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Tag: Fed Govt

  • Fed Govt finalising plans on toll gates’ return, says minister

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has  said the Federal Government will standardise the operation and management of toll gates before reintroduction.

    He spoke yesterday in Abuja when he appeared on the News Agency of Nigeria (NAN) flagship programme, NAN Forum.

    Fashola said the standardisation was to overcome some of the problems encountered in the past in the operation and management of the plazas.

    He said: “We are also working to overcome some of the problems of the past, accountability and transparency in the operations and management.

    “We think technology gives us an opportunity to overcome these problems.

    “So we want to standardise all of that, then we have sent our officers out because we have revolved the design actually, what we want the toll plazas to look like.

    “In terms of design, quality of materials, cost, because we want to issue bids for people to come and bid for them.

    “So that when we are evaluating the bids, there can be proper evaluation because we are standardised.”

    The minister said the Federal Government had recorded progress in road construction and rehabilitation, considering the poor state of the roads at the inception of the current administration.

    “We have momentum in terms of team work, project delivery and problem solving and I think we should be seeing more cascading of results in more places.

    “In areas where our contractors are back to site, what we hear is that the journey is getting better; their travel time has been reduced and we will continue to reduce that.

    “Those that used to go through bush paths now see that they can drive through the roads even though it is not finished.

    “Contractors on the road sites who were laid off are back to work. So, that is a good news for them and their families to earn income,” he said.

    Fashola said the Federal Government was also making efforts to recover and protect its rights of way on highways to address the challenges of abuses on federal roads.

    According to him, the government on each highway has a right of way of 45.75 metres from the centre line on either sides of the road.

    He said the right of way of the government had over the years been encroached on by unapproved structures, trading, illegal parking of vehicles and vehicular repairs.

    Fashola said the Federal Government would not renew temporary occupant of its right of way.

     

     

  • Kachikwu: Fed Govt will support local investors

    The Federal Government will make the environment conducive for local firms willing to invest in the country, Minister of State for Petroleum, Ibe Kachikwu, has said.

    Kachikwu, who represented Vice President Yemi Osinbajo, spoke after inspecting ongoing works at the fabrication/welding yard of Kaztec Engineering Company at Snake Island, Lagos.

    According to him, firms willing to take advantage of the government’s policy of ease of doing business will be fully supported to set up and maximise profit.

    He said: “The reason for visiting this site is to see where concrete engineering facilities are being developed and see how to integrate them into the oil industry.

    “I am impressed by what I have seen so far. It’s a huge development but still a long way to go because nobody will keep investing money if they don’t get the required patronage. The reason for this tour, with oil firms and other parastatals, is to draw attention to the fact that there is a low hanging food here where we can develop the country and create jobs.

    “This facility has the capacity to create between 2,000 and 3,000 jobs. The land is about 500 hectares. It’s a massive project; Kaztec has the capability but it needs support, and we will draw attention to that.”

    Kachikwu reiterated the government’s determination to reactivate industrial activities to create jobs, through its ease of doing business policy, an environment where there are no delays in granting approvals for businesses.

    He said: “For local investments coming into the industry, we have seen about four to five years projection and about N30 to N40 billion worth of investments, with firms springing up to bridge the infrastructure gap.

    “What the government does, through the Vice President Yemi Osinbajo-led team, is to create an environment for ease of doing business, an environment where there are no delays in approvals. The fact that I came here shows that the government is very interested in what happens at these base levels.

    “Companies are cutting down substantially on costs of projects; they are beginning to see reasons why they should engage local contents in their productions since it may be cheaper to do it here. Facilities like the one Kaztec is putting up here make it cheaper to do business here, and these are the things we are fighting for.

    “Within the realm of the difficulties we inherited, and where the president is taking us to, we are doing the best we can to get attention, get mileage to make the industry work. This is what we have done by visiting China and India to get the attention of potential investors.

    “We are doing everything we can to ensure these projects come on board. But there are lot of things to consider before this. These firms need financial investments; they don’t take equity money to do these things but loanable funds.”

    The Managing Director of Kaztec, Emeka Ofor, said the site was set up to deliver fast and quality products that will match and create opportunities for local investors.

     

     

     

     

     

     

     

     

     

  • Fed Govt to redeem N482b T-bills in Q2

    Federal Government plans to repay N482 billion of treasury bills (T-Bills) in the second quarter of this year.

    The regulator will also  halve the amount it wants to raise between March and May to lower borrowing costs, according to debt auction calendar seen released yesterday.

    A total of N964 billion worth of bills fall due in the second quarter, of which the government plans to roll over N482 billion. News of those plans sent yields down 0.4 per cent on the secondary market on Wednesday, traders said.

    Nigeria sold a $2.5 billion Eurobond in February to help refinance naira-denominated treasury bills at a lower borrowing cost. The debt office said on Wednesday it would repay the bills in phases as they mature. The 91-day bill shed 0.4 per cent to 13.8 per cent on Wednesday.

    The T-bills’ maturities range between three months and a year and would be raised today, according to the CBN. T-bills are marketable short-term money market securities that serve the purpose of raising money for the government and also help in monetary policy management of the CBN.

    Also, the Central Bank of Nigeria (CBN) yesterday issued new guidelines on the operation of direct debit schemes.

    The new rule  is in line with the exercise of the powers conferred on the apex bank under Sections 2(d), 33 (1)(b) and 47(2) of the CBN Act 2007 to promote sound financial system in Nigeria, issue guidelines and facilitate the development of an efficient and effective payments system in Nigeria, the CBN hereby issues this Regulation for Direct Debits Schemes in Nigeria, 2017.

    This regulation recognises the existing and emerging multi-channel options such as online platforms, Instant Payments among others applied for direct debit instructions in Nigeria. In addition, the provisions of the regulation are harmonized with developments in the payments system since the release of the previous version.

  • Fed Govt hails UNICEF, EU on water, sanitation  

    THE Federal Government has hailed the United Nations Children’s Fund (UNICEF) and European Union (EU) for aiding the provision of potable water and ensuring sanitation.

    The Deputy Director, Child Right Information Bureau, Federal Ministry of Information and Culture, Abuja, Mr. Olumide Osanyinpeju, spoke in his opening remark at a media dialogue for select journalists on Water Supply and Sanitation Sector Reform Project.

    The event was held in Jos, the Plateau State capital.

    He said the roles of UNICEF and EU in advancing the cause of making life safe in Nigeria remained significant and commendable.

    According to him, “it is a fact that UNICEF and EU have been in the forefront of ensuring that we have access to drinkable water, sanitation and proper hygiene in our environment and communities.”

    Osanyinpeju, an engineer, said the objective of the project was to support the efforts of local and state governments to the achievement of water and sanitation related Sustainable Development Goals.

    Plateau State Commissioner for Water Resources and Energy David Wuyep, who declared the dialogue open, praised UNICEF for its intervention in provision of water.

    He said the government would ensure prompt payment of counterpart funds.

     

     

     

  • Fed Govt to raise N70b via bond

    The Federal Government plans to raise N70 billion ($222 million) via a sovereign bond sale next week, the Debt Management Office (DMO) said yesterday, less than it has sold at previous auctions.

    The DMO said it would issue a five-year bond to raise N10 billion, and sell 10-year paper to fetch N30 billion, using the Dutch auction system on March 21.

    It plans to introduce a new seven-year note to raise another N30 billion, it said in a bond notice. The result of the auction is expected on March 23, the DMO said. Nigeria has been working to lower costs, particularly as inflation fell for the 12th time in a row in January.

    The DMO has paid off a portion of the government’s maturing treasury bills instead of rolling over the debt as it has done in the past and plans to cut the amount it raises at home from future auctions. However, it is boosting dollar loans and wants to increase its foreign debt holding to 40 per cent of total loans by 2019 from 27 per cent now.

     

  • Fed Govt: GenCos planning to disrupt power supply

    The Minister of Power Works and Housing, Babatunde Fashola yesterday alleged that some electricity Generation Companies (GenCos) were planning to disrupt power supply to score political gains.

    He said a report to that effect is already with him.

    “Let me say it very clearly to some of these people that I get reports on some of the clandestine meetings they hold with the view to disrupt power supply for political capital.”

    He also said the power firms have dragged the Federal Government to court over its regulation, stressing that the suit coming at the time that there is increase in power supply is an indication of the intention of the plaintiff to blackmail the government and hold the citizenry hostage.

    He wondered “whether the period when this sector is now making progress does not suggest an intention to blackmail government and to hold the citizens hostage?”

    Fashola however promised to defend Federal Government’s position in the law court, where he has lived all his life.

    He spoke at the 25th Monthly Power Sector meeting in Uyo, Akwa Ibom State capital.

    The power firms had sued the Federal Government for discriminatory treatment against them and the gas suppliers. They claimed that the government’s was scheming to give Azura Power West Africa Limited and Accugas Limited to disadvantage of the entire power sector.

    The representatives of the GenCos in the suit at the Federal High Court, Abuja, are Mainstream Energy Solutions Limited, Transcorp Power Limited, Egbin Power Plc, and Northsouth Power Limited.

    Fashola however noted that only the power firms tabled their complaints to the ministry and dragged the government to the court only a week after that was not sufficient for the government to look into their grievances and react.

    He urged them to be fair in good conscience to the court of law and court of public opinion about the rival firms that they complained of. The minister submitted that the other new company has a partial risk guarantee in its contract which the plaintiffs do not pocess.

    Fashola tasked the plaintiff to be ready to tell the citizens how they felt first when other groups went to court to stop the implementation of tariffs approved by NERC.

    He said: “I was their supporter then asking Nigerians to bear with the tariff. You must explain to the court of public opinion whether they went to court before this government approved for them the N701billion payment assurance guarantee which enables them to receive payment on their monthly power bills.

    “When they are in that court, they must also tell the court that they are indebted to gas companies and to their banks because they were receiving less than 50 per cent of their bills. And in doing so, they must tell the court that they now receive 80 per cent of their bills from less than 50 per cent because the Buhari’s government intervened with the assurance guarantee.

    “They must also tell the court when they get there or while they are there that unlike before when they were paid in naira, from money that was received from international customers, we sell power to Niger Republic, Chad, Niger and Togo, under an international arrangement. They must tell the court that they are now receiving payments in dollars instead of in naira, which used to be the case.

    “They must also tell the court when they get there and also tell the court of public opinion that that there is a new GenCos  getting paid 100 per cent while they are getting 80 per cent. And they must explain to the court that the reason is that that new GenCo has a partial risk guarantee in its contract and they do not. They was the contract they signed.”

    But he said the genesis of the hatred in the sector was the introduction of the mini-grid regulation that the Nigerian Electricity Regulatory Commission (NERC)presented to the ministry last year making legal ways for competitive participation in power generation instead of the monopoly -like system that held the sector down for years.

    Yesterday however, Fashola recalled that the privatisation of the sector was not meant to replace government monopoly with that of private businessmen.

    He added that there was already progress emanating from the implementation of the regulation p, adding that “So if those people bother to look around them and they look at roof tops across Nigeria, you will see increased number of solar panel.

    “And the Nigerian Mini Grid Regulation we have issued  encouraged this to happen more and more and it will not stop. So for those who want to produce solar one mega watt and below we now have a regulation that allows,” he said.

    Fashola presented the Meter Asset Provider 2018 Regulation to the State Governor, Emmanuel Udom, making Akwa Ibom the first state to receive a copy of the regulation of the Nigeria Electricity Regulatory Commission (NERC).

    He recalled that the government pursued an out of court judgement in a case that lasted from 2013 to 2017 to get N39billion from a liability of N119billion.

    He said negotiations were still ongoing for fundings for rural electricification, mini-grid and DisCos distribution expansion financing that government hopes to complete before the end of the year.

    According to him, the Transmission Company of Nigeria (TCN) has continued its wheeling capacity, upgrade of its substations in partnership with the Niger Delta Power Holding Company.

    He reported to the stakeholders at the meeting that the Calabar substation has been completed and ready to be energized: Uyo substation is already completed and ready  to be energized in a matter of days. He said that substations in Karu, Nassarawa, Abeokuta among others have been completed and now in service.

    Fashola said it was no longer news that the sector has reached a 7,000mw generation capacity and now has 5000mw distribution capacity.

    He said in the last month the ministry met with the Manufacturers Association of Nigeria, DiscOs and GenCos and TCN on how to implement the eligible customer policy and increase connectivity to the 2,000mw now available.

    He said that the meeting was productive and “report reaching me is that is what is outstanding is agreement on the tariff that will be paid on the eligible customer.”

    Speaking the NERC commissioner, Dafe Agenife, who presented the Meter Asset Provider 2018 Regulation to the minister said that issues of availability of metering and estimated billings were recurring where the commission went to.

    He said that the commission had consultations with different stakeholders, agency and consumers on the regulation .

    He submitted that the findings was that NERC could not leave the task to the DisCos alone as other investors must come on stream, hence the Meter Asset Provider Regulation.

    The commissioner Before you today is the NERC Meter Asset Provider 2018,” adding that four years after privatization customers are still complaining which necessitated the regulation to have independent people approved by NERC and contracted by the DisCos  to bridge the metering gap.

    In bridging the gap, he said, customers will now have the option of self-financing, obtains meters from the asset providers to pay the metering service charge for a period of 10 years.

    The meter asset providers will also ensure that the meters are maintained 48hours should anything goes wrong with the meters, he added.

    According to him, it is estimated to produce an investment of over N200billion in  the next three years in the industry.

    The regulation, he said would create jobs owing to its 30% local content initiative.

  • Lalong hails Fed Govt on anti-corruption war

    Plateau State Governor Simon Lalong has praised the Federal Government on the anti-corruption war.

    He said successes recorded so far must be sustained.

    Lalong, who spoke while welcoming President Muhammadu Buhari on a working visit to the state, said more still needed to be done.

    “As a state, we have since keyed into this patriotic endeavour by lodging complaints with the relevant agencies, such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt  Practices and other related offences Commission (ICPC) against several cases of corruption by some past government officials,” he said.

    Lalong, a lawyer, said in an effort to end the growing security challenges his administration met, the Plateau Peace Building Agency was launched.

    “It is the first of its kind to be adopted by any state government in Nigeria. The function of the Peace Building Agency is to foster Peace through mutual cooperation and understanding with a view to ensuring amicable resolution of conflicts as well as the harmonious co-existence of all citizens, regardless of ethnic, religious and political backgrounds.

    “The Plateau Peace Building agency has developed a Five-Year Strategic Plan, through a carefully facilitated benchmarking

    “Plateau State has had its fair share experience of violent conflict, which also took a massive toll on the socio-economic development of the state.

    “The impact of this horrific experience in terms of both human and material loss has been quite devastating and profound. More than seven thousand lives were lost, with homes, livelihoods and communities destroyed in a period spanning over a decade,” Lalong said.

    According to the governor, the pattern of state and Federal responses to conflicts in the past were at best reactionary, often revolving between the setting up of commissions of inquiry and wide range of ad-hoc security arrangements meant to restore law and order.

    “While this approach may have yielded some short-term results during the conflict, it has failed to arrest the vicious cycle of violence that had become the persistent plight of our people for over 15 years,” he said.

    He said the Plateau Peace Building Agency’s Five-Year Strategic Plan came about through a carefully facilitated benchmarking exercise that harnessed the contributions of stakeholders.

    “Through the implementation of this strategic framework we hope to maintain a steady progress in our journey from fragile to stable peace.

    “Consequently, we are compelled to humbly request for intervention from, and collaborative partnerships with, the Federal Government that will assist the state through the Peace Building Agency to fully implement the conflict transformation and peace building activities.

    “To complement and support the efforts of security agencies, government has procured 53 security vehicles equipped with communication gadgets for distribution to all the 17 local government areas,” he said.

    Addressing the President, Lalong added: “One of the major highlights of your official visit to Plateau, therefore, is to unveil this strategic document in view of its potential for peace and security in our state and across Nigeria.”

  • Fed Govt eyes N141b from mining sector

    The Federal Government is eyeing a sectoral contribution of N141 billion from Minerals and Metals to the gross domestic product (GDP).

    This will be an increased contribution to the GDP, from N103 billion in 2015 to N141 billion in 2020, at an average annual growth rate of 8.54 per cent,  the Minister of Mines and Steel Development, Dr Kayode Fayemi said yesterday in Abuja.

    He spoke  at the inauguration of the newly constituted Boards of agencies and parastatals.

    Fayemi also stated that other targets for the sector includes the facilitation of Coal to Power Plants to contribute to our energy mix towards bridging the energy deficits.

    He said: “The mining sector remains crucial as one of the frontiers of the Federal Government’s recently launched ‘Economic Recovery & Growth Plan (2017-2020)’, in which the Minerals and Metals sector was duly recognised as one of those to drive Nigeria’s recovery. The strategic document projected to grow sectoral contribution to GDP from N103 billion (2015) to N141 billion in 2020, at an average annual growth rate of 8.54 per cent.

    “Consequently, the ministry has been selected as one of the critical players in the ERGP Focus Labs about to be launched by Mr. President this week.

    “Other targets for the sector include the facilitation of Coal to Power Plants to contribute to our energy mix towards bridging our energy deficits; the production of geological maps of the entire country by 2020 on a scale of 1:100,000; as well as the sustainable integration of artisanal miners into the formal sector.

    “Moreover, we are being guided by other far reaching prescriptions contained in our ‘Roadmap for the Growth and Development of the Mining Industry’, which was approved in August, 2016 by the Federal Executive Council, which provides a pathway for the sustainable turnaround and growth of the mining and metals sector over the short, medium, and long term. As you may well know, Institutional Strengthening and effective sector governance is one of the major themes that run through our roadmap.

    “It is therefore noteworthy that this inauguration is coming at a time we have commenced the full operationalisation of the Roadmap, as well as the implementation of the World Bank supported Mineral Diversification Project. We therefore count on the patriotic service of the new Board members to play their own part as crucial enablers in the industry, towards advancing a common vision for the revitalisation of the sector.”

    Fifty three members were inaugurated into the Nigerian Geological Survey Agency (NGSA), National Steel Raw materials Exploration Agency (NSRMEA), National Metallurgical Development Center (NMDC) and Council of Nigerian Mining Engineers and Geoscientists (COMEG), including four board chairmen.

     

  • Fed Govt earns N658.6b from oil, non-oil receipts, says CBN

    About N658.56 billion was recieved by the Federal Government from oil  and  non-oil sectors, the Central Bank of Nigeria (CBN) Economic report released has said.

    The figure, which is for November, showed that oil receipts stood at N417.74 billion  and while non-oil receipts stood at N240.85 billion, and constituted 63.4 per  cent  and 36.6 per  cent,  respectively,  of  total  revenue.

    The figure fell below both the monthly budget estimate and the    receipts in the  preceding  month.

    The Federal Government’s    retained    revenue    and    estimated    expenditure were N207.91 billion and N293.38 billion, respectively, resulting  in an estimated deficit of N85.47 billion.

    Sustained non-expansionary monetary policy stance by the CBN in the reviewed month led to contraction in major monetary aggregates and downward  trend in inflationary pressure.

    On month-on-month  basis, broad  money  supply  (M2), fell by 0.8 per  cent  to N22.3 billion, on account  of the three per  cent  and 1.6 per  cent decline in  domestic credit (net) and  other assets (net) of the banking system, respectively.

    The  average  prime and  maximum lending  rates fell  to  17.77  per cent and  30.95  per  cent,  respectively.

    Consequently,  the  spread  between the  average  term  deposit  and  the  average  maximum  lending  rates narrowed  to  22.25 percentage  points  at  end-November 2017 from 22.43  percentage  points in  the  preceding  month.  Also,  the  spread between  the  average  savings  deposit  and  maximum  lending  rates declined  to 26.43 percentage  points from  26.85  percentage  points  in October 2017.

  • Fed Govt spends N110m on 76 housing units

    The Federal Government is spending about N110 million on the provision of 76 housing units in Ilorin, the Kwara State capital.

    The project site is Osin-Aremu, Ilorin West Local Government Area.

    Ministry of Power, Works and Housing Federal Controller Kunle Shonibare said the project was aimed at bridging the huge housing deficit in the country.

    Sonibare said the project consisted of four units of one-bedroom flat to be built at N29.7 million, 24 units of two bedroom flat at N36.1 million, and 48 units of three bedroom flat at N43.9 million.

    The controller alongside the Director General, Bureau of Lands, Alhaji Ibrahim Salman conducted reporters round the project site.

    Sonibare said: “As we know there is a huge housing deficit in the country. President Muhammadu Buhari’s government is desirous in solving the problem and the private sector has been participating.

    “In a bid to bridge the huge gap in the provision of housing, the Federal Government has embarked on national housing programme.

    “The land was released by the state government through the Bureau of Lands. This programme is being replicated in all the state of the federation and as you know the government is investing heavily on infrastructural development.

    “On this site we have 19 contractors constructing 72 housing units made up of four units of one bedroom flat, 24 units of two bedroom flat and 48 units of three bedroom flats semi-detached buildings and all with courtyards.  So far so good four units have been completed and others are in various stages of completion.

    “Coupled with this contract for the provision of infrastructure has been awarded. The infrastructure include drainage, opening up of road networks and for electrification all poles of been erected with stringing completed. In the area of water reticulation is ongoing and we have four bore-holes already sunk. We are just awaiting the installation of transformers for provision of electricity.”