Tag: Fashola

  • Reps to Fashola: your budget proposal was sectional

    Reps to Fashola: your budget proposal was sectional

    The House of Representatives has said it will not allow the nation’s resources to be unfairly distributed to the detriment of any section of the country.

    According to the lawmakers, the National Assembly was forced to tinker with the 2017 bAudget document because the proposal presented by the President Muhammadu Buhari for the Ministry of Works,  Power and Housing failed integrity test as it was skewed to favour a section of the country.

    House Spokesman Abdulrazaq Namdas, in a statement yesterday, said it was time for the Minister, Babatunde Fashola, to be reminded that it was the duty of the National Assembly to ensure fairness in the distribution of the nation’s patrimony.

    He said: “We need to remind Mr. Fashola that the National Assembly is a national institution made up of members from all geo-political zones. They represent all tendencies, interests and ethnic nationalities.

  • Fashola’s budget proposal failed integrity test – Reps

    Fashola’s budget proposal failed integrity test – Reps

    The House of Representatives said on Wednesday it would not allow the nation’s resources to be unfairly distributed to the detriment of any section of the country.

    The lawmakers said the National Assembly was forced to tinker with the  2017 budget because the proposal presented by President Muhammadu Buhari for Ministry of Works,  Power and Housing failed integrity test as it was skewed to favour a section of the country.

    The House Spokesman, Abdulrazaq Namdas, said in a statement the time was ripe for Minister of Works, Power and Housing, Mr. Babatunde Fashola, to know that it was the duty of the National Assembly to ensure fairness in the distribution of nation’s resources.

    He said: “We need to remind Mr. Fashola that the National Assembly is a national institution made up of members from all geo-political zones, they represent all tendencies, interests and ethnic nationalities.

    “It has a responsibility also to ensure balance in the distribution of road projects and other developmental facilities.

    “It cannot watch our national patrimony unfairly skewed to one region or a few regions to the detriment of other states and geo-political zones.

    “The proposal from Mr. President on the 2017 Budget of the Ministry of Works, Power and Housing did not pass this test.

    “This partly informed the intervention of National Assembly so that every region can be carried along in project allocation.”

  • Fashola: National Assembly should address issues

    Fashola: National Assembly should address issues

    Minister of Power, Works and Housing Babatunde Fashola said the National Assembly’s response to his observation on the 2017 Budget did not address the issues he raised on the cut of allocation to critical projects.

    He expressed concern over the recourse to name-calling and personal attack by the lawmakers and insisted that the legislators lack power to insert items in the budget prepared by the executive.

    The minister said he was worried that spokespersons of the Senate and House of Representatives failed to state the reason the National Assembly cut allocations to key projects of the ministry.

    Acknowledging that legislators could contribute to budget making, Fashola disagreed that members of the legislative arm have powers to alter items in the budget after putting the executive members through defence sessions and committee hearings.

    The minister observed that it amounts to abuse and disregard for lawmakers to unilaterally insert items not contained in the original documents submitted by the executive. He listed the Lagos-Ibadan Expressway, Bodo-Bonny Road, Kano-Maiduguri Highway, Second Niger Bridge and Mambilla Hydropower Project, among others, as those altered.

    Fashola said contrary to the lawmakers’ claim, there is no subsisting concession agreement on the Lagos–Ibadan Expressway, adding that the Infrastructure Construction Regulatory Commission (ICRC) only has a financing agreement with a consortium of banks, which must be paid back through budgetary provisions.

    In a statement by his Special Adviser on Media, Mr Hakeem Bello, Fashola said: “I acknowledge the need for legislators to make input in budget process as representatives of the people, but it amounts to a waste of tax payers money and an unnecessary distortion for lawmakers to unilaterally insert items not under the exclusive or concurrent lists of the Constitution, such as boreholes and streetlights after putting Ministries, Departments and Agencies  (MDAs) through the process of budget defence.

    “It is sad that the lawmakers resorted to name-calling even without understanding what they were getting into. Let us take the projects, which the lawmakers chose to focus on, one after the other. I want the public to know there is no subsisting concession agreement on the Lagos–Ibadan Expressway. What the Infrastructure Construction Regulatory Commission (ICRC) has is a financing agreement from a consortium of banks, which is like a loan that still has to be paid back through budgetary provisions.

    “In the case of the Second Niger Bridge, which the NASS spokespersons alleged that the provision in 2016 budget was not spent and had to be returned, it is a display of worrisome gaps in knowledge by the spokesperson about the budget process. The lawmakers must know that a budget is not cash; it is an approval of estimates of expenditure to be financed by cash from the Ministry of Finance.”

    Fashola said the Ministry of Finance was yet to release cash for the Second Niger Bridge, noting that no money was returned.

    He dismissed as “tissue of lies” the allegation that his ministry was holding on to projects that could be funded through Public Private Partnerships (PPP). According to Fashola, ministers have no unilateral power to award contracts to the tune of billions, adding that all new projects presented to the Federal Executive Council for approval were either federal roads requested by state governments or those put in the budget by the legislators to service their constituencies.

    He said the spokespersons missed the point of his observation in the haste to launch personal attack on him. Fashola said he expected a more sober approach to solve the matter, rather than name-calling.

    He said: “In any event, allegations of half-truth by the lawmakers are only a flawed response to the constitutional and developmental issues that I have raised about how to budget for the critical infrastructure. This kind of disagreement has plagued Nigeria since 1999. It shows the conflict between the executive that wants to build big federal highways, bridges, power plants, rail and dams on one hand and the parliament that wants to do small things like boreholes, health centres, street lights and supplying grinding machines.”

    Describing the disagreement as an institutional matter, the minister said it won’t be out of place to seek resolution to the conflict at the Supreme Court to protect the country’s future.

  • Group backs Fashola on Lagos-Ibadan road

    Group backs Fashola on Lagos-Ibadan road

    Power, Works and Housing Minister Babatunde Fashola has received the thumbs up for his efforts at rehabilitating the Lagos-Ibadan Expressway.

    In a statement yesterday, a group, the Yoruba Radical Assembly (YRA) said it stood by Fashola on the project. It condemned the National Assembly for slashing the budget for the work.

    The statement signed by its President, Comrade Dare Aladekola, said: “After studying the arguments from both sides, we have arrived at a conclusion that the National Assembly’s conduct is aimed at putting a wedge between the Yoruba of the South-West and President Muhammadu Buhari, our very good friend.

    “If Buhari has decided to give the Southwest the required sense of belonging by doing the Lagos-Ibadan Expressway once and for all with a view to compensating our patience and patriotism, any attempt at sabotaging such a noble cause is nothing but an act of brigandage, capable of disrupting the nation’s fragile peace.”

    The group noted that the route has been a death trap and shame of the nation over the years, wondering why any person or group would want to disturb any effort to repair the road.

    “Eight administrations, namely, Shagari, Buhari, Babangida, Shonekan, Abacha, Abdusalami, Obasanjo and Jonathan, failed to do it. Then, our friend, Buhari came and saw the need to address the unfair treatment and some people are scheming to frustrate that.

    “We are stating it here unequivocally that, we will resist any attempt to sabotage a noble cause through constitutionally acceptable means.

    “Members of the National Assembly should not take our patience and patriotism for granted as there is limit to human endurance. And we can assure those people we put in Abuja with our votes that we have the capacity and numerical strength to occupy their legislative territory till sanity will decide to prevail,” the group said.

  • NASS failed to address key issues on budget – Fashola

    NASS failed to address key issues on budget – Fashola

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, on Monday said the National Assembly’s response to his observation on the 2017 Budget did not address fundamental issues raised on funds allocated to  key ministries.

    Fashola, in a statement issued by his Special Adviser on Media, Hakeem Bello, expressed concern over the recourse to name-calling and personal attack by the federal lawmakers, insisting the legislators lack power to insert items in budget prepared by the executive.

    The minister said he was worried that spokespersons of the Senate and House of Representatives failed to state the reason the National Assembly cut allocations to key infrastructure projects of the ministry.

    While acknowledging that legislators could contribute to budget making, Fashola disagreed that members of the legislative arm have powers to alter items in the budget after putting the executive members through defence sessions and committee hearings.

    The minister observed that it amounts to abuse and disregard for law for lawmakers to unilaterally insert items not contained in the original documents submitted by the executive.

    He listed the Lagos-Ibadan Expressway, Bodo-Bonny Road, Kano-Maiduguri Highway, Second Niger Bridge and Mambilla Hydropower Project, among others, as those the NASS members altered in the budget to insert boreholes and primary health care projects.

    Fashola minister insisted that there is no subsisting concession agreement on the Lagos–Ibadan Expressway, adding that the Infrastructure Construction Regulatory Commission (ICRC) only has a financing agreement with a consortium of banks, which must be paid back through budgetary provisions.

    The statement reads: “I acknowledge the need for legislators to make input in budget process as representatives of the people, but it amounts to a waste of tax payers money and an unnecessary distortion for lawmakers to unilaterally insert items not under the exclusive or concurrent lists of the Constitution, such as boreholes and streetlights after putting Ministries, Departments and Agencies (MDAs) through the process of budget defence.

    “It is sad that the lawmakers resorted to name-calling even without understanding what they were getting into. Let us take the projects, which the lawmakers chose to focus on, one after the other. I want the public to know there is no subsisting concession agreement on the Lagos–Ibadan Expressway. What the Infrastructure Construction Regulatory Commission (ICRC) has is a financing agreement from a consortium of banks, which is like a loan that still has to be paid back through budgetary provisions.

    “In the case of the Second Niger Bridge, which the NASS spokespersons alleged that the provision in 2016 budget was not spent and had to be returned, it is display of worrisome gaps in knowledge by the spokespersons about the budget process. The lawmakers must know that a budget is not cash; it is an approval of estimates of expenditure to be financed by cash from the Ministry of Finance.”

     

     

     

  • Senators, Reps to Fashola: Stop blackmailing us

    Senators, Reps to Fashola: Stop blackmailing us

    • National Assembly accuses minister of misleading public on budget slashing

    The Senate and House of Representatives are squaring up to Works, Housing and Power Minister Babatunde Fashola over allegation that the legislature messed up the ministry’s 2017 budget.

    They labelled the minister’s allegation as wrong information, half truth and blackmail.

    Fashola, last week, accused the lawmakers of slashing his ministry’s appropriation for some critical projects, and at the same time introducing 100 new projects to the 200 uncompleted ones he inherited from the Jonathan administration.

    The first response came from the Senate whose spokesman, Aliyu Sabi Abdullahi, said Fashola did not give the public full details about the Lagos-Ibadan Expressway.

    Abdullahi said the project commenced as a private finance initiative whereas the minister prefers an arrangement that allows the Ministry to continue to award contracts and fund the project through government budgetary allocation at a time when the nation’s revenue is dwindling.

    According to him, the Bureau of Public Procurement, and the Federal Executive Council in 2013, approved the reconstruction, rehabilitation and expansion of the Lagos-Ibadan expressway as a Public Private Partnership project using the Private Finance Initiative, with the Federal Government providing about 30 percent of the funding while the balance shall be provided by the private sector.

    The project was on course for completion by end of 2017 when the private finance initiative was being implemented, with over 30 percent completion rate attained as at early 2015.

    Abdullahi further noted that in a blatant disregard for existing agreements, constituted authorities and extant laws, Fashola on assumption of office got government through the Ministry to start voting money for the implementation of the project.

    “Even as at last year the 2016 Appropriation Act voted N40 billion for the project on the insistence of the Ministry and only N26 billion was released. If we had known, the rest N14 billion could have been allocated to other critical roads across the country”, he said.

    He added: “In the spirit of consensus building and effective stakeholder engagement, the leadership of the Senate met with key relevant stakeholders, including the Ministries of Works and finance.

    “It was agreed that we should give the Private Finance Initiative a chance to complement government’s resources in the delivery of critical infrastructure assets across the country. Hence, in this year’s budget, we have engaged with the Government and private sector groups who have assured that they will resume funding of the project.

    “So, we only provided the fund in the budget that would ensure work does not stop before the funds from the private sector start coming in .What we reduced from Lagos-Ibadan Expressway in the 2017 budget estimate was spread on Oyo-Ogbomoso road in the South-west, Enugu-Onitsha road in the South-East, and two other critical roads in the North-East and North-West; and this was done to achieve equity. The Minister should realise he is Minister for the entire country and not just that of Lagos State.

    “It is our view that the Federal Government cannot fund the reconstruction and maintenance of all the 34,000 kilometres of roads under its care. We are looking for private funds for some of these roads, particularly those with high potentials of attracting private investors. These include the Enugu-Onitsha road, Kano-Abuja road and Abuja-Lokoja road. It has been our hope that the Lagos -Ibadan road would be a model for private sector funding of infrastructure in the country.”

    The Senator said Fashola’s   statement was in bad taste and should “desist from spreading half-truths.”

    “When he said the National Assembly imported projects into the 2017 budget, he did not mention that these include the 26 projects which the Federal Government approved in the 2016 budget, awarded contract for them in January 2016, but totally omitted them in the 2017 budget. One of them is the Abuja-Kaduna road. These ones would have become abandoned projects. We reduced funds across board to make provision for these omitted projects that are of critical importance to the socio-economic development of the country in line with equity and fair play.”

    For its part, the House of Representatives said Fashola’s remarks were meant to paint the National Assembly as an irresponsible institution, “one not concerned with the welfare of the people, and set the Executive and Legislature on an unnecessary collision course on matters of power rather than issues that benefit the Nigerian people.”

    House Spokesman, Abdulrazaq Namdas said ” the decision to redistribute the projects proposed by  the ministry was in order to ensure an even spread of projects across all regions, which the proposal of the executive had failed to do.

    “Considering that the funds that were allocated for the second Niger Bridge in 2016 were returned untouched at the end of the year, the National Assembly decided to reduce N5 billion from the 2017 Budget for 2nd Niger Bridge to fund other projects from the South East, leaving N7 billion for the second Niger Bridge.

    “The truth is that in the 2016 Budget, N12 billion was appropriated for the second Niger Bridge and not a kobo was spent by the Ministry. Not a kobo. The money was returned. The Ministry could not provide the Committees of the National Assembly with evidence of an agreement on the Public Private Partnership (PPP) or a contract for the 2nd Niger Bridge.

    “The projects include – N2.5 billion extra for Enugu/Onitsha Road, N1 billion more for 9th Mile/Nsukka/Makurdi Road; additional N500m for Oturkpa- Makurdi to take care of evacuation of agricultural produce up to Maiduguri; N1 billion more for Ikot Ekpene-Aba-Owerri Road etc. These are strategic Roads in the South-East and North Central parts of Nigeria that had inadequate allocations.

    “The National Assembly had to intervene to fund some other critical roads that were totally neglected in the Executive Budget proposal, including the Abuja- Kaduna – Zaria – Kano Road that had Zero allocation from the President’s proposal and no contract, even in spite of due process certification.

    “N5 billion was provided in the 2016 Budget. It was not utilised. In 2017 Budget, the National Assembly again provided N3 billion for this very critical road that connects many states and where incidents of kidnapping are rife because of bad roads, as we believe that all parts of Nigeria deserve attention or would the Minister also claim that this road has no design?”

     

  • Govt records progress in generation, says Fashola

    Govt records progress in generation, says Fashola

    The Federal Government has said it is recording progress in power generation and transmission network to improve service delivery to consumers.

    This is contained in a com-muniqué issued at the end of the 16th monthly meeting of the Minister of Power, Works and Housing, Babatunde Fashola, with operators of the power sector held at Ugwuaji transmission sub-station in Enugu State.

    The communiqué noted that progress on incremental power was being made, adding that damaged transformers at Afam IV have been repaired and gas supply will restart shortly for additional 100megawatts (Mw) of power to the national grid.

    The East Power project at Afam III is also on course for completion with 240 Mw supply expected before the end of the year, while Azura 450 Mw is expected to be completed by the first quarter of 2018. About 160,000 households are expected to benefit from a more stable, effective and efficient power sector delivered by the inauguration of these plants, the communiqué added.

    It also stated that progress was being made on the Ibadan Electricity Distribution Company (IBEDC) line to Magboro in Ogun State, adding that the line was being tested and that power should reach customers from Oke Aro to the Mountain of Fire Ministry (MFM) area within one week.

    The Niger Delta Power Holding Company (NDPHC) has also made considerable progress on the Okija distribution substation as transformer equipment are installed in Okija Town, close to the Police Station. Progress was announced on Alaoji to Onitsha line, which will bring power to the vital industrial clusters of Ihiala and Nnewi in Anambra State and Orlu community in Imo State, while also supplying the Onitsha metropolis, with completion slated for the first quarter of 2018. NDPHC announced that work to supply power to the Omotosho host community is expected to be completed by the third quarter of this year.

    The energy sector stakeholders agreed that energy theft is a limiting factor in quality service and also a small population bears the large cost of energy consumption. The minister directed that the public be encouraged to extend the whistle blowing policy of government to the power sector to ensure energy theft is brought under control.

    Stakeholders were also encouraged to name and shame energy thieves as a deterrent. The minister also directed the Nigerian Electricity Regulatory Commission (NERC) to take decisive action with regard to disconnection of households with prepaid meters, as this action leads to low level of public trust in the sector.

    Operators at the ministerial meeting include NERC executives, Managing Directors and Chief Executives of Generating Companies (GenCos), Distribution Companies (DisCos), and the Transmission Company of Nigeria (TCN). Others are the gas companies, government agencies such as the NDPHC, the Nigerian Bulk Electricity Trader (NBET), Nigerian Electricity Liability Management Company (NELMCO), Nigerian Electricity Management Services Agency (NEMSA), Nigerian National Petroleum Company (NNPC) and the Central Bank of Nigeria (CBN).

  • Fashola tasks quantity surveyors board on Cost Data Bank

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola has urged the reconstituted Quantity Surveyors Registration Board of Nigeria (QSRBN) to develop a cost data bank to support the formation of cost estimates that would serve as a reference material for stakeholders in the construction industry.

    In his remarks before the brief ceremony at the Ministry’s Headquarters in Abuja, Fashola urged the professionals to develop a range of costs for the different ecological zones of the country as well as evolve means of making the practice of quantity surveying simple enough and responsive to the man on the street.

    Emphasizing the importance of Quantity Surveyors in the economic growth of the country, Fashola declared, “These are people whose core professional mandate is really ensuring that clients get value for money on all building construction projects.”

    He challenged the members of the board “to develop a very open and possibly nationwide cost data bank that will be used in different parts of the country”, adding “So that at least in water lodged environment, for example we can know what is the minimum cost of materials required to complete a project as against what would be required on normal land.”

    Congratulating the Chairman and members of the reconstituted Board, Fashola who noted with pleasure the broad mix of experience and value that were brought to the Board, Fashola said, “This Board has, among many other responsibilities, the responsibility for registering persons who are fit and qualified to serve and practice as Quantity Surveyors and also to the responsibility to regulate the standard and the knowledge and the general practice of the profession in our country”.

    “These are the people whose core professional mandate is cost economics, ensuring that clients get value for the money spent on projects,”  he said, adding that the current crop of professional Quantity Surveyors have a duty to bridge the gap between town and gown to ensure that young Nigerians studying to become professionals are put on the right trajectory.

    In his remarks, President of the of the Board, Mallam Murtala Aliyu thanked the Minister and the Federal Government for the opportunity and privilege given the members to serve on the Board adding that the members of the profession were in a fit position to contribute to the economic growth of the country.

    He expressed satisfaction that the board has been captured in this year’s budget and pledged that with the collaboration of the Ministry of Power, Works and Housing, the Board would carry out its job effectively.

    Aliyu said the QSRBN was already working hand in hand with the Nigerian Institute of Quantity Surveyors (NIQS) on a cost data base that will be used across the country.

  • Saraki, Fashola, others bid Obanikoro’s mum farewell

    It was the eighth day Fidau prayer for the mother of Senator Musiliu Obanikoro, Alhaja Wosilat Ejide Obanikoro, at D Venue event centre on Victoria Island in Lagos, yesterday.. She died June 3. She was 95. Islamic clerics took turns to offer prayers for about two hours. Several dignitaries graced the occasion.

    Chief Missioner of Ansar-Ud-Deen Society of Nigeria, Imam  Abdul-Rahman Ahmed, who led the prayers, said “today is a day for us to talk to ourselves and to go back home to think.”

    In attendance were the Senate President, Bukola Saraki: Minister of Power,  Works and Housing,  Babatunde Fashola; former  governor of Oyo state,  Adebayo Alao Akala; former governor of Ogun state,  Otunba Gbenga Daniel;  former deputy governor of Lagos State,  Femi Pedro and  Deputy Speaker, Lagos State House of Assembly,Wasiu Eshilokun, among others.

    Senator Obanikoro, in his tribute to the deceased, thanked God for the life of his mother, saying she lived a good life. He said, “My mother’s place in my life was next to Almighty Allah’s. She never gave up on me.  Her resilience and firmness ensured her vision for me in life was protected. Nothing can replace her in my life. I thank Allah for her life and for the honour and privilege of me being her son.”

  • Fashola chides estate valuers, seeks valuation synced with economic realities

    Fashola chides estate valuers, seeks valuation synced with economic realities

    Is the current valuation of land and properties across the country reflective of economic realities?

    This was the poser for estate surveyors and valuers at the inauguration of the reconstituted Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON)  in Abuja, last Monday, by the Minister of Power, Works and Housing, Mr. Babatunde Fashola.

    “For me, I think the most important lessons that I like to share at this inauguration is to pose the question to you whether the current land evaluation system and values are consistent with the realities of our economy. Are these values consistent with reality? Why are we not seeing rates and rents and values drop? Why are we having many houses unoccupied where people are looking for accommodation? You, as experts, must answer that question,”  Fashola again asked the professionals at the gathering.

    According to the former Lagos State governor, in a very challenging economy where cash is clearly tight, can it be said that the market value of properties are really responding appropriately?

    The minister noted that since the global economy recessed or slowed, property owners in some other climes are offering  discounts  on their properties to ensure optimum occupancy. He, therefore, wondered why the reverse was the case in Nigeria, whose economy is being greatly challenged by tight capital.

    “It has always been the argument of property owners in the country that the properties were valued higher so they could have an “impact on percentages and commissions”. But I urged you as professionals and practitioners in the domestic property market to take a cue from your counterparts and other property sellers in the United Kingdom, who, because of BREXIT, began to offer discounts on properties to the citizens,” he advised, urging the practitioners to learn from the stock market and how markets react to policies.

    The minister explained that many years ago the domestic Stock Market was immune to policies, but today Nigeria’s Stock Exchange ranks with some of the best in the world because it reflects the realities of the country’s economy in many respects.

    He said one of the areas where Nigeria’s Ease of Doing Business ranking could improve was in the area of real estate valuation, “especially how to develop a harmonised code of charges”.

    “We had this problem back at state level where we found out that we were  charging about 10 per cent gross on fees and taxes while other countries close to us were charging one and two per cent. But the truth was that the values were not real,”he said.

    He, therefore, urged the the new board of ESVARBON to ensure that the disparity between the country’s land evaluation system and the current economic realities are reconciled. Besides, the estate valuers were also advised to develop an open evaluation for different parts of the country as well as evolve means of making estate valuation simple enough and responsive to the man on the street.

    He said other countries have evolved property calculators with which it only takes indexing a property owner’s location and that of his property to have a fair value of what his asset is worth.

    “So I will like to see, therefore, that as you take up the mantle of leadership today after inauguration, these are issues that I think you should put into the front burner agenda in terms of how you regulate the practice and also  the quality of people that you admit to the practice,” Fashola urged regretting that customer is clearly not the king, even with his money, in the domestic real estate transactions.

    He nonetheless extolled the virtues of the profession, saying that they are of significant importance to the economic growth of a nation. This, he said, is because they undertake the business of how land is turned from being a dormant asset into a valuable asset; thereby putting value on land.

    “This is why the Ministry of Power, Works, and Housing employs a number of Estate Valuers, considering that whether we are building new roads and there is a need to acquire Right-of-Way, or sometimes have to pay compensations, estate valuers are needed to value the land and properties involved.

    “For instance, some estate valuers have been incorporated into the Power sector for the development of the Mambila Hydro Power Dam. This is in the area of assessing the land that is needed and ultimately quantifying same for compensation to be paid. Others have also been employed for new Transmission Company of Nigeria (TCN) where the Ministry has to acquire Right-of-Way for its transmission lines.

    “All of those ,who are involved in one form of enterprise or the other must first of all appreciate the value of land as a major capital formation asset; whether it is for small businesses, large corporations, markets or motor parks. I can’t really think of a business that one wants to undertake where land is not a critical part whether it is just to own a small office or a small kiosk where you can sell very basic things, even to roast corn,” Fashola explained.