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Tag: Babatunde Fashola

  • LCCI to engage Fashola on power sector

    LCCI to engage Fashola on power sector

    The Lagos Chamber of Commerce and Industry (LCCI) is set to hold a dialogue targeted at proffering solutions to challenges in the nation’s power sector.

    According to a statement issued by the chamber on Monday, the dialogue is to hold on Thursday in Lagos.

    The statement was issued by the Director-General of LCCI, Mr Muda Yusuf.

    It said that the dialogue was part of the chamber’s public sector engagement programmes for the growth of the nation’s economy.

    “The Minister of Power, Works and Housing, Mr Babatunde Fashola, will attend this dialogue session as the special guest of honour.

    “It will be a platform for the minister to intimate Nigerians about ongoing projects and efforts of government at solving the energy/power debacle.

    “The forum will enable stakeholders to deliberate on key aspects of the privatisation of the power sector, the role of  distribution companies, generation companies, government and all categories of consumers in achieving a successful reform in the sector,” it said said.

    It added that some experts in the sector would be present at the dialogue to engage the minister.

  • FG not against states developing power projects – Fashola

    FG not against states developing power projects – Fashola

    The Federal Government on Thursday said it was not against state governments developing their own power projects to support development and improvement in power supply.

    The Minster of Power, Works and Housing, Mr. Babatunde Fashola, reiterated the position of the federal government at a meeting of the National Council on Power ( NACOP ) in Jos.

    “I heard statements to the effect that Federal Government should allow the states to develop their own power projects.

    “The truth is that Federal government is not standing on the way of any state; the laws do not stand in the way of any state to develop power projects.

    “Because as governor, we built seven power plants, government did not stop us; what we could not do is to do commercial distribution which the law actually allows under license through Nigerian Electricity Regulatory Commission ( NERC ).”

    Fashola said that the theme of meeting, “Completing Power Sector Reforms”, provided opportunity to share with representatives of state governments, other participants what the Power Sector Recovery Programme ( PSRC ) was about.

    The minister said some of the reform actions contained in the PSRC were already being undertaken at the Federal Government’s level.

    He, however, said that there were other areas of the reform where progress in the sector would be defined by what happened at the state and local government.

    He called on the state governments to champion advocacy in some areas of the reforms process in their states to further realise incremental power programme of the Federal Government.

    Fashola listed some of the advocacy required from states governments to their citizens to include:

    “State authorities should ensure that their residents comply with safety standard on building by not building on the right of way of 332/ 133, 33 and 11KVA lines.

    “States can also help by leading the advocacy for the residents to pay for the energy they fairly believe that they have consumed, while we continue to work to resolve the metering issues and estimated billing.

    “States should lead the advocacy for people to stop bypassing meters and stealing energy; energy theft happens in the municipal levels, not in the senate, not in the villa or the house of reps.”

    The minister urged the states to consider asking their attorney generals to review the financial jurisdiction limits of their various magistrates and area courts so that they could be able to try cases related to energy theft.

     

     

  • FG, NLNG sign contract on Bonny-Bodo road

    FG, NLNG sign contract on Bonny-Bodo road

    The Ministry of Power, Works and Housing has signed a tripartite agreement of N120 billion with Nigeria Liquefied Natural Gas ( NLNG ) and Julius Berger Plc. for the construction of Bonny-Bodo road.

    The Minister of Power, Works and Housing, Babatunde Fashola, at the tripartite agreement and contract signing on Wednesday in Abuja said the project would revive and strengthen the nation’s economy.

    The 34 kilometres road when completed would boost socio-economic development in the country and improve the lives of Nigerians in the Niger Delta region living on Bonny Island, Ogoni, Okrika, Eleme and Andoni.

    Fashola emphasised that the project was in compliance with the Federal Government’s Economic Recovery and Growth Plan which had infrastructural provision as one of its pillars.

    “The project portrays the commitment of the government to clean and build up as well as reposition the Niger Delta region recognising the private sector partnership in the country.

    “NLNG as a corporate organisation has decided to fund half of the project by taking 50 per cent cost of delivering the project while the Federal Government takes 50 per cent.

    He, however, said the project showed government’s strong credibility and desire to push forward its commitment towards the nation’s economic revival.

    According to the minister, the road on completion will connect communities in the Rivers bringing about development in the country.

    Earlier, the Managing Director of NLNG, Mr Tony Attah noted that NLNG agreed to provide 50 per cent counterpart funding, amounting to N60 billion to boost socio economic development in the region.

    “This is part of our effort to contribute to the advancement of the Niger Delta.

    “It will lead to the accomplishment of the dream of connecting Bonny Island to the rest of Rivers state by road and not only by sea.

    “Our greater joy is that the road will ease the plight of people of Bonny Island, the community that has hosted NLNG Plant and operations for so long.

    “Over the years our empathy with the host community especially with the respect to transportation challenges on Bonny Sea compelled us to open up our company business vessels to accommodate community members.

    On the company’s financial contributions to Nigeria, he said “it generated 90 billion dollars in revenue as at 2015, paid 5.7 billion dollars in taxes and committed more than 200 million dollars to corporate social responsibility projects.

    “The company also pays N6 billion annually to the Rivers State Government and N140 million annually to the Bonny Local Government Council,’’ he said.

    Attah further noted that through its corporate social responsibility, it recently spent 12 million dollars on building, refurbishing and equipping engineering laboratories of six universities selected from six geopolitical zones.

    The Managing Director of Julius Berger Nigeria Plc., Wolfgang Goesh, thanked the Federal Government for its trust and confidence reposed on the company.

    Goesh assured that the company would deliver a qualitative and timely project.

  • Bonny Bodo: FG, NLNG, Julius Berger sign N120b tripartite agreement

    Bonny Bodo: FG, NLNG, Julius Berger sign N120b tripartite agreement

    The Federal Government has signed N120 billion tripartite agreement with the Nigeria Liquified Natural Gas (NLNG) Limited and Julius Berger Nigeria Plc to construct Bonny Bodo road in the Niger Delta.

    The contractual agreement will ensure the project is completed and delivered in four years.

    The Federal Government, through the Federal Ministry of Power, Works and Housing made a commitment of N60 million for the project while NLNG will provide the remaining  N60 million to ensure successful completion of the project.

    Speaking at the agreement signing on Wednesday in Abuja, Minister of Power, Works and Housing, Babatunde Fashola described the meeting as concluding part of the procurement process for the project execution.

    He said the gesture was in compliance with the Economic Recovery Growth Plan (ERGP) of the federal government, commitment to develop the Niger Delta as well as the partnership with the private sector as major contributor to national growth.

    Fashola said: “Essentially we will formally sign the agreement today. It concluded the procurement process for starting the constructing process of the Bonny bridge.

    “This is important for many reasons. First, it complied with the ERGP which the President launched to revive the economy and one of the pillars of that plan is infrastructure provision….therefore NLNG has decided for reasons which you will hear from them to add funds on equal basis to the project to the value of N120.6 billion and they will be taking 50 per cent of the cost of delivering the project while government takes 50 percent of the cost.

    “This is a major statement in partnership with private sector to deliver public use. We gather here to improve the quality of lives in the Niger Delta, spend more in developing infrastructure. We assure that immediately work starts, we will start to see improvements in the various value chains.”

    In his remarks, NLNG Managing Director, Tony Attah, said the project will open the Niger Delta to new frontiers of development and secure better opportunities for the rural communities.

    He said the gesture was part if their efforts to contributing to the development of the region.

    According to him, the NLNG has drastically reduced gas flaring from over 65 per cent before it commenced operation to 20 per cent today.

    Beyond the project, he disclosed plans to make the Bonny mini-Dubai, such that a sum of N3 billion will be committed to the region for genuine development in the next 25 years.

    Attah attributed high poverty rate as major reason for unrest in the region stressing that the community still host major federal government investments

    “This is a 40 kilometres road that connects Bonny kingdom to Port Harcourt and open up the community to the rest of the world. If you live in Port Harcourt and  you want to visit Bonny, you can only do that through boat but now it will open it for greater opportunities,” he said.

    The Managing Director, Julius Berger Nigeria Plc, Wolfgang Goetsch, said the tripartite agreement and the agreement between the construction firm and FMPWH have demonstrated government commitment to the nation’s development.

    He said local enterprises would be engaged to supply raw materials while the project wi also create jobs for the rural communities.

    Goetsch pledged timely delivery of the project in alignment with the contract agreement.

    “The contractual time for delivery of the project is four years if everything go as planned. We are already doing mobilisation and soil assessment, the dry season is approaching which is better for us in this type of project,” he added.

  • Fashola inaugurates 20 transformers, 20 vehicles in lagos

    Fashola inaugurates 20 transformers, 20 vehicles in lagos

    Mr Babatunde Fashola, the Minister of  Works, Power and Housing, on Monday inaugurated one 15 MVA transformer, 20 operational transformers and 20 vehicles at Eko Electricity Distribution Company (Eko Disco) worth billions of naira.

    Fashola inaugurated the projects shortly after the 19th Power Sector Stakeholders forum  in Akangba Training School in Surulere, Lagos.

    The minister expressed satisfaction on the performance of the management team of  Eko Disco led by its Chief Executive Officer, Mr Oladele Amoda.

    “l was not surprised when the owners of Eko Disco decided to keep him (Amoda).

    “He is not only a prolific scholar, who reads and writes well, he is also technically savvy as you can see in his unscripted remarks.

    “I want to thank Engineer Amoda for his warm  remarks. I knew him way back when I was the governor here in Lagos. He was very responsive to our needs as a state then.

    “And I also warmly welcome the spirit with which he has reminded us that we have work  to do on transmission side,’’ he said.

    Earlier, Amoda  had highlighted the achievements of  his company since the  last quarterly meeting was held.

    “In addition to what the Honourable  Minister will be commissioning today which include one 15MVA transformer that can transmit 12 MW of power, we have added 60MVA in Ajah, 15MVA in Oke-Ira, Lekki  and Alagbon.

    “Others to be added are 15MVA at Fowler, Bourdillon, Anifowoshe and Akungba,’’ he said.

    He said the purpose of the huge investment was to key into the Federal Government’s programme of incremental power output.

    “By the time we complete all our ongoing projects at Adelabu, Stadium, Tejuosho, Surulere, Coker, Ijora and its environs, the network will be able to receive increased  power from the transmission company and distribute accordingly to our numerous customers,’’ he said.

    On embedded power initiatives, he said that First Power Company had  built 13 MW embedded power, adding that  “we are getting an incremental power as directed by the minister.’’

    “We are waiting for tariff adjustment by NERC accordingly  and this will attract more investors and promote willing buyers and willing sellers’ principles,’’ he added.

  • Gencos yet to access N701b power loan – Ogaji

    Gencos yet to access N701b power loan – Ogaji

    • Generating firms record N893b revenue shortfall

    The Electricity Generation Companies otherwise known as (GenCos) are yet to access the power sector N701billion assurance guarantee funds, owing to their inability to meet the Federal Government conditions for it, it was learnt on Monday. 

    The Executive Secretary, Association of Power Generation Companies (APGC), Mrs. Joy Ogaji told The Nation in her Abuja office that the Central Bank of Nigeria (CBN) has put a snag of about 10 conditions precedent to accessing the funds which none of the the power generating firms had met. 

    She said that: “Well, to the best of my knowledge, the fund has not been accessed, and as at today (Monday) this morning, they have not yet met the conditions, we call it conditions precedents (CPs) which the CBN gave them to meet. 

    “They are about 10 CPs and they have not met them. And until they meet them, CBN said they cannot release the money.”

    The Minister of Power Works and Housing, Babatunde Fashola had on August 14, in the last power sector meeting in Kano State announced that some of the policies, programmees, actions which have started taking effect include payment of assurance guarantee of N701 billion.

    But Ogaji noted that the federal government placed the conditions after conducting its due diligence prior to the approval of the Federal Executive Council (FEC).

    Responding to the Minister of Power Works and Housing, Babatunde Fashola’s announcement that any GenCo could invest in meeting, she said the most important thing is to put the right framework for the investors to recoup their money. 

    According to her, from  2013 that the GenCos took over the companies to September 2017, they have recorded a cumulative shortfall from N893billion.

    She explained that “the GenCos have a lot of money at stake in the sector. From 2013 to 2016, were are being owed over N650billion . Then January this year to September if you check an invoice shortfall of about N27billion, you know exactly how much we are owed.”

    Ogaji said that gas is not a major challenge to power generation at the moment, adding that most of the stations have gas waiting to generate power but the transmission networks are too weak to take extra power. 

    The Nigerian Electricity Regulatory Commission (NERC), according to her, has just invited the GenCos to a consultative forum on eligible customers that would hold in the six geo-political zones starting on Wednesday in Lagos.  

    All the GenCos have cordial relationships with their host communities where the plants are sited. However, once we are in the raining seasons the hydros have overflowing dams and because the network is preventing them from generating to optimum capacity there is a possibility of water spillage which will affect the communities . I am aware of some communities complaining that the spillage is affecting them. As you know flood is been around everywhere not only in Nigeria. So, the government needs to focus more in the network so that we can generate at optimum capacity and prevent such spillages. There is a community close to Kainji but I don’t know the name.”

  • ASUU strike: I have one of my children at home as we speak – Minister

    ASUU strike: I have one of my children at home as we speak – Minister

    To find a lasting solution to the Academic Staff Union of Universities (ASUU) strike, Vice President Yemi Osinbajo is now to lead the Federal Government’s negotiation team with the teachers.

    ASUU has been on strike since August 13 over the failure of the government to implement an agreement it reached with the union in 2009.

    The union also alleged that the Federal Government did not implement the Memorandum of Understanding the two sides signed in 2013.

    The union, in a statement on Tuesday, said it would call off its strike after receiving a positive response to its demands from the Federal Government.

    The teachers boycotted a meeting scheduled to hold between the government and the union on Tuesday.

    Minister of Labour and Employment Chris Ngige briefed State House correspondents at the end of the FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

    Ngige, who was with the Ministers of Information and Culture, Lai Mohammed, Power, Works and Housing, Babatunde Fashola and Sports and Youth Development, Solomon Dalung, also blamed the private sector for the delay in announcing the chairman of the Minimum Wage Review Committee.

    According to him, the Federal Government is ready and will announce the chairman of the committee when all the names of representatives of the private sector is received.

    He said: “The government thanked the parents and even the students who are supposed to take their exams and promotional exams now but have been forced by circumstances beyond their control to stay at home. I have one of my children at home as we speak.

    “Government is leaving no stone unturned to make sure that we reach a conclusive agreement with ASUU so that they can go back to the classroom. This is the first national strike that this government is facing and we want to discuss.

    “The Vice President has taken over some of the aspects of the negotiations and discussions, so we are continuing the meeting in his office and when we finish meeting, we will get back to ASUU for another round of meeting and we are hopeful that we will be able to go to an appreciable extent to solve some of the outstanding issues that is preventing them from going back to work,” he said.

    The Federal Government, he said, is ready and will announce the chairman of the Minimum Wage Review Committee when all the names of representatives of the private sector are received.

    He said: “The National Minimum Wage Committee, the government side is ready. We have on the government side four ministers – ministers of Labour and Employment, Finance, Budget and Planning.  I can’t remember the last one now but we have our team ready. We also have the Head of Service of the Federation, Acting Secretary to the Government of the Federation on the government team. The chairman will be unveiled when we have full component of the committee.

    “The aspect that is delaying us from inaugurating the committee is the organised private sector. The organised private sector has eight representatives of which the Nigeria Employers Consultative Association (NECA) has four nominations, we have not gotten their nominations. Manufacturers Association of Nigeria (MAN) has two nominations; their nominations just came in yesterday. Nigeria Association of Small Medium Enterprise (NASME) has one; they have not sent in their nomination. NACCIMA has not sent in its nominations.

    “So we are waiting fir these nominations. When they come in, the government will nominate the chairman and inaugurate the committee.” he added

    Fashola said FEC approved the award of engineering and electromechanical works contract worth $5.792 billion for the Mambila Hydro Electric Power Plant located in Taraba State.

    Recalling that the project started in 1972, he noted that there has been no significant progress since its inception.

    According to him, the contract now awarded to a joint venture with a Chinese Civil Engineering Company (CCECC) will be completed in about six years.

    On the scope of work to be handled by the firm, the minister said: “The project requires the construction of four dams; one of them is about 150 meters in height, the immediate two are 70 meters in height and the smallest of them is 50 meters in height.

    “It also includes 700 kilometers of transmission line. It will be in Taraba State in the area called Gembu, and it will unleash the potential that have been reported about Mambila, including agriculture, tourism and energy,” he said.

    When completed, Fashola said, the project will help Nigeria strike a big blow on the climate change and fulfill its commitment under the Paris Agreement.

    Explaining how the joint venture will work, Fashola said: “You will recall that sometimes last year, the Chinese government held a summit in South Africa; essentially what that was about was supporting and partnering with African government to do their infrastructure and also funding the Agurua projects. So, this was one of the projects of infrastructure that was submitted there and I think it also had the rail component.

    “The money is coming from the Chinese government through their Exim bank, so it is an export funding support for them and an import funding for us; 85 percent is supposed to be financed by them and 15 per cent is our own counterpart funding. The award now triggers contract negotiations for the financing side and after that is concluded the projects can now start.”

    Mambilla will generate 3,050 megawatts of power. “The productive output will be a function of water supply, because that is the major source of fuel, its a hydroplane,” Fashola said.

  • Raji was compassionate, loyal – Aregbesola

    Raji was compassionate, loyal – Aregbesola

    The Governor of Osun State, Mr Rauf Aregbesola, on Monday described the late Lateef Raji, who was a commissioner in the Lagos State Independent Electoral Commission, as a compassionate man who touched many lives.

    Aregbesola gave the description at the 8th day Fidau prayer organised for the deceased by his friends and political associates in Lagos.

    Represented by Mr Bola Ilori, the governor said Raji was a great mobiliser who would be sorely missed by many.

    “Raji was a compassionate fellow who touched the lives of so many people he came across.

    “Also, he was a loyal party man who did a lot for our great party, APC.

    “His demise is a great loss to us in the party and to us in Osun State.

    “We are greatly pained by his death and we pray for his peaceful repose and fortitude for the family to bear the loss. “he said.

    The governor expressed special condolences to the wife and children of the deceased, and promised that he would always be in touch with them.

    Also showering encomiums, a former commissioner in Lagos State, Mr Lateef Ibirogba, said Raji was a good friend and a sophisticated politician.

    “I was the commissioner for Information in the cabinet of former governor Babatunde Fashola while Raji was Special Adviser on Information.

    “He was a jolly good fellow and a complete gentleman.

    “He was a very good politician and touched so many lives when he was alive.

    “Raji lived a fulfilled life. I am going to miss him,” Ibirogba said.

    He prayed for the peaceful repose of Raji’s soul and that God should be with the family he left behind.

    Mr Kayode Opeifa,who was also in Fashola’s cabinet with the deceased, described Raji as a friend and a colleague.

    He said the deceased was loved in the party and by cabinet members.

    “His exit is painful. We will all miss him. He was a vivacious fellow and a great party man,” Opeifa said.

    The Chairman of Oshodi/Isolo Local Government, Mr Muse Ariyo, said hosting the prayer at the council secretariat was not enough to appreciate the great work of Raji.

    He said the deceased left an indelible impact on the lives of the people in the area and his life and times were worth celebrating.

    “We are pained by his demise and we pray that Allah grant his soul peaceful repose,” he said.

    Dr Said Timehin, who gave the sermon, urged Nigerians, especially leaders, to touch the lives of others.

    “Everything in life is vanity. So we should stop all this primitive accumulation.

    “We should spend our money on Allah’s course and humanity, just like late Raji. ” he said.

    Timehin described Raji as a compassionate fellow who made impact on people’s lives.

    The News Agency of Nigeria (NAN) reports that prayers were offered for the peaceful repose of the deceased at the programme.

    The prayer attracted prominent APC faithful, including the state chairman of the party, Chief Henry Ajomale.

    Politicians from other parties, officials of the state government and residents also graced the programme.

    NAN reports that Raji died on Aug. 14, at the age of 55.

    He has since been buried in his Ido-Ani hometown,Ondo State according to Islamic rites.

  • Osinbajo okays issuance of 615 land titles

    Osinbajo okays issuance of 615 land titles

    Acting President Yemi Osinbajo has approved the issuance of 615 pending land titles to the applicants.

    He gave the Minister of Power, Works and Housing, Babatunde Fashola approval to sign the land titles.

    The Minister briefed State House correspondents after a closed door meeting with the Acting President at the Presidential Villa Abuja on Tuesday night.

    The approval, he said, is to enable land transactions, mortgages, assignments and debentures across the country.

    According to him, the letters were already being issued to the applicants.

    The Ministry, he said, received the delegation of authority on July 27, and was awaiting another delegation of authority to issue the Certificates of Occupancy (C of O) for the approved titles.

    He said “Just to update the members of the public about the delegation of authority to issue consent for land transactions.

    “It has accumulated for a while but we received the delegation, I believe, on 27th of July.

    “On the first week of August my office approved all of the 615 pending applications for land transactions, mortgages, assignments, debentures and all of those things,” he said .

    He added “So, letters are being issued now to all the applicants and those who haven’t received theirs should just tally a while.

    “In a matter of a few days to fortnight from now we would have cleared that backlog then we go and deal with the pending applications for Certificates of Occupancy.

    “Again, we are expecting delegation of authority for that one.’’ he stated

    Fashola said that the applications had piled up which should not have happened adding that it was important to tell the public about the approvals.

    According to him, the implication is that it is a further boost to the economy.

    He said that those who wanted to borrow or lend money or had sold or planning to sell their land could complete those transactions and money could move round.

    The Minister explained that titles could change hands as all businesses related to land whether the person was running a school, bank, a newspaper agency or catering outfit.

    “Everything revolves around it so it helps to drive us closer to our journey out of recession and implement the Economic Recovery and Growth Plan,’’ he said‎.

  • DisCos lose metering monopoly

    DisCos lose metering monopoly

    •States can produce power

    Minister of Power, Works and Housing Babatunde Fashola yesterday said there was nothing in the Electricity Power Sector Reform Act that gave electricity distribution companies (DisCos) the exclusivity of metering.

    He said the Federal Government had commenced the disbursement of the N701 billion electricity intervention fund to beneficiaries, adding that the Federal Executive Council (FEC) approved the release of N31billion to DisCos for metering.

    The minister spoke at the 18th Monthly Power Sector and Stakeholder meeting in Kumboso, Kano State.

    Fashola said: “Another action which took place is the FEC approval of the component that frees the Federal Government of the judgement debt of N119billion and also releases N39billion towards the supply of meters to DisCos.

    ”While it is true that DisCos have the obligation to meter customers, the law does not vest the monopoly of meter supply to the DisCos.

    “Anybody who qualifies under the safety regulation by NEMSA and under the licenses issued by Nigerian Electricity Regulatory Commission (NERC) can supply meters to customers under conditions by law. In other words, meter supply is an opene but regulated business.

    “You need the license from NERC to undertake it;  you need to comply with testing and safety standards of NEMSA to produce, install or import the meters but it is not a monopoly for DisCos alone.”

    He also said he had received inquiries whether state governments could produce their own power.

    “Nothing in Electric Sector Power Reform Act that stops any state from doing so,” he said, adding that all they need is to get the right license from the  NERC.

    Fashola also said even the generation companies (GenCos) could apply to NERC to build their own distribution assets that DisCos cannot fund. He pledged his support for any state that intends to play in any of the power sector value chain.

    “The mini grids are also consistent with our policy of incremental power to provide access to communities that have not been served or those who are under served.

    “Within the DisCos license, a new license can be granted by NERC because no monopoly was intended by the law unless it is exclusively stated in the license. I have gone through the law and I have not seen any exclusivity granted to anybody,” he said.

    Fashola who had earlier lauded the regulations of the NERC for establishing a mini grid, added that “if you are doing less than 100kw, you don’t need a permit but you need to be registered to know that you are there.”

    According to him, three states have already obtained licenses for mini grid development from the commission and the sector expects to receive more.

    The minister also commission a 15MVA transmission injection sub-station in Dakata, Kano to stabilize power to over 100 industries and over 10,000 residents in the area.

    On power sector performance, Fashola said there is now improvement in the generation of power over the recent past owing to the increase in gas to power.

    He attributed the rise to the relative peace that has been achieved in the Niger Delta and increase in rainfalls.

    “Therefore as from August 10, 2017, our peak availability of power which can be put on the grid was 6,863mega watts (MW), while the transmission capacity has risen in simulation to 6700Mw. Unfortunately, we cannot put all of that power on the grid because the DisCos cannot take it all,” he said.

    Fashola said DisCos cannot take all the power because of their ageing assets, limit to credit facilities and foreign exchange.