Mar

14

2017

Federal Ministry Of Power, Works And Housing Not Frustrating Ambode Or His Government

* Lists several requests it has approved for LASG
* Says Governor failed to acknowledge he spoke with Minister who explained on going processes to him
* Reveals that LASG has refused to provide land for National Housing Programme

The attention of the Federal Ministry of Power, Works and Housing has been drawn to certain statements credited to the Governor of Lagos State, Mr Akinwunmi Ambode claiming  that the “Federal Ministry of Works“ has been frustrating the efforts of his administration to carry out a “total reconstruction of the International Airport Road from Oshodi.”

The Governor also reportedly accused the “Federal Ministry of Works and Housing” and Security Services of denying the State Government access to the Presidential Lodge in Lagos six months after President Muhammadu Buhari approved it off for the State.

This response is to ensure that members of the public are not misled by deliberate or inadvertent mis-statements.

The allegations of lack of cooperation from the Ministry and frustration of Lagos State Government development initiatives are simply not true and the facts do not bear them out.

In 2016, the Hon Minister for Power Works and Housing, Mr. Babatunde Raji  Fashola, SAN, approved the use of the Federal Ministry of works yard at Oworonsoki for Lagos State Government to create a lay-by to ease traffic.

The Hon Minister also approved that Lagos State be granted the Rights to manage the Street Lighting on the 3rd Mainland Bridge to support the security initiatives of the State, a request which the previous Federal Government administration had denied Lagos State for years.

During the same year the Hon Minister also supported the approval of the World Bank Loan of $200m to Lagos State, again a request the previous administration had denied Lagos State.

As far as International Airport Road which is currently the ground for alleged “frustration” is concerned, the correct position is that the Lagos State Government presented a  request for FOUR roads that it would wish to take over.

This is consistent with the position being canvassed by the Hon Minisiter for States who are interested to apply to take over Roads that are within their States.

The Ministry has presented the Memorandum conveying the request of the Lagos State Government to the Federal Executive Council as was done with a similar request by the Kaduna State Government in 2016.

Due to the fact that TWO of the roads also connect Ogun State, the Federal Executive Council could not reach an immediate decision on them because it requested the input of the other State Government affected.

The Kaduna State Government requested the Federal Government to transfer two roads within Kaduna Metropolis to the State in November 2015. Due process was followed and the request of the State Government was approved in August 2016, a period of ten months.

Federal Executive Councill Memorandum are debated and commented upon by all members and in cases of roads, surveys, maps and other material have to be provided to assist members understand the location and connectivity of the roads, (in this case Four roads), in order to assist how they vote on the Memorandum.

As far as the Presidential Lodge is concerned, it is under the management of the Presidency and not the Ministry.

After the approval by Mr President that the Presidential Lodge be handed over to the State Government, there was a directive to the Ministry to work out the modalities for handing over.

The Ministry has prepared a vesting instrument to convey the transfer and all that is needed is a survey plan.

The Presidential Lodge is a high security location and officials of the Ministry also require security clearance to enter in order to do any works.

Access to the lodge is not under the control of the Ministry.

The motive behind this public accusations must therefore be scrutinized coming barely a week after the Governor spoke with the Honorable Minister, Mr Babatunde Fashola SAN on the outstanding requests of the State for several minutes and the Minister took time to explain the situation of things to the Governor. (The first telephone conversation the Governor has had with the Minister since May 29, 2015).

If there is any lack of co-operation it is on the part of the State Government that has refused to acknowledge not to talk of approving the Ministry's request for Land of the National Housing Programme in Lagos.

The Ministry is not frustrated by this lack of response and remains optimistic that a response will come from Lagos State.

The Ministry remains committed to serving the Government and Good People of Lagos and will treat all their requests on Merit and in accordance with necessary due process as will be done to other States.

As far as the refund of N51Billion is concerned this is not a new item. Almost all if not all states have these claims and the Federal Ministry of Power Works and Housing has verified these claims.

What is left is the process of raising the finance to pay the Debt owed to the States.

Those who are familiar with the workings of Government will attest to the fact that it is an intricate sequence of processses, consultation and collaboration.

Equating processes to a lack of co-operation is therefore akin to creating a storm in a tea cup.

Mar

06

2017

FG Waives Payment Of 10% Equity On Mortgages Below 5 Million Naira

1.         As a demonstration of its resolute commitment to the provision of affordable housing to Nigerians, especially the low income earners, the Federal Government has graciously approved that henceforth mortgages below N5m (five million naira) will not attract the initial payment of 10% equity from offtakers.

2.        This was made known by the Minister of State for Power, Works and Housing, Hon. Mustapha Baba Shehuri while commissioning a 125- unit Housing Estate being financed by the Federal Mortgage Bank of Nigeria (FMBN) and  developed by a private developer, Messrs LCK Projects (Nigeria) Limited, in Enugu, Enugu State, recently.

3.        Hon. Baba Shehuri stated that in view of the challenge of housing deficit in Nigeria, which has been put at 16 – 17 million, the Ministry plans to build mass houses in every state of the Federation for public workers and other interested parties, over the next three years, using the instructmentality of Public-Private Partnerships.

4.        He added that National Housing Models have been designed and approved for each geo-political zone, which takes care of our cultural and climatic diversities in our choice of house type and standardization in the use of local building materials. This will translate to affordability of housing for Nigerians and will also create employment opportunities for our teaming youths that are currently roaming the streets.

5.        While commending the effort of the apex mortgage bank, the Minister noted that it has a pivotal role to play in the actualization of the aspirations of many Nigerians to own a home through mortgage, adding that the Muhammadu Buhari’s led administration will lend its full support to the Federal Mortgage Bank of Nigeria  towards ensuring that it is adequately recapitalized and repositioned  to cater for the mortgage finance needs of Nigerian workers, who would be the major beneficiaries of houses built under the National Housing Programme.

6.        Earlier in his address at the Commissioning Ceremony, the Executive Governor of Enugu State, RT Hon. Ifeanyi Ugwuanyi assured the Minister of the readiness of the State to continue providing enabling environment for housing development to thrive.

7.        The Minister was also at Abakaliki, Ebonyi State, where he commissioned the 1st set of  72 units of  houses out of 240  being financed by FMBN and undertaking by the Ebonyi State Housing Development Corporation (ESHDC). He was also at Owerri, Imo State for the commissioning of a 100-unit FMBN-Minfa Housing Estate.

8.        The Ebonyi State Executive Governor, His Excellency Dave Umahi reiterated the willingness of the government to partner with the Bank in the provision of affordable housing for its workers, especially, and the citizenry, in general. He added that the completed buildings have already been allocated to Civil/Public servants through the Office of the State Head of Service on Owner-Occupier basic.

9.        His Excellency, the Executive Governor of Imo State, Owelle Rochas Okorocha, CFR, represented by the Deputy Governor, His Excellency, Prince Eze Madumere, MFR, urged the management of FMBN to replicate the gesture in the 27 Local Government Areas of the State, while informing the Minister that a Committee, to be chaired by his humble self is to be constituted immediately to drive the process.

10.      The Acting Managing Director of Federal Mortgage Bank Nigeria, Mr. Richard Esin, while calling on other Nigerians, in private employment or self employed, who are currently not contributing to the National Housing Fund (NHF), to key in. He further disclosed that the commissioned Housing Estates and others to be commissioned soon across the length and breadth of Nigeria were funded from the lean resources of the NHF, an SPV for driving the aspirations of Nigerians to transit from being tenants to home owners.

Mar

06

2017

FG Assures Nigerians On Road Development

The Minister of Power, Works and Housing, Babatunde Raji Fashola, has reiterated Federal Government commitment to road development nationwide.

Fashola gave the assurance at a World Press Conference, on the closure of Abuja International Airport for the runway rehabilitation at Obasanjo Hall, Federal Secretariat, Phase II, Bullet House, Abuja.

The Minister said though the contract for rehabilitation of Abuja-Kaduna road is on course, the Federal Government had to intervene with the emergency repairs of the road as a result of the closure of the Abuja International Airport runway which makes the Kaduna Airport an alternative.

The conference was organized by the Federal Ministry of Information and Culture and in attendance were the Miniter of Information and Culture, Alhaji Lai Muhammed; Minister of Transport, Rotimi Amechi; Minister of Aviation, Alhaji Hadi Sariki; and Inspector-General of Police, Idris Ibrahim Kpotum. The Minister of Power, Works and Housing, was represented by the Director, Highways (Rehabilitation and Construction), Engr. Yemi Oguntominiyi.

Feb

28

2017

FG Completes Repair Works on Kaduna – Abuja Expressway Ahead of Closure of Nnamdi Azikiwe Airport, Abuja.

The Minister of Power, Works & Housing, Mr. Babatunde Raji Fashola SAN, today commissioned the completed emergency repair works on the Kaduna – Abuja dual carriageway.  The Abuja – Kaduna and Kaduna – Abuja bound carriageways are 165km each bringing it to a total of 330km.

The Minister had explained that the intended closure of the Nnamdi Azikiwe International Airport on the 8th of March 2017 for repair works on the runway, and redirection of all flights to the Kaduna International Airport for a period of 6 weeks had informed the emergency works to address the failed sections, potholes and multiple cracks on the dual carriageway.

Fashola said that the 50 day contract to Messer’s CGC Nigeria Limited worth slightly above N1b was to avoid a scenario where the failed portions and potholes created black spots resulting in avoidable accidents, kidnapping, robbery, elongated travel time and high vehicle operating cost.

The Minister was satisfied with the excellent job done by the contractor within such a short period having gone on an inspection tour of a good portion of the road stating that good roads guarantee safety, road users comfort reduces commuters travel time and timely delivery of goods and services.

Fashola also said that he is optimistic that his counterpart in the aviation sector will equally deliver the repair works of the runway of the Nnamdi Azikiwe International Airport within the stipulated 6 weeks taking a cue from Messer’s CGC Nigeria Limited who once again have shown that their good track record, timely delivery and reliability are not questionable.

The Minister was represented by the Director, Federal Highways, Construction & Rehabilitation, Engineer Yemi Oguntominiyi who commissioned the completed emergency repair works on his behalf.

Feb

28

2017

The Minister of Power, Works & Housing, Mr. Babatunde Raji Fashola SAN, today commissioned the completed emergency repair works on the Kaduna – Abuja dual carriageway.  The Abuja – Kaduna and Kaduna – Abuja bound carriageways are 165km each bringing it to a total of 330km.

The Minister had explained that the intended closure of the Nnamdi Azikiwe International Airport on the 8th of March 2017 for repair works on the runway, and redirection of all flights to the Kaduna International Airport for a period of 6 weeks had informed the emergency works to address the failed sections, potholes and multiple cracks on the dual carriageway.

Fashola said that the 50 day contract to Messer’s CGC Nigeria Limited worth slightly above N1b was to avoid a scenario where the failed portions and potholes created black spots resulting in avoidable accidents, kidnapping, robbery, elongated travel time and high vehicle operating cost.

The Minister was satisfied with the excellent job done by the contractor within such a short period having gone on an inspection tour of a good portion of the road stating that good roads guarantee safety, road users comfort reduces commuters travel time and timely delivery of goods and services.

Fashola also said that he is optimistic that his counterpart in the aviation sector will equally deliver the repair works of the runway of the Nnamdi Azikiwe International Airport within the stipulated 6 weeks taking a cue from Messer’s CGC Nigeria Limited who once again have shown that their good track record, timely delivery and reliability are not questionable.

The Minister was represented by the Director, Federal Highways, Construction & Rehabilitation, Engineer Yemi Oguntominiyi who commissioned the completed emergency repair works on his behalf.

Feb

28

2017

Fashola Lists New Economy, Infrastructure Budget Funds As Benefits Of Proposed Sovereign Green Bonds
* Solar Unit Distribution Programme (SUDIP) will provide up to 12MWs, 6,000 jobs and impact at least 60,000 persons, he says
* Advocates that programme be taken to the street level to make the people understand and connect with it
* A new economy is possible and people must understand that this is that new economy - Minister

As the nation plans to inaugurate the first African Sovereign Green Bond to address climate change and sustainable environment , the Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, has stated the benefits derivable from the project saying it would facilitate a new economy and help the government to source funds to implement its budget, especially in infrastructure development.

Fielding questions from newsmen after the Green Bonds Capital Market & Investors Conference organised by the Federal Ministry of Environment and the Debt Management Office (DMO) at the Nigerian Stock Exchange (NSE) House in Lagos, Fashola said the fund, which, according to him, would be directed to fighting climate change, would enable government realise its renewable energy projection.

Reiterating that Nigeria was working towards achieving 30 per cent in renewable energy by 2030, the Minister, who disclosed that the Solar Unit Distribution Programme (SUDIP) project was estimated to cost N1.3 billion, added that the units in aggregate from the project would provide up to 12MWs of power, creating 6,000 jobs and impacting at least 60,000 persons.

The Minister, who noted that one of the challenges that has stalled development in the country over the years was the lack of sufficient infrastructure spend added, however, that going forward the Green Bond would help government to source funding to implement its budget. “So, that is how it affects us; it is a source of funding for budget”, he said.

On what his Ministry expects from the Bond when issued, Fashola explained that the decision as to who gets what and what goes where would be the responsibility of the Ministry of Finance adding, however, that his Ministry needed as much money as it could get “to continue to upgrade and build new infrastructure in Power, in Works and in Housing”.

He explained further, “As you heard from the Acting President and the Hon. Minister of the Environment, the first launch of this Bond is only looking to a size of about N20Billion to test the Market; those are going to go ostensibly into some smaller spend size because there are so many things to do”.
“But the ultimate decision as to who gets what is the responsibility of the Ministry of Finance. But we need as much money as we can get to continue to upgrade and build new infrastructure in Power, in Works and in Housing”, he said. According to the Minister, “N20Billion is the first issuance in Naira; but this is the first Sovereign Bond in the whole of this Continent, so I expect that they want to enter the Market very conservatively and see what the appetite is and from there ramp up”, adding that over the last one and a half decades, the entry threshold of government into Capital Market had been very modest but had grown severally.
Assuring that the proposal to achieve 30 per cent renewable energy by 2030 was realistic, Fashola declared, “It is extremely realistic; it is based on very extensive consultations, it is based on our current realities, it is based on what we expect is realistically achievable”.

“Yes, I said 30-30-30, it is 30 per cent in 2030 and these things are not unconnected with our current realities also and one of our realities is that we signed the Paris Agreement and the Paris Agreement has thresholds and nationally determined contributions that we have made as a country that we would achieve in terms of reducing Green House gases, Green House emissions and so on and so forth”, he said.

In his contribution at the Conference earlier, during the Ministers’ Dialogue with the theme, “Ensuring Sustainability of Green Bonds”, Fashola advocated that the concept of the Sovereign Green Bond and its components of Climate Change must be taken to the street level to enable Nigerians understand and connect with it adding that it would also make implementation of the environmental projects easy among the people.

“The first thing to do is to bring all that we do here to the street level. It must get to the street level otherwise it becomes a very esoteric discussion that people on the streets don’t understand and can’t connect to”, the Minister said, adding that the people should be made to understand why they should or should not take some actions.

He added, “I say this in the context of my own personal experience; each year we tell the people ‘don’t use firewood’, don’t do this, don’t do that and the question then is ‘what would they do to survive?’ So, in very simple terms, we must put this in the hands of the people”.

According to the Minister, “A new economy is, therefore, possible and they must understand that this is that new economy; an economy that allows them to do the same things differently, in a much better way and in a way that sustains the environment for the human civilization”.

Fashola said the proposed Renewable Energy micro utility in the 45 communities across the country would cost $10Billion while the Energizing Education Project would cost $213Million. Also, according to the Minister, out of the expected 119MW of Power, 60MW would be renewable adding that 37 universities and seven teaching hospitals have been audited as anchors to the programme.

On the Energy Mix programme which, he reiterated, is meant to achieve 30 per cent of renewable energy by 2030, the Minister said most of the renewable energy would come from Solar, Biomass and all other forms of sustainable energy sources adding that it would give the country an Energy Security.

When that is achieved, he said “No part of the country will be able to hold the nation to ransom in future”, adding “The first sign of that journey is the 1.2 MW of Power in Abuja to power the Water Works. “So that Water Works is now off-public power, it is Solar-driven”.

The Minister added, “You may wonder how much power is 1.2MW solar power; it is power for at least 200 families; that is how prolific it can be. The next one is 1125MW of solar power that we have issue Power Purchase Agreements to 14 Solar Energy Providers”.

He commended the Minister of the Environment, Mrs Amina Mohammed and everybody else who had worked with her to put the programme together describing the subject of our Panel discussion, “Sustainability of Green Bonds”, as “a fitting place to kick off the brain box”.  

The Acting President, Professor Yemi Osinbajo SAN, in his address, described the initiative as a new addition to the market funding portfolio, stating that the proceeds would be used to fight climate change which, according to him, “had led to more natural disasters, thereby impacting negatively on food, water and energy supply”.

Osinbajo, who said the initiative would also provide an opportunity to deepen the capital market as well as tackle poverty, pointed out that the bond issuance would also support the Federal Government’s shift to non-oil base assets for project financing for economic growth and development.

He said that the proceeds of the bonds would be used for environmental projects such as renewable energy micro-utilities in three communities estimated at N10 billion adding that it would as well provide an average of 33KW of power through solar technology.

Also speaking, Minister of Environment, Mrs Amina Mohammed, said the project was in line with the Federal Government’s sustainable development initiative started in September 2016 adding that the government, under its recovery growth plan initiative, identified Green Bonds as a vehicle that could be used to drive the economy in terms of environmental projects funding.
She said the bonds if properly harnessed would create new jobs, open new investment avenues for the country as well as ensure creative thinking adding that the proceeds would be invested in critical social-economic and environmental sectors that would impact on the lives of common Nigerians even as she called on domestic investors to rally round the issuance to ensure its success in order to support government diversification agenda.

Feb

24

2017

Inspection Tour Of South-South Zone : Fashola Preaches Peace As Only Viable Means To Achieve Economic Recovery, Prosperity

*“Everybody wins when there is peace and nobody wins when there is conflict”, he says
*Commends National Assembly, South-South Parliamentarians for support on Infrastructure Development
*Underscores role of FG , Federal Controllers of Works as partners in progress not competitors with States

The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN has advocated peace in the country as the only means to achieve the overall development of the country saying in the atmosphere of peace everybody wins while nobody wins in a situation of conflict.

Fashola, who spoke while touring on-going Federal road projects across the five South-South States of the country, said in spite of political and ideological differences, the most important objective of the nation was to develop Nigeria for the benefit of all Nigerians.

In all the States he paid courtesy calls on the Governors after inspecting the projects, the Minister reiterated the importance of peace as a vehicle of development through investments by both local and foreign investors pointing out that no investor would want to commit his capital in an insecure and conflict prone environment.

Speaking against the backdrop of constant sabotage of gas pipelines in the Niger Delta region which had a negative impact on Gas supply to power plants in the country, Fashola told his hosts, “We need to find peace here very quickly and the story must change and this is not a place the story suggests you can’t work”, adding that the main reason for his visit was to come and see first-hand whether what was being said about the region was true.
The Minister, who acknowledged that the grievances of those who sabotage the pipelines was equally important added, “You will see that in the last few days, the Acting President has been particularly busy in this area trying to reach out to communities to see what methods and efforts would bring peace; because that is really when we will begin to talk of the economy and prosperity, when we have peace”.

“So as I continue to say, our brothers who are angry in this Nigerian family must understand that damaging the household is not the best way to express their anger. That does not make their grievances unimportant; but destroying the house and bringing down the roof does not solve their anger. So there must be a meeting of minds somewhere”, the Minister said. According to him, “Let us produce fuel, let us earn money; we fought for OPEC to cut production so that the price can go up so why are we now breaking the pipelines? It means that we can’t produce and benefit from what we fought for. The price of oil has gone up from over $40 to over $50. We made all the efforts through OPEC and now we can’t benefit from it, it doesn’t make sense”.

The Minister, who pointed out that peace would mean that teachers and workers could be paid, while gas production would be enhanced to support more power production, declared, “That will give comfort to small businesses, villages, communities, welders, when we have the extra 3,000MW. Then it is in that atmosphere of peace that we can then solve the problems of our brothers. Everybody wins when there is peace and nobody wins when there is conflict”. Fashola, who said more ambassadors were needed who would be proud and feel safe to work in the region, said that would encourage investments in infrastructure which, according to him is desperately needed in the region adding, “But we can only do that by collaboration, by peace and partnership.”

The Minister, therefore, advocated a better synergy between the Federal and State governments in the development of the country pointing out that the Federal Controllers of Work in the various states were sent as ambassadors of the Federal Government for the establishment of partnership between the two levels of government.

At the Government House Yenagoa where he paid a courtesy call on the Governor of Bayelsa State, for example, Fashola reiterated his message to all the other Governors he had visited during the tour of the region, “I will urge you to accord the Federal Controller of Works here the same if not better treatment which we accord the foreign people that come here. They are our Ambassadors for partnership and collaboration with you and not to compete with you”.

According to the Minister, “We can only address the infrastructure work that needs to be done here  by peace and partnership”, adding that not only did the Governor and himself have their jobs cut out for them but the governors in the South-South “must step up now and change the conversation” around the region.

At an interview after inspecting the road projects in the State including the construction of the Yenagoa-Okaki –Kolo Road, the Minister, who acknowledged the challenges of infrastructure in the region due to its topography, however, said the importance of the region to the Federal Government was such that it must get all the attention it deserved.

He reiterated that paucity of fund was not the major challenge to completion of road projects, especially in the Niger Delta region adding that it took the commitment of the Buhari administration, which he said increased capital budget from 15 per cent in the 2015 and previously to 30 per cent in 2016, to remobilize contractors back to sites they abandoned for more than two years due to non-payment of contract fees. According to the Minister, “As at the time when we had money, when a barrel of oil sold for $100 per barrel, we did not take the issue of roads seriously because the capital budget then used to be 15 per cent. It is the Buhari administration which is increasing capital budget to 30 per cent which means that this government is taking the issue of roads more seriously and that is why we are here.”

The Minister commended the members of National Assembly for their supportive role in approving budgetary provisions for the Ministry and especially for their cooperation towards the proposed new bulk budgeting system for infrastructure development which would help ensure that Contractors no longer abandon project sites simply because their names were not in the budget for a particular year.

Fashola also thanked the lawmakers especially those representing the people of the Niger Delta states, for their contribution and support to the on-going infrastructure development across the country and Niger Delta saying their cooperation had enabled the government to forge ahead with the remobilization of contractors to previously abandoned road contracts including the Yenagoa-Okaki –Kolo Road.

The Minister, particularly commended Senator Ovie Omo-Agege, Senator Magnus Abe and former member of the House of Representatives, Hon. Halims Agoda for drawing his attention to various roads in their Constituencies which according to him, had received due contract approval resulting in the remobilization of the contractors and resumption of activities on the sites.

On-going road projects inspected during the three-day inspection by Fashola and senior officials of the Ministry include, the Calabar-Ikom-Ogoja Road (Sections 1 and 2), Calabar-Akamkpa Road and Akamkpa-Alesi-Ugep (Iyamoyong), Calabar-Ugep-Katsina-Ala, Clabar- Odukpani Junction among others in Cross River State, Umuahia-Ikot-Ekpene in Abia/Akwa Ibom States, Ikot-Ekpene-Aba-Port Harcourt and Enugu-Aba-Port Harcourt Expressway (Section iv).

Others are Bodo - Bonny road with Bridges  across Afa, Opobo and Nanabie Creeks in Rivers State ,Warri-Sapele  Expressway (repairs) and Sapele-Ewu (Section 1) and Sapele-Agbor in Delta State and Dualisation of Lokoja-Benin road (Section iv) and Ehor-Benin City in Edo State, among others

The Minister had earlier undertaken a similar inspection tour of highway projects in the South-East and North Central Zones of the country.

Feb

13

2017

Insufficient Budgetary Provision Responsible For Untimely Completion Of Road Projects - Fashola

The Minister of Power, Works and Housing, Babatunde Raji Fashola, has stated that the major factor militating against the timely completion of road projects is insufficient budgetary provision for projects to sustain annual cash flow requirement levels, adding that this underscores the need for diversifying the sources of funding for highway projects through concession of bankable  projects.

Fashola stated this while defending his Ministry’s 2017 budget proposal before the House of Representatives Committee on Works at the National Assembly recently.
He said that the three sectors of the Ministry namely Power, Works and Housing and their parastatals proposed the sum of N564,211,583,496 for  Capital projects, Personnel and Overhead cost for the year 2017. The Capital Breakdown shows; Works stood at N283,138,551,643:00, while Parastatals stood at N28,349,090,000:00. For the Overhead cost proposal; Works is N554,538,906 while Parastatals is N17,169,056,316:00 and Personnel cost proposal stood at N10,426,114,809 for the three sectors of the Ministry namely Power, Works and Housing under the Integrated Payroll and Personnel Information System (IPPIS), programme in the Office of the Accountant General of the Federation, (OAGF)

The Minister further stated that in 2017, highway projects have been prioritized into six;  Saying that  the objective of doing this is to pay premium attention to projects at arterial highways and to record appreciable progress in order of importance of the projects.

He added that the sum of N150,470,553,292:00 representing 62.22% was proposed to execute National Priority one projects in 2017; saying that the  National Priority Projects include the road projects on critical economic routes on the Federal Road network. These are highly trafficked North-South, East-West Routes, used for the distribution of goods and services across the country and major river crossing bridges. On the priority two, the total sum of N43,143,299,357:00 representing 17.84% was proposed to execute projects under this priority. These are projects being executed along the branch routes from the critical economic routes on the Federal Road Network that serve as links between the major Routes and Agricultural producing hubs, factories and mining deposits for the evacuation of agricultural produce , manufactured goods and raw materials to markets and Ports nationwide.

Fashola further stated that, Priority three are the projects targeted to routes leading to the Nation’s Refineries, Petroleum Deports, Major Ports and Mineral producing areas in the Country meant to ease movement of petroleum products and imported goods from the Ports/Deports to other parts of the country. The sum of N25,508,708,266:00 representing 10.55% was proposed to execute various road projects under this category. Also, priority four are the  roads in key agricultural States producing cash crops like yam, rice, maize, cassava, fruits, adding that the objective is to boost agricultural production, ease movement of crops to markets. The sum of N8,900,000,000:00 was proposed for the projects under this category.

The Minister further said that, priority five are the projects under Counterpart Funding, funded from Multi-literal Loans such as World bank and African Development Bank. The sum of N874,409,248 representing 0.36% was proposed while priority six are the on-going projects on the federal road network and road interventions in the Tertiary Institutions across the country. The sum of N12,943,028,838:00 representing 5.35% was proposed for other on-going projects in 2017.

Feb

09

2017

The Federal Executive Council (FEC) also on Wednesday approved the construction of the section 1 of the Ilorin-Omuaran-Kabba Road for N21 billion to link Kwara and Kogi states.

The Minister of Power, Works and Housing, Mr Babatunde Fashola, said that FEC also approved a N589 million consultancy for Environmental Impact Assessment on the 200 kilometre Olorunshogbo Transmission line.

Fashola said the projects were consistent with the programmes of the federal government to reduce travel time and improve power supply to parts of the country..

“The second approval was for consultancy services for professionals to conduct line-route studies, Environmental Social Impact Assessment and resettlement action plan as well as environmental social management plan.

“(It) is in order for us to access the Japanese International Cooperation Agency (JICA) loan to support the Transmission Company of Nigeria (TCN) to continue its transmission grid expansion programme.’’

The Minister said that the TCN projects cover the routes which the transmission line would pass through.

He added that the 200 kilometre line would enable TCN evacuate power from the Olorunshogbo power plant to industrial clusters in Ogun and parts of Lagos state.

In his briefing, the Minister of Agriculture, Chief Audu Ogbe, said that the committee set up on the rising cost of food prices has submitted an interim report to the Council.

According to him, the committee identified the causes of the rise in prices as high cost of transportation and illegal taxation by states and local governments on producers and transporters.

He said that the good thing was that there was no real shortage of food, adding that Nigerians were groaning under the pain of high prices.

He attributed the high cost of transportation to the complete reliance on roads for evacuation of produce coupled with high cost of diesel and difficulties of trucks to move to places at the old fares.

“So we considered the following alternatives using railway wagons on the current railway networks as we did before. When we moved cattle from the North West to Lagos by rail, we brought down the costs.

“We avoided the multiple taxation visited on transporters in this country by local governments, road blocks, most of them not very legal, along the high ways, which delay movement and cause damage to a lot of foods like tomatoes.

“We decided to work with the state governments and the police to reduce those delays and we are going to adapt what they have in Cote D’Ivioire where trucks carrying food are given labels.

“In fact in Cote D’Ivoire, they cannot be stopped for more than 10 minutes anywhere even if something serious has happened.

“The security agencies will follow them to the port or to their destinations and come back to investigate whatever happens.

“Finally, we shall be looking into our reserves , if the situation in the next few days persists, then we have to see what we can bring out to lower the prices. (This is) because another round of harvests would be coming up again by the end of March,"Audu Ogbe said.

The Minister said there was really no starvation in the country, adding that there was also a lot of pressure on Nigerian food from West, North and Central Africa.
“Our food production is very robust and we are doing pretty well,’’ he added.

Feb

09

2017

FG approves construction of Ilorin-Omuaran-Kabba road; Consultancy for transmission lines.

The Federal Executive Council (FEC) also on Wednesday approved the construction of the section 1 of the Ilorin-Omuaran-Kabba Road for N21 billion to link Kwara and Kogi states.

The Minister of Power, Works and Housing, Mr Babatunde Fashola, said that FEC also approved a N589 million consultancy for Environmental Impact Assessment on the 200 kilometre Olorunshogbo Transmission line.

Fashola said the projects were consistent with the programmes of the federal government to reduce travel time and improve power supply to parts of the country..

“The second approval was for consultancy services for professionals to conduct line-route studies, Environmental Social Impact Assessment and resettlement action plan as well as environmental social management plan.

“(It) is in order for us to access the Japanese International Cooperation Agency (JICA) loan to support the Transmission Company of Nigeria (TCN) to continue its transmission grid expansion programme.’’

The Minister said that the TCN projects cover the routes which the transmission line would pass through.

He added that the 200 kilometre line would enable TCN evacuate power from the Olorunshogbo power plant to industrial clusters in Ogun and parts of Lagos state.

In his briefing, the Minister of Agriculture, Chief Audu Ogbe, said that the committee set up on the rising cost of food prices has submitted an interim report to the Council.

According to him, the committee identified the causes of the rise in prices as high cost of transportation and illegal taxation by states and local governments on producers and transporters.

He said that the good thing was that there was no real shortage of food, adding that Nigerians were groaning under the pain of high prices.

He attributed the high cost of transportation to the complete reliance on roads for evacuation of produce coupled with high cost of diesel and difficulties of trucks to move to places at the old fares.

“So we considered the following alternatives using railway wagons on the current railway networks as we did before. When we moved cattle from the North West to Lagos by rail, we brought down the costs.

“We avoided the multiple taxation visited on transporters in this country by local governments, road blocks, most of them not very legal, along the high ways, which delay movement and cause damage to a lot of foods like tomatoes.

“We decided to work with the state governments and the police to reduce those delays and we are going to adapt what they have in Cote D’Ivioire where trucks carrying food are given labels.

“In fact in Cote D’Ivoire, they cannot be stopped for more than 10 minutes anywhere even if something serious has happened.

“The security agencies will follow them to the port or to their destinations and come back to investigate whatever happens.

“Finally, we shall be looking into our reserves , if the situation in the next few days persists, then we have to see what we can bring out to lower the prices. (This is) because another round of harvests would be coming up again by the end of March,"Audu Ogbe said.

The Minister said there was really no starvation in the country, adding that there was also a lot of pressure on Nigerian food from West, North and Central Africa.
“Our food production is very robust and we are doing pretty well,’’ he added.

Feb

08

2017

Remarks By Honourable Minister At The Inauguration Of Nigerian Electricity Regulatory Commission (NERC) Commissioners

P R O T O C O L S
Welcome to this solemn but important event that has the propensity to profoundly and positively impact the electricity sector of our economy.

Pursuant to the nomination of suitably qualified Nigerians by Mr. President and the confirmation of the Senate, we gather to inaugurate:

1. Messrs Sanusi Garba, an Engineer (Electrical)-Vice Chairman
2. Professor Frank Okafor, an Engineer (Electrical)
3. Dafe C. Akpeneye, a Legal Practitioner
4. Nathan Roger Shatti, an Accountant
5. Dr. Musiliu O. Oseni, an Economist
6. Dr. Moses Arigu, a Scientist & Mathematician

as Commissioners of the Nigerian Electricity Regulatory Commission (NERC).

They have been chosen in the manner prescribed by law; and I particularly welcome their arrival for many reasons:
a)    Provides stability in governance regulatory action and institution building to the sector; and
b)    It allows the Ministry to focus on policy; coordination and completion of on-going Generation and Transmission projects.

I will like to thank Dr. Anthony Akah, who acted in capacity of CEO of NERC for about a year.  His service to his country is highly appreciated and he must now hand over to the Vice-Chairman and his fellow Commissioners and return to his normal schedule of duties.

For the information of the public, this occasion provides the opportunity to again share knowledge with ourselves about the Nigerian Power Sector.

The first thing to emphasize is that the power sector has been privatized.

This process occurred and was concluded in November, 2013; and has resulted in the vesting of majority of Power Generation and Power Distribution in the hands of private owners.

So for the avoidance of doubt, power is now in private hands, and government is now largely a policy maker, and Regulator.  Policy is the work of the Ministry and as I said, the completion of on-going Generation projects and Transmission projects.

Regulation is the work of NERC acting through the Commissioners we inaugurate today.

So for all those seeking license to generate power, to build coal and solar plants, and all other similar proposals, your letters should go to NERC not to the Ministry – Although you can copy us for information.

For all those who have issues with Meters, Estimated Billing, Customer Service issue, this is the work of NERC to ensure that the DISCOs perform and I urge you to direct your complaints to them, and keep us informed about the service they render to you, because we oversee them; but will not interfere with their work.

To NERC and the new Commissioners, I welcome you on board. 

Be firm, but fair.

Regulate but be business oriented.

Remember that regulations are Rules; and Rules are made for us, we are not made for the Rules.  Regulate with the understanding that the industry is young, in Transition and needs support.

I wish you success and you can count on the support of the Ministry.

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

7TH FEBRUARY, 2017.    

Feb

06

2017

*Construction workers, suppliers of materials, other support workers benefit as Contractors step up work on South-East roads,others        

*As Minister tours Highway projects in South-East Zone , pledges equitable distribution of infrastructure in all parts of the country

*Stresses that the FG is not in competition with any State government as the two are partners in progress irrespective of the political parties

The Federal Government’s strategy of rebooting the economy through infrastructure development across the country has started yielding results as impressive figures came forth during the inspection of the highway projects in the South-East zone by the Hon. Minister of Power, Works and Housing, Mr Babatunde Fashola SAN.

The figures came from the restoration of lost jobs for construction workers, creation of indirect jobs through support workers like food vendors, suppliers of materials like sand, laterite, water tankers and improving demand and supply for allied businesses like diesel and fuel to power trucks, tractors, graders and milling machines among others.

According to the Minister, who made several stops to interact with Contractors, workers, members of the community around and journalists, injecting money into the economy by paying contractors who have not been paid for three years, who can now pay their workers, refinance their bank loans, and pay their suppliers have positive multiplier effects now gradually manifesting.

Such positive effect include improving the ease of doing business by reducing travel time on completed road sections, making uncompleted sections temporarily more motorable, reducing the cost of travel and movement of supplies including food and farm produce thus restoring production and ultimately growth to the economy.

Fashola said in addition to restoring jobs and creating new ones, the Federal Government was committed to equitable distribution of infrastructural facilities across the nation’s six geopolitical zones.

Fielding questions after inspecting a section of the on going rehabilitation of Enugu-Port Harcourt Expressway, Fashola emphasized that the Federal Government, led by President Muhammadu Buhari, was not and would not be discriminatory in the allocation of developmental projects across the country irrespective of political affiliations.

The Minister told the newsmen in response to a question, “As I said when I visited the Imo State Government, which was where I started, our government is blind to party when it comes to development. Every state of this Federation is part of the constituency of the Federal Government and we have his mandate to partner and not to compete with them”.

“One of the things that I want to say at this time is that there is no part of the country that the Federal Ministry of Power, Works and Housing is not doing one thing or the other”, he said adding that the mandate of the President was being executed nationwide through the Federal Controllers of Works in the states whom he described as Ambassadors of the Federal Government.

Fashola, who expressed delight at the collaboration that was now emerging between the State commissioners of Works, Infrastructure and Transport “as designated” on one hand and the Federal Controllers of Works, said as such collaborations got better government would be able to overcome some of the challenges that had bogged down road development across the country.

The Minister, however, appealed to the commissioners of Works in the states to provide and sustain the collaboration by providing access and partnership with the Federal Controllers in their states whom, according to him, have been directed to make themselves available to support the states.

On why some of the Federal roads across some states never got adequate attention in spite of their economic importance, Fashola noted that in the past, some of the funds provided for the interstate Federal roads were diverted to build community roads described as “spurs” while neglecting the interstate roads adding, however, that the Federal Government was poised to change such practice.

The Minister, who cited the Imo State situation as example, recalled, “What we saw was that in the past funds that were, perhaps, meant to build interstate roads, because that is our work, we noticed that those funds had gone to building intercommunity roads.”

“So, we saw on our records, Owerri-Umuahia Road under construction. But the truth is that no work is going on there; the work is going on in roads that lead to villages”, the Minister said pointing out that the funds would have been better used in building the Owerri-Umuahia Road that connects two big economies, and that probably would have connected them to Akwa Ibom and to Enugu states to facilitate more trade.

He declared, “The villages to which those roads were being built, what is the business there, there was only one person making coffin. But the main roads which would enhance commercial activities were not getting attention”, adding that even while those funds were being employed in doing community roads, the records being presented to the Federal Government were that the interstate roads were being done.

Stressing Federal Government’s determination to change the situation, Fashola again reiterated, “We have to focus on our own work and get the legislative arm to support us to focus on our own work to build roads that connect states, roads like Owerri- Umuahia-Okigwe, Enugu-Port Harcourt and so on. These are the roads we want to focus on”, adding that without prejudice to what the representatives of the people wanted to do at their local levels those were the roads that must take priority.

The Minister, however, clarified that using those funds meant for federal roads to do community roads should not be seen as diversion of funds since the community roads being built were part of national development but reemphasized that given the choices that must have to be made, roads that carry the heaviest traffic should take priority over others down the line.

Stressing the importance of positive and progressive thinking, Fashola, who said he preferred giving hope to the people everywhere he went, added that whatever had made the contractors to stop work and abandon the sites was in the past as the present administration has come to change the situation.

The Minister told the newsmen, “Everywhere I go I bring hope. Let us stop talking negatively; what happened was yesterday. There was poor funding in the past but the contractors are getting money now. The Buhari Government is now paying contractors”.

As for how long the project would take to complete, Fashola, who based it on how much and how soon more money would be made available to the contractors added, “But they are now getting money after not being paid for three years. From the very first budget that was passed in May last year, we have returned people to work”.

“You heard when the contractor was saying that they have recalled 335 of the workers they laid off. And the people of this community are benefitting by supplying water, gravel, vending food and other businesses. So the economy is on its way back. This is the way out of recession”, he said.

In all the project sites inspected, the Ministry had ensured that the Contractors transparently displayed details of the work being handled, budget releases, the states to be connected by the roads and the staff engaged. For example, the Rehabilitation of Enugu-Port Harcourt Expressway Section III: Enugu-Lokpanta being handled by CGC Nigeria Ltd had such a board which indicated that the project which is located in the Southern part of Enugu State is the first section of the rehabilitation project of the dual carriageway connecting Enugu-Imo-Rivers from Enugu to Port Harcourt. It indicated that 252 direct jobs and 57 indirect jobs for Nigerians had been created through the project.

Similarly, Arab Contractors handling the Rehabilitation and Reconstruction of Enugu- Port Harcourt Dual Carriageway Section II : Umuahia Tower- Aba Township Rail/Road Bridge Crossing in Abia State has created 535 and 436 direct and indirect jobs respectively. On the construction of Abiriba-Arochukwu-Ohafia Road in Abia State, the local contracting firm Beks Kimse Nigeria Ltd has created 30 and 20 direct and indirect jobs respectively. Also in Abia State, the Rehabilitation and Reconstruction of Enugu-Port Harcourt Dual Carriage Section I : Lokpanta-Umuahia Tower in Abia State has generated 220 direct and 30 indirect jobs for residents.

Earlier, while on a courtesy call to the Imo State Governor, Owelle Rochas Okorocha in Owerri, Fashola had told the Deputy Governor of the State, Eze Madumere, who stood in for the Governor that he was in the State to see first hand the projects being executed by the Federal Government and to reemphasize the assertion that the Federal Government was not discriminatory in its distribution of developmental projects.

At the direction of the Minister, the Federal Controller of Works in the State briefed  the audience on the number and stage of work on the federal road projects in the State. According to the Works Controller, there are five federal road projects currently going on across the State and at different stages of completion.

They include the rehabilitation, expansion and improvement of Owerri-Ohafia Road which, according to him, is now 60 per cent complete, construction of Ikot-Ekpene Border-Aba-Owerri Dualization Section 1 Phase 1,which, he said was 22 per cent complete, construction of Mbaise -Ngwa Road Phases 1 and 2, 11 per cent complete, rehabilitation of Amawaisu-Ozuakoli Road, 60 per cent complete and Oba-Nnewi-Okigwe Road Section 2, 30 per cent complete.

Also according to him, assessment has been carried out on four other roads including Ihube-Okigwe and Aghara-Owerri Roads and proposals have been written and submitted to the headquarters of the Ministry for the rehabilitation of collapsed sections of the roads.

Speaking after the Controller of Works’ briefing, Fashola added, “I think it is important to emphasize that, perhaps contrary to the impressions that may have been created in some quarters, it is now clear from the list of road projects in the state that the Federal Government is present here and in other states”.

“The question now see is the status of the projects and, perhaps, additional things that the states may want the Federal Government to do”, he said adding, “It is very fairly common knowledge that most of these roads had contractors who had left the sites over the last two to three years before the advent of this administration largely because they were not paid”.

The Minister explained further, “And as I reiterated at the inception of my tour of duty was that the quick starter was to remobilize those contractors back to site on the five roads and others for repairs in the state”, adding that because the 2016 budget did not come into force until sometime in May, 2016 while warrant for payment was issued in June and payment was made in July, mobilization of contractors was already facing some challenges because it was at the peak of the Rainy Season.

He, however, added that having operated the budget now for seven months, one of the things he had come to do in the State was to see for himself what was going on and to do some spot check, even though, according to him, “I get reports with photographs”.

He added, “But one other think I also wish to achieve is to continue to emphasize the importance of our Controllers of Works in various states. If we are going to make progress in providing support and partnership with state governments, the quickest way to do so is through the Controllers”.

“I have met with them, I have briefed them about the role that they will play as ambassadors of the Federal Government in the development and support of the state governments in infrastructure renewal”, Fashola said reiterating that the Federal Government was not in competition with any state government.

He added, “We are partners in progress irrespective of the political parties we belong”, reiterating that the Controllers, whom he described as “our ambassadors”, have the clear mandate to go and support the State governments and not to oppose them. He also advised the State governments to report to him any difficulty they experienced with any of our controllers.

The Ministry, he said, was trying to develop a programme that would help the Controllers have, “not only the administrative and democratic authority and autonomy to take control of their states”, adding, “We are also hoping that in this fiscal year they would also have financial authority to support you. When that is concluded, I will announce the details of how it will be done”.

On the National Housing Programme as it concerned the State and others in the Zone, the Minister also asked the Federal Controllers of Housing in the States to brief with all reporting progress in the allocation and clearance of land in preparation for commencement of construction of buildings for the National Housing Programmes.

The Minister, however, noted that electricity still remained an issue, adding that in terms of expansion of the National Grid, progress was being made and the grid was getting bigger. He also said that gas supply was a challenge especially from the damage to the pipelines at the Forcados and Escravos.

Other challenges, the Minister said, included involvement in trying to solve disputes between geometric states over their power project adding that the case that arose out of the dispute has now been taken out of court and the parties have agreed to settle.

“We are at the point now where the issues of financing compensation that was paid in dollars is the last major hurdle to overcome. When that is done, we expect that the power plant would be completed and it is possible to have more dedicated power for this state and especially for its industries and  commercial enterprises”, the Minister said.

In his response, the Imo State Deputy Governor, Eze Madumere, described the visit of the Minister as very significant and historic pointing out that since 2011 when the government took office, this was the first time a Minister of Works was visiting the State.

“We have been here since 2011 and we have not seen anything like this”, the Deputy Governor said adding that the fact that the Minister could left every other thing he was doing to come and see things for himself in the state showed that the concern of the President Buhari administration in the development of the state and the country.

Expressing appreciation of the government and people of the state for the new development, the Deputy Governor pledged the readiness of the state government to do everything in its power to assist and support the Federal Government to achieve its developmental objectives in the state.

Feb

06

2017

FG Not Competing With States But Ready To Support  - Fashola.

Directs Federal Controllers of Works as Ambassadors to maintain good working relations with States.

The Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN has directed Federal Controllers of Works to work in collaboration with State Governments towards the rehabilitation of Federal Roads within their domain, maintaining that the government of President Buhari is not in competition with them but ready to support them in order to build good roads in the country.

Fashola who is on an inspection tour of road projects in the South-East geo-political zone stated this during a courtesy visit on the Governor of Imo State, Owelle Rochas Okorocha, OON who was represented by the Deputy Governor, Prince Eze Madumere, MFR.

The Minister said he embarked on the tour in order to verify reports of on-going rehabilitation works he had received and to further establish other areas of co-operation and assistance between the Federal and State Governments.

He reiterated the repositioning of Federal Controllers of Works in various states as Ambassadors of the Federal Government who should be in cordial relationship with their host communities so as to develop good and efficient road infrastructure network across the country.

The Minister emphasized that efforts are being made to ensure the provision of good, motorable roads across the country and to cause this to happen, the government released funds in 2016 to contractors who were being owed for the last three years. The contractors have since returned back to their respective construction sites, thus recalling their worker which has had multiplier effect on the nation’s economy.

The Federal Controller of Works in Imo State, Engineer Oluwatoyin Obikoya, who briefed the gathering, gave a rundown of the various stages of all Federal Roads in the state and the completion stages of those that are presently under rehabilitation/reconstruction.

Responding, the Deputy Governor expressed appreciation for the visit and stated that the Minister's presence in the south-east would give hope to the people and credence to the fact that the All Peoples Congress (APC) Government of President Muhamadu Buhari is concerned about their welfare and will not relent in giving the required attention to Federal roads in the South-East geo-political zone so as to grow the economy of the people, the states and the nation.

Prince Madumere remarked that the visit marks the first time the presence of the Federal Ministry of Works would be felt in the state, as such the visit will avail the Minister the opportunity to appreciate the challenges faced by the people in the road sector. He added that there shouldn't be any difference between Federal and State Roads reiterating that the concern of the Imo State Government is for the people to be able to move their goods and services around in the interest of the people of the state and the generality of Nigerians.

Feb

06

2017

2016 Budget: We only Received 53 Per Cent of Our Allocation – Fashola

The Minister of Power, Works and Housing, Mr Babatunde Fashola, has disclosed that the works sector received only 53 per cent of the over N300 billion appropriated to it 2016.

He made this known at the ongoing 2017 budget defence before the Senate Committee on Works on Monday in Abuja

Fashola said that although the entire ministry was allocated N456. 94 billion in the 2016 budget, works section had N301.85 billion allocation.

He, however, said that the ministry’s capacity to implement the budget had been directly related to the monies released to it.

“It is not the question of lack of capacity but the question of how much revenue the country earns and how they can give to us to pursue our work.

“We received only 53 per cent on the allocation; there is the possibility that we will get more before the current budget fully winds down,” he said.

Fashola notified the committee that the proposal of the ministry for the return of contractors to work was progressively implemented.

“I doubt that there is any state in the federation where there is no road project going on, whether it is our own direct project or constituency project,” he said.

According to him, the budget is working but more needs to be done in terms of continued funding of infrastructure to recover lost roads.

Earlier, Chairman of the committee, Sen. Kabiru Gaya, had said that budget defence symbolised the commitment of the National Assembly in the pursuit of national economic wellbeing through the road map of key infrastructure, like roads.

While clearing the “padding misconception’’ of the 2016 budget, Gaya said “the budget was brought to us as a draft. We are to amend whatever is to be amended.

“The budget is a draft, we will do our work. The National Assembly could not have been said to have padded the budget.
“By law, it has constitutional rights to appraise the budget proposal sent to it. It will therefore be a misnomer in the process of considering the budget to be seen as padding.”

He, however, emphasized the importance of road infrastructure to the economic wellbeing of the country and called for the rehabilitation of dilapidated roads across the country.

“This will help to promote national economic growth and prosperity,” he said.
The chairman said that major challenge in the development and maintenance of road infrastructure was inadequate funding.

He said that funding and investment needs of the nation’s key infrastructural deficit could not be considerably met by relying on solely on budget.
“We must explore more resourceful ways of delivering quality service in this sector.

“We must consider alternative sources of funding like public-private partnership and foreign investors to support the budget in the future,” he said.

Jan

28

2017

No To Premium Times’ New Found Love For Fiction As Journalism

The attention of the Office of the Hon. Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN has been drawn to another sensational offering from the platform of the Premium Times.

Without doubt, the so called “Special Report” with the screaming headline “Works Minister, Fashola, in N166 billion contract mess” fits perfectly into an emerging pattern by Premium Times to create fiction, avoid obvious facts and sensationalise headlines in order to draw attention and sell its struggling platform.

Barely two weeks ago, the same Premium Times published a similarly fabricated report with the mischievous headline, “EXCLUSIVE: Buhari administration plotting to break Nigerian law in award of $800 million contract.”

It is a known fact that the media industry, like other sectors, in the economy, faces challenges thrown up by the recession. Indeed, the challenges of the media industry precede the recession. However, while the Federal Government and well meaning Stakeholders, including the media, are working assiduously to address the challenges, constantly muckraking and deliberately maligning public officials and institutions should not replace the age long responsibility of the media to hold government accountable to the populace.

Examining the mischievous report published by Premium Times readily shows the obvious contradictions and the less than altruistic intentions therein.

To start with, the report established the fact that there was an Evaluation Committee made up of a Chairman and Members who are ranking professionals in their own right. Even by its own admission, the report that went to the Bureau of Public Procurement (BPP) was the work of the Evaluation Committee which does not have the Hon. Minister as member.

Except the publication was insinuating that the Committee colluded to perpetrate fraud for itself and the Ministry, which is not the case, then going to town about “Fashola” being in a “contract mess” leaves much to be desired.

The Premium Times contradicted itself by alleging a “contract mess” and yet admitted that the Ministry of Power, Works and Housing followed Due Process by advertising projects to be awarded and sending the list of selected contractors to the Bureau of Public Procurement. If the Ministry does what is expected of it by law and the institution of Government that it went to did its job, in what way does it amount to a “mess”?
It is pertinent to inform Nigerians that as at this moment, no new contracts have been awarded to date based on the 2016 Appropriation and as such no single kobo has been paid. The ‘contract mess’ which Premium Timessought to mislead Nigerian citizens with is an exchange of correspondence between two government institutions to which the Ministry has adequately responded.

It is worrisome that whilst Premium Times devoted its journalistic energy to the correspondence from the Bureau of Public Procurement, it failed to inform its readers of the response of the Ministry which comprehensively addressed all the issues raised in the Bureau’s referenced report. Is journalism now a one-way traffic?

For the avoidance of doubt, the statutory role of the Bureau of Public Procurement is to vet contracts to be awarded depending on the threshold. At the end of its work, it either issues a Due Process Certificate of ‘No Objection’ or withholds it. Indeed, even if it issues a Certificate of No Objection, the last approving authority for the threshold of jobs so sensationally reported by Premium Times is the Federal Executive Council and not the Hon. Minister or the Permanent Secretary of the Awarding Ministry. It should be noted that the BPP has the final decision on contract prices and in previous memos from the Ministry, the Bureau had reviewed the cost of contracts.

In a regime emphasising Due Process and underscoring efficient institutions, it should be a source of worry if the BPP certifies every piece of document that goes to it as being okay. So rather than sensationalise public institutions doing its job, it would be advisable for media organisations to educate its personnel on how the procurement system works.

Indeed, it is curious to note, that the frivolous allegations being published by Premium Times and most times often instantly “boosted” across social media platforms seems to have gained currency with the resolve of the Federal Government under the leadership of President Muhammdu Buhari to make budgets work for the people through faithful execution of projects across the country. In the locust years of miserable budgetary allocations to capital development, with scant regard for Due Process, it would seem all was well. A question that should aptly end this clarification meant to set the records straight is: “What do ‘they‘ want?”

Mar

21

2017

Buhari Creating Jobs, Spearheading Economic Recovery Through Housing Programme, Infrastructure Development - Fashola

* As Minister delivers President’s thank you message to young men, women at various construction sites in the North East

* Artisans, carpenters, bricklayers, welders, food vendors, suppliers hail Minister, Federal Government at Taraba, Gombe National Housing Project sites

* National Housing Programme currently going on in 33 States in the country

The Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, has undertaken an extensive inspection tour of on-going infrastructure projects in the North East Zone saying the rapid progress being made on the projects and the employment opportunities created in the process were a manifestation of President Muhammadu Buhari’s determination to achieve economic recovery and create jobs through housing, roads and general infrastructural development.

Fashola, who spoke in Taraba and other States in the course of the four days tour, told workers at the site of the State’s National Housing Programme that the whole idea behind the road and Housing development projects going on now across the country was to create jobs for the teeming unemployed youth, get those who had lost their jobs back to work and, thereby, energize the economy.

The Minister, who was received by the obviously excited workers with chanting of praise for the Federal Government as they waved and hailed him with their raised fists and working implements, assured Nigerians that the present administration was committed to empowering, especially, the vulnerable in the society such as the artisans, welders, bricklayers, carpenters, food vendors, suppliers of building materials and others.

As the Minister waved back and moved round the site of the National Housing Programme in Taraba State and engaged several of them in a chat, those who were working on the walls and other areas within the site gathered round to hear him even as he marched their excitement by posing such questions as when the worker was engaged, what he was doing before his engagement, whether he loved the job and the pay among others. An excited worker, Rilwan Adamu, who answered all the questions at the site of the National Housing Programme in Jalingo, Taraba State, praised the government for providing jobs for them.

Abubakar Umar also answered similar questions from the Minister at the site of the Housing Programme in Gombe State while an artisan, Jeremiah Barnabas, chatted with him at the site of the 40MW Hydro Power Plant in Dadin Kowa, Gombe State.

Thanking the workers on behalf of President Buhari, who, he told them, had asked him to greet them for contributing to the rebuilding and growth of their country, Fashola further encouraged them to be committed to their work as their contribution would help to put the nation’s economy back to shape and make the country prosperous for every Nigerian.

Addressing the workers, Fashola pointed out that the objective of the Federal Government was to get the youths back to work adding that the programme would energize the economy as artisans, carpenters, bricklayers, welders, food vendors, suppliers and many others engage in activities that put money in their pockets and food on their tables.

The Minister told them, “This is all what it is about; it takes care of the vulnerable members of our society. That is what Housing does; it energises the industry and it energizes employment. You will see trucks moving in and out, you will see bricklayers, you will see carpenters, you will see welders, you will see food vendors; and this is what we are igniting across the whole country”.

“That is why President Muhammadu Buhari said this year’s Budget is a Budget of Growth, getting people who have lost their jobs previously back to work, putting money in their pockets and restoring their dignity so that every morning they can tell their wives, they can tell their husbands ‘I am going to work’ ”, he said.

Earlier, the Federal Controller of Housing in the State, Mr Pius Eneji, who received and conducted the Minister round the site, had told the him that the site was on 16 hectares of land adding that the contractors were currently working on five hectares of the land.

He also told the Minister that there were a total of 76 units of houses in the site made up of four units of one bedroom semi-detached bungalows, 48 units of two bedroom semi-detached bungalows and 15 units of three bedroom semi-detached bungalows.

The Controller, who said the work on the site was delayed for some time because of some exigencies, informed the Minister that a total of 19 contractors were on the site and working pointed out that but for the delay, some of the houses would have gone beyond the levels that they were at the moment.

He said the number of workers that were engaged on a daily basis varies according to the volume of work at hand adding that when the building got to the stage of casting lintel, more workers would be required as well as at other stages of work as the buildings progress.

According to him, there is also a nine-man team sent from Abuja to monitor the project and the team was based in the State adding that his office has also deployed seven staff of the Ministry to complement the efforts of the Abuja team in order to ensure delivery of quality buildings for the people.

It could be observed at both the Gombe and Taraba sites that the buildings were at various stages of completion with some at the foundation level while others were already progressing towards the lintel level. 

Earlier at the site of the road inspection which was the construction of the Jalingo-Kona-Lam-Karim-Lamido Road, inside the State Capital, Fashola thanked the Taraba State Government for taking responsibility for the road, the contractor handling the project, for the quality of work done and the Taraba State Commissioner for Works and Transport, Dr. Tafarki Eneme, for supervising the project to completion.

The Minister, who assured that the Federal Government would reimburse the State the money they spent on the road, however, pointed out that the road was now a Metropolitan Municipal road as it ran inside the centre of the city adding that it no longer qualified as a Federal Road.

According to the Minister, “This is now a Metropolitan Municipal road. It really does not qualify in the sense of a Federal Highway because our work as a Federal Government is to connect states together. But obviously when this road was designated as a Federal Highway most of these developments were not here; but you now see that it now has a pedestrian sidewalk and all of the amenities.

“So it has become a Municipal road and if you apply, I think the Federal Government will be inclined to hand it over to you for maintenance and management”, he said, assuring the State Government, however, that the handover or any such arrangement in the future was without prejudice to its right to be fully reimbursed whatever it had spent on the road.

On Saturday, the Minister also took time off on his way to Yobe State to inspect the National Housing Programme in Gombe State during which he reiterated that President Buhari was determined to make Housing and Infrastructure development generally the main plank of his administration’s Economic Recovery Plan.

The Federal Controller of Housing in the State, Tpl. Yalin Luka Barnabas who received and conducted the Minister round the housing project, told him that there were altogether 76 housing units made up of 1,2 and 3 bedroom semi-detached bungalows adding that there were altogether about 500 workers on daily basis.

The National Housing Programme is currently going on in 33 states of the country.

Mar

14

2017

Power Sector Liquidity Receives Fresh Boost As FG Sets To Pay All Verified MDAs’ Bills To Discos For Electricity Delivered

* NDPHC announces progress on ongoing projects to connect communities that host NIPP

* TCN reports resolution of way leave issues in Uzalla, Edo State, and on-going work in Ondo, Rivers State and other locations around the country

* As Fashola chairs 13th Monthly Meeting with Power Sector Operators, Stakeholders in Ughelli, Delta State

On the heels of the N701 billion guarantee for the Nigerian Bulk Electricity Trading Plc, a fresh boost in liquidity in the nation’s Power Sector is in the offing as the Federal Government has indicated its readiness to commence payment of all verified bills owed Electricity Distribution Companies in the country for electricity supplied to its Ministries, Departments and Agencies (MDAs) based on the on-going audit of the bills submitted by the DisCos.

A report presented at the 13th Monthly Meeting of Power Sector Operators chaired by the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, in Ughelli, Delta State, on the on-going audit of debts owed the DisCos by MDAs, stated that all such verified bills would be recommended for payment as further demonstration of Government’s determination to lead by example with regards to payment for electricity delivered adding, that such payments would be on first-come-first-served basis.

The report contained in a Communiqué after the Meeting further stated that the verification team working on the audit received claims currently estimated at N59.3 billion, subject to further review, noting that 86 per cent of the debts, amounting to N51billion, were owed by the top 100 customers, mainly composed of military and defence installations around the country.

Also, the Niger Delta Power Holding Company (NDPHC) presented ongoing projects to connect communities that host National Integrated Power Projects (NIPP) just as it announced progress on projects in Ikot Nyong, Egbema, Ihovbor, Gbarain, Olorunsogo, and Omotosho saying the expected completion date for Magboro community would be April while the Olorunsogo connection would be completed in June this year.

Other progress reports include the resolution of way leave issues in Uzalla in Edo State, and ongoing work in Ondo, Rivers State and other locations around the country as reported by the Transmission Company of Nigeria (TCN); the improved compliance with submission of audit accounts as reported by the Nigerian Electricity Regulatory Commission (NERC) and the completion of maintenance works in Awka and Maiduguri to improve service delivery as reported by the Enugu and Yola DisCos.

Acknowledging that the economic progress of the country largely depends on the success of the Power Sector, the Meeting commended the Federal Government for the recent approval by the Federal Executive Council of financing to assure payment to GenCos for electricity generated and supplied on the grid noting that it would enhance investor confidence in the industry.

It noted with delight that the newly reconstituted NERC would more rigorously perform regulatory duties tasking the regulatory body to standardize reporting on financial performance, safety and customer service as a fair basis for ranking distribution companies and other industry operators.

Receiving with delight the reports by the Enugu and the Yola DisCos on the completion of maintenance works in Awka and Maiduguri to improve service delivery to targeted customers, the Meeting commended them for the completion of the projects and, however, reemphasized the need to react to customer complaints more speedily.

Acknowledging the Federal Government’s decision to support NBET with N701 billion over two years for NBET to pay generation companies for electricity produced under the Power Purchase Agreements, the Meeting, however, said the initiative did not discharge the obligation of the DisCos to pay their invoices to the Market Operator for services provided by Transmission Service Provider (TSP), ISO (Independent System Operator), and to NBET for the electricity generated, transmitted and delivered to customers.

The Meeting, hosted by Transcorp Power Limited, and chaired by the Minister, focused on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry even as the operators were fully represented at the highest executive management levels.

Those in attendance included a NERC Commissioner, Managing Directors and CEOs of GenCos, DisCos, TCN as well as various government agencies such as the NDPHC, NBET, Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA) responsible for the regulation and development of the electricity industry.

Prior to the commencement of the Meeting, the Minister of Power, Works and Housing and the Governor of Delta State commissioned a 115MW turbine installed by Transorp Ughelli Limited, bringing installed capacity to 620MW from the 160MW they inherited on privatization in 2013.

Speaking at the occasion, Fashola, who described the decision of Transcorp to invest in the nation’s Power Sector as a demonstration of its confidence in the economy of the country, said the Buhari Administration reposed more confidence on local investors as they would not run away even if the ship hit stormy waters.

Assuring that the administration would continue to create enabling environment for more local investors to come into the sector, the Minister appealed to youths of the Niger Delta to see the investment as belonging to one of their own saying any time they disrupted operations at the plant they would be hurting their own person.

He declared, “The Governors of the Niger Delta have been and must continue to be the champions of peace. The youths of the Niger Delta must recognise that nobody can be more Niger Delta than Tony Elumelu. He chooses to invest here. So every time you take away gas from this plant you are hurting one of us, you are hurting one of your own and we are losing opportunities”.

In his remarks, Transcorps Power Limited Chairman, Mr Tony Elumelu, stated that the plant currently generates only 300MW due to shortage of gas supply, and assured the preparedness of the company to invest facilities to increase gas supply to the power station if government created an enabling regulatory framework.

Mar

06

2017

Power Sector Liquidity: FG Commits N702 Billion To Nbet To Meet Payment Obligations

* Says it is part of its Economic Growth and Recovery Plan to take the nation out of recession

* It is in recognition of the critical role that energy and access to electricity play in economic growth and poverty reduction – FG

* Subsequent interventions to strengthen financial transparency and discipline, attain and sustain generation, transmission and distribution above 4,000 MWh/h, among others

As a first step towards solving the debilitating liquidity problem in the Power Sector, the Federal Government is committing up to N702 Billion to the Nigerian Bulk Electricity Trading (NBET) to enable it meet its payment obligations to Generation Companies (GenCos) on a more regular basis to ensure delivery of electricity across the country

The commitment under the “Payment Guarantee Support to NBET”, scheme takes retrospective effect from January, 2017 and would enable the government-owned NBET to pay its obligations to the GenCos and through them to their gas and equipment suppliers, banks and other partners.

According to a Communiqué issued Friday by the Ministry of Power, Works and Housing, the Federal Government intervention, which represents a critical element of its Economic Growth and Recovery Plan, is part of the far-reaching steps taken by the Federal Executive Council (FEC) on Wednesday, March 1, 2017, to reset the electricity industry in view of “the critical role that energy and access to electricity play in economic growth and poverty reduction”.

It is also to provide payment assurance to electricity generation companies, improve financial liquidity in the power and banking sectors and ensure the provision of electricity to households and businesses to boost economic growth, job and wealth creation, the Communiqué said. Recalling that the Commissioners of the Nigerian Electricity Regulatory Commission (NERC) was recently inaugurated to provide government with “the requisite legal and regulatory framework to implement its credible recovery programme,” the Communiqué said the steps, “conceived within a sequence of sector reforms”, represented Government’s commitment to enforcing decisions taken as a nation to move from a wholly Government-owned to private sector led electricity industry.

“These steps, conceived within a sequence of sector reforms, confirm Government’s commitment to enforcing decisions taken as a nation to move from a vertically integrated Government owned statutory monopoly that did not serve our power needs, to a private sector led industry-with Government as guarantor, regulator and policy maker–that achieves the objective of developing a better and sustainable power sector as quickly as possible”, the Communiqué said.

Assuring that Government, in collaboration with NERC, would continue to work with the DisCos to improve their payment performance from the current 24.9 per cent level, with the 100 per cent target, the Communiqué said subsequent complementary interventions would seek to strengthen financial transparency and discipline to ensure that all industry revenues were fairly distributed to all market participants and their suppliers according to contractual commitments.

Subsequent interventions, the Communiqué also said, would seek to achieve and exceed the contracted and committed ATC&C loss targets and sustain aggregate collection efficiency above 60 per cent as well as secure adequate capitalization and liquidity to ensure that all market participants, particularly those upstream of the DisCos, were paid according to contracts and were adequately funded to sustain and expand their operations.

Other objectives subsequent Government interventions would seek to achieve include attaining and sustaining generation, transmission and distribution above 4,000 MWh/h delivered to customers, from lowest cost base load GenCos by deploying and/or facilitating new generation using all available energy sources.

Government will also seek to recover lost gas supply, add new gas supply, and complete transmission projects curtailing generation particularly in the eastern part of the national grid, the Communiqué said adding that through wider consultation, government would implement a simplified tariff methodology that would accurately reflect market realities, exchange rate realities, and the cost of producing and delivering electricity.

Acknowledging, however, that the plans alone would not solve all the problems of the Power Sector, the Communiqué said they were, however, conceived “within a package of measures” to ensure that the electricity system continued on a steady trajectory of growth, better service delivery and a climate where investors who played by the rules set by NERC and deliver results that benefit the consuming public were compensated appropriately.

It recalled that NERC licensed eleven distribution companies (DisCos) to distribute and sell electricity with the Private Sector owning 60 per cent while Government retained 40 per cent shares of the companies adding that Government also established NBET, 100 owned by it, to buy electricity in bulk from electricity generating companies (GenCos) licensed to produce electricity.

“The intention was that while the DisCos take the time necessary to improve and expand their networks of substations and lines, enumerate and meter their customers, buy additional power directly from GenCos and provide better customer services, the existing and new GenCos could confidently make investments to expand generation with assurance that the bulk buyer would pay them for the electricity they deliver”, it further explained adding that Government retained ownership, for the time being, of the transmission system used to transmit the electricity from the GenCos to the DisCos.

It said, however that the DisCos have not improved customer services at the pace Government and the country would expect and also were not paying fully for the electricity they received from the GenCos through NBET adding, however, that some of the reasons for the failure were not the fault of the DisCos alone.

According to the Communiqué, “Regulatory and tariff inconsistencies of the past administration, unexpected changes in the foreign exchange market, and lower than expected generation due largely to pipeline vandalization for example, have challenged the DisCos’ ability to perform. But much of the failure relates to their inadequate financial and technical capacity and some sharp practices of the DisCos in their administration of collections from customers”.

Explaining the reason for government intervention, the Communiqué said as a result of the aforementioned inadequacies, NBET’s monthly collection from the DisCos was not enough to pay NBET's contractual obligation to the GenCos resulting to huge government debts adding that in recent months the payment by the DisCos to NBET was as low as 17.0 per cent of NBET's invoice.

“In January 2017, it was 24.9 per cent. The GenCos in turn do not pay their gas suppliers, equipment suppliers, banks and other partners what they are contractually bound to pay. The DisCos also do not pay TCN what is contractually due to it for transmitting the energy the DisCos sell to consumers”, it said adding that these had resulted in payment shortfalls with the accumulated debts increasingly threatening the electricity supply system and undermining the growth of the economy and the electricity sector.

The Communiqué read in part, “In recognition of the critical role that energy and access to electricity plays in economic growth and poverty reduction, the Federal Government of Nigeria (FGN) as part of its Economic Growth and Recovery Plan, at its Federal Executive Council meeting of 1st March 2017 has taken far-reaching steps to reset the electricity industry”.

“These steps, conceived within a sequence of sector reforms, confirm Government’s commitment to enforcing decisions taken as a nation to move from a vertically integrated Government owned statutory monopoly that did not serve our power needs, to a private sector led industry –with Government as guarantor, regulator and policy maker–that achieves the objective of developing a better and sustainable power sector as quickly as possible”

Mar

06

2017

* Says it is part of its Economic Growth and Recovery Plan to take the nation out of recession

* It is in recognition of the critical role that energy and access to electricity play in economic growth and poverty reduction – FG

* Subsequent interventions to strengthen financial transparency and discipline, attain and sustain generation, transmission and distribution above 4,000 MWh/h, among others

As a first step towards solving the debilitating liquidity problem in the Power Sector, the Federal Government is committing up to N702 Billion to the Nigerian Bulk Electricity Trading (NBET) to enable it meet its payment obligations to Generation Companies (GenCos) on a more regular basis to ensure delivery of electricity across the country

The commitment under the “Payment Guarantee Support to NBET”, scheme takes retrospective effect from January, 2017 and would enable the government-owned NBET to pay its obligations to the GenCos and through them to their gas and equipment suppliers, banks and other partners.

According to a Communiqué issued Friday by the Ministry of Power, Works and Housing, the Federal Government intervention, which represents a critical element of its Economic Growth and Recovery Plan, is part of the far-reaching steps taken by the Federal Executive Council (FEC) on Wednesday, March 1, 2017, to reset the electricity industry in view of “the critical role that energy and access to electricity play in economic growth and poverty reduction”.

It is also to provide payment assurance to electricity generation companies, improve financial liquidity in the power and banking sectors and ensure the provision of electricity to households and businesses to boost economic growth, job and wealth creation, the Communiqué said. Recalling that the Commissioners of the Nigerian Electricity Regulatory Commission (NERC) was recently inaugurated to provide government with “the requisite legal and regulatory framework to implement its credible recovery programme,” the Communiqué said the steps, “conceived within a sequence of sector reforms”, represented Government’s commitment to enforcing decisions taken as a nation to move from a wholly Government-owned to private sector led electricity industry.

“These steps, conceived within a sequence of sector reforms, confirm Government’s commitment to enforcing decisions taken as a nation to move from a vertically integrated Government owned statutory monopoly that did not serve our power needs, to a private sector led industry-with Government as guarantor, regulator and policy maker–that achieves the objective of developing a better and sustainable power sector as quickly as possible”, the Communiqué said.

Assuring that Government, in collaboration with NERC, would continue to work with the DisCos to improve their payment performance from the current 24.9 per cent level, with the 100 per cent target, the Communiqué said subsequent complementary interventions would seek to strengthen financial transparency and discipline to ensure that all industry revenues were fairly distributed to all market participants and their suppliers according to contractual commitments.

Subsequent interventions, the Communiqué also said, would seek to achieve and exceed the contracted and committed ATC&C loss targets and sustain aggregate collection efficiency above 60 per cent as well as secure adequate capitalization and liquidity to ensure that all market participants, particularly those upstream of the DisCos, were paid according to contracts and were adequately funded to sustain and expand their operations.

Other objectives subsequent Government interventions would seek to achieve include attaining and sustaining generation, transmission and distribution above 4,000 MWh/h delivered to customers, from lowest cost base load GenCos by deploying and/or facilitating new generation using all available energy sources.

Government will also seek to recover lost gas supply, add new gas supply, and complete transmission projects curtailing generation particularly in the eastern part of the national grid, the Communiqué said adding that through wider consultation, government would implement a simplified tariff methodology that would accurately reflect market realities, exchange rate realities, and the cost of producing and delivering electricity.

Acknowledging, however, that the plans alone would not solve all the problems of the Power Sector, the Communiqué said they were, however, conceived “within a package of measures” to ensure that the electricity system continued on a steady trajectory of growth, better service delivery and a climate where investors who played by the rules set by NERC and deliver results that benefit the consuming public were compensated appropriately.

It recalled that NERC licensed eleven distribution companies (DisCos) to distribute and sell electricity with the Private Sector owning 60 per cent while Government retained 40 per cent shares of the companies adding that Government also established NBET, 100 owned by it, to buy electricity in bulk from electricity generating companies (GenCos) licensed to produce electricity.

“The intention was that while the DisCos take the time necessary to improve and expand their networks of substations and lines, enumerate and meter their customers, buy additional power directly from GenCos and provide better customer services, the existing and new GenCos could confidently make investments to expand generation with assurance that the bulk buyer would pay them for the electricity they deliver”, it further explained adding that Government retained ownership, for the time being, of the transmission system used to transmit the electricity from the GenCos to the DisCos.

It said, however that the DisCos have not improved customer services at the pace Government and the country would expect and also were not paying fully for the electricity they received from the GenCos through NBET adding, however, that some of the reasons for the failure were not the fault of the DisCos alone.

According to the Communiqué, “Regulatory and tariff inconsistencies of the past administration, unexpected changes in the foreign exchange market, and lower than expected generation due largely to pipeline vandalization for example, have challenged the DisCos’ ability to perform. But much of the failure relates to their inadequate financial and technical capacity and some sharp practices of the DisCos in their administration of collections from customers”.

Explaining the reason for government intervention, the Communiqué said as a result of the aforementioned inadequacies, NBET’s monthly collection from the DisCos was not enough to pay NBET's contractual obligation to the GenCos resulting to huge government debts adding that in recent months the payment by the DisCos to NBET was as low as 17.0 per cent of NBET's invoice.

“In January 2017, it was 24.9 per cent. The GenCos in turn do not pay their gas suppliers, equipment suppliers, banks and other partners what they are contractually bound to pay. The DisCos also do not pay TCN what is contractually due to it for transmitting the energy the DisCos sell to consumers”, it said adding that these had resulted in payment shortfalls with the accumulated debts increasingly threatening the electricity supply system and undermining the growth of the economy and the electricity sector.

The Communiqué read in part, “In recognition of the critical role that energy and access to electricity plays in economic growth and poverty reduction, the Federal Government of Nigeria (FGN) as part of its Economic Growth and Recovery Plan, at its Federal Executive Council meeting of 1st March 2017 has taken far-reaching steps to reset the electricity industry”.

“These steps, conceived within a sequence of sector reforms, confirm Government’s commitment to enforcing decisions taken as a nation to move from a vertically integrated Government owned statutory monopoly that did not serve our power needs, to a private sector led industry –with Government as guarantor, regulator and policy maker–that achieves the objective of developing a better and sustainable power sector as quickly as possible”

Feb

28

2017

* Solar Unit Distribution Programme (SUDIP) will provide up to 12MWs, 6,000 jobs and impact at least 60,000 persons, he says
* Advocates that programme be taken to the street level to make the people understand and connect with it
* A new economy is possible and people must understand that this is that new economy - Minister

As the nation plans to inaugurate the first African Sovereign Green Bond to address climate change and sustainable environment , the Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, has stated the benefits derivable from the project saying it would facilitate a new economy and help the government to source funds to implement its budget, especially in infrastructure development.

Fielding questions from newsmen after the Green Bonds Capital Market & Investors Conference organised by the Federal Ministry of Environment and the Debt Management Office (DMO) at the Nigerian Stock Exchange (NSE) House in Lagos, Fashola said the fund, which, according to him, would be directed to fighting climate change, would enable government realise its renewable energy projection.

Reiterating that Nigeria was working towards achieving 30 per cent in renewable energy by 2030, the Minister, who disclosed that the Solar Unit Distribution Programme (SUDIP) project was estimated to cost N1.3 billion, added that the units in aggregate from the project would provide up to 12MWs of power, creating 6,000 jobs and impacting at least 60,000 persons.

The Minister, who noted that one of the challenges that has stalled development in the country over the years was the lack of sufficient infrastructure spend added, however, that going forward the Green Bond would help government to source funding to implement its budget. “So, that is how it affects us; it is a source of funding for budget”, he said.

On what his Ministry expects from the Bond when issued, Fashola explained that the decision as to who gets what and what goes where would be the responsibility of the Ministry of Finance adding, however, that his Ministry needed as much money as it could get “to continue to upgrade and build new infrastructure in Power, in Works and in Housing”.

He explained further, “As you heard from the Acting President and the Hon. Minister of the Environment, the first launch of this Bond is only looking to a size of about N20Billion to test the Market; those are going to go ostensibly into some smaller spend size because there are so many things to do”.
“But the ultimate decision as to who gets what is the responsibility of the Ministry of Finance. But we need as much money as we can get to continue to upgrade and build new infrastructure in Power, in Works and in Housing”, he said. According to the Minister, “N20Billion is the first issuance in Naira; but this is the first Sovereign Bond in the whole of this Continent, so I expect that they want to enter the Market very conservatively and see what the appetite is and from there ramp up”, adding that over the last one and a half decades, the entry threshold of government into Capital Market had been very modest but had grown severally.
Assuring that the proposal to achieve 30 per cent renewable energy by 2030 was realistic, Fashola declared, “It is extremely realistic; it is based on very extensive consultations, it is based on our current realities, it is based on what we expect is realistically achievable”.

“Yes, I said 30-30-30, it is 30 per cent in 2030 and these things are not unconnected with our current realities also and one of our realities is that we signed the Paris Agreement and the Paris Agreement has thresholds and nationally determined contributions that we have made as a country that we would achieve in terms of reducing Green House gases, Green House emissions and so on and so forth”, he said.

In his contribution at the Conference earlier, during the Ministers’ Dialogue with the theme, “Ensuring Sustainability of Green Bonds”, Fashola advocated that the concept of the Sovereign Green Bond and its components of Climate Change must be taken to the street level to enable Nigerians understand and connect with it adding that it would also make implementation of the environmental projects easy among the people.

“The first thing to do is to bring all that we do here to the street level. It must get to the street level otherwise it becomes a very esoteric discussion that people on the streets don’t understand and can’t connect to”, the Minister said, adding that the people should be made to understand why they should or should not take some actions.

He added, “I say this in the context of my own personal experience; each year we tell the people ‘don’t use firewood’, don’t do this, don’t do that and the question then is ‘what would they do to survive?’ So, in very simple terms, we must put this in the hands of the people”.

According to the Minister, “A new economy is, therefore, possible and they must understand that this is that new economy; an economy that allows them to do the same things differently, in a much better way and in a way that sustains the environment for the human civilization”.

Fashola said the proposed Renewable Energy micro utility in the 45 communities across the country would cost $10Billion while the Energizing Education Project would cost $213Million. Also, according to the Minister, out of the expected 119MW of Power, 60MW would be renewable adding that 37 universities and seven teaching hospitals have been audited as anchors to the programme.

On the Energy Mix programme which, he reiterated, is meant to achieve 30 per cent of renewable energy by 2030, the Minister said most of the renewable energy would come from Solar, Biomass and all other forms of sustainable energy sources adding that it would give the country an Energy Security.

When that is achieved, he said “No part of the country will be able to hold the nation to ransom in future”, adding “The first sign of that journey is the 1.2 MW of Power in Abuja to power the Water Works. “So that Water Works is now off-public power, it is Solar-driven”.

The Minister added, “You may wonder how much power is 1.2MW solar power; it is power for at least 200 families; that is how prolific it can be. The next one is 1125MW of solar power that we have issue Power Purchase Agreements to 14 Solar Energy Providers”.

He commended the Minister of the Environment, Mrs Amina Mohammed and everybody else who had worked with her to put the programme together describing the subject of our Panel discussion, “Sustainability of Green Bonds”, as “a fitting place to kick off the brain box”.  

The Acting President, Professor Yemi Osinbajo SAN, in his address, described the initiative as a new addition to the market funding portfolio, stating that the proceeds would be used to fight climate change which, according to him, “had led to more natural disasters, thereby impacting negatively on food, water and energy supply”.

Osinbajo, who said the initiative would also provide an opportunity to deepen the capital market as well as tackle poverty, pointed out that the bond issuance would also support the Federal Government’s shift to non-oil base assets for project financing for economic growth and development.

He said that the proceeds of the bonds would be used for environmental projects such as renewable energy micro-utilities in three communities estimated at N10 billion adding that it would as well provide an average of 33KW of power through solar technology.

Also speaking, Minister of Environment, Mrs Amina Mohammed, said the project was in line with the Federal Government’s sustainable development initiative started in September 2016 adding that the government, under its recovery growth plan initiative, identified Green Bonds as a vehicle that could be used to drive the economy in terms of environmental projects funding.
She said the bonds if properly harnessed would create new jobs, open new investment avenues for the country as well as ensure creative thinking adding that the proceeds would be invested in critical social-economic and environmental sectors that would impact on the lives of common Nigerians even as she called on domestic investors to rally round the issuance to ensure its success in order to support government diversification agenda.

Feb

28

2017

FG Has Kept Its Promise To Restart Nation’S Economy Through Infrastructure Development – Fashola
* Says in every state of the Federation there is now one project or the other going on
* A clear government policy on the way to ensure steady supply of gas to power plants being evolved
* Housing programme at proof of concept stage with contractors already working in 30 states
* Advocates support for the government in order to achieve the desired change

The Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, at the weekend in Lagos reviewed the performance of his Ministry in the last one year asserting that the promise at inception to restart the economy through infrastructure development was being met in all the sectors under his charge. 

Fashola, who spoke in Lagos at the Nigerian Economic Outlook – 2017 Conference organised by BusinessDay Newspapers with the theme, “The Emergence of Green Shoots?”, said in every state of the Federation today there was one project or the other going on and engendering the distribution of wealth as lost jobs were being regained while new ones were being created.

Beginning from the Works Sector, Fashola, who recalled that in his inaugural press briefing he promised to restart the reconstruction of major roads to reconnect states, pointed at the ongoing reconstruction/rehabilitation works on Federal roads and bridges across the country as evidence of the fulfilment of the promise.

“Today, you see roads from Sokoto  to Ilela-Tamburawa, to Benin-Okene, Ilorin-Jebba, Kano to Maiduguri crossing five states, Calabar to Akwa-Ibom crossing two states, Lagos-Ibadan crossing three states, Enugu-Port Harcourt crossing five states, Enugu to Onitsha crossing two states, and in every state of this Federation there is now some road work going on”, the Minister said.

Also recalling that he promised that through that initiative lost jobs would be recovered, the Minister, who said the plan was to create more jobs, said, however, that by the time the economy was restarted the first thing that resulted was to recover lost jobs adding that in all the construction sites today, the story by the workers was “our employer has recalled us”.

“We promised that through this process we would legitimately redistribute the wealth of the nation and we are doing that as well; because now, drivers are back to work and they get paid for work done. People are vending, people are quarrying, trucking cement. So once that contractor is paid in my Ministry, the wealth distribution process starts until it gets to the Mama-put in the site of the construction yard”, he said.
Recalling also his promise that through the programme, journey time experience would be improved by first of all shortening journey time and then improving travel experience, Fashola declared, “Make no mistake; the work is not finished; but if you have driven on those roads you have a relatively better story to now tell”.

The Minister, who said he was also “monitoring and collecting data in a more scientific approach rather than these personal testimonies”, said the exercise would help him “know where we are gaining on our promises and where we need to bolster up”.

He was also going round, he said, “to go and see what is happening” and periodically at the Federal Executive Council, projects that have been approved for procurement were announced adding that recently FEC approved 11 roads while last Wednesday, one bridge between Nigeria and Cameroun joining the Enugu-Abakaliki Highway, was approved.

Also, according to the Minister, the Kaduna Eastern Bypass was approved to reduce the pressure on the Kaduna Metropolis and improve journey time for people going on to Zaria. He declared, “And this will not stop as long as the budget is passed”.

Fashola said all the projects were made possible “because President Buhari as the captain and the Vice President and the Minister of Budget and Economic Planning understand the need to increase the infrastructure spend”, adding that although N7Trillion looked like a lot of money, it was small considering the enormity of the problem at hand.

“But it is enormous when compared to where we were coming from”, he said adding that he got a budget of over N200Billion in 2016 for Works, for roads, compared to N18 Billion in 2015. “That is the context; from N18Billion to N260 Billion, that is the context”, he said.

Fashola also said his promise to achieve constant power supply in the country through Incremental Power in the short term to Steady Power in the medium term and Uninterrupted Power in the long term was also yielding results, pointing out that soon after that promise the nation attained 5,000Megawatts for the first time but lost a substantial part of it a few months later through gas pipeline vandalism.

The Minister, who regretted that such sabotage should happen because some Nigerians were angry, however, said the National Grid climbed back to about 4,217MW early last week but lost about 800MW again by Thursday last week due to another pipeline burst at Rumuji in Rivers State adding that efforts were being made to put it back.

According to the Minister, while all these were going on, the transmission line was being expanded and could now carry a minimum of 6,500MW and a maximum of 7,000MW of electricity adding that the talk about the transmission line being able to carry only 5,000MW was false.

Blaming the current challenges in electricity supply to the fact that the nation depends largely on gas to the neglect of other sources of energy that are also available in the country, Fashola said his Ministry has also developed an Energy Mix anchored on renewable energy sources such as Solar and Wind energy adding that the plan of government was to achieve 30 per cent of renewable energy by 2030.

He said the government has since signed a power Purchase Agreement with 14 Solar Energy providers to supply 1125MW to the grid adding that there was also a conceptualisation of a massive close to 2,000MW, subject to design in Jigawa State which, according to him, would be modelled after the Moroccan experience in Marrakesh. A piece of land has already been allocated while a team has started work on the project, he said.
In addition, he said, the Ministry has commissioned a 1.2MW solar plant to power the Lower Usman Dam Project in Abuja while work is going on also in several other projects across the nation such as the 10MW Wind Farm in Katsina, the 700MW Zungeru Power Plant which may be delivered in late 2018 or early 2019 as well as the Azura Power Plant where work has resumed after years of court cases.

Noting that all these projects were meant to achieve Incremental Power which he promised in the short term, Fashola, who said government was also working assiduously to solve other challenges such as liquidity, distribution and metering, added that Government would soon announce a clear policy that would secure payment to Generation Companies to enable them pay their suppliers and restore confidence in the sector.

In Housing, the Minister recalled that he promised a National Housing Implementation Programme so that the nation would achieve its National Housing Policy which, since 2012, promised to deliver affordable housing adding that his Ministry has evolved a programme that would address acceptability of what was given to the end users.

Pointing out that past Housing programmes were carried out without sufficient consideration to cultural and climatic diversities in the country, Fashola added that this had created acceptability gap. “But the Ministry has now conceived designs which are going to initial proof of concept stage where contractors are already working at 30 states of the country at the moment”, he said.

“Later in the year we will come back to share the results of what we have seen”, the Minister said adding, “It is only when we have national acceptability that we can then roll out the commodity large scale and that is where the Private Sector becomes our partner in delivery; we will become the off taker through the Federal Mortgage Bank, issuing mortgage to people and giving an effective purchasing capacity through mortgage”.

Advocating total support for the present administration as the only way for the nation to achieve the Change objective which they voted for, Fashola, who likened the government to a football team argued that since Nigerians chose the team themselves because of their desire to change what they did not like, they were morally bound to support that team and urge it on to achieve the desired change.

Speaking on the topic “Infrastructure Spending as a Strategic Tool for Economic Recovery and Growth”, the Minister, who rhetorically posed the questions as to why Nigerians elected the present government and what they expected from the government, declared, “Don’t give up on your team. That is why you voted this government, we all wanted a Change”.

Fashola, who recalled that the component of Change, as campaigned by the administration, was embedded in three promises; Security, Corruption and the Economy, pointed out that although issues of insecurity were global, the one that bothered the nation most was terrorism.

“That was the front burner issue; has this government contained terrorism; you answer that inside you honestly”, he said, adding that although the scourge of corruption was self-inflicted the present administration has demonstrated, more than any other government the resolve to fight the menace. 

“Now, in the face of the prosecutions, the arrests and some of the evidences that are beginning to come out, is this government walking its talk?”, he asked adding “You just ask yourselves honestly; because this kind of arrests was not made before this government”.

“Nigeria had a lot of money, oil was selling at $100/barrel, billions of petro-dollars; where did the money go? I tell people, Burj Khalifa, the Dubai showpiece to the world, cost $1.5billion to build. We made more than that kind of money; Google it. What did we do with our own dollars? So that was what you wanted to change as well”, he said.

Fashola noted that in the process of fighting corruption, some people had also taken the mantle to fight government making unsubstantiated allegations against evidences being presented in court by those determined not to let the fight succeed and would bring down anybody’s reputation in order to achieve their purpose.

While assuring that Government would implement the 2017 budget as well as the recovery plan, Fashola recalled, “The economy that you wanted to change was investing 15 per cent in Capital Expenditure and was recording all sorts of growth”.

“But you kept saying it was a jobless growth, you said it. It was in every newspaper headline; “Growth Not Inclusive”. That was what you wanted to change”, the Minister said adding that the present administration has changed all that by increasing capital expenditure to twice the 2015 amount for the same purpose.

According to him, “Now, you have heard from the Budget Minister, working with his President and the Vice President increasing, slowly but surely, with dwindling resources, the Capital investment that is going into infrastructure; that presentation has been made’’.

“At the time when we had $100 per barrel we were budgeting 15 per cent, we were budgeting N4 Trillion and our number was growing. Now, at the time that we have less money, we are budgeting almost double of N4 Trillion and spending more on the Capex. That is the hard road that we have to walk but it will be a road worthwhile if we persevere”, Fashola said.

Still on the economy, the Minister, who argued that it was important to know where the nation veered into recession in order to successfully chart a course out of it, recalled that during the period of under-budgeting, roads were not built while contractors were not paid for three to four years.

As a result, he said, the construction companies started downsizing both human and resources and equipment and in the process many artisans, drivers, welders and other construction workers lost their jobs and means of livelihood and so money ceased to flow down as even indirect employees like food vendors and suppliers also lost their jobs.

Fashola, who noted that economy started contracting four years ago, pointed out that immediately the free money from oil tapered out, the result was recession adding that it was important to understand how recession came in order to know how to get out of it. “And I speak only to the facts and not as personal opinion; these are the facts, and I think this audience can engage with the facts and the truth”, he said.

Also noting that if the understanding of how the nation got into trouble was collectively understood there would be united purpose on how to get out of it and the critical role everyone had to play, the Minister pointed out that global economic slowdown also played a part in the economic recession adding that both China, Japan, Saudi Arabia and other big economies experienced it in one form or the other.

The Minister said one of the steps taken by President Muhammadu Buhari to restart the economy was to cut down on public spending by reducing the number of Ministries adding that as a Minister in charge of Power, Works and Housing, he, along with a Minister of State were now managing the three-in-one Ministry hitherto supervised by five people.

According to him, “President Buhari compressed 42 Ministries to 24 and he told all of us then that if he had his way he would have stayed at 24 but the Constitution says there must be one Minister from each of the 36 states. So it is important that we just begin to locate our contexts as we deal with these issues”.

On the role of the Private Sector operators in the economic recovery plan of government, Fashola urged them to invest in the Government Bonds when they would be issued adding, “We need the money; I think that is where you are more prolific”.

The Minister also emphasized the need to play by the rules, expressing dismay that the roads constitute the major area where people break the rules building their businesses within the Right-of-Way on the highways. He cautioned those concerned to relocate voluntarily or risk being forced out.

“We need those businesses but they must be built outside and not within the Right-of-Way. It just denies other people the opportunity to use the assets built with their money. Those of us who are involved in haulage business for example must set up proper stabling yards for our trucks”, he said adding that it was a Private Sector issue.

Still on rules, Fashola frowned at the practice by Petrol tanker drivers who, according to him, exceed the approved capacity by 100 per cent loading 60,000 litres instead of 33,000litres of fuel adding, “This is flouting of the rules”.
Noting that the ECOWAS Commission has notified Nigeria as the only country in the sub-region that is still not enforcing the Absolute Compliance, Fashola declared, “So be sure that we are going to restore weighbridges. We are going to build warehouses next to them; we are going to offload that excess cargo. You are going to pay penalties for them because that is what happens all over the world, those are the rules”.

“So what I need us to do is just to play by the rules. It won’t be Christian and Muslim, it won’t be North and South, it won’t be geopolitical zones; just rules and we will be a happier people if we play by the rules”, the Minister said.

The Minister also said the Private sector could bring more efficiency into the over 60 per cent of the power assets within their management because that was why the privatization took place in the first place adding, “We wanted to see your efficiency and power of implementation and that would be helpful in terms of what could be done to support us to deliver”.

He also urged the larger members of the Private Sector who don’t own power assets to pay their electricity bills “if they are fair because I know that there are disputed bills” adding that they should use existing dispute resolution mechanisms-the Consumer Centres-instead of going to court.

Reiterating that the economic situation could be overcome if only Nigerians could deploy their resilience to use he declared, “It is only resilient people that can make determination come true in the face of daunting realities”, adding, “Now I couldn’t think of more resilient people than Nigerians. It is a strength that we have not projected proudly”.

The well-attended BusinessDay Economic Summit 2017 also featured the Minister of Budget and National Planning, Senator Udoma Udo Udoma, who made a presentation on “Key Pillars of the 2017 Federal Budget, and his Industry, Trade and Investment counterpart, Dr Okey Enyinna Enelemah, who also gave a presentation on “The Impact of an Improved Investment Climate In Attracting the Needed Private Capital for Sustained Growth”.

Feb

28

2017

Good Roads Enhance Rapid Socio-Economic Development - Fashola

The Minister of Power, Works and Housing Babatunde Raji Fashola, SAN, has said good road guarantees safety road users comfort, promotes good health and enhances rapid economic development, reduce travel time, less vehicle operation cost and timely delivery of goods and services nationwide.

He made this known today while commissioning the Abuja-Kaduna (Zuba) Expressway; he was represented by the Director Highways (Construction and Rehabilitation) Engr. Yemi Oguntominiyi.

The Minister disclosed that prior to the repairs, the existing dual carriageway was characterized with several failed section, potholes and multiple cracks; the scenario had led to many black spots resulting to avoidable accident, Kidnapping, armed robbery, increased travel time and high vehicle operating costs.

He further said that the emergency rehabilitation of the Expressway is necessitated by proposed maintenance of works to be carried out on the runway of the Nnamdi Azikiwe International Airport, Abuja. The Kaduna Airport is designated to serve as an alternative landing airport for all local and international flights to Abuja while the Abuja Airport undergoes repairs.

Fashola said that the Kaduna Dual Expressway, Route A2 has a total length of 165Km (all together 330Km) linking the Kaduna Western Bye Pass interchange at Kaduna to interchange in Zuba Abuja. He added that the road principally links the Federal Capital Territory (FCT) Abuja, to the Northwest and extends to some Northeastern parts of the country via Kaduna.

The Minister appreciated the contractors for delivering the project within the agreeable period of 7th January to 28th February 2017, and prayed the Federal Ministry of Aviation will equally deliver the repairs of the runway within the stipulated 6 weeks.

Feb

13

2017

US$151m, N8b Looted Funds Recovered As FG's Whistle-Blower Policy Yields Fruit

The Federal Government's Whistle-blower policy has started yielding fruit as it has so far led to the recovery of US$151 million and 8 billion Naira in looted funds, the Minister of Information and
Culture, Alhaji Lai Mohammed, said.

In a statement issued in Lagos on Sunday, the Minister said the looted funds, which do not include the $9.2 million in cash allegedly owned by a former Group Managing Director of the NNPC (which was also a dividend of the whistle-blower policy), were recovered from just three sources through whistle-blowers who gave actionable information to the office of the Minister of Justice and Attorney-General of the Federation.

The biggest amount of $136,676,600.51 was recovered from an account in a commercial bank, where the money was kept under an apparently fake account name, followed by 7 billion Naira and $15 million from another person and 1 billion Naira from yet another.

''When we told Nigerians that there was a primitive and mindless looting of the national treasury under the last Administration, some people called us liars. Well, the whistle-blower policy is barely two months old and Nigerians have started feeling its impact, seeing how a few people squirrelled away public funds. It is doubtful if any economy in the world will not feel the impact of such mind-boggling looting of the treasury as was experienced in Nigeria.

''Yet whatever has been recovered so far, including the $9.2 million by the EFCC, is just a tip of the iceberg,'' Alhaji Mohammed said.

He appealed to Nigerians with useful information on looted funds to continue to provide the authorities with such information, saying confidentiality will be maintained with regards to the source of the information.

The Minister also reminded Nigerians of the financial reward aspect of the policy, saying ''If there is a voluntary return of stolen or concealed public funds or assets on the account of the information provided, the whistle blower may be entitled to anywhere between 2.5% (Minimum) and 5.0% (Maximum) of the total amount recovered''.

Feb

13

2017

Efforts To Address Liquidity Issues, End Pipeline Vandalism In Niger Delta Record Progress

·      As Fashola chairs 12th Monthly Meeting with Power Sector Operators in Ibadan
·      TCN announces completion of the Osogbo–Ede line, transformer installation project in New Bussa; progress on Abeokuta-Igboora-Lanlate Line, other transmission projects in Iseyin,Ago- Iwoye, Magboro, Benin-Akure, Gamo-Ogbomoso

Progress has been reported on steps being taken by the Federal Government to address the issue of liquidity in the Power Sector just as the engagement of Niger Delta Communities by the Acting President, Professor Yemi Osinbajo, to find lasting solution to pipeline vandalism in the region is also yielding fruitful results.

The progress reports which also included key policy steps taken by the Federal Government to improve the stability of the Sector such as the inauguration of new Commissioners for the Nigerian Electricity Regulatory Commission (NERC) and the appointment of an interim Managing Director of the Transmission Company of Nigeria (TCN) to reform the company for a more robust service to the industry came to the fore on Monday at the 12th Monthly Meeting of the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, with Power Sector Operators in Ibadan, Oyo State.

In a Communiqué issued after the meeting which took place at the Ibadan Electricity Distribution Company (IBEDC) Olorunsogo Injection Substation, Akanran, Lagos-Ibadan Expressway, TCN also reported the completion of the Osogbo-Ede Transmission Line adding that it was awaiting connection to the soon to be completed substation which, according to the company would be achieved within the next 12 months.

The company also reported progress on the projects in the host (IBEDC) region including Abeokuta-Igboora-Lanlate 132KV DC Line, Odogunyan substation and transmission line, and transmission substation in Iseyin, as well as transmission projects in Ago-Iwoye, Benin-Akure, Gamo-Ogbomoso and Magboro, while the meeting charged them to expedite action towards completion and service delivery.

Also, in his submission at the Meeting, the Managing Director, Transmission Services Provider (TSP), Engr. Tom Uwah announced the completion of a transformer installation project in New Bussa adding that the substation should be ready for energizing in six weeks following the carrying out of pre-commissioning tests.

Noting the negative impact of sabotage of gas pipelines, which, according to it has led to a severe limitation in power generation in the country, the Meeting commended the efforts of the Acting President, Professor Yemi Osinbajo, in engaging communities in the Niger Delta in an effort to address their concerns and therefore, bring a lasting solution to pipeline vandalism.

Also commending the Federal Government for the recent inauguration of the new commissioners of the Nigerian Electricity Regulatory Commission, and the appointment of an interim Managing Director for TCN, the Meeting, which described the policy step as vital to the reformation of the company for a more robust service to the industry, added that they would also improve the stability of the Power Sector.

Expressing regrets that the gross liquidity problem was currently limiting the functioning of the sector, the Meeting acknowledged the work currently underway to identify, verify and pay the debts owed by government Ministries, Departments and Agencies (MDA) to DisCos, as well as gas debts and generation debts.

It noted with delight that the Abuja, Ikeja, Ibadan and Yola DisCos have complied with data requirements and that verification of their submission is underway “on a first come first serve basis”, pointing out that a deadline of 17th of February 2017 was set as a deadline for submission of audited and management accounts while February 28, 2017 was issued to receive submissions on MDA debts from the DisCos.

On the need for safety in the installations and operations of the service providers, the Meeting, which commiserated with the family of victims of recent electrical accidents, charged all DisCos to reinvigorate their efforts on safety of their networks and facilities.

The Meeting, while also harping on the need for good service delivery as one of the most viable means to stabilize the Sector, also directed the Nigerian Electricity Management Services Agency (NEMSA) to monitor the resolution of the issues arising from such electrical accidents.

The Meeting reiterated that service delivery should remain a key focus of the industry with enhanced efforts to engage community members in order to raise awareness and appreciation of work completed and resolved to undertake a stronger effort to connect the host communities of power installations to power supply.

In continuation of the regular practice aimed at creating healthy competition among the service providers, the Market Operator (MO) announced at the meeting that the Eko DisCo showed the highest payment performance to service providers, followed by Yola DisCo, while it encouraged other operators to fulfil their obligations to the market.

Apart from the Minister, who chaired the Meeting hosted by the Ibadan Electricity Distribution Company (IBEDC), other top officials in attendance at the Meeting were the Minister of State, Hon. Mustapha Baba Shehuri, one of the recently inaugurated Commissioners of NERC, Mr Dafe Akpeneye, Managing Directors and CEOs of GenCos, DisCos and the TCN.

Also in attendance were various government agencies such as the Niger Delta Power Holding Company (NDPHC), the Nigerian Bulk Electricity Trader (NBET), Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA) responsible for the regulation and development of the electricity industry. The meeting, as usual, focused on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry.

Feb

09

2017

Be Resolute And  Business Oriented, Fashola Charges New NERC Commissioners

The Minister of PowerWorks and Housing, Babatunde Raji Fashola, SAN, has charged the newly inaugurated Commissioners of the Nigerian Electricity Regulatory Commission (NERC), to be firm but fair, regulate but be business oriented, calling on them to be resolute in the discharge of  their duties.

The Minister gave this charge while inaugurating the Commissioners,on Tuesday in Abuja. He stated that with the new Commissioners on board, the Ministry and the Commission will now focus rigorously on policy formulation and regulation respectively.

The Minister who stated that the Commissioners were chosen as ‘’prescribed by law’’, emphasized that their appointments will ‘’provide stability in governance, regulatory actions and institutions building to the sector’’. Furthermore it will allow the Ministry to ‘’focus on policy, coordination and completion of ongoing generation and transmissions projects’’

Fashola, who used the opportunity to reiterate government’s preparedness to create an enabling environment for would be investors to operate, stated that they can now channel their requests and enquiries to the Commission for licenses to generate power, build coal, solar plant etc.

Heequally appealed to youths in the Niger Delta Area to embrace peace and dialogue as he lamented that Nigeria currently lost about 3000MW due to the vandalisation of gas pipelines that provide gas to the power plants in the Country.

The Minister said that with present capacity of 3500MW, the sector would have achieved 6500MW which will significantlyincreasethe quantum of electricity to Industries and Households.

The Six Commissioners inaugurated by the Minister are; Engr. SanusiGarba, Prof. Frank Okafor, DafeAkpeneye. Others are, Nathan Roger Shattti, Dr. MusiliuOseni and Dr. Moses Arigu.

Responding, the Vice- Chairman of the Commission, Engr. SanusiGarba, on behalf of the newly inaugurated Commissioners, commended President MuhammaduBuhari for thehonour given to them to serve the nation as well as steer the affairs of the Commission.

Engr. Sanusi re-affirmed the commitment of the Commissioners in dischargingtheir duties and promised to work diligentlyandhonestly in regulating the affairs of the sector and promise not to betray the confidence charged on them.

Feb

09

2017

FG to Boost Economy by Consolidating on Existing Housing Projects Across The Nation

The federal government has reiterated that it will consolidate on the various existing housing projects across the nation as a way of boosting the economy and taking Nigeria out of the present economy recession.

The minister of Power, Works and Housing, Mr Babatunde Raji Fashola, SAN, stated this while presenting the 2017 budget proposal of the Housing Sector of the ministry at the Joint Committee on Works, Power, Housing and Urban Development recently.

The minister, while giving an overview of the 2016 appropriation noted that despite the delay in budget passage of 2016 coupled with the process of finalization/standardization of the prototype designs for the National Housing Projects which was concluded around December, the ministry has issued award letters to competent and successful contractors.

The contractors, who have since been mobilized, have moved to their various sites to commence work. He further stated that the ministry was only able to achieve about 57 per cent of the estimated budget appropriation in 2016 due to paucity of funds and delay in releases, adding that the ministry will have done better if sufficient funds were released for designated projects.

Fashola said that the country will soon begin to feel the impact as laid-off workers have been re-absorbed, more are being employed, goods and services are in exchange and the local economy of the various project locations/sites around the country are now taking shapes.

While giving the broad framework of the proposal for 2017, the minister noted that the highlight of this year’s budget will focus mainly on the National Housing Programme, completion and award of new federal secretariats in some states of the federation and payment of outstanding local debt to contractors, adding that this in the overall will positively impact on the nation’s economy.

The chairman, Joint committee on Works, Power and Housing Urban Development, Hon. Ahmed Babba Usman Keita thanked the minister and his team for their efforts and requested that the minister should furnish the committee with a detailed breakdown and clarifications of the proposed 2017 budget to help in facilitating necessary appropriation for the ministry.

Hon. Keita also assured the minister that the committee will use every constitutional means available to it to ensure the release of adequate funds to the ministry.

Feb

08

2017

FG To Ensure Speedy Completion of Projects in the South –East

The Minister of Power, Works, and Housing, Mr. Babatunde Fashola says the present administration led by President Muhammadu Buhari will ensure that contractors handling federal road projects in the South- East complete them within the specified time frame.

Mr. Fashola who stated this when he visited the Anambra State Governor, Chief Willie Obiano at Governor’s Lodge, Amawbia said the Federal Government had put modalities in motion for the prompt release of funds and monitoring of the projects.

The Minister, who said that he was in Anambra State to rap- up his inspection tour of federal roads in the South East, noted that it was the intention of Federal Government to ensure that the roads, especially those connecting the States within the zone and with other regions were in good motorable condition.

Mr. Fashola who disclosed that alternative measures were been put in place to end the frequent failure of the Ninth-Mile-Ugwu Onyeama section of the Enugu – Onitsha Expressway pointed out that time and economic activities have improved in places where work had been completed on the Port Harcourt highway.

He reiterated the commitment of the present administration to support the state governments in the zone to achieve their development objectives and appealed to them to allow their Commissioners of Works to liaise with Federal Controllers in their areas to workout modalities for more efficient service delivery.

On the issue of Second Niger Bridge as well as the power situation in the country, the Minister explained that the Federal Government last year gave approval for early pilling works at the site, while it had adopted a three pronged approach to address the power challenges in the Country.

Governor Willie Obiano who expressed delight that the bad portion of the Umunya-Awkuzu axis of the Enugu- Onitsha Expressway would soon be included in the ongoing reconstruction of the highway appealed for more Federal Government presence in the area.

He pledged the support of Anambra State Government to the efforts of Federal Government to transform the Country.

In their separate remarks, the Federal Controllers of Works and Housing respectively in Anambra State, Messrs Edward Bosah and Newton Okorafor assured of the Federal Government commitment to initiate meaningful development in the South- East zone.

Feb

06

2017

The Minister of Power, Works and Housing, Mr Babatunde Fashola, has disclosed that the works sector received only 53 per cent of the over N300 billion appropriated to it 2016.

He made this known at the ongoing 2017 budget defence before the Senate Committee on Works on Monday in Abuja

Fashola said that although the entire ministry was allocated N456. 94 billion in the 2016 budget, works section had N301.85 billion allocation.

He, however, said that the ministry’s capacity to implement the budget had been directly related to the monies released to it.

“It is not the question of lack of capacity but the question of how much revenue the country earns and how they can give to us to pursue our work.

“We received only 53 per cent on the allocation; there is the possibility that we will get more before the current budget fully winds down,” he said.

Fashola notified the committee that the proposal of the ministry for the return of contractors to work was progressively implemented.

“I doubt that there is any state in the federation where there is no road project going on, whether it is our own direct project or constituency project,” he said.

According to him, the budget is working but more needs to be done in terms of continued funding of infrastructure to recover lost roads.

Earlier, Chairman of the committee, Sen. Kabiru Gaya, had said that budget defence symbolised the commitment of the National Assembly in the pursuit of national economic wellbeing through the road map of key infrastructure, like roads.

While clearing the “padding misconception’’ of the 2016 budget, Gaya said “the budget was brought to us as a draft. We are to amend whatever is to be amended.

“The budget is a draft, we will do our work. The National Assembly could not have been said to have padded the budget.
“By law, it has constitutional rights to appraise the budget proposal sent to it. It will therefore be a misnomer in the process of considering the budget to be seen as padding.”

He, however, emphasized the importance of road infrastructure to the economic wellbeing of the country and called for the rehabilitation of dilapidated roads across the country.

“This will help to promote national economic growth and prosperity,” he said.
The chairman said that major challenge in the development and maintenance of road infrastructure was inadequate funding.

He said that funding and investment needs of the nation’s key infrastructural deficit could not be considerably met by relying on solely on budget.
“We must explore more resourceful ways of delivering quality service in this sector.

“We must consider alternative sources of funding like public-private partnership and foreign investors to support the budget in the future,” he said.

Feb

06

2017

FG Rebooting Economy By Reviving Infrastructure

*Construction workers, suppliers of materials, other support workers benefit as Contractors step up work on South-East roads,others        

*As Minister tours Highway projects in South-East Zone , pledges equitable distribution of infrastructure in all parts of the country

*Stresses that the FG is not in competition with any State government as the two are partners in progress irrespective of the political parties

The Federal Government’s strategy of rebooting the economy through infrastructure development across the country has started yielding results as impressive figures came forth during the inspection of the highway projects in the South-East zone by the Hon. Minister of Power, Works and Housing, Mr Babatunde Fashola SAN.

The figures came from the restoration of lost jobs for construction workers, creation of indirect jobs through support workers like food vendors, suppliers of materials like sand, laterite, water tankers and improving demand and supply for allied businesses like diesel and fuel to power trucks, tractors, graders and milling machines among others.

According to the Minister, who made several stops to interact with Contractors, workers, members of the community around and journalists, injecting money into the economy by paying contractors who have not been paid for three years, who can now pay their workers, refinance their bank loans, and pay their suppliers have positive multiplier effects now gradually manifesting.

Such positive effect include improving the ease of doing business by reducing travel time on completed road sections, making uncompleted sections temporarily more motorable, reducing the cost of travel and movement of supplies including food and farm produce thus restoring production and ultimately growth to the economy.

Fashola said in addition to restoring jobs and creating new ones, the Federal Government was committed to equitable distribution of infrastructural facilities across the nation’s six geopolitical zones.

Fielding questions after inspecting a section of the on going rehabilitation of Enugu-Port Harcourt Expressway, Fashola emphasized that the Federal Government, led by President Muhammadu Buhari, was not and would not be discriminatory in the allocation of developmental projects across the country irrespective of political affiliations.

The Minister told the newsmen in response to a question, “As I said when I visited the Imo State Government, which was where I started, our government is blind to party when it comes to development. Every state of this Federation is part of the constituency of the Federal Government and we have his mandate to partner and not to compete with them”.

“One of the things that I want to say at this time is that there is no part of the country that the Federal Ministry of Power, Works and Housing is not doing one thing or the other”, he said adding that the mandate of the President was being executed nationwide through the Federal Controllers of Works in the states whom he described as Ambassadors of the Federal Government.

Fashola, who expressed delight at the collaboration that was now emerging between the State commissioners of Works, Infrastructure and Transport “as designated” on one hand and the Federal Controllers of Works, said as such collaborations got better government would be able to overcome some of the challenges that had bogged down road development across the country.

The Minister, however, appealed to the commissioners of Works in the states to provide and sustain the collaboration by providing access and partnership with the Federal Controllers in their states whom, according to him, have been directed to make themselves available to support the states.

On why some of the Federal roads across some states never got adequate attention in spite of their economic importance, Fashola noted that in the past, some of the funds provided for the interstate Federal roads were diverted to build community roads described as “spurs” while neglecting the interstate roads adding, however, that the Federal Government was poised to change such practice.

The Minister, who cited the Imo State situation as example, recalled, “What we saw was that in the past funds that were, perhaps, meant to build interstate roads, because that is our work, we noticed that those funds had gone to building intercommunity roads.”

“So, we saw on our records, Owerri-Umuahia Road under construction. But the truth is that no work is going on there; the work is going on in roads that lead to villages”, the Minister said pointing out that the funds would have been better used in building the Owerri-Umuahia Road that connects two big economies, and that probably would have connected them to Akwa Ibom and to Enugu states to facilitate more trade.

He declared, “The villages to which those roads were being built, what is the business there, there was only one person making coffin. But the main roads which would enhance commercial activities were not getting attention”, adding that even while those funds were being employed in doing community roads, the records being presented to the Federal Government were that the interstate roads were being done.

Stressing Federal Government’s determination to change the situation, Fashola again reiterated, “We have to focus on our own work and get the legislative arm to support us to focus on our own work to build roads that connect states, roads like Owerri- Umuahia-Okigwe, Enugu-Port Harcourt and so on. These are the roads we want to focus on”, adding that without prejudice to what the representatives of the people wanted to do at their local levels those were the roads that must take priority.

The Minister, however, clarified that using those funds meant for federal roads to do community roads should not be seen as diversion of funds since the community roads being built were part of national development but reemphasized that given the choices that must have to be made, roads that carry the heaviest traffic should take priority over others down the line.

Stressing the importance of positive and progressive thinking, Fashola, who said he preferred giving hope to the people everywhere he went, added that whatever had made the contractors to stop work and abandon the sites was in the past as the present administration has come to change the situation.

The Minister told the newsmen, “Everywhere I go I bring hope. Let us stop talking negatively; what happened was yesterday. There was poor funding in the past but the contractors are getting money now. The Buhari Government is now paying contractors”.

As for how long the project would take to complete, Fashola, who based it on how much and how soon more money would be made available to the contractors added, “But they are now getting money after not being paid for three years. From the very first budget that was passed in May last year, we have returned people to work”.

“You heard when the contractor was saying that they have recalled 335 of the workers they laid off. And the people of this community are benefitting by supplying water, gravel, vending food and other businesses. So the economy is on its way back. This is the way out of recession”, he said.

In all the project sites inspected, the Ministry had ensured that the Contractors transparently displayed details of the work being handled, budget releases, the states to be connected by the roads and the staff engaged. For example, the Rehabilitation of Enugu-Port Harcourt Expressway Section III: Enugu-Lokpanta being handled by CGC Nigeria Ltd had such a board which indicated that the project which is located in the Southern part of Enugu State is the first section of the rehabilitation project of the dual carriageway connecting Enugu-Imo-Rivers from Enugu to Port Harcourt. It indicated that 252 direct jobs and 57 indirect jobs for Nigerians had been created through the project.

Similarly, Arab Contractors handling the Rehabilitation and Reconstruction of Enugu- Port Harcourt Dual Carriageway Section II : Umuahia Tower- Aba Township Rail/Road Bridge Crossing in Abia State has created 535 and 436 direct and indirect jobs respectively. On the construction of Abiriba-Arochukwu-Ohafia Road in Abia State, the local contracting firm Beks Kimse Nigeria Ltd has created 30 and 20 direct and indirect jobs respectively. Also in Abia State, the Rehabilitation and Reconstruction of Enugu-Port Harcourt Dual Carriage Section I : Lokpanta-Umuahia Tower in Abia State has generated 220 direct and 30 indirect jobs for residents.

Earlier, while on a courtesy call to the Imo State Governor, Owelle Rochas Okorocha in Owerri, Fashola had told the Deputy Governor of the State, Eze Madumere, who stood in for the Governor that he was in the State to see first hand the projects being executed by the Federal Government and to reemphasize the assertion that the Federal Government was not discriminatory in its distribution of developmental projects.

At the direction of the Minister, the Federal Controller of Works in the State briefed  the audience on the number and stage of work on the federal road projects in the State. According to the Works Controller, there are five federal road projects currently going on across the State and at different stages of completion.

They include the rehabilitation, expansion and improvement of Owerri-Ohafia Road which, according to him, is now 60 per cent complete, construction of Ikot-Ekpene Border-Aba-Owerri Dualization Section 1 Phase 1,which, he said was 22 per cent complete, construction of Mbaise -Ngwa Road Phases 1 and 2, 11 per cent complete, rehabilitation of Amawaisu-Ozuakoli Road, 60 per cent complete and Oba-Nnewi-Okigwe Road Section 2, 30 per cent complete.

Also according to him, assessment has been carried out on four other roads including Ihube-Okigwe and Aghara-Owerri Roads and proposals have been written and submitted to the headquarters of the Ministry for the rehabilitation of collapsed sections of the roads.

Speaking after the Controller of Works’ briefing, Fashola added, “I think it is important to emphasize that, perhaps contrary to the impressions that may have been created in some quarters, it is now clear from the list of road projects in the state that the Federal Government is present here and in other states”.

“The question now see is the status of the projects and, perhaps, additional things that the states may want the Federal Government to do”, he said adding, “It is very fairly common knowledge that most of these roads had contractors who had left the sites over the last two to three years before the advent of this administration largely because they were not paid”.

The Minister explained further, “And as I reiterated at the inception of my tour of duty was that the quick starter was to remobilize those contractors back to site on the five roads and others for repairs in the state”, adding that because the 2016 budget did not come into force until sometime in May, 2016 while warrant for payment was issued in June and payment was made in July, mobilization of contractors was already facing some challenges because it was at the peak of the Rainy Season.

He, however, added that having operated the budget now for seven months, one of the things he had come to do in the State was to see for himself what was going on and to do some spot check, even though, according to him, “I get reports with photographs”.

He added, “But one other think I also wish to achieve is to continue to emphasize the importance of our Controllers of Works in various states. If we are going to make progress in providing support and partnership with state governments, the quickest way to do so is through the Controllers”.

“I have met with them, I have briefed them about the role that they will play as ambassadors of the Federal Government in the development and support of the state governments in infrastructure renewal”, Fashola said reiterating that the Federal Government was not in competition with any state government.

He added, “We are partners in progress irrespective of the political parties we belong”, reiterating that the Controllers, whom he described as “our ambassadors”, have the clear mandate to go and support the State governments and not to oppose them. He also advised the State governments to report to him any difficulty they experienced with any of our controllers.

The Ministry, he said, was trying to develop a programme that would help the Controllers have, “not only the administrative and democratic authority and autonomy to take control of their states”, adding, “We are also hoping that in this fiscal year they would also have financial authority to support you. When that is concluded, I will announce the details of how it will be done”.

On the National Housing Programme as it concerned the State and others in the Zone, the Minister also asked the Federal Controllers of Housing in the States to brief with all reporting progress in the allocation and clearance of land in preparation for commencement of construction of buildings for the National Housing Programmes.

The Minister, however, noted that electricity still remained an issue, adding that in terms of expansion of the National Grid, progress was being made and the grid was getting bigger. He also said that gas supply was a challenge especially from the damage to the pipelines at the Forcados and Escravos.

Other challenges, the Minister said, included involvement in trying to solve disputes between geometric states over their power project adding that the case that arose out of the dispute has now been taken out of court and the parties have agreed to settle.

“We are at the point now where the issues of financing compensation that was paid in dollars is the last major hurdle to overcome. When that is done, we expect that the power plant would be completed and it is possible to have more dedicated power for this state and especially for its industries and  commercial enterprises”, the Minister said.

In his response, the Imo State Deputy Governor, Eze Madumere, described the visit of the Minister as very significant and historic pointing out that since 2011 when the government took office, this was the first time a Minister of Works was visiting the State.

“We have been here since 2011 and we have not seen anything like this”, the Deputy Governor said adding that the fact that the Minister could left every other thing he was doing to come and see things for himself in the state showed that the concern of the President Buhari administration in the development of the state and the country.

Expressing appreciation of the government and people of the state for the new development, the Deputy Governor pledged the readiness of the state government to do everything in its power to assist and support the Federal Government to achieve its developmental objectives in the state.

Jan

29

2017

Public Private Partnership, A Panacea to Housing Deficit in Nigeria- FASHOLA

The Honorable Minister for Power, Works and Housing, Mr. Babatunde Fashola, SAN has reiterated the importance of synergy between the Federal Government and the Private sector in the built industry in the provision of mass housing to Nigerians. He said the Federal government must find a way to exploit the Private Sector participation in the industry especially in the area of local content manufacturing of building materials, noting that it would aid in the reduction of prices of the materials and subsequently the cost of the houses.

He made this known during an inspection visit to some selected sites and Polystyrene manufacturing company in Abuja. He said the visit was a follow up to the claims by some sponsors in the built industry during the Affordable Housing Summit held in Abuja earlier in the year that they had all the machineries to partner with the Federal Government in delivering affordable mass housing to Nigerians.

The Minister who expressed satisfaction with what he saw on ground, noted that the concepts of acceptability and affordability were significant and must be factored into any system the Federal Government intends to adopt in the sector, adding that the low and middle income earners in Nigeria may not be interested in most of the houses available on ground at the moment, though beautiful and accepted but because they are mostly not affordable and said government was committed to initiate policies that would address the situation.

At the Citec building and manufacturing factory in Mbora District, Abuja, The minister who was ushered round the factory by the Managing Director, Engineer Bello inspected EPS Polystyrene, a building raw material made from petrochemical products, is a lightweight, rigid, closed-cell insulation available in various densities to withstand load and back-fill forces and is being used to construct facials used in decking for storey buildings.

The Minister said more companies using polystyrene would be encouraged as houses built with it are cheaper, noise proof, self fire extinguishing and does not need the use of air conditioners because it regulates the weather,  adding that for the concept of acceptability and affordability to be meaningful to Nigerians, government must do its best to bring down the cost of owning a house.

He said as part of efforts to assist Nigerians own houses with less burdens, the Federal Mortgage Bank has been repositioned to better perform its statutory function so that government on its part would concentrate more on ensuring the provision of acceptable housing designs.

The Minister also visited building sites including: Braines and Hammers at Life Camp and Galadimawa, Sunny Vale at Logokoma and  Rockvale at Gudu.

He expressed satisfaction that Nigerian youths were being engaged at the sites in various trades such as masons, building sewage plants, iron mongering, and so on, noting that it has shown that the built sector is important in reducing the unemployment rate in the country.