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Tag: Fashola

  • MDAs electricity debts will be paid – Fashola

    MDAs electricity debts will be paid – Fashola

    The Minister of Power, Works and Housing, Babatunde Fashola, said on Tuesday the Federal Government would pay the Ministries, Departments and Agencies (MDAs) electricity debts by setting it off against debts owed the Nigeria Bulk Electricity Trading company (NBET) by the Electricity Distribution Companies (DisCoS).

    He said the Federal Executive Council (FEC) has approved the payment of the verified sum of N25.9b the MDAs owed the DisCos.

    The minister stated these at the 20th monthly power sector stakeholders’ meeting in Owerri, Imo State.

    He said: “In the last month also, specifically on Wednesday 4th October 2017, the Federal Executive Council approved the verified sum of  MDAs debts totalling N25.9billion, and its payment by setting it off against the debts owed by the DisCos to NBET.

    “We are also making progress in recovering debts from international customers and you will be notified of how much has been received when the appropriate accounts confirm that they have received value for the credits we have been notified of.

    “You will be receiving official communication of how these have been applied to reduce debts owed by DisCos to NBET.”

    On investment recovery, Fashola added: “Understandably you are concerned about investment recovery and in your views, the solution is a tariff review.”

     

     

     

     

  • FG releases Sukuk bond proceeds for 25 road projects

    FG releases Sukuk bond proceeds for 25 road projects

    The Federal Government on Thursday released the proceeds of the N100 billion Sukuk bond for 25 road projects across the country.

    The Minister of Finance, Mrs. Kemi Adeosun, handed over the N100 billion proceeds cheque to the Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola, in Abuja.

    The federal government had issued the sovereign debut Sukuk of N100 billion in September, which was successfully completed last week.

    The Sukuk bond has a tenor of seven years.

    Adeosun said the offer was oversubscribed to the tune of N105.87 billion.

    She also said the milestone was a sign of confidence in the Nigerian economy and the administration of President Muhammadu Buhari.

    The minister added that the Sukuk proceeds would unlock the potentials of Nigeria.

    She said: “This is the first Sukuk bond issuance for Nigeria. It is about financial inclusion and deepening of our financial markets. The proceeds will be used to further support government capital spending for 2017 – the construction and rehabilitation of 25 key economic roads across the six geo-political zones of the country.”

    “The roads will ease commuting, spur economic activities across the country and further close our infrastructural gap.”

    “Each of the geo-political zones of the country is expected to receive the sum of N16.67 billion for road projects in their respective zones.

    The North Central and South- South Zones accounted for five each of the 25 key economic road projects, while the North East, North West and South East have four road projects each.

    “Three projects are to receive funding from the Sovereign Sukuk proceeds in the South West Zone.”

    Earlier, Fashola commended the Finance Minister, the Director-General of Debt Management Office, Ms. Patience Oniha and the financial advisers for the bond issuance for their painstaking efforts aimed at realising the milestone.

    He assured the ministry’s contractors that the federal government was committed to the funding of its infrastructural projects across the country.

  • FG will ensure proper funding of road projects – Fashola

    FG will ensure proper funding of road projects – Fashola

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, said on Tuesday the Federal Government(FG) would henceforth ensure proper funding of various ongoing road projects across the country.

    The minister stated this in Abuja during a meeting with contractors handling various federal governments’ projects in the country.

    Fashola told the contractors that funds would be made available in line with the federal government’s promise to ensure quarterly payment of contractors’ funds.

    He, however, urged the contractors to ensure that roads across the country were made passable ahead of the yuletide season by ensuring that failed sections of various roads were rehabilitated.

    “Let the Nigerian people know what is happening on our roads when they are not maintained during the raining season. Also, this happens in other parts of the world.

    “Even with the best of maintenance, some rains are heavy and sometimes causes flooding. You will lose some of the infrastructure like it happened in some parts of America,” he said.

    The contractors called for better funding regime to address the current deplorable state of roads across the country.

    They blamed the deplorable state of roads on rains and poor funding.

    The Managing Director of Julius Berger Plc, Mr. Wolfgang Goetsch, blamed the slow pace of project execution by his company  on inadequate funding.

    NAN

     

  • Fashola, stakeholders focus on debts payment, supply growth

    Fashola, stakeholders focus on debts payment, supply growth

    The 19th ministerial meeting of the Minister of Power, Works and Housing with operators of the power sector, has held with a focus on payment of debts owed the power sector by ministries, departments and agencies (MDAs), and legacy debts inherited from the defunct Power Holding Company of Nigeria (PHCN), and power supply growth.

    It held in Lagos with a communique focusing on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry (NESI).

    The operators agreed to encourage the promotion of true story of hope in the sector, based on ongoing projects and efforts to improve the power sector, and limit inaccurate and alarmist comments in the media about the power sector.

    The agreement was necessitated by an earlier statement by the Power Minister, Babatunde Raji Fashola.

    Fashola had expressed dissatisfaction with a statement made by the Managing Director/Chief Executive Officer, Egbin Power Plc, Mr. Dallas Peavey, saying that Peavey’s claim that the Federal Government owes Egbin N125 billion and that Egbin had spare 700 megawatts (mw), which could not be evacuated due to the inability of the Transmission Company to wheel it were inaccurate.

    The Minister said with that statement Peavey was working against national interest, noting that Peavey  was inciting other generation companies (GenCos) not to comply with grid codes and regulations made pursuant to the Electric Sector Power Reform Act of 2005, which prescribed frequency levels of operation for power generating companies.

    Fashola also reminded operators at the meeting about the Payment Assurance Guarantees to the generation companies, as well as the verification of MDAs’ debts, which have been reported as part of the government’s plan to resolve liquidity challenges in the power sector.

    The communique noted that the Nigerian Electricity Regulatory Commission (NERC) was commended for its new mini-grid regulation, which has yielded new projects with the inauguration of a new 20kw project in Kwali Local Government Area in the Federal Capital Territory, with a plan to power 145 households and five businesses by Haven Hills Synergy Limited, and another to be completed shortly in Kano State. The Minister encouraged investors and developers to cooperate with NERC to fast-track the implementation of the regulation, with the hope that the private sector increases capacity to distribute the over 6,000mw available for distribution.

    The report also showed that Eko and Yola Electricity Distribution Companies recorded 100 per cent payment performance to the market operator for service providers, and the meeting was encouraged to make payment for transmission and other services provided in good time.

    The Niger Delta Power Holding Company (NDPHC) said it has completed Magboro connection project, and also announced the progress in projects at Ugwuaji, Egbema, Okija, Omotosho and Olorunsogo host communities, expected to be completed by December this year.

    The NDPHC listed vandalism as  a major challenge to the progress of projects in Afam – Ikot Ekpene axis, and encouraged the public to end vandalism. TCN also announced the completion of rehabilitation works at Omotosho plant in line with planned reconnection of the communities.

    At the meeting were NERC, GenCos, distribution companies (DisCos), the TCN, Gas Companies (GasCos) and other government agencies such as the NDPHC, the Nigerian Bulk Electricity Trader (NBET), Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA), responsible for the regulation and development of the electricity industry as well as the Nigerian National Petroleum Company (NNPC) and the Central Bank of Nigeria (CBN).

  • FG repositioning FMBN, FHA to meet housing needs – Fashola

    FG repositioning FMBN, FHA to meet housing needs – Fashola

    The Minister of Power, Works and Housing, Mr Babatunde Fashola, said on Friday the Federal Government is repositioning the Federal Mortgage Bank of Nigeria (FMBN) and Federal Housing Authority (FHA) to address the country’s housing needs.

    Fashola stated this at the end of the sixth meeting of the National Council on Lands, Housing and Urban Development organised by the ministry in Abuja.

    The minister said: “FMBN and FHA are being repositioned to play their role more effectively to address the housing problem.

    “For example, officials of the FHA have been mandated by the ministry to be repositioned in order to be one of our champions of housing delivery.

    “Similarly, the FMBN continues to deepen participation in the National Housing Fund, which forms a reliable pool of funding from which she lends money to contributors by way of mortgage loans to acquire houses.”

    The minister noted that FMBN had increased its granting of loans to estate developers to build houses for Nigerians.

    According to him, the agency currently has 3,823 housing units available for sale in various states of the federation.

     

    Fashola said the ministry had directed the agency to improve on its visibility and transparency by regularly publicizing offers to interested members of the public.

    “Such publicity would contain the housing units, prices, location and eligibility criteria,’’ he said.

    He further said the next level of intervention which the ministry was developing would be to leverage on existence of registered co-operatives for the members to own their property.

    According to him, experience has shown that very sizable parts of the population who are productive and self-employed have been excluded from formal processes that regulate access to funding, land or housing.

    He noted that people could operate successfully and access housing through the co-operative societies.

    Fashola said co-operatives had been very prolific and successful in sectors like agriculture and market organisations where the vulnerability of an individual could be transformed into the strength of a group.

    “Our government sees no reason why the successes of co-operatives in these sectors cannot be utilised to facilitate housing delivery.

    “We are determined to place the might of government at the disposal of groups who can form themselves into co-operatives.

    “This would no doubt provide them the enabling capacity to acquire the land, take loans, build for themselves and operate a rent to own policy.

    “When our work on the review of the existing laws, and the processes for eligibility are completed, we will undertake a national launch and enlightenment programme for active use of co-operatives in housing delivery,’’ Fashola said.

    NAN

  • Fashola, Senate differ on 50 per cent mobilization for contractors

    Fashola, Senate differ on 50 per cent mobilization for contractors

    The Minister of Power, Works and Housing, Babatunde Fashola and the Chairman of Senate Committee on Housing and Urban Development, Senator Barnabas Gemade, on Thursday differed on contract mobilization fee for project implementation in the housing sector.

    Fashola had said during the 6th national council meeting on Lands, Housing and Urban Development, canvassed for an increase in mobilization fee to about 50 per cent.

    He said this became imperative to support small contractors and ensure Nigerians really experience genuine development in the sector.

    The minister said he had directed the legal department in the ministry to commence legal processes and recommendations to the National Assembly in order to meet up with the new demand.

    Fashola disclosed that the Federal Government mass housing project has commenced in 33 states to deliver 2,736 housing units.

    He noted that apart from the artisans, 653 contractors were engaged in the pilot scheme and a total of 54,680 people were employed in the process.

    He told the delegates at the event that with the ongoing housing projects, the federal government had fulfilled the commitment it made at the 2016 council meeting by 90 per cent.

    Fashola said: “Yes, I understand the need to get value for money and the processes that have been put in place by previous administrations to guide procurement. The question we must ask ourselves then is whether we have truly saved money and whether we have developed?

    “On the evidence that is available, the country has clearly made more money from oil sales in the last decade that cannot be accounted for by way of project delivery and infrastructure development.

    “But if this was not enough problem, the procurement requirements then limits the amount of advance payment government can pay to 15 per cent and sets conditions that overlook the level of literacy of the vast majority of our people and the nature of small businesses that they run.”

    “In the last 20 months, small businesses have difficulty complying with our procurement process and this requires not only policy reviews as I have ordered, but also legislative intervention by parliament.

    “This is one of the actions we must take to fulfill the objectives of the theme of this Council so that we can build for inclusion, for growth and for prosperity.”

    But Gemade disclosed that the NASS was considering 30 per cent initial payment for contractors rather than the 50 per cent sought by the minister.

    He said the bill had scaled through NASS but awaiting approval by the President.

  • Metering of customers not exclusive right of DisCos – Fashola

    Metering of customers not exclusive right of DisCos – Fashola

    The Minister of Power, Works and Housing, Babatunde Fashola (SAN), said on Monday nothing in the Electricity Power Sector Reform Act gives electricity distribution companies (DisCos) the exclusivity of metering in the sector.

    He said the Federal Government has commenced the disbursement of N701 billion electricity intervention funds to beneficiaries.

    According to him, the Federal Executive Council (FEC) has approved the release of N31 billion to Discos for metering in the power sector.

    He spoke at the 18th Monthly Power Sector and Stakeholders’ meeting in Kumboso, Kano State.

    The minister said: “Another action which took place is the FEC approval of the component that frozen the federal government of the judgement debt of N119billion and also released N39billion towards the supply of meters to DisCos.

    Stressing that nothing hinders other investors from metering electricity consumers, Fashola said “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 NERC can supply meters to customers under conditions approved by law. In other words, meter supply is an open 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.”

    The minister said he has received inquiries on whether state governments could produce their own power.

    “Nothing in the Electric Sector Power Reform Act stops any state from doing so. What they need is to get the right license from the Nigerian Electricity Regulatory Commission (NERC),” he added.

  • Kachikwu, Fashola, others for NAEC confab

    The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu and his counterpart in the Ministry of Power, Works and Housing, Mr. Babatunde Raji Fashola, are expected to make policy statement on government’s plans for the economy, especially in the oil, gas and power sectors at the 2017 Association of Energy Correspondents of Nigeria’s (NAEC) annual conference.

    The conference with the theme PIGB: Prospects and challenges to Nigerian oil and gas industry, will hold at Eko Hotel, Lagos, on August 17, by 9.00am.

    This year’s conference has three panel sessions. The first session will focus on: Optimising local refining capacity: opportunities and challenges,” while the second panel session will look at “Implications of the bill to amend the NLNG Act,” and the third panel session will discuss: Power sector and liquidity challenge.”

    The Keynote address and the Lead paper will be delivered by Kachikwu while the Group Managing Director, AITEO Production and Development Company Limited, Mr. Chike Onyejekwe. will be the chairman of the conference.

    The Guest Speakers are the Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola and the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Kachalla Baru.

    Stakeholders in the oil and gas and power sectors, including International Oil Companies (IOCs), downstream oil and gas operators, independent producers, managers of the privatised power assets, among others, would also be in attendance. Outcome of the conference will set agenda and shape government’s policy in the energy sector.

    Confirmed discussants include Dr. Frank Edozie, Managing Director, NECONDE Energy Limited; Mr. Anibor Kragha, Chief Operating Officer, Refineries, Nigerian National Petroleum Corporation (NNPC); Mr.  Mordecai  Ladan, Director, Department of Petroleum Resources (DPR); Mr. Abiodun Adesanya, President, Nigerian Association of Petroleum Explora-tionists, (NAPE); Capt. Emmanuel Iheanacho, Chairman, Integrated Oil and Gas Limited; Dr Saka Matemilola, Nigerian council chairman, Society of Petroleum Engineers (SPE); Mr. Austin Avuru, Managing Director, Seplat Petroleum Limited; Mr. Nicolas Terraz, Managing Director/Chief Executive  Officer, Total E&P Nigeria Limited and Mr. Muda Yusuf, Director-General, Lagos Chamber of Commerce and Industry (LCCI).

  • Budget comments: I didn’t disparage Reps, says Fashola

    Budget comments: I didn’t disparage Reps, says Fashola

    The Minister of Power, Works and Housing, Babatunde Fashola, has said his comments on the 2017 budget regarding his Ministry were not meant to bring the House of Representatives to disrepute.

    He however, stood his ground over his comments on budget process, insisting that budgeting priorities and processes must change from the prevailing model if better results are expected. He said this while appearing before the Aliyu Madaki-led ad hoc committee yesterday.

    Fashola was summoned by the House for allegedly disparaging it with his comments on the 2017 budgets, that lawmakers possess stark and worrisome knowledge of budget process.

    The Minister said his statement was not directed at the entire House but at the spokesman, Chairman Committee on Media and Public Affairs, Abdulrazaq Namdas whom he said told the world that his (Fashola) statements on the second Niger Bridge 2016 budget was misleading and a calculated mischief aimed at inciting Nigerians against the legislature.

    Stressing that his comments on the budget were on a topic that has always being in the public domain, Fashola said the comments credited  to him could not be said to be an incitement.

    He said: “My comment was on what has always been in the public domain even before I got here. It was in that context that I granted that interview, so it was not an incitement against the parliament and that is not my way.

    “I did not say legislators have stark and worrisome knowledge of the budget process. What I said was in response to the spokesperson who responded to my interview, who said I was being untruthful which was a grave  personal allegation against me,” he said.

    He emphasised: “I did not refer to the entire House, I know most of them, many of them are my friend and I know the sacrifices many of them have made in pursuit of common goal.

    “If you look through the interview, in no part did I accuse the House as a whole or in specific of  any misconduct.

    “I expressed my disagreement to the decision that has been taken with regards to the budget process as it affected my Ministry.”

    Saying that he was forced to respond to the allegation on the second Niger Bridge, Fashola said contrary to Namdas’ assertion that money appropriated for the bridge in 2016 was not spent but returned to the treasury, he said the project was not funded in 2016.

    According to him, the first release was approved by the Federal Executive Council (FEC) in the first quarter of 2017 and yet to be funded till date.

    “I responded because there was no money to return in the first place and members of the public were calling me, asking why do we have to return the money meant for the project to the treasury.

    “It does occur to me, craving your understanding that there was perhaps a mix up in making a distinction between a budget as  approvals of estimates, that is, distinction between budgets and  financing of the budget with cash,” he added.

    While he insisted that his response was not directed at the entire House but the spokesman, the Minister said he has no power over media headlines that might portray his statement in other forms since he never uttered such statement against the House.

    He said: “I can’t claim to know everything and if errors are pointed out to me, I will be the first to publicly apologise but my response was to the effect that we return money which we never got and it was directed to the person that raised the question specifically.

    “I did not deny the powers of the parliament over the budget but the point I am making is, after budget defense where we had explained all these plans, we felt that if there was  going to be changes to the budget proposal after defense, we felt they will call us back to say there are the changes or problems with it.”

    He said the Ministry was constrained by fund in the execution of its projects  nationwide saying that from the total appropriation of N422.9b, it got N268.3b or 63.44 percent of the required funding.

    When asked why the second Niger Bridge was not considered for concession,  the Minister  told the Committee that a second thought has to be given to Public Private Partnership (PPP) arrangement in the execution of certain road projects. He cited Lagos-Ibadan road project that has yielded no result in 12 years.

    Committee Chairman, Aliyu Dawaki implored the Minister to be mindful of his future utterances as his words have much impact on the polity going by his position in government.

  • Fashola to probe alleged inflation of Gencos’ invoice

    Fashola to probe alleged inflation of Gencos’ invoice

    Minister of Power Works and Housing Babatunde Fashola plans to probe the allegation that the Nigerian Electricity Bulk Trading (NBET) Plc is inflating electricity invoice in favour of Electricity Generation Companies (Gencos), it was learnt yesterday.

    According to the Executive Secretary, Association of Power Generating Companies (APGC), Joy Ogaji, who said this in a statement yesterday, the allegation gives the impression that the power sector operators were uncontrollable.

    The statement came nearly a month after The Nation broke the story on June 27 that the NBET was inflating electricity invoice in favour of the Gencos.

    She accused the Electricity Distribution Companies (DisCos) of being responsible for the rumour that the power producers were involved in sharp practices.

    She noted that the power producers, who are entitled to 60 per cent of the invoiced energy bill, are facing an outstanding debt of N500 billion and deserved pity instead of ridicule.

    Mrs. Ogaji condemned the position of the DisCos on the removal of capacity charge.

    She stressed that there is nowhere in the world, where power generating companies are paid only for energy.

    The statement reads: “Relative to the news trending in the sector that Gencos are fraudulent and are conniving with NBET to inflate their monthly invoices, we wish to state here that we are not aware of any such practice, although we hold no brief for NBET, whom we expect should respond to this allegation as soon as possible.

    “We are not sure what could have led to this allegation but since it is been perpetrated by the DisCos, they should make public the evidential proof of this allegation immediately, as it is said in law, ‘he who asserts must prove’.”

    The statement added: “We make bold to state here that contrary to the allegation by the DisCos of inflated GenCo invoices in cahoots with NBET, no sector participant has any overriding powers to negotiate inflated invoice payments.”