FEDERAL MINISTRY OF POWER, WORKS & HOUSING

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20 February, 2019

FG Denies Plans To Stop Payment Of Shortfalls To GENCOS

Following a report in a national daily newspaper, the Ministry of Power, Works and Housing Wednesday denied that the Federal Government has stopped the payment of shortfalls to Electricity Generation Companies (GenCos), describing the report as both false and unfounded.

The report, contained in the Wednesday edition of Punch Online media, held that the Federal Government on Tuesday ordered power generation companies to find customers and sell their power directly to the identified customers as, according to the report, “plans are on the way for it to ultimately exit the monthly payments to Gencos to help cushion the revenue shortfalls on the books of the power generators as a result of the poor remittances from the power distributors”.

The report titled, “FG to stop payment of shortfalls to Gencos” and attributed to the Permanent Secretary (Power) in the Ministry, Engr. Louis Edozien, emanated from the remarks of the Permanent Secretary at a Workshop organized by the Nigerian Electricity Regulatory Commission (NERC) on Tuesday, 12th February, 2019 on the Eligible Customer Regulation.

But in a Statement signed by the Permanent Secretary in person, the Ministry asserted that at no point in his remarks did the Permanent Secretary state that "FGN is to stop payment of shortfalls to Gencos", pointing out that the Payment Assurance Programme of the Federal Government that authorized the Nigerian Bulk Electricity Trader (NBET) to guarantee payment for any power it has contracted from generation companies on the national grid had not been reversed.

The Statement read in part, “The Payment Assurance Programme of the Federal Government of Nigeria that authorized NBET to borrow N701.9 billion to guarantee payment for any power it has contracted from generation companies on the national grid and their gas and other suppliers has been in operation since January 2017. The amount NBET is authorized to borrow is not yet fully drawn. The Federal Executive Council (FEC) approved the programme. FEC has not taken any decision to stop it. FEC is the appropriate authority to comment on the Programme’s tenure and borrowing ceiling”.

In order to set the records straight, the Statement clarified that at the workshop organized by NERC on the Eligible Customer Regulation, the Permanent Secretary urged generation companies to more aggressively take advantage of the regulation to sell the power they can generate, of which 2,000MW is now stranded, to Eligible Customers who need it and are willing and able to pay for it.

Insisting that it would be better than waiting for NBET to pay for it or to guarantee it, for which NBET needs support from the Federal Government due to shortfalls in payment by distribution companies, the Permanent Secretary decried that though the Minister issued the policy direction to NERC that gave rise to the regulation in May 2017, and NERC has issued the regulation, none of the interested consumers and their generation company suppliers have been given licenses to buy and sell power as Eligible Customers. He encouraged NERC to accelerate and simplify the licensing process.

He further stated that the Transmission Company of Nigeria (TCN) should continue to support the regulation by making targeted investments in the national grid, as needed to service specific contracts with generation companies and Eligible Customers to transmit the power, with penalties for failure to transmit, adding that TCN could finance such targeted investments with the expected revenue from such bilateral transmission contracts.

Encouraging electricity distribution companies (DisCos) to embrace the policy, the Permanent Secretary argued that if the DisCos were satisfying the power supply needs of their consumers of bulk power adequately such consumers would have no reason to generate the power by themselves or to want to become Eligible Customers adding that by embracing the regulation, the DisCos could partner with investors and generation companies to build new distribution infrastructure to better serve specific paying customers.

“They can buy power directly from generation companies and contract with TCN to deliver it, and give premium service to selected customers or customer groups”, the Permanent Secretary said adding that in such cases the distribution company must be willing and able to guarantee the payment for the power they buy, “because the shortfalls in payment which characterizes their power purchases from NBET, would not be possible in such bilateral contracts”.

The Permanent Secretary then enjoined dissatisfied consumers to take advantage of the Customer Care platforms set up by all the distribution companies in compliance with the provisions of their license, and escalate unresolved complaints to the NERC Consumer f Forum offices, as provided for in regulations, emphasizing that dissatisfied consumers could take advantage of the Mini-Grid Regulation, NERC's up-coming Franchising Regulation and the Eligible Customer Regulation to get premium power that meets their needs.

The Workshop revealed that the Ministry has received forty four (44) expressions of interest with a total demand for 600MW from underserved and unserved consumers desirous of becoming Eligible Customers. Of these, 14 have submitted license applications to NERC, two have fulfilled all NERC's conditions and expect to be licensed imminently.

The Ministry enjoins the public to discountenance the false report, and requests that the news outlets purveying such fake news cease and desist.

Fashola campaigns for external borrowing to finance Capital Projects The Minister of Power, Works and Housing,Babatunde Raji Fashola, SAN has thrown his weight behind external borrowing to finance capital projects. The Minister made the disclosure while delivering his address at the 2nd Annual Nigerian Mining Week at the Nigerian Air Force Conference in Abuja on Tuesday 17th October, 2017. Fashola, who recalled that in 2016, the Federal Government committed the sum of N1.2 trillion on capital projects, which is an increase from 15% to 30%, emphasized the need to source for loans to finance the development of critical infrastructure for the Federal Government to fulfill its campaign promises. While commending the leadership of the Mines sector for the amazing milestones recorded within “so short a time”, the Minister noted that very little can be achieved within the Power industry without inputs from the sector. He said, “as we roll out transmission stations, towers, we install transformers, whether it is steel casing for the transformers, whether it is copper winding inside it, all of these stem from the operations of the mining industry”. The Minister of Mines and Steel Development, Dr. Kayode Fayemi, earlier on commended the “Nigerian Mining Week,” as a networking platform and a learning turf for existing businesses. Fayemi noted that a recent World Risk Report published by the Mining Journal indicated that Nigeria has made remarkable improvements in both hard and perceived risk factors. He added that, “the Nigerian mining jurisdiction is now considered to have a better investment risk profile than Russia, China, India and several other leading jurisdictions”. Various stakeholders took their turns to discuss the challenges facing the sector and the need to collaborate amongst themselves towards the sustainable development of the sector. In attendance were the Governor of Taraba State, Darius Ishaku, the Ohinoyi of Ebiraland, Alhaji Ado Ibrahim, Senior Partner, PriceWaterhouse Coopers (PWC), Uyi Akpata, representative of the Kaduna State Governor, Mallam Nasir El-Rufa’I, Mrs. Amina Sijuade, amongst others.
20 October, 2017
Nigeria won’t be reckless with foreign borrowings – Adeosun ….IMF, World Bank project higher growth for Sub-Saharan Africa, Global Economy in 2018 The Honourable Minister of Finance, Mrs. Kemi Adeosun, disclosed on Sunday that the Federal Government would not be reckless with foreign borrowings as it maintains an expansionary fiscal policy. The Minister also revealed that the International Monetary Fund (IMF) and the World Bank Group have projected a positive outlook of higher growth for the Sub-Saharan Africa and global economy in 2018. Adeosun made this known in Washington D.C. at a Joint Media Briefing with the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, at the end of the 2017 Annual Meetings of the International Monetary Fund and the World Bank Group. She stated that the Federal Government adopted an expansionary fiscal policy with an enlarged budget in order to deliver a fundamental structural change to the economy, thereby reducing the country’s exposure to crude oil. “Why are we borrowing? Mobilising revenue aggressively was not advisable, nor indeed possible, in a recessed economy. But as Nigeria now reverts to growth, our revenue strategy will be accelerated. “This is being complimented by a medium-term debt strategy that is focusing more on external borrowings to avoid crowding out the private sector. “This would also reduce the cost of debt servicing and shift the balance of our debt portfolio from short-term to longer-term instruments. This Government will be very prudent around debt. We won’t borrow irresponsibly,” said Adeosun, who led the Nigerian delegation to the 2017 Annual Meetings of the IMF and the World Bank. The Minister participated in both the International Monetary and Financial Committee (IMFC) and Development Committee (DC) meetings, the two highest decision making organs of the Bretton-woods Institutions. She revealed that developments in the global economy since the Spring meetings were reviewed, noting that growth had picked up in 2017 even though not even. “Global growth is estimated to be 3.6 per cent for Fiscal Year 2017, while Sub-Saharan Africa (SSA) is projected to grow at 2.6 per cent and outlook is for higher growth in Fiscal Year 2018. “However, down side risks remain in the medium-term with high policy uncertainty, geopolitical tensions. Inflation remains subdued,” she added. Providing further details on the IMF and World Bank meeting, Minister Adeosun said the overarching policy priorities for the entire membership was to boost potential output and improve income distribution while improving financial sector resilience. The two Bretton-wood institutions, according to her, urged commodity exporters like Nigeria, to pursue structural policy reforms to unlock the country’s potentials and stimulate aggregate supply as well as enhance the diversification process. On the Development Committee (DC) meeting, she said members discussed the need to enhance the capacity of the International Bank for Reconstruction and Development (IBRD) and International Finance Corporation (IFC) to meet their obligations of supporting the financing needs of client countries and to prevent a slowdown in lending. “At the DC where I spoke on behalf of Angola, Nigeria and South Africa, I urged the international community particularly the Bretton-wood Institutions to change the narrative on Africa which always portray the continent as Low Income Countries (LIC). “Indeed, there are some Middle Income Countries represented by this constituency and so there is the need for the Bank to deploy instruments, policies and programs that will address the peculiar needs of these countries,” she said. Responding on the issue of investing in women, Adeosun remarked that the women remained the best investment any nation could make. “The multiplier effect of such investment is significant. We need to make more opportunities available to our women. They are the economic drivers of our nation. We have enormous talents in Nigeria, and the Federal Government will invest in human capital,” she added. The CBN Governor, Mr. Godwin Emefiele, who also participated at the IMF and World Bank meetings, confirmed improvement in the Nigerian economy. “The fundamentals we are seeing show that there is a lot of stability in the foreign exchange market, and having come down from high level to the level we are now, and the currency is just fluctuating between N359/N365 to dollar. “We think it is good level compared to where we are coming from. We think it is important to note that as reserves get stronger, as economic fundamentals get stronger, there is no doubt that the naira will get stronger and we will see more appreciation in the currency,” Emefiele said.   He assured that the CBN would continue to focus on the banking system to ensure there were no significant threats that would affect the strategic health of the banking system. He further said that the CBN would continue to support the Federal Government’s efforts to reduce unemployment and create jobs. END
16 October, 2017
Infrastructural Devt: Nigeria asks World Bank, IMF to scale up Renewable Energy Nigeria has asked the World Bank Group and the International Monetary Fund (IMF) to scale up the provision of and access to renewable energy in order to deliver development results and meet global climate goals. Nigeria’s position on renewable energy and regional integration was presented by the Honourable Minister of Finance, Mrs. Kemi Adeosun, during the G24 Finance Ministers and Central Bank Governors meeting in Washington D.C., United States. Adeosun stated that scaling up renewable energy was a “win-win area” to deliver development results and contribute to the global climate goals. She said, “We have a major energy infrastructure gap to meet the needs of industrialization. Providing access to energy to all parts of Nigeria, both urban and rural, is a priority. “If we succeed, we estimate that this could unleash the development potentials of two-third of our population of 180 million.” The Minister added that generation of renewable energy was a financially attractive option for reaching rural populations. She further emphasized the need for business models from other countries to serve as a template in the provision of affordable energy. While canvassing the reinforcement of regional integration process by the World Bank and the IMF, Adeosun said the process would boost trade between countries and serve as a potential growth driver. “We believe that part of the solution must be regional, multi-country initiatives on infrastructure development. Though complex and often not easy to undertake, there are also successful cases of such projects. “For instance, a coastal super highway from Lagos to Dakar in West Africa would cut across 11 economic territories. Another Trans-Sahel highway from Northwest Nigeria to Mauritania would provide access and boost economic activities of land-lock countries like Niger, Burkina Faso and Mali,” stated Adeosun while speaking on behalf of Nigeria and 30 other countries during the G24 Ministers and Governors meeting. The IMF Managing Director, Christine Lagarde, advised low-income countries to be very cautious in dealing with investors, noting that there was a huge surge yields on the path of investors. The Chief Executive Officer of the World Bank, Kristalina Georgieva, urged developing countries to look at other sources of finance rather than dependence on the Paris Club. Georgieva said, “It is imperative for us to maximize finance for development and also critical for us think of comparative strength for significant finance to flow into developing countries.” On energy deficiency, she counselled developing countries to identify what could be done to create favourable environment for renewable energy. In a communiqué at the end of its meeting, the G24 Ministers and Governors urged the World Bank Group and the IMF to continue strengthening their assistance in improving domestic resource mobilisation and enhancing its contribution to inclusive growth through progressive tax policies, as well as more efficient and better targeted public spending. The Body reiterated the importance of scaling up infrastructure investments to achieve sustainable development goals. “We welcome the support of the IMF, the World Bank and other international Financial Institutions in increasing the efficiency of public investments in infrastructure, as well as their impact in improving connectivity, including at the regional level, and addressing distributional and climate objectives,” it stated. The G24 Ministers and Governors also called on Multilateral Development Banks (MDBs) to deliver on their ‘Joint Declaration of Aspirations on Actions to Support Infrastructure Investments’, including through concrete and time-bound actions. This, it added, will help to develop new risk mitigation instruments and infrastructure investment as an asset class. “We support a quota-based, adequately-resourced IMF that is less dependent on borrowed resources. We call for at least maintaining the current lending capacity of the IMF,” the group said. The group also called for strengthening the efforts of the IMF and the World Bank towards greater representation of under-represented regions and countries in recruitment and career progression, including at the managerial levels.  END    
13 October, 2017
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PUBLIC ANNOUNCEMENT
5 October, 2018

APC CONVENTION SATURDAY, 6TH OCTORBER, 2018

This is to inform FCT Residents, Visitors and Motorists that due to the National Convention of the All Progressives Congress, APC slated for Saturday, 6th October 2018 at the Eagle Square, Abuja, an unusual influx of human and vehicular traffic will be experienced within the city with the attendant traffic congestion in and around the venue of the convention.

To this effect all vehicular movement through Shehu Shagari Way from the early hours of Saturday, 6th October, 2018 to Sunday, 7th October  will be diverted at Ralph Sodeinde Street by Bullet Building to link Central Business District. Motorists will also be diverted at Kur Mohammed Street and Constitution Avenue at Bayelsa House to Central Business District.

Traffic on Ahmadu Bello Way will equally be diverted at Ralph Sodeinde Street by Finance Junction to Central Business District. Motorists will also be diverted at Kur Mohammed Street or Constitution Avenue by Benue Building to link Central Business District.

The Federal Capital Territory Administration have mobilized Officers of the Police, FRSC, FCT Directorate of Road Traffic Service and other relevant Traffic Enforcement Agencies to various flash points to ensure seamless traffic flow.

Parking has been made available at the National Stadium for ALL Delegates coming from outside Abuja from where they will be conveyed to the venue by dedicated Buses.

In the same vein, ALL Delegates from within the FCT should converge at the Old Parade Ground  from where they will be conveyed to the venue.

Please note that parking around the Eagle Square and its environs will not be tolerated as offending vehicles will be removed.

The understanding of the public is hereby solicited

Secretary, Transportation Secretariat
Federal Capital Territory

OTHER NEWS
16 February, 2019

FG To Erring Contractors, Up Your Games Or Face Sanctions

The Zonal Director of the National Housing Programme in the North- West, Federal Ministry of Power, Works and Housing, Architect Joseph Toluhi, has urged erring contractors handling the on going construction of housing project in Kebbi State to step up their games or face necessary sanctions.

He noted that contractors, who fails to perform diligently on the job will have to give way for others to be engaged, adding that relevant clauses in the contract agreement can be invoke for appropriate sanctions.

This was contained in a statement by the Zonal Director on Wednesday in Biriin Kebbi during the North-West inspection tour to the project site.

Toluhi stated that the federal government is committed to provide decent and affordable housing to its teeming population and reduce the housing deficit in the country, adding that the NHP project is designed for the medium income earners who have the affordable means to acquire these houses across the nation.

The National Housing Programme, Kebbi State consist of 76 housing units of 1bedroom, 2 bedrooms and 3 bedrooms semi-detached bungalows, are being handled by 19 indigenous contractors.

In a similar development, the zonal inspection team led by Toluhi also visited the National Housing Programme site in Sokoto State to have on-the-spot assessment of the on going construction works which has reached 95 per cent completion stage.

“I must say that I am pleased and happy with the level of progress of work on this site because we have a very high level of competition. Most of the building here have been completed”. He noted that out of 20 contractors engaged, 12 of them have already been completed while four are yet to be roofed.

According to him, “this means, we are ready to move into these buildings. The infrastructure such as water supply, road arterial and water supply have reached a very high level of completion”.

The Team Leader in Sokoto State, Mr lliya Kastuda also confirmed that construction work has reached 95 percent completion, adding that there is provision of worship centers, school, market to give necessary comfort and police post to ensure adequate security within the housing estate.

The zonal Director and other officials of the Ministry inspected a similar project in Gusau, Zamfara State, which is put at 65% completion stage. He however expressed disappointment in the poor quality of job done, stressing that government will not tolerate sub-standard jobs from any contractor.

 

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SPEECHES
1 February, 2019

Speech Delivered By H.E, Babatunde Raji Fashola, SAN At Press Briefing On National Infrastructure Maintenance Framework At Federal Ministry Of Power, Works And Housing Headquarters Mabushi, Abuja

I welcome you warmly to this press briefing to share information about two very important developments that occurred in the month of January 2019.

The first was that on the 9th January 2019, the Federal Executive Council, Nigeria's highest decision making organ of the Executive arm of government approved a National Maintenance Framework for public buildings.

The second is that on the 24th January 2019, President Muhammad Buhari signed into law a bill to prohibit discrimination against persons living with disabilities which included provisions for specific actions that must be taken within a period of 5 (FIVE) years to provide opportunities for such persons to live as normal a life as possible.

This briefing is meant to discuss what these developments mean for Nigeria and Nigerians, and to highlight the possibilities that they offer for our way of life and our economy.

National Maintenance Framework for Public Buildings

Let me start with the National Maintenance Framework on Public Buildings and first point out that for now, this only applies to public buildings but will ultimately extend to other public assets like roads, bridges, rail, power installations and other infrastructure of a public nature.

What the FEC approval means is that after decades of agonizing about lack of maintenance, the Buhari government has chosen to act.

This is policy decision of enormous profundity because the records do not indicate that any such policy decision has previously been taken at the federal level.

The decision was provoked by a memorandum from the Ministry of Power, Works and Housing that challenged the conventional thinking that "Nigeria does not have a maintenance culture".

The memorandum argued and FEC agreed, that maintenance of infrastructure whether public or private, is not a cultural issue but an economic one.

The memorandum showed that in the built industry, only about 23% of the workforce is employed by Design (6%) and Construction (15%), Governance (2%) , while the remaining 77% are employed by Maintenance and operation.

Council was persuaded to accept that while skill training and vocational centres exist almost nationwide for training artisans like plumbers, painters, bricklayers, welders, tilers, electricians etc., there is a lack of National policy that makes the practice of these vocations economically worthwhile on a sustainable basis.

The available data showed that many people trained in these vocations often resort to earning a living by resorting to other vocations in which they do not have a training, such as riding motor-cycles and tri-cycles in order to make a living.

Therefore, the federal government’s decision on maintenance is an economic one, to empower Nigerians at the base of the economic pyramid who are artisans, those at the middle of the pyramid who own small businesses, SMEs who are involved in manufacturing of building and allied materials.

What it entails is that:

* Site assessment of the affected buildings will have to be conducted, measurement are to be taken, valuation conducted and data is collated. This on its own requires the employment of people to carry out this process and therefore jobs will be created from the very first step.

* It will also provide for credible data such as lettable space, value of the property and so on which can form the basis of the economic decisions or even actions in emergency periods.

* Condition assessment is the next step that requires people to be trained and employed to assess the conditions of affected buildings from foundation to roof and for mechanical and electrical sustainability for purpose.

* In one of our sample buildings leading up to the memorandum to FEC, we found out that out of 63 air-conditioning units, 11 required replacement or repairs. We also identified windows, doors, tiles, roofing materials, plastering works that required replacement or repair.

* The maintenance program is then developed from these assessments as to what jobs need to be done to restore the building to fitness, what needs to be replaced and what needs to be repaired.

* This is the basis for the award of the maintenance contract following the existing procurement law.

* This provides a window of opportunity for small businesses who are into facility management and for young graduates of building tech, architecture, engineering and even technical schools to register for these contracts.

* Successful bidders are then in a position to employ artisans to execute the maintenance contract they have won in the bid.

* Each ministry, department and agency will be responsible for its own procurement for its own building  after training of their designated personnel by the staff of the Ministry of Power, Works and Housing who will guide them through the framework approved by FEC.

* Because data is critical to the programme, each MDA will file data with the Ministry of Power, Works and Housing who will centrally manage data and use it to advise government and brief the public, while the MDA reserves the right to keep its own data.

* The award of contracts will not only drive employment for artisans, it will drive demand of manufacturing and suppliers of parts like wood, pipes, paint, tiles, electrical fittings, windows and tools, in addition to those of  cleaning items like soap, detergent, polish, varnish etc.

This is the economy that we see ahead as we set out to implement this approval starting from buildings, and as I said, and extending to roads, rail, bridges etc. as we progress.

Our pilot programme covered 9 buildings  comprising a Federal government college, a Federal Hospital,  a Federal Court building, a federal prison, a federal secretariat and our office buildings at our headquarters here in Mabushi.

The pilot survey showed that these 9 (Nine) buildings will cost N40.3 billion to reconstruct, while it will cost N922.8m per annum to maintain them which is about   2.3 % of the cost of replacement.

Just these 9 (NINE) buildings will require about 448 people to keep them well maintained a year. For example, the school will require at least 30 people to be employed per school for maintenance; and the federal government owns 104 Unity schools which potentially will require 30 X 104 = 3,120.

So you can see the economy we see when this extends to all our hospitals, all our courts, all our prisons, all our police stations, all our universities and covers all public buildings.

This is an economic choice by this government to drive the small business sector, to drive skill utilization and to move the economy from growth without jobs to growth driven by new jobs that reward services.

But as if this was not enough, President Buhari raised the bar for construction, services and a new way of life for Nigerians when he signed the law to protect people living with disability from discrimination and exclusion.

We have 5 years to comply, and this requires that all our buildings must have lifts and ramps. (By this I mean well designed ramps for people confined to their wheelchairs, not hills they cannot use on their own).

We must modify all our toilets with support for our brothers and sisters who are living with disabilities, as we must build sidewalks for them to use our roads without colliding with vehicles.

Our airports and parking lots in buildings must become compliant with international best practice by providing corridors and facilities for people living with disabilities at arrival and departure points, while a minimum number of slots clearly designated must be provided for vehicles owned by people living with disabilities.

This is another opportunity for jobs to re-design, to re-model, to retrofit all our assets nationwide to comply with the law as signed by Mr President.

Ladies and gentlemen, this is the Nigeria that beckons upon us from today and the immediate future. A Nigeria where public infrastructure works because they are maintained.

A Nigeria where everybody has a secure sense of belonging because they can use their skills and labour to earn a decent income and retain their dignity.

A Nigeria where government cares for the people living with disability by providing the basic minimum facilities that gives them a sense of belonging to demonstrate their ability.

Government has taken the leadership role to provide the policy and the how to make this Nigeria possible.

It is now your responsibility and mine to take ownership of this platform of opportunities and make it work for all of us.

Thank you for listening.

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

Thursday 31st January 2019

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Photo News
15 February, 2019

COMMISSIONED 60KW GRID CONNECTED HYBRID SOLAR PV MINI GRID POWER PROJECT IN TORANKAWA VILLAGE YABO LGA SOKOTO STATE

The recently commissioned 60KW Grid Connected Hybrid Solar PV Mini Grid Power project in Torankawa village Yabo LGA Sokoto State Initiated by the Ministry of Power Works and Housing Power Sector under the Renewable Energy Micro Utility REMU Programme which was commissioned on Tuesday 12th February 2019

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Power News
Photo News
1 February, 2019

FASHOLA ADDRESSES THE PRESS ON THE NATIONAL PUBLIC BUILDINGS MAINTENANCE POLICY RECENTLY APPROVED BY THE FEDERAL EXECUTIVE COUNCIL IN ABUJA

Hon Minister of Power Works Housing Mr Babatunde Fashola SAN 2nd left Permanent Secretary Works Housing Mr Mohammed Bukar 2nd right Chairman Committee on Housing House of Representatives Hon Mahmud Mohammed right Deputy Chairman Committee on Works Hon Dr Abubakar Kannike left shortly after the Hon Minister s Press Briefing on the National Public Building Maintenance Policy recently approved by the Federal Executive Council at the Ministry of Power Works Housing Headquarters Mabushi Abuja on Thursday 31st January 2019

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