribution Company Plc (IBEDC) write to recognize and acknowledge the herculean task being undertaken by the Office of the Minister of Power, Works & Housing in the on-going rehabilitation work on the Lagos-Ibadan Expressway.

“Our commendation and gratitude for the good work which your office is undertaking on behalf of the entire citizens of Nigeria cannot be expressed enough. As you are aware, the large portion of the franchise area of IBEDC can only be accessed through this road and many of our staff had in the past undertaken the arduous task of plying this expressway in order to spend time with their families and friends over the weekend. The exigencies of our business also demands that a number of official trips are undertaken via this route which one could rightly classify as one of the busiest expressways within Nigeria”.

Acknowledging that the repair works initially posed some challenges to road users, the company noted with delight that as the repair work nears completion, “the previous hardship, wear-and-tear on commuters and vehicles has been greatly reduced in addition to the millions of lives and money that have been saved as a consequence of this much needed rehabilitation”.

Expressing its “support and gratitude for a job well done”, the company declared, “There is no doubt that this project on completion, will boost commercial activities and the quality of life to the inhabitants primarily of Lagos and Ibadan with significant gains recorded by all other road users from other states and neighbouring countries”.

It would be recalled that recently while inspecting the on going reconstruction and rehabilitation work on the Lagos-Ibadan Expressway as part of his inspection tour of Federal Highways and other projects in the South West Zone, Fashola had alluded to the fact that reports of shorter travel times and better journey experiences had been coming in as commuters testified to making the journey from Ibadan to Lagos in less than two hours even as the project was still on-going.

The Minister, who also recalled similar reports on other Federal roads across the country during the 2016 Christmas and New Year festivals, promised that both travel times and journey experiences would be even better during the 2017 festivities as many of the road projects across the country would have been substantially completed.

Remarks By The Honourable Minister Babatunde Raji Fashola, San At The 20th City Peopl...

Apr

2017

Remarks By The Honourable Minister Babatunde Raji Fashola, San At The 20th City People Awards For Excellence Sunday, 2nd April, 2017, Lagos Airport Hotel

P R O T O C O L S

It is always very easy for members of the public to pick and choose from a Team, who they like more within a Team.

So in a football club, we tend to pick the best striker or midfielder or defender.

But in doing so, we sometimes forget that what is most important is the team and the work they do together; the Team work, that allows any striker, midfielder or defender to thrive.

There will be no good striker, midfielder and defender in a team that does not do well.

Therefore collective success must be, and is indeed, more important than individual recognition.

A Government is no different from a football club, to the extent that they comprise individuals of different talents, passions and experiences who must work together to deliver service to the public.

A successful team is led by a Great and resourceful manager, who often has a dependable assistant.

In our Government team, President Muhammadu Buhari has discharged that role effectively by picking a team of Ministers whose commitment to change is unquestionable and the Vice President has demonstrated his ability to complement this vision of change and his dedication to help midwife it.

On their behalf I accept this Award.

Every Goal scored by a striker is the result of co-ordinated team play, and interchange of passes.

In our team, every Minister has supported the other, and the Ministry of Power, Works and Housing has benefitted from a well planned Budget, well timed cash backing, very massive support and contributions to our Council Memoranda and therefore on behalf of the Federal Executive Council members, the Secretary to the Government of the Federation, Cabinet Office and the Office of the Chief of Staff, I accept this award.

Of course, a good football team thrives on financing and shareholders support.

We have received a lot of cooperation from those who exercise the power of appropriation in the National Assembly; the Senators, House of Representatives members and all their Committee Chairmen, members and staff are the real owners of this Award.

I accept it on their behalf.

Some of our work will not have progressed without prompt and efficient determination of some court cases. Our progress would have been hindered. This Award also belongs to the Judiciary as members of the team of change. I accept it on their behalf.

No team is complete without the army of backroom staff who we never get to see, but who help the players enormously.

The Ministry of Power, Works and Housing is blessed with an army of hardworking civil servants, led by 2 (Two) Permanent Secretaries, Directors, the Heads of our parastatals, Deputy Directors, Controllers and other staff who have signed up for change and are daily working towards it. I accept this Award on their behalf.

As I said earlier, no individual recognition is worthy of note if the team is not delivering results.

My Brother, the Hon. Minister of State in the Ministry of Power, Works and Housing, Mustapha Baba Shehuri and I accept this Award on behalf of Government as proof that our team is gaining momentum, and the results of Government policies, programmes and action are beginning to manifest.

Our party, the All Progressive Congress, the architects of Change, know that the work is not done; on the contrary, it is just beginning.

We the team members also know this. We know that it can be a lot better, we commit to do more and to make your lives better.

We thank City People and its management for inspiring us to pursue change.

BABATUNDE RAJI FASHOLA, SAN
HONOURABLE MINISTER OF POWER, WORKS & HOUSING

2ND APRIL, 2017.

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He commended the Minister’s commitment to the “onerous task of providing light for all Nigerians”.

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Buhari Administration Using Infrastructure Development To Rebuild The Economy-Fashola

The Federal Government under President Muhammdu Buhari is using infrastructure development as a vehicle to take the nation out of recession and rebuild the Nigerian economy; and putting the country’s resources where it is necessary for the people.

The Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola, SAN affirmed this during a courtesy visit on the Executive Governor of Ogun State, Senator Ibikunle Amosun as he continues his inspection tour of projects in the South-West geo-political zone.

Fashola requested for collaborative effort between the state government and the Controllers of Works and Housing, appealing that they are granted access at the highest level in order for them to serve and assist the state in whatever capacity to achieve “your developmental goals politically, socially and economically”

The Minister mentioned that the contractors on many of the federal roads in the state are back to construction sites and thus assisting in relating to the neighboring states of Lagos, Oyo and Ondo and further generating employment of Nigerians at the various sites.

Fashola expressed appreciation for the dedication shown by the Governor Amosun in rebuilding federal roads in Ogun State and stated that the Federal Government is committed to repayment of the funds expended on federal roads.

The Federal Controller of Works, Engr. Popoola, earlier said that there are 1,380 Kilometre of federal roads in Ogun State and that the Governor took it upon himself to repair some of the roads and also assisted in removing markets along the federal highways at Mowe and Ibafo.

In response, Governor Amosun expressed appreciation to President Muhammadu Buhari for the intervention on the Lagos-Ibadan Expressway stressing that the road is the busiest in the country; adding that no development could get to any place without infrastructure.

He requested that Ogun State should be adequately compensated for the N123bn which had been certified as expenses on federal roads out of a total of N223bn expended.

Governor Amosun said that state government would be grateful if attention could be focused on the Shagamu-Ajebandele Road reconstruction as it was done on the Lagos-Ibadan expressway; adding that federal government should urgently intervene on the Papa-Olorunsogo interchange Road and the Lagos-Abeokuta old road.

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Fashola stated this at the beginning of his inspection tour of road projects in the South-West geo-political zone with a courtesy visit on the Governor of Ekiti State, Ayodele Fayose.

Earlier, the Federal Controller of Works, Engineer Hezekiah Kehinde, had briefed the Governor and senior officials of the State on the situation of the various Federal roads in the State.

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