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The Minister Of Power, Works And Housing, Mr Babatunde Fashola, Has Disclosed That Th...
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.

FG Rebooting Economy By Reviving Infrastructure...
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.

Public Private Partnership, A Panacea To Housing Deficit In Nigeria- FASHOLA...
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.

The Attention Of The Office Of The Hon. Minister Of Power, Works And Housing, Mr. Bab...
Jan
26
2017

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?”

* As Minister Chairs The 11th Monthly Meeting Of Power Sector Operators In Lagos * E...
Jan
11
2017

* As Minister chairs the 11th Monthly Meeting of Power Sector Operators in Lagos
* Encourages  Operators,  service providers to improve the user experience of  consumers by improving metering and reducing estimated billings
* Abuja DisCo, Okpai Power Plant, Shiroro win best performing DisCo, best performing thermal plant and best performing hydroelectric plant respectively in third quarter of 2016

The 11th monthly meeting of the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN with Operators in the Power Sector, has held at the Ikeja West Transmission Station, Ayobo, Lagos with the Minister restating the need for the service providers to make optimum customer service their focus.

Fashola’s remarks formed part of the ten paragraph Communiqué of the Meeting which was attended by high level representatives of Operators at the executive management levels, includingManaging Directors and Chief Executive Officers of GenCos, DisCos and the Transmission Company of Nigeria (TCN), as well as various government agencies such as the Niger Delta Power Holding Company (NDPHC), the Nigerian Bulk Electricity Trader (NBET), the Nigerian Electricity Regulatory Commission (NERC), Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA).

The Minister, who emphasized that consumers were the ones that pay the bills and so must be treated rightly by operators in the Power sector, encouraged each Operator and service provider to improve the user experience of its consumers, by improving metering and reducing estimated billings.

Acknowledging the challenges of liquidity in the sector, the Nigerian Bulk Electricity Trading Plc (NBET) reminded the meeting that all operators must pay their bills to NBET as well as their suppliers and service providers promptly, to ensure that the sector remains functional and friendly to investors even as the meeting commended the efforts being made by Government and international development partners to address these challenges

The meeting, which also agreed on the importance of government Ministries, Departments and Agencies (MDAs) paying their debts, acknowledged the need for proper verification prior to payment and also noted the on-going verification and data collection exercise which, it noted, was aimed at improving liquidity in the sector.
While also resolving to complete and submit all outstanding audited financial accounts of all operators before the next meeting in order to improve transparency within the sector, the Meeting noted the importance of the need to complete all outstanding work at the Ikot Ekpene switching station that was commissioned on 21st November 2016, to take full advantage of the added capacity to deliver incremental power.

Noting with delight that the family affected by the electrical accident at Oke-Ira, Ogba in Lagos State had been compensated by Ikeja Electric , the Meeting stressed the need for all operators to observe all safety regulations in the sector and to make every effort to avoid such accidents in future.

The Transmission Company of Nigeria (TCN) reported the progress of the projects in Shagamu, Ikeja West, Ajah, Ayobo, Omotosho, Ayede and Ogba which it said would be completed between April and the end of 2017 and which when completed, would improve power supply in Lagos State and its environs.

The company also reported that with the commissioning of Ikot Ekpene switchyard transmission capacity of the National Grid was now above 6,500MV adding that contrary to insinuations that the Grid was not capable of carrying above 5,000MW of generated energy, the capacity of the grid was dynamic and would continue to grow as more energy was added.

The Nigerian National Petroleum Corporation (NNPC) noted that work was on going to repair all pipelines vandalised in 2016 to restore gas supply to power plants while the Nigerian Electricity Regulatory Commission (NERC) announced Abuja DisCo as the best performing DisCo in the third quarter of 2016. The score was based on rates of collections, metering progress, health and safety, amongst other indicators.

Okpai Power Plant was announced as the best performing thermal plant in the third quarter of 2016 while Shiroro was announced as the best performing hydroelectric plant. The score for generating plants was based on availability and general compliance with industry standards.

The Meeting, which was chaired by the Minister, was jointly hosted by Ikeja Electric and Egbin Power and, as usual, focused on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry.

Earlier, in his opening remarks, Fashola had stressed the need for Operators, especially in the distribution areas of the power sector, to endeavour to improve the quality of their service to consumers pointing out that the consumers being the ones paying the bills, must be treated with all care and respect

The Minister urged the Operators to continue to train and retrain their personnel to recognize that the customer is king adding that even if they could not provide all that the customers required, they owed the customers a duty to explain what they were doing at any point in time

He declared, “We owe a duty to fish out a few staff that are not dedicated and retrain or discard them. I know that they are not many but a few because we get constant reports and we know we have got staffs that are very dedicated. Our staff must know that without customers they don’t have a job”.

“Without the customer, we have no business and I think all those in the private sector understand that. If you don’t have the zeal and dedication to serve, please leave, it is a thankless task but it is a noble task to serve”, the Minister said.
On the frequent complaints of consumers, Fashola listed them to include issues around metering and billing urging, “We must build that trust and that confidence that is needed in service delivery. I have heard complaints of people being charged for things they shouldn’t be charged for. So all of us that are owners of this business must look inside and do whatever is possible to improve service.

Expressing confidence that there would be improved service in the New Year “if we work together and have understanding of each other”, the Minister thanked the Operators for their perseverance thus far. He also advised them, “We have spoken of Undercover Boss here before. Go round; ask the consumers what their experiences have been. It will inform your management decision about what to do”.
On the liquidity issue, Fashola, who acknowledged its challenges to the service providers, recalled his statements concerning the issue both before the meeting and in the past as well as to the Press in which he had explained government’s efforts,  working with its development partners, both international and local, who, according to him, “have shown commitment and very inspiring appetite to play in this sector”.
“We are trying to see what we can do together in order to bring the liquidity issue under some control and from there solve the problem”, he said just as he also announced that the members of Parliament have also shown inspiring understanding of what the challenges are.

According to the Minister, “Quick decisions will be made now with collaboration and we will be fair but firm and we expect that people will respect the decisions. These, of course, are matters which the regulator, NERC, will deal with, Bulk Trader, NBET, Ministry of Finance and Ministry of Petroleum in terms of gas and, in fact, all the players, will dovetail into one another”.

Speaking on what to expect in the New Year, Fashola noted that government has already listed and identified what the challenges were, adding, “What we are trying to finalize now is what comes first, what follows and what takes dominion, because in solving one problem we might solve three simultaneously and so on and so forth”.

Promising that government would keep in constant touch with the Operators as the issues evolved, the Minister said such constant interaction would also enable the operators to give their own side of the story adding, “We will also use this meeting to share details of what we are seeing and to hear what you are experiencing”.

Reiterating that the intention of the constant meetings remained to review and enhance services and also to meet the needs of the expectant Nigerians, Fashola declared, “I think the top burner issues still remains service. I am conscious of the challenges the operators in the sector face but you and I are working as hard as we can to make that environment more responsive to you”.

“I have said that indeed as pioneers you will carry some burden and you will sacrifice, perhaps, more than you have done. But I am optimistic that things will get better. I am optimistic that we can work together to give Nigerians better service”, he said.

The Minister Of Power, Works And Housing, Mr Babatunde Fashola Has Said That The Fede...
Jan
03
2017

The Minister of Power, Works and Housing, Mr Babatunde Fashola has said that the Federal Government is planning to overhaul about 50 bridges across the nation. Fashola said this while inspecting the Rehabilitation of Lagos Ring Road Bridge Abutment and Approach to the Third Mainland Bridge project on Tuesday in Lagos. He told newsmen that some columns and beams of the Third Mainland Bridge were threatened because of human activities, sand filling and ecological factors which resulted in erosion. "The work we have come to inspect was awarded some years back when there was an indication of some mis-alignments here on the Lagos Outer Ring Road which is the beginning of what leads on to the Third Mainland Bridge itself which is just about here. "And it is being caused by erosion, sand filling and other activities. "This road has moved as a result of some sub-soil displacement,’’ the News Agency of Nigeria (NAN) quotes Fashola as saying. He said that the project which was slowed down by funding would be completed in November.

The minister said that many of the bridges in Lagos and across the country had suffered neglect and had not been undergoing routine maintenance.

Fashola said that the current administration was determined to correct the trend and had began the process for maintenance of about 50 bridges across the country "if it receives the support of the legislature’’. "Many of the bridges we built in the country over the last four, five decades have not been under any form of maintenance. "We now have a three-year plan affecting over 50 bridges across the country for maintenance, repairs and restoration. "And it is going to cost about N270 billion over three years. "Our plan is to start with about N70 to N100 billion in year one; starting with the very critical ones so that they do not collapse and then we move to the less critical ones,’’ he said.

The minister said that the government had done all the survey and assessments to unravel the problems of the bridges, adding that, it was waiting for appropriation and approval of funds to execute the projects.

He decried indiscriminate parking and trading activities in some parts of Ebute Ero toward the Third Mainland Bridge.

Fashola warned that government would take action soon. "I want to appeal to those people who use those areas as car parks and trading to start moving voluntarily in their own best interest. "We intend to repose our right of way while work is going on on the Outer Marina to free traffic,’’ he said. Earlier, while receiving a brief from the Federal Controller of Works, Lagos, Mr Godwin Eke, on status of other bridges, the minister directed engineers to begin work to realign the Apongbon Bridge. Mr Gianfranco Albertazzi, the Joint Managing Director, Boroni Prono and Co Nig. Ltd- contractors of the project, told newsmen that some piers, alignment and decks and piles of the bridge were affected. "I have pictures of the affected columns here. They were enlarged but we have strengthened them by another layer of steel and concrete,’’ Albertazzi said. He said that a new kind of cement that dealt with the problem of salinity of both air and water was being used to reduce degeneration of the bridge.

The project was awarded in December 2012 at a sum of N967.3 million.

Reintroduction Of Tollgates: One Of The Needful Steps For Road Development And Mainte...
Dec
21
2016

Reintroduction Of Tollgates: One Of The Needful Steps For Road Development And Maintenance

Tolling is one of the ways of meeting the critical road and bridge needs of a country, more rapidly than would otherwise be possible with public funds alone, due to both limited and untimely release of public works budgets. Tolls are fast becoming a sustainable way of delivering transportation infrastructure projects, whether public, private or public-private-partnerships funded. It is also note worthy that tolled roads may be funded by accessing capital (debt and equity needed to construct, re-construction or rehabilitate) from commercial market and paid with income generated from tolls over a contractually agreed time frame.

Again, the income from tolling could be used to manage and maintain the road and/or bridge infrastructure and the provision of ancillary services. The Federal Government of Nigeria, through the use of public funds and private road concessionaires, can access this funding option.

Government’s view is that there are substantial benefits to be derived from tolling, provided certain principles are adhered to. Nigeria has long suffered from a sub-optimal road network that imposes significant costs in terms of travel time, vehicle wear and tear and high fatality rates. Limited or poor access resulting from underdeveloped networks also discourages investment and economic development in many regions of the country.

It is worth noting that road tolling is a tried and tested model in many countries. Indeed, road tolling is currently in operation in Nigeria on the newly built Lekki-Epe road and on access roads to major airports nationwide. Nigeria had operated some public tolled roads several years ago which were unfortunately discontinued in 2004 with the exception of some airport approach roads, due mainly to legal disputes, revenue leakages and unmet requirements for maintenance of the tolled roads.

Due to the enormity of the benefits accruable to the tolling system, the present administration of President Muhammadu Buhari received several proposals on the issue of re-introduction of toll gates, as additional source of revenue to government. In view of the dwindling oil prices and the commodity being the mainstay of our economy and by way of ensuring sustainability and maintenance of Federal roads, tolling appears to be a credible option. The re-introduction of tolling, will therefore, serve as a tool for additional revenue to support effective management of the Federal road network.

Additionally, motorable Federal roads and bridges will reduce journey times and travel costs and ensure safer travel for road users. It can also encourage more investment and diversification of commercial activity to outlying areas that are currently not served by an effective trunk network. Importantly, tolls are also equitable because they are paid by those who use the road or bridge rather than from general taxes and a good avenue for job creation for the nation’s teaming unemployed youth.

Now that tolling is once again being considered as a policy option, Nigeria has the advantage of drawing from its past experience and the good practices of other countries applying same to successfully build, manage and maintain its highways through the instruments of tolling and Public-Private- Partnership (PPP). The challenges and experiences from previous concessionaired projects should be well studied to avoid a repetition of past mistakes. The Federal Ministry of Works should draw from the experience of specialist consultants through the Nigeria Infrastructure Advisory Facility and other International Institutions.

During their maiden press briefing, the Minister of Power, Works and Housing, Babatunde Fashola and the Minister of State, Hon. Mustapha Baba Shehuri disclosed that "if we ask everyone to pay a little as our commonwealth and hold those in charge accountable, and use technology…We don’t pay cash, we pay by token or by ticket and money is accountable and will go to the right place ".

On this note, the adoption of technology as professed by the Minister in collecting monies from toll gating will make the system efficient and accountable.

The Minister Of Power, Works And Housing, Babatunde Raji Fashola Has Disclosed That T...
Dec
19
2016

The Minister of Power, Works and Housing, Babatunde Raji Fashola has disclosed that the on-going construction work on the Zungeru Hydroelectric Power Plant Project would add 700MW to the national grid when completed.

This is as a result of the pursuit for regular and reliable electricity supply nationwide.

The Minister who was represented by the Director, Energy Resources in the Ministry, Engr. Emmanuel Ajayi made this disclosure recently during the River Closure Ceremony of the project at Zungeru, Niger State.

He  described the project being carried out in conjunction with a consortium of major Chinese Companies as one of the biggest hydro-electric power projects in the country.

He said that it is a great and feasible feat that would boost the provision of electricity supply nation-wide. He also pointed out that it is a good omen for the attainment of the present administration’s thrust of providing incremental, sustainable and uninterrupted power supply which Nigerians are yeaming for.

The Minister commended the efforts of those who contributed to the construction of the project and advised the host communities to maintain peace as government has put in place modalities to ensure adequate compensations and resettlement of the affected people around the project site.

The Governor of Niger State, Alhaji Abubakar Sani Bello, represented by the Commissioner for Works and Transport, Abdulmalik Usman Cheche stated that Niger State is housing yet another power project of 700MW apart from the 3 other power projects already sited in the State.

He commended the federal government for creating mass employment to their people, he also noted that the project has already created over 5,000 employments to the host communities.

The Governor gave assurance of the safety of the contractors and workers on the site, saying that the deployment of soldiers to the station is government’s proactive response to its citizenry as no responsible government will fold its arms on security of such a huge investment.

The Vice President of SinoHydro Consortuim, one of the contracting companies handling the project, Xiao Jun pledged his company’s readiness to promote the project in line with the contract agreement, he gave assurance that the project would be realized on record time.

The Project Director of employers’ Representative (Engr. (Dr.) Adewumi); the Project Director of CNEEC-SinoHydro Consortium (Wu Guisheng) and the Vice President of PowerChina International Group Limited (Tian Haha) also graced the ceremony.

The Honourable Minister Of Power, Works And Housing, Babatunde Raji Fashola SAN,...
Dec
07
2016

The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola SAN, said there is need to factor in other existing government policies into the newly proposed National Transport Bill currently being considered by the Senate Joint Committee on Land Transport, Marine Transport and Aviation.  He made this call at a one- day Public Hearing on a bill for an Act to provide for the Establishment of the National Transport Commission as an Independent Multi-Model Economic Regulator for the Transport Industry and other Related Matters.

The Minister commended the National Assembly by allowing officials of the ministries and other agencies of government to contribute in the decision making process of this important legislative draft bill for the entire benefit of the people and the nation at large.

Fashola stated that, though he has not been privileged to other bills as its relate to the Ministry of Transport, adding that his intervention and that of the ministry will be more of  advisory, cautionary and demanding of  perhaps so much retrospection before making a final decision on the bill.

Policy, according to the minister continues almost globally and they originate from ministries. "We must at this point ask ourselves what is the transport policy that we seek to implement?". He noted for example that government has a policy on safety which brought about the establishment of the Federal Road Safety Commission to implement its policy on safety. Also, government's policy on road maintenance led to the creation of the Federal Road Maintenance Agency, Similarly, its policy on housing brought about the establishment of the Federal Housing Authority, same in the Aviation sector and other sectors.  The minister called for retrospection in making a lasting policy that would make the transport industry a viable one, adding that for this to be achieved, there is need for the Senate committee to constitute a technical body to look into all the grey areas before passage of the bill into law.

Earlier in his opening remarks, the chairman of the Senate Joint Committee on Land Transport, Marine Transport and Aviation, Sen. Olugbenga Asafa welcomed and thanked the special guests and other participants for honouring their invitation. He enjoined the sector professionals and stakeholders to cooperate with the committee as they solicit and galvanized more information on this important bill which is crucial to the transport industry.

He however noted that the establishment of the National Transport Commission connotes an independent regulatory body in the transport sector. The Commission among others is to be responsible for the provision of transport policies, regulate the transport industry, protect the right and interest of service operators and commuters; and create an enabling environment for private sector participation in the provision of essential services in the transport sector.

While declaring the one-day public hearing opened, the Senate President, Dr Abubakar Bukola Saraki who was represented by the Senate Leader, Sen. Ali Ndume welcomed participants and remarked that the essence of this one-day public hearing is to seek the most updated knowledge on information of matters before us. The Senate President said that, the Senate have identified the National Transport Bill among other bills that will help us develop our transport sector in a manner that would cut cost of doing business with efficiency and innovation.

According to him, 'the bill when passed into law will provide the legal, regulatory and institutional basic necessity to interconnect, synchronized and share government policy in the entire spectrum of transport in the country from aviation to land and marine, adding that it will add enormous potentials to help our entrepreneurs to move goods and services much more efficient and reliably in a multi-model system'.

The proposed bill for an act to create the National Transport Commission is being sponsored by Senator Andy Uba of the Senate Joint Committee on Land Transport, Marine Transport and Aviation.

Fashola Calls For The Harmonisation Of Existing Policies In Creating The National Tra...
Dec
07
2016

Fashola Calls For The Harmonisation Of Existing Policies In Creating The National Transport Bill

The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola SAN, said there is need to factor in other existing government policies into the newly proposed National Transport Bill currently being considered by the Senate Joint Committee on Land Transport, Marine Transport and Aviation.  He made this call at a one- day Public Hearing on a bill for an Act to provide for the Establishment of the National Transport Commission as an Independent Multi-Model Economic Regulator for the Transport Industry and other Related Matters.

The Minister commended the National Assembly by allowing officials of the ministries and other agencies of government to contribute in the decision making process of this important legislative draft bill for the entire benefit of the people and the nation at large.

Fashola stated that, though he has not been privileged to other bills as its relate to the Ministry of Transport, adding that his intervention and that of the ministry will be more of  advisory, cautionary and demanding of  perhaps so much retrospection before making a final decision on the bill.

Policy, according to the minister continues almost globally and they originate from ministries. "We must at this point ask ourselves what is the transport policy that we seek to implement?". He noted for example that government has a policy on safety which brought about the establishment of the Federal Road Safety Commission to implement its policy on safety. Also, government's policy on road maintenance led to the creation of the Federal Road Maintenance Agency, Similarly, its policy on housing brought about the establishment of the Federal Housing Authority, same in the Aviation sector and other sectors.  The minister called for retrospection in making a lasting policy that would make the transport industry a viable one, adding that for this to be achieved, there is need for the Senate committee to constitute a technical body to look into all the grey areas before passage of the bill into law.

Earlier in his opening remarks, the chairman of the Senate Joint Committee on Land Transport, Marine Transport and Aviation, Sen. Olugbenga Asafa welcomed and thanked the special guests and other participants for honouring their invitation. He enjoined the sector professionals and stakeholders to cooperate with the committee as they solicit and galvanized more information on this important bill which is crucial to the transport industry.

He however noted that the establishment of the National Transport Commission connotes an independent regulatory body in the transport sector. The Commission among others is to be responsible for the provision of transport policies, regulate the transport industry, protect the right and interest of service operators and commuters; and create an enabling environment for private sector participation in the provision of essential services in the transport sector.

While declaring the one-day public hearing opened, the Senate President, Dr Abubakar Bukola Saraki who was represented by the Senate Leader, Sen. Ali Ndume welcomed participants and remarked that the essence of this one-day public hearing is to seek the most updated knowledge on information of matters before us. The Senate President said that, the Senate have identified the National Transport Bill among other bills that will help us develop our transport sector in a manner that would cut cost of doing business with efficiency and innovation.

According to him, 'the bill when passed into law will provide the legal, regulatory and institutional basic necessity to interconnect, synchronized and share government policy in the entire spectrum of transport in the country from aviation to land and marine, adding that it will add enormous potentials to help our entrepreneurs to move goods and services much more efficient and reliably in a multi-model system'.

The proposed bill for an act to create the National Transport Commission is being sponsored by Senator Andy Uba of the Senate Joint Committee on Land Transport, Marine Transport and Aviation.

Great UNIBEN....
Nov
28
2016

Great UNIBEN.

This is the greeting amongst students on the campus of the University, and it has endured after graduation and stayed with the alumni; decades after graduation.
May this greeting endure also for all of you who graduate today, and may you fulfil your destiny of greatness as products of a great institution and citadel of learning.
That this university is great is beyond argument now.
The evidence of this abounds in the human capital supply she has produced for Nigeria in fulfilment of the objectives of founding fathers.
It is a rich store of personnel, not only in quantity, but defining in quality.
In all spheres of Nigeria’s developmental endeavour, there is a representative of great UNIBEN, not only in a participatory role, but also in a leadership role that is setting worthy and commendable examples.
The boys and girls of yesterday have become the men and women who define the developmental character of our nation and they are waiting for you all to join them to play your role.
Therefore, I intend to start my interaction with you today by telling a story.

Many years ago, sometime in 1983, in a Philosophy classroom, a lecturer was telling his students about the theory of evolution, based on the Big Bang and atomic perspective of our evolution.
He charged them not to believe things that were not demonstrable by evidence.
He taught them about cause and effect relationships of man’s existence and that everything was ultimately traceable to Matter – something that can be seen.
The students it appeared seemed to enjoy this explanation of life and their own existence; the problem was that it debunked their understanding of faith, religion and God.
They had grown up believing, as Christians and Muslims, that there is God. But they could not see him. How were they going to resolve this matter of ‘Matter’ and science on one hand, God on the other hand.
This lecturer professed no faith, and did not believe in God, or so the students thought, until one fateful morning when one of the students sighted the lecturer walking out of church after a Sunday morning service.

Bewildered, confused feeling misled or deceived by a teacher who told him not to believe where they did not see or could not prove, (and this in the student’s mind extended to God) and to see the purveyor of that view walking out of church, with Bible in hand, was the biggest betrayal that was not going to pass unchallenged.
The student walked up to his teacher, quickly conveyed his courtesies of "Good morning sir" and the following conversation ensued:
"What are you doing there sir? You came to church?"
"Yes," answered the teacher. "I worship here every Sunday."
"You believe in God?"
"Yes I do."
"Why have you been deceiving us?"
"How have I been deceiving you?"
"You taught us to believe that God does not exist since we cannot prove it," the student said.
"No. I did not. I believe in God," the teacher replied.
"My faith is different from my job. Your school is training you to become lawyers.
"They have employed me to develop your minds to question and challenge things. To seek knowledge, never to be easily satisfied.

"To think, and to challenge the existing order, to drive change and never to settle for the path well-travelled.
"To dare and to dream, to seek new ways of doing the same thing, because as lawyers, people’s fates will be defined by choices you make.
"Their lives will sometimes depend on your abilities, as will their businesses or their marriages. That is my job.
"Whether you believe in God or not is not my business. That is your personal choice."
Ladies and Gentlemen, that is as best as I can recall this event.
The school where this event happened is where we gather today. The great University of Benin.
The faculty that offered the course in Philosophy is the Faculty of Law.
The lecturer was either Greek or Cypriot. His name was Theodoropolous. I was the student in question.
That encounter shaped my life in many ways; and even if I say so, I am the better for it having gone through it.
If I had to choose a university again, it would be University of Benin.

It is that experience I had that I feel bound to share with you today as you leave the University.
If I successfully connect with only one of you, I believe the effort will have been worthwhile.
That is why I have titled my intervention: "FREEDOM FROM FEAR, CHOICES BEFORE THE NEW GENERATION", in the hope that I will challenge you to take control of what happens to you and what happens around you.
I say this because there seems to be an increasing manifestation of our collective surrender of our individual choices and free will to divine intervention and the possibility of endless miracles.
We are now in the realm and reality of constant expectations of miracles and divine intervention.
Superstitions have taken over reason and logic.
When we pass examinations, win football matches, conduct successful elections, or achieve any feat, we seem all too frightened and unsure of ourselves to take credit for even the most modest of successes attributable to our efforts.
The first thing you hear is God did it.
For the avoidance of doubt, I believe in God, and only He can question my faith.
But I also believe He gave us a lot of free will.

Regrettably, we have surrendered our capacities and abilities in a frightful way to FEAR, that we have become victims of some confidence tricksters who deceive, disentitle and prey on our fears and frailties in ‘gods’ name.
Every man and woman of substance now has a Pastor, Imam, Spiritualist or even a witchdoctor or Dibia who is responsible for telling them what to do, when to do it, in a way that diminishes his abilities and surrenders his talents and free will to divine intervention or spiritual consultation.
Many people are disappearing and are being murdered in a crazed quest for human parts because some who have been entrapped in fear and superstition, believe that you can make money through ritual sacrifice.
Nothing can be further from the truth.
Human parts are tissues, bones, muscles and all that, and they have no place in the materials used to manufacture money.
There is nothing Divine in money making. It is entrepreneurship, production and hard work.
The teaching of science as espoused by Theodoropolous tells me that money is a product of man and not a product of God.

It is manufactured in a place called a Mint, by a process of printing, using special paper, ink, engravement and embossment, to make it difficult to fake or counterfeit.
When we play a football match and get to half-time, which is a few precious minutes to quickly refresh, renew and re-plan in the dressing room, we instead gather to pray, on the field, in a huddle that the whole world is still trying to fathom.

We waste the precious time that is allotted for tactical review, and return to the second half, singing and praying, "He is a miracle working God" in search of divine intervention.
The truth is that we have done well when we prepare and done badly when we do not.
Sometimes of course, working hard does not always bring the expected results but it is better than not working hard.
Yes, God is a miracle worker. I believe, but he is not an unjust God who rewards those who make no effort at the expense of those who do.
I once listened to a sermon broadcast on Television, asking people who are indebted to step forward for prayers that will make their debts disappear.
It frightens me. It does not make sense to me.
Debts are accounting, matters of credits and deficits. They do not vanish.
It is people who live in FEAR who fall prey to such teachings and become victims of misery from poor choices.
I urge you to free your minds from such fears.
There are many teachings about freedoms.
Freedom from want, Freedom of Associations, Freedom of speech, freedom of choice (including the choice of leadership by voting at elections) and many others.
But the least expressed freedom, is the freedom from FEAR, which in my view is the most important.

A mind taken over by fear cannot express free will and will therefore not fully optimize or benefit from the other freedoms.
For example, we have seen that elections are conducted in other parts on the basis of polls, campaigns, analysis of human behaviour rather than any occultic or sacrificial offering.
Candidates who wish to win elections must persuade people to agree to their messages and promises, and seek to change the minds of those who are unpersuaded, by understanding what they want and taking steps to address them.
Those who may not be initial converts can change their minds, as we have seen in our own President who finally won after 3 (THREE) unsuccessful attempts.

For those who do not know, let me share with you some of the things that President Buhari did to win the last election.
A poll was conducted across Nigeria and administered to 20,000 Nigerians as a sample, with each person answering 60 (sixty) questions administered face to face.
That meant that the poll had to analyse 1,200,000 (ONE MILLION, TWO HUNDRED THOUSAND) responses on what Nigerians wanted in the 2015 election.
The top 3 (THREE) were security, corruption and economy, which was to form the core of candidate Buhari’s campaign message that produced President Buhari. This is how to win elections.
Polls are of course not fool proof. They can be manipulated or misinterpreted by those who analyse data. They can also be misunderstood . – Hillary leading but had over 60% Trust deficit.
Let me tell you another story related to me. This is the story of the ram.
A friend related to me how his mother had a bad dream concerning his well-being.
The dream was related to the mother’s Imam.
His response was that there had to be a sacrifice.
I interrupted by asking if the sacrifice involved buying a ram and he said yes.
Seeking to know how I knew. My response was that Ileya (the Muslim festival of Eid-El-Kabir) of Ram sacrifice was 3 (THREE) weeks away and  (at the time) any trickster who could not afford one would find foul or fair means to get a ram even though Islam does not make it a matter of compulsion.

Whilst I am not passing any judgement on the Imam and any other man of God, because I cannot question their faith, the coincidence was just too uncanny. Yet I agree I may be wrong.
However, I do not see how sacrifices are solutions to dreams.
Dreams are scientific events occurring as a result of the Rapid Eye Movement during sleep at a stage when our brains are most active.
Let me reiterate again that I have no quarrel with faith. What I seek to advocate is the lack of FEAR, and the resort to faith out of conviction rather than as a result of FEAR.
Fear takes choices away, and choices can and must be the product of conviction.
If we pursue our choices with as much conviction as we pursue our faith, we will certainly be a more prosperous society.
Let us remember, that at least the two dominant faiths are not original to us. They are inherited. The propagators of the faith have made them personal affairs and not public ones.

I have attended meetings in the West and in the Middle East and not on one occasion have these meetings been started or ended with prayers.
Meetings represent public undertakings and places of work and productive undertakings to deliver prosperity.
When those people have worked hard for the week, they go on Fridays and Sundays to their places of worship and their homes to offer prayers, for God to bless and prosper the work of their hands.
Sadly, back home, the head of Governments, heads of ministries, and businesses, devote early mornings at work to prayers with their staff while productive man hours tick away, they do the same at home and on weekends, we  socialise.
In effect we spend a lot of time praying and socializing.
How can this lead us to prosperity? If this is not faith influenced by fear, I do not know what it is.
If you visit many construction sites where the Chinese are employed as contractors, you will find that they work on Sundays, but we who have unemployment challenges, do not often work on Sunday.
We have invested a worrisome amount of money in building places of worship compared to what we have in building factories, businesses and schools.
This is worrisome compared to the investments I see in businesses and schools that outstrip investment in places of worship in the West and Middle East.
Recently, while driving along a road of not more than 5 (FIVE) kilometres in a Nigerian city, a colleague and I took an unplanned census of building types and this is what we counted:

1 laundry outfit for washing and dry cleaning clothes (Job place)
3 clinics for healthcare (Job place)
2 petrol filling stations (Job place)
1 bank branch (Job place)
4 shopping outlets (Job place)
1 eatery (Job place)
10 religious houses (Worship place)

As you go around your states and neighbourhoods, I urge you to do a similar count and tell your neighbour what you see.
Again I reiterate, I do not criticise worship, but I am challenging you to think through the choices you will make.
We will not pray our way out of recession, we will plan, and produce our way back to prosperity and out of recession and you are the freshest, youngest and most energetic workforce we will have to work with.
You are the new batteries to power the engine of growth of our country.
Your choices must be clear, free from fear, not reckless but driven by analytical thought, questioning and probing and ultimately determined by convictions.
In order to test the consequences of choices based on faith influenced by fear, I advise you to look at the world map and 2 (TWO) Island nations who are situated on the Northern Hemisphere.
I will not tell you their names. You find that out. But I will tell you they are close to each other. One believes in God and works hard. The other one is the home of voodoo and spends all time practising this.

If you follow their history, the first one is prosperous and the second one seems to have made a permanent contract with poverty.
This can be changed if and when they make the right choices.
While still on this matter, let me speak about traditional medicine as distinct from divination.
Traditional medicine, from herbs, roots, and other endowments
of nature have their place of pre-eminence in the assurance of our wellbeing and good health.

I cannot say the same thing about divination and sacrifices.
We must choose to work our iron ore to produce steel and build skyscrapers, machines and tools like others do instead of worshipping the god of Iron.
We must use engineering to manage and control flooding and erosion.
We must probe the treasures of our forests and depths of our oceans as bastions of possibilities that we must manage and dominate instead of worshipping the god of the sea.
If we continue to fear the sea, oceans and waters we will perpetuate the practice of sacrifice, instead of undertaking the enterprise of understanding; and dominating them for energy and transport.
We must approach our rock formations as treasure troves of building materials like marble, tiles and granite rather than treat them as totems of salvation that require animal sacrifice.
We should stop deifying the moon and stratosphere beyond the visibility of our eyes out of fear.
Instead we should develop the courage and resolve to send men and women to land a space craft there.
I fully understand that some of you who have been raised in an environment dominated by your fear, may have been adversely affected by it.
But let me assure you that freedom from fear is not the same as courage. Instead while fear is an emotion, freedom from it is the ability to overcome it by refusing to surrender to it.
It comes from developing an ability to question things, to challenge the existing order and create a new order.

It has been done before. It requires us to know our choices and beliefs and dispense with culture that is not dynamic.
That is why twins survive today. We stopped killing them and turned our backs against a Philistinic practice that was masquerading as a culture.
If you surrender to fear, people less educated, less intelligent and less qualified than you will take over your minds, your homes and your decision making powers.
Many of such people are confidence tricksters who will prosper at your expense by preying on your fear.

Therefore, let me say to you that while your education may not be perfect, while there may be challenges, there is room to improve on it, because your education does not end here.
Indeed, your education has just started.
What you have learnt in the controlled environment of university classrooms will be subject to the test of real life situations.
How you improve and educate yourself depends on how you use your minds.
For example, do you simply repeat and reaffirm what you hear people to say simply because they are highly placed and supposedly intelligent?
Do you verify it yourself before repeating it to others ?
Do you ever ask yourself if those people could be wrong? Yes, they can be. We are all flawed.
Do you ask yourself whether those you quote without question even read as much as you do?
Do you think in terms of these words:- "Impossible", "Improbable," "Unlikely" ?
If you do, please stop it. They are symbols and signposts of fear.
Almost everything that was once thought impossible, improbable, unlikely has happened.
Men and women now fly thousands of Kilometres in the sky. They eat, sleep, even now shower on the Airbus A380, an engineering feat delivered by engineers of Airbus and Boeing who started out life like you, as young graduates like you.

There are now driverless cars, and men have landed on the moon and have communicated back to Earth on missions driven by freedom from fear, sheer dedication, hard work and an indomitable spirit that refused to surrender to divination, but persevered against the odds of failure before success was achieved.
But these men and women who have freed their minds from fear are not done. They are pushing to send men to Mars - The Red Planet, they are looking for cures for cancer, alzheimer’s and other diseases.
This will be the work of science, research and engineering driven by freedom from fear, not by prayer, or sacrifice of fetish to some inanimate deity.
How do you free your mind from impossibility, improbability, and unlikelihoods?
The answer is simple. Remember always, that those words are negatives. Replace them with positive thoughts and actions.
This is what frees your mind from fear and helps you to choose, to see solutions and to look for opportunities, instead of dwelling on and surrendering to problems.
If you see unmanaged refuse as a problem, you may not think of recycling and re-use and the economic opportunities that have multiple benefits, including the ultimate removal of the refuse.

If you dwell on traffic gridlock as a problem, you are unlikely to focus on developing intelligent traffic management solutions like traffic lights or a radio station to manage it and create opportunities for yourself and others.
If you focus on crime and its burden, you may lose the opportunity to focus on crime management strategies like more policemen, crime detection methods, employment and training of judges.
Indeed, as they say, if you see every problem as a nail, the only solution you might evolve is a hammer.
So, please look for the positive angle of a difficult situation, because there will be one, if you look hard enough.
I urge you to free your mind from fear, reach for the skies, choose by conviction and not by fear; trust in your abilities and God given talent, take responsibility, work hard and pray if you believe.
Yes, Sango is the god of lightning and thunder, but all the sacrifices made to Sango has not generated 1 (ONE) kilowatt of electric power.

Electricity is produced by using nature’s gifts , such as gas, water, solar and wind, harnessing their capacity through turbines made from steel to serve our energy needs, not by making animal sacrifices.
I will conclude by urging you to look for the book titled "Start Up Nation" by Dan Senor and Saul Singer , it would provoke your thinking as it did mine.
I am done.
Congratulations on your graduation. May the wind be behind your sails as you set forth in the journey of life.
May you fulfil your true promise, and may you be free from fear so that you can make good choices in your contribution to our national development.

Thank you for listening.

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

 

Keynote Address Presented At The 32nd Annual Conference And General Meeting Of The Af...
Sep
25
2016

Keynote Address Presented At The 32nd Annual Conference And General Meeting Of The African Union For Housing Finance (AUHF)

Theme: Housing and Africa’s Growth Agenda at PDTF Centre, Central Business District, Abuja, 14th -16th September, 2016. By The Honourable Minister of Power, Works & Housing; Babatunde  Raji  Fashola, SAN.

Protocols

I am delighted to address you on the occasion of this 2016 Annual Conference and General Meeting of the African Union for Housing Finance (AUHF) holding in Abuja, Nigeria. The political will and momentum of the present administration in her housing sector agenda are further invigorated by this conference taking place few months after the June 2016 National Housing Summit. You will recall that the outcome of the recent National Housing Summit identified Housing Finance as one of the major pillars necessary for realizing Affordable housing delivery in Nigeria apart from others like Land, Concessions/incentives, Off-taker Strategy and General Skills Acquisition. It is indeed, heartwarming and reassuring to note that AUHF is an association of Mortgage Banks, Building Societies, Housing Corporations and other organizations involved in mobilizing funds for housing on the African continent. Also that the goals of AUHF includes promoting and facilitating housing finance and unlocking its multiplier effects on National economies, hence leading to Africa’s economic growth. I understand that the Conference attracts stakeholders from across the African Continent, all with the purpose of advancing investment in affordable housing.

2. Let me begin by thanking the Nigerian Mortgage Refinance Company (NMRC) and other partners for hosting this important conference. The hosting of AUHF 2016 conference in Nigeria could not have come at a more auspicious time than now that Nigeria needs aggressive unleashing of new housing finance investments and opportunities. I will also like to thank all the stakeholders and experts from Africa and around the world for coming together to proffer solutions to the age long challenge of providing housing finance for Africans, especially Nigerians that are facing harsh economic challenges.

3. Housing, we know is critical to every human development and fundamental right of every citizen. Therefore, Housing is central to this Administration’s policy thrust. However, housing a population of over 180 million is an arduous task that cannot be left for Federal Government alone, especially now that the Government’s revenue and the economy is  under pressure.  The fund to support the construction and mortgages for the end-users is a big challenge for the government. The production cost versus the selling price of the present housing stock is beyond the reach of majority of Nigerians.  Demand for affordable housing has grown over the years as a result of population explosion, rural-urban drift and search for higher quality of life. This demand has rapidly overwhelmed the supply capacity of existing Government resources. Many years of inadequate investment and poor maintenance culture have left Nigeria with a significant housing deficit which is slowing down the country’s development and economic growth and will clearly require close collaboration from stakeholders like the AUHF. The above demanding task is the mandate of my Ministry, Federal Ministry of Power, Works and Housing. Therefore, all stakeholders especially the Private sector and AUHF must play major role in this process of creating innovative housing finance in Nigeria.

4. Every Nigerian’s dream is to have a roof over their head! Hence, for an average Nigerian "owning a house" is a mark of economic success and security.  Housing is also believed to be a long term investment that protects that investment against high inflation and the unpredictable economic down turn. Therefore, provision of housing is a major tool to reduce corruption. Why is it so difficult for the average Nigerian to realize this dream? Lack of Housing Finance in the public and corporate institutions and double digit housing loans are the major culprits while others include land for housing, population explosion, high cost of building materials, inflation that brings about unemployment and decreased purchasing power of the low and medium income earners.

5. The major housing Finance trends and developments in the Nigerian market can be summarized by tracing the historical tendency of the influence of the financial sector in the housing industry. In 1956, a Secondary Mortgage Institution called Nigerian Building Society (NBS) assumed the role of the main conduit for housing finance delivery. NBS was a British and Nigeria partnership arrangement. Nigeria’s housing finance development can be classified under major political periods, namely pre-independence (1914-1960), post-independence (1960-1979) and a second and subsequent civilian administrations (1979 to date). However, the mortgage institutions decree No. 53 of 1989 led to the establishment of the following; Primary Mortgage Institutions (PMI) as mortgage savings for on-lending property development and mortgage creation. And, the Secondary mortgage institution, the Federal Mortgage Bank of Nigeria (FMBN), to function as the Apex mortgage institution for regulation.  While the National Housing Policy of 1991 was a bold step by the Federal Government of Nigeria to address the challenge of lack of finance for housing development and mortgage.  The National Housing Fund (Act. No. 3) of 1992 is a collating reservoir of long term funds in terms of monthly contributions from workers in the public and private sectors. Unfortunately, most Nigerians see mortgage loans from Government as part of their share of the "national cake" leading to high default rates. This has forced the Government to encourage prospective home owners to approach commercial banks who regrettably have high interest rates.  Thus, the Government who is supposed to be a major player in the provision of homes is now seemingly not on the frontline. The Government established the Nigerian Mortgage Refinancing Company (NMRC) to help in reducing the cost of mortgage loan by improving market efficiency.

6. From the inception of Government initiative in organized housing finance system to date, only a meager sum have so far been injected to the system. This accounts for less than 0.5% of the Gross Domestic Product (GDP) as compared to other climes (like United Kingdom, South Africa etc) due to the inability of financial systems in providing low cost finance that meets the need of low and medium income earners. Therefore, the Secondary Mortgage institution (FMBN) should be strengthened by ensuring full compliance with the National Housing Funds (NHF) Act by affected stakeholders, like the Central Bank, commercial banks, insurance companies, Mutual and Trust Fund administrators.  However, I am happy to note that with the greater participation of the private sector in housing and embracing the new initiatives of this Administration, the journey to sustainable housing delivery is on course.

7. Ladies and Gentlemen, it may interest you to note that the current Administration has taken cognizance of the housing sector as an important area requiring priority attention for reinvigoration and revitalization. This accounts for the appreciable budgetary allocation to the sector in the current annual estimate. This vision is increasingly being energized by the Federal Ministry of Power, Works and Housing. Only recently, the Ministry organized a National Housing Summit, where stakeholders met and examined the numerous constraints militating against the provision of affordable housing in Nigeria and proffered a clear, sustainable and strategic blueprint to mitigate same. Identified as a critical factor in the provision of affordable housing was lack of access to construction finance by developers including high risk in current mortgage finance structure which does not support the buying-off of houses to enable developers recoup their investments on time. The Summit resolved that there was need for necessary machinery to be put in place to promote appropriate construction finance schemes. AUHF members are hereby challenged in this regard. In the summit also, various definitions of affordable housing were adduced. However, the consensus from these definitions revealed that there is no one-size-fit all definition for Affordable Housing. The indices that should be used for defining Affordable Housing would include Segregation, Stratification, Classes of people and their income bracket, not more than one-third net household income of the target group and equity contribution of end-users.

8. I am happy to note that despite the challenges that housing delivery has encountered in the country over the years, the renewed vigor and policy re-orientation of this Administration have set the agenda for Housing revolution. In this regard, the Ministry has produced six (6) designs of one bedroom, two-bedroom, three-bedroom flats, bungalows and condominiums that will represent the Nigerian House which responds to our cultural diversity. Another key area of achievement is the pursuit and promotion of local content and standardization of building components such as doors, windows, tiles, roof boards and other accessories to be produced by local manufacturers as part of our support for local industries SMEs and in pursuit of diversification and job creation. Effort is already being made to embrace and deploy modern technology to mass production of housing in all the States of the Federation and FCT using the Traditional procurement platform and the Contractor Finance Initiative model, to reduce the housing deficit.

9. To make the Housing Sector attractive, viable and stimulate growth, the present Administration plans to de-risk lending to approved Housing Developers. This will entail the government providing guarantees and other credit enhancement to developers. Government therefore plans to issue promissory notes to reduce Developers financing requirements. Government recognizes that provision of leverage and guarantees are critical in attracting private sector funds into the industry thereby creating thousands of affordable houses each year as well as generate considerable employment and commercial activities. These are some of the far reaching contribution of the Finance Minister during the Housing Summit.

10. Ladies and Gentlemen, I wish to state here that much discussion has been held on the housing deficit. There is therefore need to change the story to begin to discuss the housing opportunities. Regardless of issues facing the sector, real estate projects are increasingly being launched and completed in Nigeria. With the present Administration’s many incentives, new investors are expected in the market to continue to deliver positive results.

11. It is on this note that I call on all stakeholders, especially members of the African Union for Housing Finance here present to join hands with the Federal Government towards the realization of its objectives in providing affordable housing to the people. As agent of change, members are enjoined to borrow a leaf from Nigeria and influence their respect home governments to domesticate or localize their housing options to reflect the peculiarities and expectations of the people as well as provide the private sector the needed impetus to invest in the sector.

12. Finally, I wish to state that though the challenges to the sector are real and obvious, we are convinced that with the renewed commitment of this Administration, coupled with strengthened collaborations with all stakeholders in the industry, the desired revolution in the housing sector will be achieved in not too distant future.

13. I wish you all very engaging and thoughtful deliberations and thank you for listening.

Says Government Was Mindful Of The Heavy Traffic That Would Be Faced This Year On The...
Sep
25
2016

Says government was mindful of the heavy traffic that would be faced this year on the road
Appeals to Commuters, Road Transport workers, Road Transport Employers to bear with FG as it tries to make the road better
Also warns transport operators to desist from parking on the highways as government is developing strategies for repossessing the right of ways which is 45 meters from the central line

The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, at the weekend undertook an inspection tour of the ongoing dualization of the Oyo-Ogbomosho road and the reconstruction of the Lagos-Ibadan Expressway urging contractors on the latter to speed up work in order to guarantee smooth journey experience for travellers across the country during the coming festivities.

Fashola, who undertook the inspection tour on the roads while returning from Ilorin where he attended the 5th National Council on Land, Housing and Urban Development, said although the contractors were faced with some constraints such as unpredictable weather and the fact that they have to work while also managing traffic, they must plan their work in such a way that would ensure a more tolerable driving experience during the festivities and general safety on the roads.

"You must plan your work in such a way that you’re able to accommodate that traffic and also help to make the journey time of commuters better during that period. They will be travelling home and coming back, and I also will like you to improve the safety signs on this highway," Fashola told the contractors.

Noting that the moslem festival, Eid-el-Kabir was around the corner and that the end of the year festivities like Christmas and the New Year were fast approaching, the Minister urged the contractors handling the reconstruction ,rehabilitation and expansion of the Lagos-Ibadan Expressway to consciously plan to accommodate the expected high volume of traffic from the events.

"Start calibrating your activities to prepare to take in that traffic, it will come, but the big one will come I think sometime in the end of the year when everybody is moving back from home. The target is to make that experience better than last year’s," Fashola said.

While promising to take the issue of safety further with the management of the companies handling the rehabilitation works, the Minister underscored the steps that must be taken by them to ensure safety on the roads. " I need to see more safety signs, if you have to put reflective stickers especially for night time and lighting, please do so. We just want to reduce first, the number of casualties and accidents on the road, especially at night and during the day as well, and we want to see how this can translate to better motoring experience during the eid festival which is around the 12th of September plus or minus," he said.

Pointing out that some of the constraints faced by the contractors include the illegal occupation of the right of ways along the highways, Fashola,  warned all such occupiers of rights of way along federal highways to voluntarily quit as government was now set to retake all the right of ways across the country.

On the Lagos-Ibadan road, Fashola, who explained that the contractors are working in sections because the road could not be closed down, pointed out that while the contractors work they also have to manage traffic, which, according to him, would ordinarily slow down progress of work.

Fashola also disclosed that the contractors were also changing all the expansion joints on the section of the Bridge between Berger and Arepo in Ogun State ,popularly called the Long Bridge, which, according to him, are about 40 years old adding that when the work on the bridge was finished the motorists would experience something smoother and a better travel time as against the harrowing experience of the recent past.

The Minister, who frowned at the current situation where some citizens have seized portions of the roads across the country for doing business or other purposes, pointed out that such practice had not only slowed down work on the roads but was also detrimental to the smooth and unhindered vehicular traffic and safety of road users.

He appealed to those concerned across the country to voluntarily vacate the right of ways or be forced to do so by government adding that government was already developing strategies for repossessing all the right of ways which, according to him, is 45 meters from the central line. "That is the law", he said.

Noting that those engaged in the act are also doing business at the expense of the citizenry, Fashola said the government was planning a meeting with all the Controllers across the 36 states to agree on new guidelines in managing the nation’s highways saying such guidelines would include those that would promote safety and clearing of the right of way.

Expressing dismay that some roads were covered by vehicles and tankers on both side, limiting the movement of vehicles and commuters, the Minister declared, "I am through this medium appealing to all those who are occupying our right of ways to voluntarily vacate them or we will take it by force or compulsion".

To further guard against future illegal occupation of the right of ways, Fashola announced plans to also set guidelines for state controllers of works to take ownership of the roads in their states and to work with state governments and their commissioners for work in order to ensure holistic control and maintenance of the roads.

"We will set guidelines for state controllers to take ownership of the federal roads in their states and to work with the Stake governments and their commissioners for work so that we can build this partnership and have motorable roads", he said adding, "This country is such a beautiful country from the much that I have seen and Nigerians don’t seem to know that because they can’t travel", he said.

Fashola, who described his stopover inspection as a whistle stop inspection that had entailed driving and inspecting all the way from Ilorin, said some progress was obvious on the road adding, however, that he would not be satisfied until the work on the roads were finished and until Nigerians feel more comfortable. "So there is a lot of work to do. There is a lot of work that has been left undone for many years; so we are going to claw at them one after the other in a methodical way".

"We came from Ilorin so I thought I could stop by here and manage time, road work, office work, so I thought I should drive by here from Ilorin through Ogbomosho to see the progress of work going on and also move through the Lagos- Ibadan Expressway and from there drive to Lagos and fly back to Abuja", he said.

Noting that the Lagos- Ibadan and Oyo - Ogbomosho road takes the vehicular traffic for transportation of fuel and other heavy Cargo from the south to the North of the country bringing in yams, cattle, tomatoes and other produce from the North and south east, Fashola expressed joy that the North bound section of the road, the Ilorin -Jebba road where people used to sleep for four days was now getting better as could be seen when he inspected the road during the week.

"People feel included in the economic activity on the Ilorin- Jebba Road. I went there on Wednesday and it has improved in the last four months, the Governor of Kwara State also confirmed it. So slowly we will get to where we are going, journey time is gradually improving and as journey time improves, it means that people will buy less fuel, less diesel and they will save more money to do other things. Cost of goods and services will come down and there will be public relief down the line and that is the objective".

Appealing to members of the public to be patient, Fashola pointed out that what they were complaining about before was bad road which resulted from contractors abandoning the projects as a result of nonpayment adding, "Now they are back to site and working. You cannot get the good road you want without experiencing some inconveniences".

On the National Council Meeting, Fashola, whio described Kwara State as "wonderful", added that the Council had a robust deliberation adding, "We are clawing back all the past resolutions that we had in the previous four council meetings that has not been implemented. We have set up a joint task force that will be a coordinating body to ensure that resolutions taken at council meetings are implemented."

Transport Is Critical To Economic Growth And An Efficient Transport System Is A Key F...
Jun
25
2016

Transport is critical to economic growth and an efficient transport system is a key factor in the socio-economic development of a nation.  The high costs of providing the transport network have traditionally placed the obligation on Government to finance the investment.  Apart from sustaining this investment, additional transportation investments can create a positive multiplier effect on all sectors of economic activities. In an effort to create an efficient and effective transport system that will be the catalyst to sustained growth, the Government is seeking out new methods to attract additional investment.

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PROTOCOL ...
Mar
22
2015

PROTOCOL

It is my pleasure and honour to welcome you to the 20th National Council on Works, being the second since my assumption of duty as the Hon Minister of Works. The theme for this year’s Council Meeting "Reforming the Road Sector for Sustainable Economic Development" is particularly apt in our quest to improve the road infrastructure in Nigeria for economic development. This is in line with the Transformation Agenda of the present administration which seeks to "deliver better and safer roads to Nigerians" Road Users as to enhance economic development and national integration. As we begin deliberations at the 20th National Council of Works, we must bear in mind the importance of Road Sector to the socio-economic development of our nation. It would be recalled that far-reaching decisions were taken at the 19th Council on Works in Lagos last year to set the platform for the Ministry under my leadership to revolutionalize the road sector for economic development of our country. Since then, the Ministry has made giant strides in ensuring that institutional reforms in the road sector that would stimulate private sector financing of road infrastructure in Nigeria, are put in place. For example, two draft bills for the creation of the Federal Road Authority and National Road Fund arising from the Ministry’s Road Sector Reform Committee’s report, have been approved by the National Council on Privatization and reviewed by the Federal Ministry of Justice.

The two draft bills will soon be presented to the Federal Executive Council for approval, before their transmission to the National Assembly. When passed into Law by the National Assembly, the bills would not only attract huge private sector funds required to fill the funding gap in the development of road infrastructure, but would also lead to the creation of more business opportunities for engineering professionals and create jobs for Nigerians. Similarly, the Ministry has commenced the implementation of new policies towards better service delivery. They include the use of bitumen emulsion in all road projects in line with the Kyoto Protocol that discourages emission of gases that increase global warming, and abolished the use of kerosene on any road project in Nigeria. Another policy that has come into operation and which has had the most salutary effect on service delivery in line with the performance management, mantra of the President Goodluck Jonathan’s administration is the development of a new template for preparing interim statements of contractors. This policy ensures that only works of a permanent nature are included in interim statement valuations for payment. This has saved the Federal Government huge sums of money hitherto lost to washouts on works that have been certified and paid for. The new mandatory requirement for a detailed geotechnical studies authenticated by the department of Geotechnics, Materials & Quality Control before a project is designed, is another of such policies.

The Ministry is working with relevant Government agencies and private sector organizations to ensure that the National Tolling Policy is in place before the end of this year as we work towards achieving private sector financed road infrastructure in the country. Consistent progress is being recorded in the ongoing rehabilitation and reconstruction of key arterial roads and bridges with enhanced funding by the SURE-P in the six geopolitical zones of the country. I am happy to inform Council that the Office of the Surveyor-General of the Federation, Federal Ministries of Lands, Housing & Urban Development and Justice are collaborating to ensure that all Federal Highways’ "Right of Way" are acquired and gazetted to avert encroachment in accordance with the Federal Highway Act CAP 135. Similarly, the Federal Government has commenced the implementation of Council’s approval for all Federal Roads within 5-10km radius from the city centre of State Capitals to be ceded to the States. This is to form part of the State Road Network for its control and maintenance, while State Governments that have met the pre-conditions for intervention on rehabilitation and/or maintenance of federal roads in their States, would be reimbursed soon.

In the last two years, the Ministry has made significant progress in the rehabilitation, construction, reconstruction, expansion and maintenance of key arterial roads across the six geopolitical zones of the country. This has resulted in reducing travel times, transport fares by commuters, and cost of maintaining vehicles by transporters. When aggregated, it is appropriate to say that the Ministry is progressively moving towards giving Nigerians a better road network for sustainable economic development. In spite of their importance, roads in most developing countries are often poorly financed and managed. Consequently, between 30% and 50% of roads in developing countries are in poor condition, costing the national economy about 3.5% of the GDP annually. Mainly, this is as a result of increased vehicle operating cost, longer travel times, higher accident rates, more freight damage and additional cost of roads rehabilitation. According to a World Bank Report (1988), poor financing of road infrastructure by the public budgeting procedures and poor management by the public road administrations, have been identified as major causes of the deterioration of roads in developing countries.

Further challenges include the 2.5% population growth rate per annum, and high level of vehicles importation into the country. In 1983, only 150,000 vehicles were plying Nigerian Roads. Today, the number has grown to nearly 10 million, as everything from ordinary groceries to goods/services is conveyed from one place to another through the road network. In addition to this, is the excessive axle loading on our roads, occassioned by the movement of heavy articles such as steel billets, cement, iron rods and most recently power turbines on the road.

All these contribute to making rehabilitation and maintenance of the roads expensive but inevitable. Nigeria, like most African countries, has a huge infrastructure deficit. Physical infrastructure such as roads, houses, power and water are essential for the growth of any economy. With adequate investment in infrastructure, the deficit could be removed. For the road sector alone, it has been estimated that in order to adequately support economic growth at current growth rate and meet Vision 20:2020 target, we need to invest in the construction of at least 14,000km of new roads annually for the next seven years. We will also have to maintain and rehabilitate the existing road network as a matter of routine. This will require the average annual expenditure on roads to increase seven-fold to nearly 750 Billion Naira. Vision 20:2020 requires that Nigeria attains a GDP of at least $900 billion by the year 2020 and GDP per capita of at least $4,000. Experience has shown that there is a direct link between economic growth and the size and condition of road networks. For every $1 spent on road maintenance, there is a corresponding increase in the nation’s GDP. The nexus between road development and sustainable economic growth makes it imperative for the improvement of road network. I wish to submit that with the right institutional and legal frameworks in place, the road sector will definitely be attractive to both local and foreign investors. Equally, the introduction of Performance-based road management and maintenance Contracts (PBC), will improve effectiveness and efficiency in executing road maintenance. Distinguished Stakeholders, it is imperative that we should rise up to this great challenge of reforming the road sector for sustainable economic development. We must move away from the palliative approach to road development to taking bold approaches.

Furthermore, enhanced collaboration between the three tiers of government and the private sector will help to produce the desired results, and place the country at par with emerging nations such as Indonesia, South Africa, India, Mexico, Turkey and Saudi Arabia. For Nigeria to be able to bridge the gap between her and these countries there must be strong collaboration with the private sector and multilateral agencies like the World Bank, Africa Development Bank and other development agencies. The conducive democratic environment in the country has started to yield encouraging foreign private investment with over USD300 million funding of road projects under the Road Sector Development Team, the collaborative platform of the Federal Ministry of Works. It can only get better with visionary leadership approach and more fruitful discussions on investment opportunities in the country.

Again, the Ministry is taking a number of steps not only to ensure that Direct Foreign Investments (DFIs) and Public Private Partnerships (PPPs) thrive in the development of road infrastructure in Nigeria, but also to guarantee transparency and accountability in the process. These efforts are underscored by the fact that Government alone can no longer fund huge projects portfolio due to limited financial resources. Many of you are aware that the Government has recently embarked on a number of Public Private Partnership projects as means of delivering some critical national infrastructure such as the construction of the Second Niger Bridge. As engineers and infrastructure professionals, you understand that the Public Private Partnership project development process takes longer time than EPC procurements.

Clearly, there is global competition amongst nations to attract private capital into infrastructure through Public Private Partnership and other forms of engaging private capital. One of the essential ingredients for attracting private finances is the existence of strong institutions that provide the platform for collaboration as well as rekindle investor’s confidence. We must continue to innovate and build sustainability in all our endeavours. It is in the light of this that I strongly recommend that during this Meeting of the Council on Works, we should brainstorm on new ways of funding road infrastructure in Nigeria. In that regard, I would like to offer the following suggestions for the consideration of Council:- In my considered opinion, the funding options that have the potential to provide adequate, reliable and timely financing for Key Infrastructure fall into three broad categories namely:

A. On-budget Public Funding

• Regular Budgetary Allocation

• Enhanced Statutory Allocation

• Viability Gap Funding

B. Off-budget Public Funding

• Special Intervention Funds

• FGN Bonds (To be issued by DMO)

• Concessionary Loans (e.g. from EXIM Banks)

• Credit Enhancements

• Grants (e.g. JICA, DFID)

C. Private Sector Resources

• Pension Fund

• Public Private Partnership

• Long-Term Commercial Bonds

• Export-Credit Finance

• Oil for Infrastructure Scheme

• Private Equity

• Infrastructure Bonds No doubt, the reality of our nation today is that there is a yawning gap in key infrastructure in Nigeria. This gap pervades the various sectors of the nation’s economy; such as power, roads, rail, air transportation, mining, water resources, ICT and housing. Bridging the infrastructure gap in our country requires an attitudinal change in both policy formulation and policy implementation.

The following actions are recommended to address the challenges:-

1. A declaration of emergency in the Infrastructure sector;

2. Establishment of an Infrastructure Development Fund (IDF);

3. Implementation of the National Integrated Infrastructure Master Plan as a first line charge on the Federation Account over a 10-year period;

4. Enthronement of Good Corporate Governance that requires an amendment to the Company and Allied Matters Act, which allows companies to contribute 3-5% of their pre-tax income to the IDF;

5. Enacting into law the Road Sector Reform Bills that will bring about appropriate institutions in the road sector.

CONCLUSION Distinguished Stakeholders, Ladies and Gentlemen, clearly, good and sustainable infrastructure is needed in Nigeria not only to serve as catalyst for economic growth, but also for the creative engagement of citizens. Since the purpose of government is the pursuance and nourishment of happiness for the greater number of citizens, and considering that lack of key infrastructure has been the bane of economic growth and development in our country, the executive and legislative arms of government should imbibe attitudinal change and collaborate together in order to bridge the huge infrastructure gap in our country and take Nigeria to the next level. I thank you for your attention.

Arc. Mike O. Onolememen, fnia, fnim, fnis Honourable Minister of Works

*Construction Workers, Suppliers Of Materials, Other Support Workers Benefit As Contr...
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.

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

2016 Budget: We Only Received 53 Per Cent Of Our Allocation – Fashola...
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.

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

Proposed Closure Of Abuja Airport To Effect Runway Repairs, A Matter Of Immense Publi...
Jan
18
2017

Proposed Closure Of Abuja Airport To Effect Runway Repairs, A Matter Of Immense Public Safety, Says Fashola At Senate Briefing

* As Minister explains FEC’s option as best in terms of time, cost, enduring solution

* Says globally closure of airports accord with the uncompromising safety standards in the Aviation Industry

* Kaduna Airport was chosen as alternative airport because condition of Abuja-Kaduna road lends itself to emergency repairs

The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, Tuesday appeared before the Senate lending support to the decision for a closure of the Nnamdi Azikiwe International Airport, Abuja, for the repair of the runway, saying of all the choices available in the matter, safety consideration was paramount.

Fashola, who said his Ministry came into the matter of the airport closure to play a supportive and complementary role, told the Senate that although there would be inconveniences in the six weeks it would take to complete the rehabilitation of the runway, but where there were choices between safety and inconvenience, safety must take precedence.

Explaining that the runway of the airport needed repairs, Fashola declared, “By extension, therefore, it means that the airport cannot be used. It seems to be a very simple point but it is a point that members of the public should be made aware of that the runway is no longer safe. So this is a matter of immense public safety. This is the primary purpose for which governments exist”.

Noting that the intention of the Executive arm was neither to present a fait accompli  nor an immutable position to the public, the Minister further explained that having deeply explored the positions, the Ministry of Aviation was able to convince the Federal Executive Council that given the many existing options, each of which, according to him, has consequences, total closure was the best solution also in terms of cost, in terms of time and in terms of an enduring solution.

Acknowledging that one of the issues that have agitated the minds of Nigerians, especially regular users of the airport, was the inconveniences that would result during the period of closure, Fashola added, “Let me say very clearly that I sympathise with those who will be affected, including not the least many of us who travel. But nevertheless my view is that where there are choices between inconvenience and safety, that safety must prevail”.

The Minister, who listed the Philippines, India, Kenya and Sri Lanka as countries that have closed their airports for various reasons in the past, added, “Nigeria is not the first country to close an airport and to divert traffic either to another airport or another city”, adding, “This accord with the uncompromising safety standards in the Aviation Industry that has made flying the safest form of travelling when operators play by the rules”.

He commended the Minister of State for Aviation, Senator Hadi Sirika, who, according to him, is a certified Pilot, “for his openness and commitment to the safety of life” adding that the Minister of State deserved all the support he could get in accomplishing the project.

“And I couldn’t be happier than to hear the President of the Senate saying this morning that the decision whether to repair the runway is now a moot point, that the decision really was what the best approach would be”, Fashola said adding, “I like to emphasized also that the right to life, and this is important also in making the ultimate decision, that the right to life guaranteed in the constitution means nothing if Government does not take this kind of pre-emptive actions to forestall and prevent loss of life”.

The Minister also commended the Senators for their intervention in discharging their representational duties to their various constituents, reiterating that it was important that members of the public get the right information that planes could no longer land safely on the runway until after the necessary rehabilitations.

Fashola also used the opportunity to clarify the role being played by the Ministry of Power, Works and Housing as totally supportive.
“It is not that there are no alternatives, but we have to make those choices and my role in my Ministry is totally supportive. We are not leading them so if they say that they want us to stop, we have no interest in the matter beyond the way the Police will come to give collaboration, beyond the way other agencies are coming to give collaboration. We were called into the meeting when this problem became a matter of urgent national consideration and we volunteered that we would give all the support to restore the road.”

On the choice of Kaduna, instead of Minna Airport, as the alternative airport while the rehabilitation lasts, Fashola explained that given the current conditions of both roads, the Kaduna-Abuja Highway currently lent itself more to the kind of emergency intervention to restore it to motorability within the short time assigned for the completion of the rehabilitation.

The Minister explained, “While the road distance from Minna to Abuja is about 156 kilometres and Kaduna to Abuja is about 186 kilometres (a difference of 30 kilometres or thereabouts), I have driven on both roads recently and the Kaduna-Abuja road is in much better condition than Minna-Abuja, and lends itself more quickly to the implementation of this kind of emergency repairs”.
The Minister, who reiterated that his Ministry came into the matter in a complementary and supportive role also added that the Abuja-Minna Road was also currently under procurement. He explained that though the contractor was currently having difficulty with his financing, the issues would eventually be resolved and the road fixed.

The Minister also disclosed that in anticipation that Kaduna Airport would be the alternative airport, his Ministry utilized the provisions of the emergency provisions of the Public Procurement Act to seek and obtain the approval of the Bureau of Public Procurement for the emergency rehabilitation of the bad sections of the Kaduna-Abuja Highway at a cost of N1.058Billion.

He said although the contractor, Messrs CGC Nigeria Limited, has moved to site since the 7th of January 2017 and has proposed that it would be finished in 50 days ending thereabouts on the 28th of February from the work plan that they have submitted to the Ministry, they have not yet been paid but their presence was already visible on that road.

“They have moved men and materials to site and this is the consequence of the confidence that has begun to come back to the construction industry since the implementation of the 2016 Budget that you passed”, he told the Senate adding, however that they were asking for a 50 per cent down payment which, which according to him, “the Procurement Law does not permit to make; which is also a matter that is pending before different Committees of the House to amend the Procurement Act”.

“As to the choice between Kaduna and Minna Airports, I believe that the Minister of State for Aviation has explained that Kaduna is the default alternative Airport for Abuja bound flights when a fight plan was being considered for approval. I think he made that point from what I heard”, he said.

Also acknowledging the inconveniences that Nigerian will experience during the period, Fashola, however advised, “This is also perhaps a time for us to adapt so that we can be safe”, suggesting that the eight-weeks’ notice given by the Ministry of Aviation should be utilised for the Airport users to , alter some of their prescheduled programmes ahead of the closure or until after the closure adding that they could also employ available technology such as skype or e-mail, sms and teleconferencing among others

Fashola Charges Service Providers In The Power Sector To Make Customer Service Their ...
Jan
11
2017

Fashola Charges Service Providers In The Power Sector To Make Customer Service Their Focus

* As Minister chairs the 11th Monthly Meeting of Power Sector Operators in Lagos

* Encourages  Operators,  service providers to improve the user experience of  consumers by improving metering and reducing estimated billings

* Abuja DisCo, Okpai Power Plant, Shiroro win best performing DisCo, best performing thermal plant and best performing hydroelectric plant respectively in third quarter of 2016

The 11th monthly meeting of the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN with Operators in the Power Sector, has held at the Ikeja West Transmission Station, Ayobo, Lagos with the Minister restating the need for the service providers to make optimum customer service their focus.

Fashola’s remarks formed part of the ten paragraph Communiqué of the Meeting which was attended by high level representatives of Operators at the executive management levels, includingManaging Directors and Chief Executive Officers of GenCos, DisCos and the Transmission Company of Nigeria (TCN), as well as various government agencies such as the Niger Delta Power Holding Company (NDPHC), the Nigerian Bulk Electricity Trader (NBET), the Nigerian Electricity Regulatory Commission (NERC), Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA).

The Minister, who emphasized that consumers were the ones that pay the bills and so must be treated rightly by operators in the Power sector, encouraged each Operator and service provider to improve the user experience of its consumers, by improving metering and reducing estimated billings.
Acknowledging the challenges of liquidity in the sector, the Nigerian Bulk Electricity Trading Plc (NBET) reminded the meeting that all operators must pay their bills to NBET as well as their suppliers and service providers promptly, to ensure that the sector remains functional and friendly to investors even as the meeting commended the efforts being made by Government and international development partners to address these challenges

The meeting, which also agreed on the importance of government Ministries, Departments and Agencies (MDAs) paying their debts, acknowledged the need for proper verification prior to payment and also noted the on-going verification and data collection exercise which, it noted, was aimed at improving liquidity in the sector.
While also resolving to complete and submit all outstanding audited financial accounts of all operators before the next meeting in order to improve transparency within the sector, the Meeting noted the importance of the need to complete all outstanding work at the Ikot Ekpene switching station that was commissioned on 21st November 2016, to take full advantage of the added capacity to deliver incremental power.

Noting with delight that the family affected by the electrical accident at Oke-Ira, Ogba in Lagos State had been compensated by Ikeja Electric , the Meeting stressed the need for all operators to observe all safety regulations in the sector and to make every effort to avoid such accidents in future.

The Transmission Company of Nigeria (TCN) reported the progress of the projects in Shagamu, Ikeja West, Ajah, Ayobo, Omotosho, Ayede and Ogba which it said would be completed between April and the end of 2017 and which when completed, would improve power supply in Lagos State and its environs.

The company also reported that with the commissioning of Ikot Ekpene switchyard transmission capacity of the National Grid was now above 6,500MV adding that contrary to insinuations that the Grid was not capable of carrying above 5,000MW of generated energy, the capacity of the grid was dynamic and would continue to grow as more energy was added.

The Nigerian National Petroleum Corporation (NNPC) noted that work was on going to repair all pipelines vandalised in 2016 to restore gas supply to power plants while the Nigerian Electricity Regulatory Commission (NERC) announced Abuja DisCo as the best performing DisCo in the third quarter of 2016. The score was based on rates of collections, metering progress, health and safety, amongst other indicators.

Okpai Power Plant was announced as the best performing thermal plant in the third quarter of 2016 while Shiroro was announced as the best performing hydroelectric plant. The score for generating plants was based on availability and general compliance with industry standards.

The Meeting, which was chaired by the Minister, was jointly hosted by Ikeja Electric and Egbin Power and, as usual, focused on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry.

Earlier, in his opening remarks, Fashola had stressed the need for Operators, especially in the distribution areas of the power sector, to endeavour to improve the quality of their service to consumers pointing out that the consumers being the ones paying the bills, must be treated with all care and respect

The Minister urged the Operators to continue to train and retrain their personnel to recognize that the customer is king adding that even if they could not provide all that the customers required, they owed the customers a duty to explain what they were doing at any point in time

He declared, “We owe a duty to fish out a few staff that are not dedicated and retrain or discard them. I know that they are not many but a few because we get constant reports and we know we have got staffs that are very dedicated. Our staff must know that without customers they don’t have a job”.
 

“Without the customer, we have no business and I think all those in the private sector understand that. If you don’t have the zeal and dedication to serve, please leave, it is a thankless task but it is a noble task to serve”, the Minister said.

On the frequent complaints of consumers, Fashola listed them to include issues around metering and billing urging, “We must build that trust and that confidence that is needed in service delivery. I have heard complaints of people being charged for things they shouldn’t be charged for. So all of us that are owners of this business must look inside and do whatever is possible to improve service.

Expressing confidence that there would be improved service in the New Year “if we work together and have understanding of each other”, the Minister thanked the Operators for their perseverance thus far. He also advised them, “We have spoken of Undercover Boss here before. Go round; ask the consumers what their experiences have been. It will inform your management decision about what to do”.

On the liquidity issue, Fashola, who acknowledged its challenges to the service providers, recalled his statements concerning the issue both before the meeting and in the past as well as to the Press in which he had explained government’s efforts,  working with its development partners, both international and local, who, according to him, “have shown commitment and very inspiring appetite to play in this sector”.
“We are trying to see what we can do together in order to bring the liquidity issue under some control and from there solve the problem”, he said just as he also announced that the members of Parliament have also shown inspiring understanding of what the challenges are.

According to the Minister, “Quick decisions will be made now with collaboration and we will be fair but firm and we expect that people will respect the decisions. These, of course, are matters which the regulator, NERC, will deal with, Bulk Trader, NBET, Ministry of Finance and Ministry of Petroleum in terms of gas and, in fact, all the players, will dovetail into one another”.

Speaking on what to expect in the New Year, Fashola noted that government has already listed and identified what the challenges were, adding, “What we are trying to finalize now is what comes first, what follows and what takes dominion, because in solving one problem we might solve three simultaneously and so on and so forth”.

Promising that government would keep in constant touch with the Operators as the issues evolved, the Minister said such constant interaction would also enable the operators to give their own side of the story adding, “We will also use this meeting to share details of what we are seeing and to hear what you are experiencing”.

Reiterating that the intention of the constant meetings remained to review and enhance services and also to meet the needs of the expectant Nigerians, Fashola declared, “I think the top burner issues still remains service. I am conscious of the challenges the operators in the sector face but you and I are working as hard as we can to make that environment more responsive to you”.

“I have said that indeed as pioneers you will carry some burden and you will sacrifice, perhaps, more than you have done. But I am optimistic that things will get better. I am optimistic that we can work together to give Nigerians better service”, he said.

FG To Overhaul 50 Bridges...
Jan
03
2017

FG To Overhaul 50 Bridges

The Minister of Power, Works and Housing, Mr Babatunde Fashola has said that the Federal Government is planning to overhaul about 50 bridges across the nation. Fashola said this while inspecting the Rehabilitation of Lagos Ring Road Bridge Abutment and Approach to the Third Mainland Bridge project on Tuesday in Lagos. He told newsmen that some columns and beams of the Third Mainland Bridge were threatened because of human activities, sand filling and ecological factors which resulted in erosion. "The work we have come to inspect was awarded some years back when there was an indication of some mis-alignments here on the Lagos Outer Ring Road which is the beginning of what leads on to the Third Mainland Bridge itself which is just about here. "And it is being caused by erosion, sand filling and other activities. "This road has moved as a result of some sub-soil displacement,’’ the News Agency of Nigeria (NAN) quotes Fashola as saying. He said that the project which was slowed down by funding would be completed in November.

The minister said that many of the bridges in Lagos and across the country had suffered neglect and had not been undergoing routine maintenance.
Fashola said that the current administration was determined to correct the trend and had began the process for maintenance of about 50 bridges across the country "if it receives the support of the legislature’’. "Many of the bridges we built in the country over the last four, five decades have not been under any form of maintenance. "We now have a three-year plan affecting over 50 bridges across the country for maintenance, repairs and restoration. "And it is going to cost about N270 billion over three years. "Our plan is to start with about N70 to N100 billion in year one; starting with the very critical ones so that they do not collapse and then we move to the less critical ones,’’ he said.
The minister said that the government had done all the survey and assessments to unravel the problems of the bridges, adding that, it was waiting for appropriation and approval of funds to execute the projects.
He decried indiscriminate parking and trading activities in some parts of Ebute Ero toward the Third Mainland Bridge.

Fashola warned that government would take action soon. "I want to appeal to those people who use those areas as car parks and trading to start moving voluntarily in their own best interest. "We intend to repose our right of way while work is going on on the Outer Marina to free traffic,’’ he said. Earlier, while receiving a brief from the Federal Controller of Works, Lagos, Mr Godwin Eke, on status of other bridges, the minister directed engineers to begin work to realign the Apongbon Bridge. Mr Gianfranco Albertazzi, the Joint Managing Director, Boroni Prono and Co Nig. Ltd- contractors of the project, told newsmen that some piers, alignment and decks and piles of the bridge were affected. "I have pictures of the affected columns here. They were enlarged but we have strengthened them by another layer of steel and concrete,’’ Albertazzi said. He said that a new kind of cement that dealt with the problem of salinity of both air and water was being used to reduce degeneration of the bridge.

The project was awarded in December 2012 at a sum of N967.3 million.

Fashola To Nigerian Youths: Don’T Despair, There Is Hope, Recovery Ahead...
Dec
21
2016

Fashola To Nigerian Youths: Don’T Despair, There Is Hope, Recovery Ahead

Calls for patience, hard work as panacea for economic recovery

"With what I am seeing in the seven months of implementing a budget, recovery is on the way", he says

Urges Nigerian youths to be prepared to play bigger roles as results of budget implementation, steps to stimulate local production begin to manifest more forcefully

The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, Tuesday participated in a Special Town Meeting with Youths in Abuja bearing an unmistakable message of hope even as he called for patience and hard work among Nigerians as the panacea for the much desired national economic recovery.

Fashola, who spoke at the Town Hall Meeting with Nigerian Youths in Abuja organised by the Federal Ministry of Information and Culture, prefaced his contribution with an acknowledgement of his age and some of his colleagues as being beyond the youth bracket but quickly added that he has useful experience to share with the gathering.

His words: " The point really is that as unyouthful as I am there is a lot of story and history there. For the very, very young people, the first thing I’ll like to say to you is don’t despair. There is hope and there is light at the end of the tunnel. I have seen Nigeria like this before, even worse…I want to say to you don’t lose faith."

The Minister also urged the young people to be patient and hopeful assuring that government policies and actions being implemented across the country from the 2016 budget had given the indication that economic recovery was on the way.

Addressing the capacity audience of youths, representatives of youth organisations, Ministers and top government functionaries, Fashola said because recession came about when the country stopped producing and started having negative growth the only means of recovery was for all, especially the youths, to roll up their sleeves and "work very hard to take back our economy".

The Minister said the 2017 Budget was appropriately named, "Budget of Recovery and Growth" by President Muhammadu Buhari, adding, however, that although the President has set all the parameters for economic recovery and growth, the President can neither recover nor grow back the economy alone.

He declared, "It is the sum total of what all of us do that the National Bureau of Statistics will record and that is when the numbers come out. It is either a plus or a minus. To everybody here and to those who are watching us at home, you must understand that this is the time when we must work our hardest".

"I don’t pretend that it is easy. I don’t assume that people are not facing difficult times, I am mindful of it; I see it up close. I know those who are struggling to pay rent; I know those who are struggling to pay fees, those who are withdrawing their children from school. I have relations, but I know that we can turn this corner together", the Minister said.

Predicating his stance on the implementation of the 2017 Budget proposals, Fashola said as more money became available for the country, Nigerians would feel it in the quality of infrastructure; in railway projects being completed, electricity installations being expanded and liabilities in electricity being cleared, pointing out that there were "quite a number of liabilities there that have to be paid off".

Appealing to people engaged in counterproductive activities against the economy to stop, the Minister declared, "As money moves around, if I pay A, A can buy sugar and milk. The sugar and milk seller can pay for her children’s school fees, the school fees can pay salaries of teachers. That is how money moves around in an economy".

"It is important for us, especially those who are sabotaging this economy, breaking pipelines, that this is time to stop if we must recover; because the price of oil is going to go up but we will not benefit from it if we don’t produce; that was why I talked about working hard and producing because that is still a major source of our income. It is also the major source of our foreign exchange", he said adding that selling more oil would also reduce the pressure on Dollar to Naira for the benefits of all Nigerians.

On the role of his Ministry in achieving a turn around for the economy, Fashola, who recalled his earlier addresses in which he had disclosed the realities he met on assumption of duties, pointed out that for upwards of two to three years, the contractors in Power and in Works were not paid while nothing except Public Private Partnership (PPP) was happening in Housing.

According to the Minister, "As contractors started losing income, the net effect was to start shedding jobs. So the first thing that we have started doing is to recover those jobs by starting to pay contractors. The first disbursements were made, I think, in June, the second disbursements were made between October and November".

The Minister, who also noted Ministers have spent one year, one month and nine days in office during which period they have implemented the 2016 budget for roughly seven months, added that in seven months, the government has quarter by quarter, as confirmed by Minister of Finance and Minister of Economic Planning and Development, been able to put contractors back to work.

"Contractors who haven’t worked for three years are back to work. Those are the first steps to recovery, getting those who have lost their jobs back to work and I am optimistic that if what I see, what’s being reported to me, and we are not by any means near to where we want to be, with what I am seeing in the seven months of implementing a budget, recovery is on the way", he said.

Tracing the recession to what government did and failed to do in the past as well as unavoidable global events, Fashola recalled that between 1979 and 1984 Nigeria had much money but wasted it all in importation of frivolities adding that by 1984, most of the imported things had disappeared.

"By 1985, in my University, recession meant we could not go to the cafeteria again. We used to eat a meal at 50 kobo; eggs, coffee and tea in this country, chicken at lunch, 50k per meal... That disappeared. But, you know what? Nigeria did not disappear", he said.

Saying the scenario of those years were almost similar to what is happening again today, Fashola urged Nigerian youths not to despair "because there is hope" adding that the best thing for them to do was not to "check out" as was popular in his time, but to stay put and take the opportunities emerging in the economy to build the nation up to international standard and acceptability.

Responding to a question on the supply of prepaid meters and ending estimated bills, the Minister assured that his Ministry was doing all in its power to end the vexed issue adding, however, that it was better to come to the public with results than speak of the efforts being made now for which it would receive no credit.

He, however, noted that if the Government of Nigeria could not meter all Nigerians in the 63 years it was in full control of electricity generation, transmission and distribution, it would be unfair to expect that private companies that took over ownership of generation and distribution three years ago would perform that feat.

"The point to make, therefore, is that the Power Sector in private hands is a three-year transition thus far. We are doing a lot of things and one of the things we are trying to ensure does not happen again is massive importation of meters because the more meters we import the more jobs we take away from you", he told the youths.

The Minister said government was trying to encourage local meter manufacturing companies to produce the meters here adding, however, that because there were still components that  still technologically were not produced in the country, government was trying to get support for the companies to access funds.

"Just yesterday, I signed a letter to the Governor of CBN supporting the request of the two meter manufacturing companies to access foreign exchange which had been denied them in the past", he said adding, "But that is one half of the story. The other half of the story is also the liquidity issue in the Power Sector which I have alluded to and which makes it difficult for the DisCos to access funds to buy meters and supply you".

He said in order to avoid the mistrust between the DisCos and consumers over supply of meters, government has advised the DisCos that their responsibility was to provide the meters and stop passing the burden to consumers adding, "Their (customers’) burden is to pay bills for energy consumed".

Expressing the commitment of the present administration to the local manufacture and supply of meters, Fashola declared, "This administration is determined that the mistake we made in the telecommunications sector will not be repeated in the same way that we are trying to localise our opportunities for producing what we eat". He added, "So bear with us. Step by step, but very progressively and assuredly we will reach you and in the fullness of time".

Earlier, in his opening remarks, the Minister of Information, Alhaji Lai Mohammed, said the present administration headed by President Muhammadu Buhari, was very concerned about youth empowerment in the country adding that in the first phase of the N-Power programme government created 200,000 jobs pointing out that it was the greatest number of jobs created in one swoop by any administration in the country.

According to him, another 300, 000 jobs were next in line to bring the number to the 500,000 which the administration promised adding that most of the jobs, which he said would be from Education, Health and Agriculture programmes, would benefit the youths.

Noting that the school feeding had taken off in Anambra, Kaduna and Osun States and was being scaled up now to 11 of the 18 states designated for the first phase of the programme, the Minister added that some 45,000 cooks had been trained in all the states.

Urging the youths to cooperate with government in achieving the set goals, the Minister said the data for cash transfers for nine states of the country was now ready and the payment processes in those states were already in top gear adding that for the micro-credit scheme, more than 1,000,000 Nigerians were set to get loans at low interest rates through the Bank of Industries.

Other Ministers that addressed the youths and answered questions during the robust interactive sessions were, the Minister of Labour and Productivity, Minister of Sports and Youths Development, Minister of Finance and Minister of State for Trade and Commerce.

Fashola Adds 700MW To National Grid...
Dec
19
2016

Fashola Adds 700MW To National Grid

The Minister of Power, Works and Housing, Babatunde Raji Fashola has disclosed that the on-going construction work on the Zungeru Hydroelectric Power Plant Project would add 700MW to the national grid when completed.

This is as a result of the pursuit for regular and reliable electricity supply nationwide.
The Minister who was represented by the Director, Energy Resources in the Ministry, Engr. Emmanuel Ajayi made this disclosure recently during the River Closure Ceremony of the project at Zungeru, Niger State.

He  described the project being carried out in conjunction with a consortium of major Chinese Companies as one of the biggest hydro-electric power projects in the country.

He said that it is a great and feasible feat that would boost the provision of electricity supply nation-wide. He also pointed out that it is a good omen for the attainment of the present administration’s thrust of providing incremental, sustainable and uninterrupted power supply which Nigerians are yeaming for.
The Minister commended the efforts of those who contributed to the construction of the project and advised the host communities to maintain peace as government has put in place modalities to ensure adequate compensations and resettlement of the affected people around the project site.

The Governor of Niger State, Alhaji Abubakar Sani Bello, represented by the Commissioner for Works and Transport, Abdulmalik Usman Cheche stated that Niger State is housing yet another power project of 700MW apart from the 3 other power projects already sited in the State.

He commended the federal government for creating mass employment to their people, he also noted that the project has already created over 5,000 employments to the host communities.

The Governor gave assurance of the safety of the contractors and workers on the site, saying that the deployment of soldiers to the station is government’s proactive response to its citizenry as no responsible government will fold its arms on security of such a huge investment.

The Vice President of SinoHydro Consortuim, one of the contracting companies handling the project, Xiao Jun pledged his company’s readiness to promote the project in line with the contract agreement, he gave assurance that the project would be realized on record time.

The Project Director of employers’ Representative (Engr. (Dr.) Adewumi); the Project Director of CNEEC-SinoHydro Consortium (Wu Guisheng) and the Vice President of PowerChina International Group Limited (Tian Haha) also graced the ceremony.

Public Private Partnership, A Panacea To Housing Deficit In Nigeria- Fashola...
Dec
07
2016

Public Private Partnership, A Panacea To Housing Deficit In Nigeria- Fashola

The Honourable 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 Polysterene 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 conducted round the factory by the Managing Director, Barrister Oluwadare Bello, inspected EPS Polystyerene, a building raw material made from petrochemical products and is being used to construct facials used in deckings for storey buildings. Other building materials included, wire mesh which acts as load bearing on the wall and sandwich for constructing portakabins. The company also manufactures doors and windows.

The Minister said more companies using polystyerene 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.

The Federal Government Has Condemned The Move By The Senate To Scrap FERMA And The Pl...
Dec
06
2016

The Federal Government has condemned the move by the Senate to scrap FERMA and the plan to replace it with yet to be established, Federal Roads Authority (FRA).

The Minister of Power, Works and Housing, Babatunde Fashola (SAN), while addressing the Senator Kabiru Gaya, led Senate Committee on Works, at a one day public hearing on the repeal of the Federal Roads Maintenance Agency Act and the Re-enactment of the Federal Roads Authority Bill, at the Senate building Abuja. He said that, action should be concentrated on sustaining and repositioning of the existing FERMA brand to give it more strength and valour, rather than its total scraping and replacement.

Fashola expressed that all recommendations that have been made for maintenance in the would be FRA Act, should be embodied in the existing FERMA Act, which is already in existence to enhance its optimum performance, instead of total scraping; pointing out that FERMA is a brand that has been established and accepted.

In his words, "repeal the existing FERMA law, re-enact it and put all of the new things we want to create inside it instead of creating a new agency, because FERMA was set up for maintenance in the very first place. It has acquired the name, it has acquired the brand, we can build on that brand instead of creating a new one"

Before now, Senator Kabiru Gaya, representing APC Kano South, had sponsored a bill to repeal FERMA Act and replace it with FRA, alleging that FERMA lacked the capacity to properly maintain roads across the nation. This was due to lack of proper funding on the part of FERMA.

Earlier, while declaring open the public hearing, the Senate President, Bukola Saraki, said that the new amendment would surely reset the direction of the infrastructural maintenance and funding and also ensure private participation; pointing out that good roads network is very important to the development of the country.

I Think, As A Nation, If We Build Consensus On The Future, If We Approach The Future ...
Sep
28
2016

I think, as a nation, if we build consensus on the future, if we approach the future with courage and with dedication; with the belief that it will be better, we will witness that glorious dawn, says Minister

As Supreme Council of Islamic Affairs holds Independence Anniversary Lecture in Abuja

As activities continue to commemorate the 56th Anniversary of Nigeria’s Independence, the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, at the weekend in Abuja called for consensus building, dedication and commitment among the nation’s leaders as ingredients that would ensure a better tomorrow for Nigerians.

Fashola, who spoke at the Independence Anniversary Public Lecture organised in Abuja by the Supreme Council of Islamic Affairs , as part of the Independence Anniversary event, said the biggest ingredient to nation building and governance today was how to build consensus.

The Minister, who also called for commitment and dedication among the nation’s leaders as the means to give their best in the service of the country pointed out that the easiest way to achieve this was to put the membership of the Nigerian family first before our religious and other affiliations.

He told the gathering of eminent Islamic Scholars and Clerics as well as traditional rulers including the Sultan of Sokoto and the Etsu Nupe, and members of the Diplomatic Corps, "The biggest ingredient to nation building and governance today is how to build consensus and I think it will be easier to build consensus if we put our membership of the Nigerian family first  before our religious and other affiliations".

Calling for commitment and dedication among leaders, Fashola said if those privileged to serve would commit and dedicate themselves to making life better for Nigerians by addressing the challenges that face them, among other services, the country would witness a glorious dawn.

The Minister declared, "Let those of us who are privileged to serve remain committed and dedicated to do our best to make life better, to address the challenges that face Nigerians, to seek for opportunities where there are challenges and to keep our eyes focused on the promise of a better tomorrow".

Assuring that in spite of the challenges that Nigeria faces, there are enormous opportunities in the country, Fashola asserted, "I think, as a nation, if we build consensus on the future, if we approach the future with courage and with dedication; with the belief that it will be better, we will witness that glorious dawn".

The Minister congratulated all Nigerians, including the President, the Governors and all the others in the position of leadership at all levels in the country, on the occasion of the 56th Independence saying that as the country celebrates the Anniversary each year, in her progressive journey of existence, the landmark occasion should also come with the level of maturity befitting the age of the country.

While paying glowing tribute to all the nation’s Founding Fathers, Fashola declared, "Let me also ask us, as we mature, to recognise and to acknowledge the service of all of those have come before us, those who fought for the independence of this country, those who shed their blood, those who paid the supreme sacrifice to keep us together".

The Minister also paid tribute to Service Chiefs, Military and Paramilitary personnel noting that their uniform signifies their commitment that they would always be ready at all times to pay the supreme sacrifice to defend their country. "I thank you on behalf of Nigerians", he said, adding, "I acknowledge all of our Police Officers, Service Personnel, men who stay awake so that we can sleep".

The Federal Government Friday Explained That The Flooding On Portions Of The Lagos-Ib...
Sep
25
2016

The Federal Government Friday explained that the flooding on portions of the Lagos-Ibadan Expressway was caused by structures built on water channels by some companies along the road even as it has directed the contractor handling the flooded portion to provide more palliatives to ameliorate the difficulties caused to motorists by the development.

In a statement explaining the cause of the flooding at a portion of the road opposite the Mountain Top University (MFM) in Ogun State where construction is currently ongoing, the Government said the structures blocking the channels include those built by Hi-Impact Hotel and Parks and Buildwell Plants and Equipment Company as well as various Warehouses.

It said the flooding at the portion became severe because the various structures built along the road had blocked the water channels through which runoffs were to flow away from the road adding that the water retention spot of the whole area had been blocked off by building on the wet zones.

The Statement explained that these locations which are now built up, were the drainage basins where surface runoff was directed when the road was built about 40 years ago.

According to the  Statement, the flooding has also been accentuated by the fact that some of the communities in the area discharge their runoffs to the road where drains are yet to be provided adding that the rains have also been unusually heavy in the past few days, thereby undermining the palliative efforts recently done by the contractor.

Meanwhile, the contractor has been directed by the Minister of Power,Works and Housing, Mr Babatunde Fashola SAN to carry out more palliative works to reduce the effect of the flooding while appealing for patience and understanding among motorists and other road users  as rehabilitation and reconstruction work on the Expressway progresses.

Says The Way Out Of Economic Recession Is Stimulus Spending That Happened In America ...
Sep
24
2016

Says the way out of economic recession is stimulus spending that happened in America and Marshal Plan that happened in Europe
"We must just stay focused. It is a tough time, we are mindful, but we think our methods will work", Minister assures

Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, Tuesday, in Abuja, highlighted the goals of the 2016 Budget expressing confidence that the implementation modalities adopted by the present administration would lead the economy out of the current recession.

Fashola, who spoke, alongside eight of his colleagues in the Federal Executive Council,  at the Town Hall Meeting/Policy Dialogue for Good Governance organized by the Alumni Association of the National Institute for Policy and Strategic Studies in collaboration with the Federal Ministry of Information and Culture, said by reordering the expenditure focus of the budget, government has set the economy on the path of growth and recovery.

The Minister, who described the allocation of 30 per cent of the N6 Trillion Budget to Capital Expenditure, as historic in the annals of budgeting in the country, said by doing so, government has ensured that more of the budget would impact on the larger society as against the previous practice where those in government, who constitute less than three per cent of the population, got the bulk share.

Highlighting the impact of the Budget across board, Fashola, who disclosed that N102 Billion was released to his Ministry out of the N300 Billion already released by the Federal Government, said as at July this year, N70 Billion had been paid out to contractors, project managers and consultants designing roads and bridges adding that with the payment, the various contractors have returned to site.

The payments, the Minister said, were being made on the condition, commitment and understanding that the contractors, who left site as a result of non-payment of their fees for over two years, would begin to reemploy back workers that they had laid off adding that adherence to this has led to the recall of thousands of workers previously laid off by the contractors.

Insisting that it is the only way out of recession, Fashola declared, "We begin to spend on the productive sector so that at every construction site not only do we see plants and equipment and machinery back and working, we see demand for diesel and petrol, water tankers begin to roll, sale of sand and gravel begin to happen , food vendors move back to those sites to supply food and water to those who are working and so on and so forth where activity begins. That is the way, there is no other way".

"That is stimulus spending that happened in America, that is the Marshal Plan that happened in Europe; that was the Roosevelt Plan after the Great Depression. So we are not doing anything unusual. The only difference now is that we are working with leaner resources and seeking to do more with less", he said.

He listed the road projects where contractors have returned to site as a result of the payments, to include the Kano-Katsina Road, Kano-Maiduguri Road, the Ilorin-Jebba Road, the Loko-Oweto Road, the Lagos-Ibadan Expressway and the Port Harcourt –Enugu Road among a number of others.

In the Power Sector, Fashola said with the money available, the Ministry was currently working to complete the 215MW Kaduna Power Plant, the transmission line for the Gurara 40MW plant, the Kashimbilla Plant and some of the other power projects, adding that it was also remobilizing contractors back to the transmission sites.

The Minister explained that it was necessary to revitalize the transmission lines, most of which had stopped for over two years as a result of non-payment of contractors, in order to be able to evacuate power being generated  pointing out that some of the contractors couldn’t clear some of the equipment they imported.

"Some have been trapped at the ports for decades", he further explained adding that government was now trying to clear all those parts for the contractors some of who, according to him, are owing clearing agents in the excess of about N3Billion. He, however, said the Ministry was working with the Office of the Vice President to sort out all the issues "and also ensure that monies when ultimately spent are spent for value".

Fashola said in spite of the setbacks, progress was being made in such places as Irrua in Edo State where transmission work is currently going on, Okada Transmission project, also in Edo, where work has been completed adding that although problem was encountered in Itu local government last month where work stopped on the Itu-Calabar Transmission line over some   communities issues, the project was back on track as the issues had been resolved.

Recalling his recent visit to Maiduguri, the Minister disclosed that the contractor handling the Damboa Transmission Power in Borno State and who had left site because of the violence and insecurity there, was back on track and said he would finish the project by the end of this year.

Expressing confidence in the implementation modalities of the administration, Fashola declared, "When all of these come together, clearly we will begin to see life getting back to normal", adding, however, there was need to stay focused.

He told the audience, "It is a tough time, we are mindful. And the purpose of our  coming here, if I may say so on behalf of our colleagues, is also to see whether there are things that we are missing and to listen to them, take them back in and see what we can do to improve them".

On how the nation was drawn into economic recession, Fashola explained that in spite of the huge resources available to the previous administration, contractors handling various projects across the country were not paid for over two years resulting in their abandoning the sites and sacking their workers who as a result lost their means of livelihood.

"The story we met was that contractors, whether in Works, Power or Housing, saying that over the last two to three years, they had not been paid. So that was the time the seed for this recession was sown; money increasingly leaving the economy, leaving the hands of people who work on day to day basis".

"The result was that workers were being laid off gradually, progressively and systematically and as workers lost their jobs, money stopped moving because they stopped buying, they lack purchasing power and those who were selling were also losing their livelihood. That is the story to where we are today", he said.

The Minister, who also explained that out of the N300 Billion already released by the Federal Government since the Budget was signed, his
Ministry received N102 billion, added "It has been described as a lion share of the N300Billion but it is a lion share against our realities and the realities are that we inherited 206 roads under construction and the liabilities for those roads were in the region of N2.1Trillion", pointing out that government has paid about N600 to N700 Billion of the amount.

Recommending fiscal spending as a way out of the recession, the Minister, who described the 2016 Budget size as ambitious, added that an increased budgetary size would enable the administration fund the various capital projects that would impact on the livelihood of the population.

He explained further, "From an average N4 Trillion, which is the average budgetary size of this country for over half a decade when we were earning $100 a barrel of oil per day, we are going now from there to N6Trillion when we are earning significantly less than that. It is ambitious".

"But what has also changed, for those who say they haven’t seen change, let me dimension that, what has changed is that from spending 10 to 15 per cent of our budget on capital and spending more than 80 per cent on recurrent, this government has now committed to spending 30 per cent of N6 Trillion on capital and 70 per cent on recurrent", he said.

According to Fashola, "In government circles, the people in government usually constitute barely 1 or 2 per cent of the entire population. So a government that continuously chose to spend 90 per cent of its earnings on one or two per cent of the population leaving 10 per cent for all the contractors, for all the roads, for all the suppliers, clearly was on the path to where we are today".

Advocating public enlightenment on the annual budget, Fashola said there was need for all Nigerians to become more familiar with how the budget process works pointing out that many Nigerians still think that any time that budget was said to have been passed it was cash at hand.

"It is an approval to spend a certain agreed sum on identified areas", he explained adding that it was important for members of the public to understand that when budget has been approved for a Ministry or a Department, it wasn’t cash.

Describing the Town Hall meeting as instituted by the administration as the reward for sticking to democracy, Fashola, who said it was the first time, in recent times that an administration was coming out to give account of its stewardship when no election was in sight, declared, "Government is out here saying this is what we are doing, this is what we want to do, this is the direction we are heading so that we have some measure of accountability".

The Minister Of Works, Mike Onolememen, Said The Ministry’s N100bn Proposed Bud...
Jun
25
2016

The Minister of Works, Mike Onolememen, said the ministry’s N100bn proposed budget for 2015 was slashed by the Ministry of Finance to N11bn, representing an 89 per cent reduction.

Onolememen, who was in the Senate to defend his ministry’s estimates for the fiscal year, added that no sum was approved for   the Federal Roads Maintenance Agency’s capital projects   and the Office of the Surveyor -General of the Federation.

He said the Finance ministry predicated its action on the economic realities on the ground. The minister expressed concern that only 33 out of the 210 ongoing road projects had been provided for in view of the "lean allocation" to the ministry. He also said the provision was not sufficient to encourage contractors to sustain appreciable progress on their work sites.

Onolememen added, "No provisions have been made for other departments of the ministry such as Road and Bridge Design Department, Mechanical and Electrical Department and the Service Department." The minister also disclosed that since 2011, the ministry had always been owed outstanding budgeted funds. He said, "Only N45, 682, 844, 395.00 was released for the works ministry out of 2014 capital appropriation of N98, 814, 368, 704. This leaves a balance of N53, 131, 524, 309.00 not released as of December 2014.

"It is important to emphasise that the performance of the ministry would have been considerably enhanced if the outstanding budgeted funds of N53.131bn had been released to the ministry. "More importantly, if the cumulative outstanding budgeted funds of N203, 392, 075, 947.25 for the period spanning 2011 to 2014 had been released, the total indebtedness would have been brought down from N230bn to N27bn"

He however said that due to the lean capital budget, a model of Public Private Partnership was being explored to ensure that more capital projects were carried out this year. Most members of the Senate Committee on Works described the budget of the ministry as laughable . The Chairman of the committee, Ayogu Eze, said the budget was very terrible for a sector that needs at least N500bn annually for road construction and maintenance.

Eze said, "To now be given just N11bn, means the ministry would need a magician to perform wonders. "The picture being painted by this budget profile is very grim. We are in a period of crisis which we must all manage very critically."

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05
2024

HON. MINISTER OF WORKS, HIS EXCELLENCY SEN. ENGR NWEZE DAVID UMAHI CON (RIGHT) WITH THE DIRECTOR, INFRASTRUCTURE AND URBAN DEVELOPMENT, MIKE SALAWOU HELD AT THE OFFICE OF THE HONOURABLE MINISTER FEDERAL MINISTRY OF WORKS, THIS 5TH MARCH 2024.

Hon. Minister of Works, His Excellency Sen. Engr Nweze David Umahi CON (Right) with the Director, Infrastructure and Urban Development, Mike Salawou held at the office of the Honourable Minister Federal Ministry of Works, this 5th March 2024.

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