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.
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
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.
Welcome Address Delivered By H.E, Babatunde Raji Fashola, San At The One-Day Public Enlightenment On Developments In The Road Sector At Nigeria Air Force Conference Centre, Abuja On Monday 19th March 2018
On behalf of the Ministry of Power, Works and Housing, I welcome you all very warmly to this one day public enlightenment meeting on developments in the road sector.
Especially, I welcome the representative of the President, Boss Mustapha, the Secretary to the Government.
This meeting is critical to the achievement of our common goal for shared prosperity.
It is a meeting to reflect and agree on the need for change about how we have used our Road infrastructure.
Our Economic growth, National productivity and job opportunities will be impacted by the conclusions and resolutions of this meeting.
For example, how do we optimize the opportunities that lie in road networks like Trans-Saharan highway that connects Nigeria to Chad, Niger, Tunisia, Mali and Algeria; the Lagos- Abidjan Highway through Benin, Togo and Ghana, or the Enugu- Cameroon Highway through Abakaliki – Ogoja , Ikom and Mfum.
For the benefit of those who may be unaware there are now existing treaty obligations within the West African sub region and beyond that regulate the amount of load any goods vehicle can put on an axle and by extension on the road in order to do business within ECOWAS and beyond.
I must thank you Mr. President for finally signing the instruments of ratification as soon as it was brought to his attention, after many years of delay prior to his tenure.
Our compliance with these regulations will open a massive door of opportunity and prosperity of cross-border trade to Nigerians engaged in the transport business.
This is why this meeting was convened; because when President Buhari once said that “we will change our habits and we will change Nigeria,” I believe this is one of the things he had in mind.
While it is true that we could have done better by way of massive investment in our transport infrastructure during the windfall of income from oil, this Government is now rapidly and aggressively addressing road transport infrastructure repairs, rehabilitation and construction as many of you who travel regularly will attest.
There is no state in Nigeria today, where you will not see our contractors busy at work.
And I must acknowledge what the State Governments are also undertaking with regard to states and some federal roads.
The crux of this meeting is to first acknowledge the President is only one man who cannot be everywhere, and secondly to recognize that we are the actors of the change that is required to take us to prosperity and thirdly to recognize that, the way we use the roads when finally completed will determine how long they last and whether they deliver prosperity or not.
All over the world, one common thread of prosperous societies is their level of compliance with laws and regulations.
So in those societies, you will see trucks parked in proper parks which creates jobs, and not on the highways, which impede access and opportunity.
In those societies, you will see trucks carrying specified tonnage of cargo because it protects the road, and allows for it to be used again and again.
Therefore, while the temptation to overload and carry more with one truck, against regulation and good practice may be appealing it is ultimately a barrier to prosperity.
Such practices may provide cheap and perhaps corrupt riches and income, but they do more damage to the roads from which the cheap income is made.
This means that in the short run, the road is lost, the opportunities diminish or are lost totally or they become very expensive to access until the road is rebuilt.
The expense and cost to all of us, when the road is damaged by misuse or abuse, manifests in longer travel hours, more fuel consumption, expensive delivery of goods and services which every member of the community including transporters have to bear.
This is not what we want. The process to change this has begun with the construction of roads but it will not be complete unless we embrace change.
We must now hearken to our President and some common sense by resolving from this day to change ourselves, about how we use our roads and transport infrastructure.
Our Ministry is convinced that voluntary compliance by stakeholders takes us further and nearer to the prosperity that is beckoning; and this is why we convened this meeting before the process of enforcement commences.
We are pleased with your enthusiastic attendance and look forward to your commitments to voluntary compliance.
Ladies and gentlemen, I thank you very much for your attendance, and in anticipation of your active participation as we continue to engage later today and beyond.
Babatunde Raji Fashola, SAN
Honourable Minister of Power, Works and Housing
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
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