FEDERAL MINISTRY OF POWER, WORKS & HOUSING

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23 April, 2018

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Buhari Creating Jobs, Spearheading Economic Recovery Through Housing Programme, Infrastructure Development - Fashola * As Minister delivers President’s thank you message to young men, women at various construction sites in the North East * Artisans, carpenters, bricklayers, welders, food vendors, suppliers hail Minister, Federal Government at Taraba, Gombe National Housing Project sites * National Housing Programme currently going on in 33 States in the country The Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, has undertaken an extensive inspection tour of on-going infrastructure projects in the North East Zone saying the rapid progress being made on the projects and the employment opportunities created in the process were a manifestation of President Muhammadu Buhari’s determination to achieve economic recovery and create jobs through housing, roads and general infrastructural development. Fashola, who spoke in Taraba and other States in the course of the four days tour, told workers at the site of the State’s National Housing Programme that the whole idea behind the road and Housing development projects going on now across the country was to create jobs for the teeming unemployed youth, get those who had lost their jobs back to work and, thereby, energize the economy. The Minister, who was received by the obviously excited workers with chanting of praise for the Federal Government as they waved and hailed him with their raised fists and working implements, assured Nigerians that the present administration was committed to empowering, especially, the vulnerable in the society such as the artisans, welders, bricklayers, carpenters, food vendors, suppliers of building materials and others. As the Minister waved back and moved round the site of the National Housing Programme in Taraba State and engaged several of them in a chat, those who were working on the walls and other areas within the site gathered round to hear him even as he marched their excitement by posing such questions as when the worker was engaged, what he was doing before his engagement, whether he loved the job and the pay among others. An excited worker, Rilwan Adamu, who answered all the questions at the site of the National Housing Programme in Jalingo, Taraba State, praised the government for providing jobs for them. Abubakar Umar also answered similar questions from the Minister at the site of the Housing Programme in Gombe State while an artisan, Jeremiah Barnabas, chatted with him at the site of the 40MW Hydro Power Plant in Dadin Kowa, Gombe State. Thanking the workers on behalf of President Buhari, who, he told them, had asked him to greet them for contributing to the rebuilding and growth of their country, Fashola further encouraged them to be committed to their work as their contribution would help to put the nation’s economy back to shape and make the country prosperous for every Nigerian. Addressing the workers, Fashola pointed out that the objective of the Federal Government was to get the youths back to work adding that the programme would energize the economy as artisans, carpenters, bricklayers, welders, food vendors, suppliers and many others engage in activities that put money in their pockets and food on their tables. The Minister told them, “This is all what it is about; it takes care of the vulnerable members of our society. That is what Housing does; it energises the industry and it energizes employment. You will see trucks moving in and out, you will see bricklayers, you will see carpenters, you will see welders, you will see food vendors; and this is what we are igniting across the whole country”. “That is why President Muhammadu Buhari said this year’s Budget is a Budget of Growth, getting people who have lost their jobs previously back to work, putting money in their pockets and restoring their dignity so that every morning they can tell their wives, they can tell their husbands ‘I am going to work’ ”, he said. Earlier, the Federal Controller of Housing in the State, Mr Pius Eneji, who received and conducted the Minister round the site, had told the him that the site was on 16 hectares of land adding that the contractors were currently working on five hectares of the land. He also told the Minister that there were a total of 76 units of houses in the site made up of four units of one bedroom semi-detached bungalows, 48 units of two bedroom semi-detached bungalows and 15 units of three bedroom semi-detached bungalows. The Controller, who said the work on the site was delayed for some time because of some exigencies, informed the Minister that a total of 19 contractors were on the site and working pointed out that but for the delay, some of the houses would have gone beyond the levels that they were at the moment. He said the number of workers that were engaged on a daily basis varies according to the volume of work at hand adding that when the building got to the stage of casting lintel, more workers would be required as well as at other stages of work as the buildings progress. According to him, there is also a nine-man team sent from Abuja to monitor the project and the team was based in the State adding that his office has also deployed seven staff of the Ministry to complement the efforts of the Abuja team in order to ensure delivery of quality buildings for the people. It could be observed at both the Gombe and Taraba sites that the buildings were at various stages of completion with some at the foundation level while others were already progressing towards the lintel level.  Earlier at the site of the road inspection which was the construction of the Jalingo-Kona-Lam-Karim-Lamido Road, inside the State Capital, Fashola thanked the Taraba State Government for taking responsibility for the road, the contractor handling the project, for the quality of work done and the Taraba State Commissioner for Works and Transport, Dr. Tafarki Eneme, for supervising the project to completion. The Minister, who assured that the Federal Government would reimburse the State the money they spent on the road, however, pointed out that the road was now a Metropolitan Municipal road as it ran inside the centre of the city adding that it no longer qualified as a Federal Road. According to the Minister, “This is now a Metropolitan Municipal road. It really does not qualify in the sense of a Federal Highway because our work as a Federal Government is to connect states together. But obviously when this road was designated as a Federal Highway most of these developments were not here; but you now see that it now has a pedestrian sidewalk and all of the amenities. “So it has become a Municipal road and if you apply, I think the Federal Government will be inclined to hand it over to you for maintenance and management”, he said, assuring the State Government, however, that the handover or any such arrangement in the future was without prejudice to its right to be fully reimbursed whatever it had spent on the road. On Saturday, the Minister also took time off on his way to Yobe State to inspect the National Housing Programme in Gombe State during which he reiterated that President Buhari was determined to make Housing and Infrastructure development generally the main plank of his administration’s Economic Recovery Plan. The Federal Controller of Housing in the State, Tpl. Yalin Luka Barnabas who received and conducted the Minister round the housing project, told him that there were altogether 76 housing units made up of 1,2 and 3 bedroom semi-detached bungalows adding that there were altogether about 500 workers on daily basis. The National Housing Programme is currently going on in 33 states of the country.
22 March, 2017
Federal Ministry Of Power, Works And Housing Not Frustrating Ambode Or His Government * Lists several requests it has approved for LASG * Says Governor failed to acknowledge he spoke with Minister who explained on going processes to him * Reveals that LASG has refused to provide land for National Housing Programme The attention of the Federal Ministry of Power, Works and Housing has been drawn to certain statements credited to the Governor of Lagos State, Mr Akinwunmi Ambode claiming  that the “Federal Ministry of Works“ has been frustrating the efforts of his administration to carry out a “total reconstruction of the International Airport Road from Oshodi.” The Governor also reportedly accused the “Federal Ministry of Works and Housing” and Security Services of denying the State Government access to the Presidential Lodge in Lagos six months after President Muhammadu Buhari approved it off for the State. This response is to ensure that members of the public are not misled by deliberate or inadvertent mis-statements. The allegations of lack of cooperation from the Ministry and frustration of Lagos State Government development initiatives are simply not true and the facts do not bear them out. In 2016, the Hon Minister for Power Works and Housing, Mr. Babatunde Raji  Fashola, SAN, approved the use of the Federal Ministry of works yard at Oworonsoki for Lagos State Government to create a lay-by to ease traffic. The Hon Minister also approved that Lagos State be granted the Rights to manage the Street Lighting on the 3rd Mainland Bridge to support the security initiatives of the State, a request which the previous Federal Government administration had denied Lagos State for years. During the same year the Hon Minister also supported the approval of the World Bank Loan of $200m to Lagos State, again a request the previous administration had denied Lagos State. As far as International Airport Road which is currently the ground for alleged “frustration” is concerned, the correct position is that the Lagos State Government presented a  request for FOUR roads that it would wish to take over. This is consistent with the position being canvassed by the Hon Minisiter for States who are interested to apply to take over Roads that are within their States. The Ministry has presented the Memorandum conveying the request of the Lagos State Government to the Federal Executive Council as was done with a similar request by the Kaduna State Government in 2016. Due to the fact that TWO of the roads also connect Ogun State, the Federal Executive Council could not reach an immediate decision on them because it requested the input of the other State Government affected. The Kaduna State Government requested the Federal Government to transfer two roads within Kaduna Metropolis to the State in November 2015. Due process was followed and the request of the State Government was approved in August 2016, a period of ten months. Federal Executive Councill Memorandum are debated and commented upon by all members and in cases of roads, surveys, maps and other material have to be provided to assist members understand the location and connectivity of the roads, (in this case Four roads), in order to assist how they vote on the Memorandum. As far as the Presidential Lodge is concerned, it is under the management of the Presidency and not the Ministry. After the approval by Mr President that the Presidential Lodge be handed over to the State Government, there was a directive to the Ministry to work out the modalities for handing over. The Ministry has prepared a vesting instrument to convey the transfer and all that is needed is a survey plan. The Presidential Lodge is a high security location and officials of the Ministry also require security clearance to enter in order to do any works. Access to the lodge is not under the control of the Ministry. The motive behind this public accusations must therefore be scrutinized coming barely a week after the Governor spoke with the Honorable Minister, Mr Babatunde Fashola SAN on the outstanding requests of the State for several minutes and the Minister took time to explain the situation of things to the Governor. (The first telephone conversation the Governor has had with the Minister since May 29, 2015). If there is any lack of co-operation it is on the part of the State Government that has refused to acknowledge not to talk of approving the Ministry's request for Land of the National Housing Programme in Lagos. The Ministry is not frustrated by this lack of response and remains optimistic that a response will come from Lagos State. The Ministry remains committed to serving the Government and Good People of Lagos and will treat all their requests on Merit and in accordance with necessary due process as will be done to other States. As far as the refund of N51Billion is concerned this is not a new item. Almost all if not all states have these claims and the Federal Ministry of Power Works and Housing has verified these claims. What is left is the process of raising the finance to pay the Debt owed to the States. Those who are familiar with the workings of Government will attest to the fact that it is an intricate sequence of processses, consultation and collaboration. Equating processes to a lack of co-operation is therefore akin to creating a storm in a tea cup.
15 March, 2017
Power Sector Liquidity Receives Fresh Boost As FG Sets To Pay All Verified MDAs’ Bills To Discos For Electricity Delivered * NDPHC announces progress on ongoing projects to connect communities that host NIPP * TCN reports resolution of way leave issues in Uzalla, Edo State, and on-going work in Ondo, Rivers State and other locations around the country * As Fashola chairs 13th Monthly Meeting with Power Sector Operators, Stakeholders in Ughelli, Delta State On the heels of the N701 billion guarantee for the Nigerian Bulk Electricity Trading Plc, a fresh boost in liquidity in the nation’s Power Sector is in the offing as the Federal Government has indicated its readiness to commence payment of all verified bills owed Electricity Distribution Companies in the country for electricity supplied to its Ministries, Departments and Agencies (MDAs) based on the on-going audit of the bills submitted by the DisCos. A report presented at the 13th Monthly Meeting of Power Sector Operators chaired by the Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, in Ughelli, Delta State, on the on-going audit of debts owed the DisCos by MDAs, stated that all such verified bills would be recommended for payment as further demonstration of Government’s determination to lead by example with regards to payment for electricity delivered adding, that such payments would be on first-come-first-served basis. The report contained in a Communiqué after the Meeting further stated that the verification team working on the audit received claims currently estimated at N59.3 billion, subject to further review, noting that 86 per cent of the debts, amounting to N51billion, were owed by the top 100 customers, mainly composed of military and defence installations around the country. Also, the Niger Delta Power Holding Company (NDPHC) presented ongoing projects to connect communities that host National Integrated Power Projects (NIPP) just as it announced progress on projects in Ikot Nyong, Egbema, Ihovbor, Gbarain, Olorunsogo, and Omotosho saying the expected completion date for Magboro community would be April while the Olorunsogo connection would be completed in June this year. Other progress reports include the resolution of way leave issues in Uzalla in Edo State, and ongoing work in Ondo, Rivers State and other locations around the country as reported by the Transmission Company of Nigeria (TCN); the improved compliance with submission of audit accounts as reported by the Nigerian Electricity Regulatory Commission (NERC) and the completion of maintenance works in Awka and Maiduguri to improve service delivery as reported by the Enugu and Yola DisCos. Acknowledging that the economic progress of the country largely depends on the success of the Power Sector, the Meeting commended the Federal Government for the recent approval by the Federal Executive Council of financing to assure payment to GenCos for electricity generated and supplied on the grid noting that it would enhance investor confidence in the industry. It noted with delight that the newly reconstituted NERC would more rigorously perform regulatory duties tasking the regulatory body to standardize reporting on financial performance, safety and customer service as a fair basis for ranking distribution companies and other industry operators. Receiving with delight the reports by the Enugu and the Yola DisCos on the completion of maintenance works in Awka and Maiduguri to improve service delivery to targeted customers, the Meeting commended them for the completion of the projects and, however, reemphasized the need to react to customer complaints more speedily. Acknowledging the Federal Government’s decision to support NBET with N701 billion over two years for NBET to pay generation companies for electricity produced under the Power Purchase Agreements, the Meeting, however, said the initiative did not discharge the obligation of the DisCos to pay their invoices to the Market Operator for services provided by Transmission Service Provider (TSP), ISO (Independent System Operator), and to NBET for the electricity generated, transmitted and delivered to customers. The Meeting, hosted by Transcorp Power Limited, and chaired by the Minister, focused on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry even as the operators were fully represented at the highest executive management levels. Those in attendance included a NERC Commissioner, Managing Directors and CEOs of GenCos, DisCos, TCN as well as various government agencies such as the NDPHC, NBET, Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA) responsible for the regulation and development of the electricity industry. Prior to the commencement of the Meeting, the Minister of Power, Works and Housing and the Governor of Delta State commissioned a 115MW turbine installed by Transorp Ughelli Limited, bringing installed capacity to 620MW from the 160MW they inherited on privatization in 2013. Speaking at the occasion, Fashola, who described the decision of Transcorp to invest in the nation’s Power Sector as a demonstration of its confidence in the economy of the country, said the Buhari Administration reposed more confidence on local investors as they would not run away even if the ship hit stormy waters. Assuring that the administration would continue to create enabling environment for more local investors to come into the sector, the Minister appealed to youths of the Niger Delta to see the investment as belonging to one of their own saying any time they disrupted operations at the plant they would be hurting their own person. He declared, “The Governors of the Niger Delta have been and must continue to be the champions of peace. The youths of the Niger Delta must recognise that nobody can be more Niger Delta than Tony Elumelu. He chooses to invest here. So every time you take away gas from this plant you are hurting one of us, you are hurting one of your own and we are losing opportunities”. In his remarks, Transcorps Power Limited Chairman, Mr Tony Elumelu, stated that the plant currently generates only 300MW due to shortage of gas supply, and assured the preparedness of the company to invest facilities to increase gas supply to the power station if government created an enabling regulatory framework.
15 March, 2017
Records 85 to 87 of 113
PUBLIC ANNOUNCEMENT
8 March, 2018

Federal Ministry of Power, Works and Housing (Power Sector)

In conjunction with

Transmission Company of Nigeria (TCN)

General Procurement Notice

The Federal Government of Nigeria (FGN) intends to collaborate with licensed Distribution Companies and Eligible Customers to invest in the construction of new distribution lines and substations to expand the capacity of the distribution networks by an additional 2000MW. 

2.    The principal objective of the project is to deliver currently unutilized generation capacity to metered customers thereby strengthening the distribution networks and improving customer services, collection efficiency and financial viability of the Power Sector.

3.    The projects require procurement of the following components from Original Equipment Manufacturers (OEM):

* 33kV transmission substation busbar extensions;
* 2.5MVA, 33/11kV packaged substations;
* 2.5MVA, 33/0.415kV packaged substations;
* 1MVA, 33/0.415kV packaged substations;
* Modular 0.415/11/33kV steel towers;
* 150mm ACSR conductors; and
* 120mm 1-core armoured conductors.

4.     Detailed advertisement to guide interested bidders will be announced shortly in two (2) national newspapers and one (1) relevant internationally recognized publication, Federal Ministry of Power, Works and Housing (Power Sector) and Transmission Company of Nigeria (TCN) official websites and Federal Tenders Journal.

Signed
Permanent Secretary
Federal Ministry of Power, Works and Housing (Power Sector)

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OTHER NEWS
31 January, 2018

FG Moves To End Housing Deficit: Initiates Family Homes Fund Housing Project To Deliver Affordables Housing Accross The Nation

The Federal Government in a bid to finding lasting solutions to the huge national housing deficit in the country, the Economic Management Team of the Federal Government hasset up a Family Homes Fund Task Force to facilitate the implementation and delivery of the Family Homes Housing Project across the nation.

Speaking during the in augural meeting of the Land and Infrastructure and Off –take Sub – Committees for the project, the Chairman and Minister of State II for Power, Works and Housing, Surv. Suleiman Hassan, mnis, stated that the project is a new widow intended to deliver more affordable houses to Nigerians. He noted that the essence is to consistently deliver about 100 housing units annually and create more jobs to the teaming unemployed Nigerians.

The Minister added that the Land and Infrastructure sub-committee is to engage with relevant state governments and stakeholders on prime locations of land in the various states of the Federation. Also, the Offtake Sub - Committee is to determine a model for the participation of staff housing cooperatives, adding that this will be able to take care of retired civil servants, officers and personnel of the security forces.

The Minister enjoined members of the sub-committees to bring their wealth of experience to bear in order to actualize this laudable initiative of the Federal Government geared towards the delivery of affordable mass housing.

In her response, representative of the Head of the Civil Service of the Federation and Permanent Secretary, Service Welfare Office, Mrs Didi Walson-Jack stated that affordable and quality houses is a key issue that the government is pursuing, adding that members of the Offtake sub-committee will do the needful in meeting up with the task ahead.

Also speaking at the occasion, the Special Adviser to the President on Economic Matters, Dr. Adeyemi Dipeolu noted that one of the most important aims of the Family Home Project is to identify the financing requirements, draw up a sustainable financing of the models, structure of financing and buy-in of relevant Agencies including the Nigerian Mortgage Re-Financing Corporation for the continuity of the programme.

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Records 1 to 1 of 8
Speeches
9 April, 2018

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

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

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

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

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

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

They are running their generators for fewer hours; and

They are getting comparably more power than before.

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

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

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

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

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

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

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

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

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

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

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

And these are examples of our commitment to service delivery.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Get your employees out on the field.

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

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

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

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

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

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

Monday 9th April 2018

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Photo News
16 April, 2018

FASHOLA JAPANESE AMBASSADOR KUSAOKE AT THE COMMISSIONING OF 60MVAR CAPACITOR BANK IN ABUJA

Hon Minister of Power Works Housing Mr Babatunde Fashola SAN middle Managing DirectorCEO Transmission Company of NigeriaTCN MrUsman Gur Mohammedleft and Special Guest of Honour Japanese Ambassador to Nigeria Mr Sadanobu Kusaokerightduring the commissioning of 60MVAR Capacitor Bank funded by Japanese International Cooperation Agency JICA at Apo 13233kV Transmission Substation Apo Abuja on Thursday 12 April 2018

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Power News
Photo News
23 April, 2018

FASHOLA RECEIVES THE ASSOCIATION OF INDIGENOUS CONSTRUCTION CONTRACTORS OF NIGERIA

Hon Minister of Power Works Housing Mr Babatunde FasholaSANmiddle andPermanent SecretaryWorks Housing Mr Mohammed Bukar left being presented a plaque by thePresident Association of Indigenous Construction Contractors of Nigeria Otunba Oluwaranti Lekan Osifesoright in appreciation of the transparency and ease of payments to Contractors shortly afterthe Hon Ministers meeting with theAssociation of Indigenous Construction Contractors of NigeriaAICCONat the Ministry of PowerWorks Housing Headquarters MabushiAbuja on Monday 23rd April 2018

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