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Tag: Babatunde Fashola

  • FG to complete Loko-Oweto Bridge in November

    The Federal Ministry of Works, Power and Housing has assured that the 2.2-kilometre Loko-Oweto bridge across the river Benue linking Nasarawa and Benue would  be completed by November.

    The Federal Controller of Works in Nasarawa State, Mr Wasiu Taiwo,  disclosed this to newsmen in Lafia on Thursday.

    Our reporter,  reports that officials of the Federal Ministry of Works, on the instruction of the Minister of Power, Works and Housing, Mr Babatunde Fashola, had embarked on a media tour of ongoing projects in Nasarawa State on Wednesday.

    Taiwo said the completion of the bridge would create a shortcut for people  travelling from Abuja to the South Eastern part of the country.

    “I want to assure that the Federal Government is fully committed to completion of this project at the set date.

    “There are a lot of benefits that come with the completion and one is the option of going to the South East through here. The journey is three hours less from here,” he said.

    Read Also: 2017: Still a long walk home

    He said that the contract for the construction of the bridge was awarded at an initial sum of N36 billion with a revised sum of N51 billion.

    Taiwo also said that the 82-kilometre Nasarawa-Loko road,  linking the bridge to both states, would be completed by September to facilitate movement.

    “I want to assure that this particular bridge and the Nasarawa-Loko road are very important projects to the Federal Government. Our target is November and we hope by then, it will be ready for use,“he said.

    The controller said that the work was 85 per cent completed and assured that with the rate of work so far, the contractor was likely to complete it on or before Nov.29.

    NAN

  • FG spends N8.3bn to rehabilitate Funtua – Gusau Road – Fashola

    FG spends N8.3bn to rehabilitate Funtua – Gusau Road – Fashola

      The Federal Government has spent N8.3 billion to rehabilitate the Funtua to Gusua federal highway.

    “The Federal Government awarded contract for the upgrade and rehabilitation of the 104 kilometre road in 2009.

    Mr. Babatunde Fashola, the Minister of Works, Housing and Power, said this on Friday in Funtua, Katsina State while inspecting the rehabilitation of the road.

    He said that the previous government awarded the road contract at N7.9 billion. The minister said that the present administration reviewed the contract from N7.9 billion to N8.3 billion.

    Fashola said that the contract was awarded to Mother Cat construction company but was not given enough money by the previous administration.

    Read Also: FMBN issues 2,724 mortgages worth N20.237bn – Fashola

    Fashola was represented by Mr Busari Siriku, a Director of Federal Highways in charge of North West Zone.

    He said the current administration had been providing funds to the construction company.

    “The Federal Government, under President Buhari, would not want road projects to linger for too long, hence the provision of funds to complete the project,” he said.

    Earlier, the Katsina State Federal Controller of Works, Mr Tunde Balogun, said that the road contract was awarded in 2009 while it was in a terrible conditions.

    “The mother cat construction company was having funding challenges from the previous government and could not complete the rehabilitation of the road.

    “The present government had released enough funds to the company and they have rehabilitated 103 kilometres of road while only one kilometre remains to be rehabilitated.

    In his remarks, the Mother Cat site Engineer, Mr. Saed Karen, said that the company would soon complete the road as it had been receiving the necessary financial support from the Federal Government.

    “The Federal Government has settled all the outstanding debt and had resumed to the site with the aim of completing the project before June 14, 2018.

    “The company had given employment to 150 workers, including engineers, technicians and labourers,” he said.

    In his contribution, the Katsina State Chairman of Nigerian Society of Engineers, Mr Aliyu Ibrahim, expressed satisfaction with the quality of materials used to carry out the project.

    He commended Federal Government for providing dividends of democracy to the people of the North West Zone

    NAN

     

  • FG, MAN, discuss measures to distribute 2,000MW unused electricity

    FG, MAN, discuss measures to distribute 2,000MW unused electricity

    Determined to distribute unused 2,000MW of electricity, the Federal Government on Tuesday met with the Manufacturers Association of Nigeria ( MAN ) to discuss workable ways to distribute the unused power.

    The Minister of Power, Works and Housing, Mr Babatunde Fashola, made this known to newsmen during the meeting with MAN in Abuja.

    He said that both parties would work out possibility of increasing not only access to power for business but also to improve the quantity and quality of power supply to the manufacturing sector.

    He said the story of Nigeria’s manufacturing and production sector had been characterised by lack of infrastructure such as  electricity.

    The minister said the forum was to evolve measures on how to distribute the 2,000MW unused power in the National Grid.

    “Our meeting is important because we gather not to talk about the problem, we gather to solve the problem.

    “As I said at a different forum, we have a new problem; we have more power than we can distribute.

    “In that context, we cannot continue to talk of lack of power; instead, we must talk about how to connect to the available and unsold power, and what it will cost to do so,’’ he said.

    According to Fashola, Nigeria’s power generating companies are now able to produce 7,000 MW, while Transmission Company is able to transport all of the power generated.

    He said the Distribution Companies ( DISCOS ) had also increased their load taking capacity to 5,0000MW.

    He said however that “this leaves a gap of 2,000MW of what you manufacturers will call unsold inventory.”

    The minister said the unused power offered the manufacturers a critical raw material to reduce cost of their production.

    “What we gather to do today is to open the window for sales to the Eligible Customer – willing buyer and willing seller.

    “There can be no better time to explore this option than when there is the supply of unsold power with the clear promise of more to come.

    “The market must open to all willing buyers,” Fashola said.

    Fashola said access to the 2,000MW for manufacturing and production would be the big bridge toward diversification of the economy.

    He urged participants to be open, frank and most importantly be flexible in the negotiations.

    The President of MAN, Dr Frank Jacobs said it was a great opportunity for MAN to key into the process of utilising the 2,000MW.

    He said MAN was in need of electricity, adding that its members daily consumption was 14, 882MW of electricity, mostly self generated.

    Jacobs said the eligible customer initiative would make it possible for members of MAN to get some of the unused power and convert it for their own use.

    “We think that the 2,000MW will help to augment though it will not give us all that we need, but it will help us,’’ Jacobs said.

    He expressed hope that the DISCOS would understand that the taking of the 2,000MW by the manufacturing sector was for the benefit of the country.

    “The opposition, we expect may be from the DISCOS, but we are hoping that they will understand that what we are doing is for the interest of the country and the economy of Nigeria,’’ he said.

    NAN

  • Govt urges enumeration of electricity consumers

    The Nigerian Electricity Supply Industry (NESI) needs to embark on the enumeration of electricity consumers, the Minister of Power, Works and Housing, Babatunde Fashola has said.

    He said the electricity market lacks the knowledge of how much, or how many people are utilising the power since some customers bear the burden of paying for stolen energy owing to lack of meters for billing consumption.

    Fashola called for social justice between the consumers and the service providers, urging whistleblowers to assist the NESI with intelligence on energy theft that could lead to the arrest of the thieves.

    The minster who spoke at a workshop for the Civil Societies Organizations (CSOs) on the Power Sector Reform Programme in Abuja, blamed the commercial losses of the Distribution Companies (DisCos) on energy theft.

    “Energy theft is the cause, if you sell the product and you don’t collect the money, that business is in danger. So, in my opinion, we need to know how many people are using the electricity. We don’t know.  So, some people are paying for what others are using and we need meters to achieve justice between consumers and service providers.

    “This is a place we need a lot of whistleblowing, if you know anybody who is stealing energy, call us so we will come and pick the person. So that he will stop being a problem to his community,” Fashola said.

    Some of the CSOs had lamented that the ministry was only considering the commercial losses of the DisCos, yet reticent about customers and communities that have also become investors, providing electricity cables, transformers and other equipment to the companies, who also charge them exorbitant estimated bills.

    Fashola asked the Nigeria Electricity Regulatory Commission (NERC) to respond to the CSOs position.

    Reacting, the Commissioner on Consumer Affairs, Dr. Moses Arigu, said the due process for community to follow to procure equipment as transformers for the DisCos, is to start from informing the DisCo, the Nigerian Electricity Management Service Agency to arrange and ensure the standard of the transformer prior to its procurement.

    He said: “The money is supposed to be refunded. Again, you have to work it out with the DisCo and that is not physical cash, but through energy crediting. So it is not that when we invest why should they send a bill again?

    Fashola said the final consultative forum for the metering regulation was held in Lagos on Monday and Tuesday. The document, according to him, will solve problems of estimated billings.

    The Power Sector Recovery Programme Components aims at the definition of a “tariff adjustment trajectory, so that tariffs cover the revenue requirement of efficient service provision by 2021.

  • FG urges enumeration of electricity consumers

    FG urges enumeration of electricity consumers

    …NERC explains how to get transformer refund from DisCos

    …World Bank willing to provide $2.6b for Programme

    The Minister of Power, Works and Housing, Babatunde Fashola has said that the Nigerian Electricity Supply Industry ( NESI ) needs to embark on the enumeration of electricity consumers.

    He noted that the electricity market lacks the knowledge of how much or how many people are utilizing the power since some customers bear the burden of paying for stolen energy owing to lack of meters for billing consumption.

    The minister however urged for social justice between the consumers and the service providers, calling on whistleblowers to assist the NESI with intelligence of energy theft that could lead to the arrest of the thieves.

    Fashola spoke during a workshop for the Civil Societies Organizations (CSOs) on the Power Sector Reform Programme in Abuja. 

    Blaming the commercial losses of the Distribution Companies (DisCos) on energy theft, he said that : “Energy theft is the cause, if you sell the product and you don’t collect the money, that business is in danger. So, I my opinion: we need to know how many people are using the electricity. We don’t know.  So, some people are paying for what others are using and we need meters to achieve justice between consumers and service providers. 

    “And as I said before this is a place we need a lot of whistleblowing, if you know anybody who is stealing energy call us so we will come and pick the person. So that he will stop being a problem to his community.”

    Some of the CSOs had lamented that the ministry was only considering the commercial losses of the DisCos, yet reticent about customers and communities that have also become investors, providing electricity cables, transformers and other equipment to the companies, who also charge them exorbitant estimated bills. 

    Fashola asked the Nigeria Electricity Regulatory Commission (NERC) to respond to the CSOs position.

    Reacting, the Commissioner on Consumer Affairs, Dr. Moses Arigu, explained that the due process for community to follow to procure equipment as transformers for the DisCos is to start from informing the DisCo, the Nigerian Electricity Management Service Agency to arrange and ensure of the standard of the transformer prior to its procurement. 

    He added that “the money is supposed to be refunded. Again, you have to work it out with the DisCo and that is not physical cash but through energy crediting. So it is not that when we invest why should they send a bill again?”

    He revealed the final consultative forum for the metering regulation was held in Lagos on Monday and Tuesday. The document, according to him, will solve problems of estimated billings. 

    The Power Sector Recovery Programme Components aims at the definition of a “tariff adjustment trajectory, so that tariffs cover the revenue requirement of efficient service provision by 2021.

    “Establish the revenue requirement of DisCos and transmission (TCN), and consistently apply tariff adjustments according to the defined tariff trajectory with automatic adjustments as service delivery improves.”

    The Programme is also to develop a financing plan to fully-fund the shortfall (the difference between the sector revenue requirement and revenue under effective tariffs based on a defined tariff trajectory) until tariffs attain cost recovery levels, and support sector liquidity.

    The World Bank Group, according to the federal government, World Bank Group has indicated potential support for the  Programme totaling up to $2.6billion.

  • Fashola, Reps in face-off over N42bn contract fraud allegation

    Fashola, Reps in face-off over N42bn contract fraud allegation

    The Minister of Power, Works and Housing, Babatunde Fashola and members of the House joint committee on Power and Public Procurement were in a face- off yesterday over allegations that his ministry fraudulently awarded a N42 billion contract.

    But the Minister dismissed the allegations of fraudulent award of a N42 billion contract under the Rural Electrification Scheme in some federal Universities, adding that the ministry only got approval to award at the sum of N38.9 billion of which only N9 billion was appropriated.

    Instead, he accused the joint committee of harboring the petitioner and accuser of his ministry in their midst.

    Similarly, the managing director, Rural Electrification Agency, Damilola Ogunniyi, described those peddling the allegations of fraudulent award of contracts under the Energizing Education Programme (EEP) as ignorant.

    Fashola was invited to explain to joint committees the role of his Ministry in the N42 billion Rural Electrification projects which was allegedly awarded without due process.

    While speaking at the investigative public hearing the Minister surprised the members when he claimed that the author of the petition against his ministry was seated amongst the members.

    According to him, the gentleman, Ronald Van Arnult who now serves as consultant to the Power Committee was one of those owed by the Federal Government.

    Babtunde Kuye, Director Energy Procurement at the Bureau of Public Procurement, confirmed that the Bureau really issued the Certificate of No-objection on the contract.

  • Fashola, Reps in face-off over N42bn contract fraud allegation

    Fashola, Reps in face-off over N42bn contract fraud allegation

    The Minister of Power, Works and Housing, Babatunde Fashola and members of the House joint committee on Power and Public Procurement were in a face- off yesterday over allegations that his ministry fraudulently awarded a N42 billion contract.

    But the Minister dismissed the allegations of fraudulent award of a N42 billion contract under the Rural Electrification Scheme in some federal Universities, adding that the ministry only got approval to award at the sum of N38.9 billion of which only N9 billion was appropriated.

    Instead, he accused the joint committee of harboring the petitioner and accuser of his ministry in their midst.

    Similarly, the managing director, Rural Electrification Agency, Damilola Ogunniyi said those peddling the allegations of fraudulent award of contracts under the Energizing Education Programme (EEP) as ignorant.

    “I would like to unequivocally place it on record that no contract has been awarded by REA amounting to N42 Billion on the Rural Electrification Scheme in some Federal or any other Universities. REA denies the allegations to the extent of their inconsistency with facts and our position as contained in the Memorandum submitted to this dignified House”, Ogunbiyi stated..

    Fashola was invited to explain to joint committees the role of his Ministry in the N42 billion Rural Electrification projects which was allegedly awarded without due process.

    While speaking at the investigative public hearing the Minister surprised the members when he claimed that the author of the petition against his ministry was seated amongst the members.

    “I said what I said because of the allegations against us that we’ve acted fraudulently, and I have cause to believe that the gentleman is now advising this Committee”, he said.

     According to him, the gentleman, one Ronald Van Arnult who now serves as consultant to the Power Committee was one of those owed by the Federal Government.

    At the onset of the Buhari administration, he said, there were so many contractors making claims of being owed by the past administration for jobs done and there was a need to investigate and verify.

    Fashola further said : “However, investigations revealed that there was no procurement for his contract and some others, but we couldn’t ask him to go away, having provided some evidence of work done, we had to reach an agreement to offer a base-sum, otherwise, government wasn’t going to pay..

    Giving insight into the  award of the contract, the Minister said; “Getting that approval, we got N9bn. When I complained in 2017 about reduced allocation to the power Ministry, the chairman, Power said he reduced the budget, and when I asked why, he said “well, you can’t get everything that you want, and we laughed over it, and I said in 2018, we will expect an increase by which time you would have become a champion of this course”, Fashola said.

    He told the lawmakers that under the Public Procurement Act, government was only obliged to pay 15percent of the sum involved in the rural electrification/Fast Power Programme contract.

    He also went on to explain the level of implementation of the ‘Fast Power Programme’ and how institutions/zones were selected for project citing and implementation.

    He said instead of conducting a public hearing on a matter, a simple letter would have resolved the issue as there was no fraud whatsoever in his Ministry.

    The information on the consultant surprised the members of the committee and invited stakeholders. Hon. Oluwole Oke (PDP, Osun) who is the chairman of the House committee on Public Procurement, said he was hearing the information for the first time. ” The Power Committee must have found it expedient to engage the services of the gentleman,” he said.

    “An accused person in a court case can be used by the prosecutor as a prosecution witness to enable free flow of information for the prosecutors” he added.

    Fashola continued: “I want to chose my words carefully, because I know that you have the power to investigate anything, but I think that a simple letter to us would have avoided all these, that’s my humble opinion”, he said.

    Engr. Babtunde Kuye, Director Energy Procurement at the Bureau of Public Procurement however confirmed that the Bureau really issued the Certificate of No-objection on the contract to the Ministry as shown by the minister.

    He told Hon. Dan Asuquo, Chairman of the Power Committee on questioning that the BPP also wrote a letter to the panel that they knew nothing of the project, which contrasted the Ministry’s position.

  • Fashola opposes 1% allocation to FERMA for road rehabilitation

    Fashola opposes 1% allocation to FERMA for road rehabilitation

    Mr Babatunde Fashola, the Minister of Works, Power and Housing, yesterday expressed his disapproval over a bill seeking to allocate 1 per cent from the consolidated revenue fund to the Federal Roads Maintenance Agency ( FERMA ) for the rehabilitation of roads across the country.

    He made his opposition to the proposed law known during the public hearing on two bills meant to harmonise the FERMA Act with that of the Federal Highway Bill so that the minister of Works, Power and Housing may have some powers of granting roads concession.

    The Minister said the implication of the passage of the bills will be negative and will probably be at variance with the intention of the lawmakers.

    “Section 5 deals with the funding of the Agency and what it says is to provide a lump sum by percent page from the Consolidated Fund to the Agency,” 

    “I am not certain that it is the intention of the National Assembly to give 1 per cent of the consolidated revenue fund to one agency,” adding that rather, the agency should come up with a well laid out budget profile of its needs and debt profile  which will then be properly appropriated.

     He added that the main ministry with its many responsibilities did not have such funds at its disposal.

    Certain aspects of the proposed bill were in conflict with the constitution and were duplications of the National Roads fund bill and the Federal Road Authority bill.

    The creation of states’ road maintenance agencies in section 2 of the one of the bills, he said, already had Judicial interpretation which states that one arm of government cannot create responsibility for another arm of government. According to him, it was also inconsistent with the constitution.

    He also opposed the sections which seeks to empower FERMA erect toll gates and well as collect fees. ” It’s in conflict with the Federal Highways Act which gives he Minister the power to do such . It conflicts with the Act which was from the National Assembly,” he said.

    Mediayedu Stephen, who represented the Ministry of Finance, lauded the provisions in the proposed bill, saying the erection of toll gates as included in the amendment bill  was a good development.

    “This is mostly the avenue through which the private sector can recoup their investment in the advent of any road concession. However the administration of toll gate by the proposed state road agencies may impede concessioning by the Federal Government,” he said.

    Mr Emmanuel Akissa, Legal Adviser, who represented the Office of the Secretary to the Government of the Federation, supported the creation of toll gates.

    His words: “this bill is right in time and a step in the right direction as its passage would assist the government with the funds that will be generated at the several toll gate around the nation in the funding of projects along the Federal roads.”

    There should be provisions that clearly state the working relationship between the FERMA and the road agency established for the state, he said, adding that the administration and distribution of funds should not be tied to the existence of state road maintenance agency.

    He further stated that ” the power of FERMA to erect toll gate should be harmonised with the power of the minister to erect toll gate under the Federal Highway Act.”

     President, Nigerian Society of Engineers, Mr Adekunle Mokoulu, it was not necessary to have inserted state roads management agency in the bill as it was already a precondition stipulated in the National Roads fund (NRF) for states to access the fund.

    He said: “We think that the state assembly will not be directed from Abuja on which laws to pass. We believe that the provision in the NRF that, ‘Only state roads authorities can access the funds’ suffices and has already taken care of this insertion. Tolling is but one of the numerous proposed sources of funding the roads maintenance.’’

    Hon. Jerry Alagbaoso, Chairman of the Committee, said that it was discovered during the committee’s oversight function, that critical portions of roads especially Federal interlinking roads and inter changes vital to various part of the country were in bad conditions.

    “These roads that need to be taken care of as a matter of urgency and emergency were not captured in the past budgets,” he said.

  • Electricity: FG plans network expansion with stranded 2,000mw

    Electricity: FG plans network expansion with stranded 2,000mw

    The Minister of Power Works and Housing, Babatunde Fashola on Monday revealed that the ministry is making a policy to expand the distribution network of the Electricity Distribution Companies (DisCos) to distribute the 2,000 that was being stranded.

    He said: “We are also putting together a policy position to help expand the distribution network of the DisCos and use this to distribute the 2000MW that is currently available but cannot be distributed.”

    He called on manufacturers to provide the ministry with information on their location and the amount of power they need from the undistributed 2,000mw.

    According to his speech that was made available to media, he spoke at the 23rd Monthly Power sector operators meeting in Lafia, Nasarawa State.

    He urged the sector to work harder this year to increase people’s access to meters and reduce the incidents of estimated billing, stressing that the Nigeria Electricity Regulatory Commission (NERC) would conclude the Meter Regulations that would open up the meters supply and installation business.

    Fashola regretted that in the “first few days of the new year we suffered a set back to our power supply which was caused by damage to the gas supply network around Okada.”

    According to him, the Nigerian National Petroleum Corporation (NNPC) had last night informed his ministry on the completion of the repairs.

    The ministry said what was left was to test the lines and restore pressure and supply to the generation companies.

    He promised that “one by one all the stakeholders from GenCos, TCN and DisCos will work to restore supply to the levels they were before the pipeline damage.”

    He recalled that a few months ago the Nigerian Electricity Regulatory Commission (NERC) formally presented the Mini Grid Regulations, stressing that “at this meeting and its impact is beginning to manifest.”

    Last month in Abuja, according to him, Nigeria through the Rural Electrification Agency hosted a Mini Grids Summit that is the largest ever attended in Africa with 600 participants from about 40 Countries.

    Fashola said that the word was spreading around the world as “mini-grids will help us connect more people and boost incremental power.”

    Giving account of the progress that he had so far made, the minister said that generated power had gone up to 7000 MW in 2017 from 3,000 MW in May 2015

    Transmission Capacity was at 6900MW in 2017 from about 5,000 MW in May 2015, he said. 

    The also noted that “Peak Distribution now averaging 5,000 MW in 2017 from 2,690MW in 2015.”

  • FEC approves over N173. 45 billion for roads, power, other projects 

    FEC approves over N173. 45 billion for roads, power, other projects 

    After over six hours meeting, the Federal Executive Council ( FEC ) meeting on Wednesday approved over N 173.45 billion for projects covering roads, power, education, water, health among other projects.

    The Ministers of Transportation, Rotimi Amaechi, Power Works and Housing, Babatunde Fashola, Water Resources, Suleiman Adamu and FCT, Mohammed Bello briefed State House correspondents at the end of FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

    The projects approved include N38.69 billion power projects in nine universities and one teaching hospital, N5.6 billion for completion of Adada Dam project in Enugu State, N6. 5 billion for Galma Dam in Kaduna State.

    Read Also:  FEC okays N1.712 billion for FCT water pipeline contractor 

    Others include N6. 9 billion for textbooks distribution in schools, N62.06 billion road projects in Enugu State, N3.1 billion seaport vehicles, N3.9 Gulf of Guinea project.

    Also approved on Wednesday are N3.8 billion for Goodluck Jonathan expressway in Abuja and N26 billion for infrastructural development of WASA settlement site in Abuja.

    The Senior Special Assistant on Media and publicity, Garba Shehu, disclosed that the FEC which will continue on Thursday has gone half way in the over 40 memos for consideration.