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Tag: Mr Babatunde Fashola

  • FG begins audit of construction sites to enforce Executive Order 5 – Fashola

    The Minister of Power, Works and Housing, Mr Babatunde Fashola, on Thursday, said the Federal Government has begun auditing of construction sites to ensure enforcement of the Executive Order 5.

    Fashola made the disclosure at the second edition of the annual BRF GABFEST organised by some youths to honour him in Lagos.

    The News Agency of Nigeria (NAN) recalls that in February 2018, President Muhammadu Buhari had approved Executive Order 5, mandating Ministries, Departments and Agencies (MDAs) to give preference to local engineering companies in the award of contracts in the country.

    The order is to grant priority to local companies on projects to the tune of 7.5 per cent, except in the absence of local engineers that could not execute the projects before international expertise could be engaged.

    According to him, a council for the enforcement of the order which seeks the prosperity of Nigerians has been set up.

    “The president has issued an executive order called Executive Order number 5.

    “”What the order seeks to achieve essentially is that anytime our economy produces opportunities, we must ensure that if Nigerians are able to do that job, we give them preference.

    “And it does not matter whether the loan is coming from China or India or from Kaura Namoda .

    ” The truth is that loan is a contract to borrow money which we will pay back;it is not a contract to sign away our sovereignty,’’ he said.

    He said the council for the enforcement of the Executive Order 5 had him, (Fashola) as a member and Ogbonaya Onu, the Minister for Science and Technology as the Chairman.

    “Some of the quick things we decided to do first is that, in my own department, we are going to audit all our construction sites.

    “On all our construction sites, we started audit and we want to find out how many ECOWAS citizens are working here.

    “If you are an ECOWAS citizen, you do not need a visa but you need a work permit.

    “We heard that Ghana supposedly deported some of our people, it is a right that every country has, if you violate their immigration laws.

    “It is a right we have never exercised and we are going to exercise it now,’’ he said.

    The minister urged foreigners with legitimate papers who want to work in Nigeria to follow the regulation in line with global practices.

    He explained that his ministry had also begun enforcement and sanctions on erring contractors who defy the Executive Order 5.

    “These are the policies about jobs and employment that are in place by the President Buhari led government,’’ he said.

    Fashola also emphasised the importance of maintenance in infrastructure and projects.

    “Maintenance is a critical income generation and major employer of labour.

    “Over 70 per cent goes into maintenance and operation in the building industry while designs employ about six per cent of capacity, with construction and governance accounting for only 15 and two per cent respectively.”

    Fashola said a facility management system had been proposed to the Federal Executive Council (FEC) to ensure maintenance of the nation’s assets.

    He said that it included assessment of prisons, federal hospitals, courts, secondary schools and other public buildings.

    According to him, the maintenance framework will create mass employment opportunities in roads, rail, housings and other sectors

    “We once thought that maintenance was a culture but it is not a culture but an economy,’’ he said. (NAN)

  • YABATECH holds 32nd convocation

    The Yaba College of Technology (YABATECH) is to graduate 7,170 National Diploma (ND) and Higher National Diploma (HND) students November 22, 2018 for the 2016/2017 academic session.

    Rector of the polytechnic, Mr Femi Omokungbe, said at a press conference on Monday that the graduates comprise students of both the full and part-time programmes.

    He said activities to commemorate the convocation would commence November 16 with a Jumat Service; followed by an inter-denominational service on November 18.

    On November 19, Omokungbe said the college would play host to Minister of Power, Works and Housing, Mr Babatunde Fashola (SAN) as he delivers the convocation lecture titled: “Sustainability of Technological Advancement – a key to Industrial Growth”.  Omokungbe said through the lecture, the institution seeks to align with global best practices preservation of resources for future generations.

    “The trend today in the global world is towards achieving development without depleting the natural resources.  The United Nations has defined sustainable development as ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’.  It is our responsibility as a technology-based and foremost institution to create the platform for an academic discourse to address the challenges arising from our national quest for development,” he said.

    Dignitaries expected at the convocation include Education Minister, Mallam Adamu Adamu who has been named the distinguished guest of honour; Lagos State Governor, Akinwunmi Ambode, the chief host; and Prince Lateef Fagbemi, chairman of governing council of the polytechnic, among other government functionaries.

  • Protecting electricity consumers’right under the law

    On May 15, last year, the Nigeria Electricity Regulatory Commission (NERC) announced that it had received directives from the Minister of Power, Works and Housing Mr Babatunde Fashola, declaring categories of eligible customers pursuant to Section 27 of the Electric Power Sector Reform Act 2005 (EPSR).

    This announcement has received applause in some quarters as the panacea to the lingering power problems in the country.

    The substance of the Minister’s declaration is to the effect that certain categories of consumers were now free to purchase power directly from the generation companies without going through the distribution companies. The classes of eligible consumers are listed below:

    • A group of end-user customers registered with NERC with monthly consumption above 2MW and connected to a metered 11KV or 33KV delivery point on the distribution network of an electricity distribution company;
    • End-user customers with monthly consumption above 2MW and connected at 132KV or 330KV on the transmission network;
    • End-user customers with consumption above 2MW and connected at 33KV on the transmission network;
    • End-user customers with consumption above 2MW and who are located near a GENCO or generation facility.

    The purpose of the directive as explained in the NERC advertorial is that it “is expected to bring into play new and stranded generation capacities which may be contracted between generation companies and eligible customers”.

    There are several issues that arise from this policy directive. What is it intended to achieve? How will it help resolve the problems currently facing the power sector? Does this enable the creation of an electricity market or only does it help to destabilise it?

    The EPSR Act has over the years been bedeviled with misinterpretation of some of the core concepts of the Reform leading to unintended outcomes that have generally impeded the success of the reform programme. The premature declaration of eligible customers once more showcases this problem. Before I go into the details, there are some questions that are burning for an answer.

    1. Did the policymakers acquaint themselves with the market design and structure before making this declaration?
    2. Did anyone reference the Power Policy document in other to understand the intendment of section 27 of EPSR?
    3. Were Sections 24, 25 and 26 of the EPSR Act reviewed or considered before the directivewas issued?
    4. What is the purpose of declaring eligible customers?

    The Nigerian Electricity Supply Industry (NESI)was designed as a three-stage market comprising the Transitional Market, Medium Term and Long Term. The differentiation of the market stages is tied to the level of development of the wholesale electricity market.

    Transitional stage

    The Transitional Stage is characterised mainly as competition for the Market (competition in the procurement or entry of new generation). The Electricity Market is open to competition for new generation entry and dispatch.  Optionally, some large customers connected directly to transmission may be authorised by the Electricity Regulatory Commission (NERC) as Eligible Customers that can buy in the Electricity Market.

    Medium Term stage

    The Electricity Market is opened to full wholesale competition with both competition to enter the market and in the market.  The number of Eligible Customers gradually increases, as authorised by the Electricity Regulatory Commission (NERC).

    Long-Term stage

    The Electricity Market is opened to full wholesale competition and retail competition.

    From the market design, the only competition to be introduced at the transition stage is competition to enter. It means that at the generation level of the business, competitive procurement of power will be introduced. Even though eligibility is an option under this stage, it would only be allowed for persons directly connected to the transmission system.

    The reality is that currently, NERC has been unable to even meet the criteria for a transition market. The market and NERC have not achieved competitive procurement of generation. If the first level of competition has proved impossible for the market and NERC to achieve, it is difficult to understand the desire and motivation for jumping to eligibility that is designed for the second stage of market development.

    What is evident from this faux pas is that the market design documents were not consulted nor did anyone seek counsel from those with historical knowledge of the electric power sector reform in Nigeria. It is unnatural to feel your way through when there exists documentation to guide you.

    I have also noticed that it would appear that those who urged the Minister to make this policy did not read Sections 24, 25 & 26 of the EPSR Act, but instead confined themselves to the provision of Section 27.

    For ease of understanding, I will reproduce the relevant portions of Section 24 of the Act;-

    “Until such time the Minister has made a declaration in accordance with subsection 3 of this section the commission shall prepare each year a report for the Minister as to the potential for competition in the Nigerian electricity supply industry and these reports shall present the Commissions analysis and recommendations as to whether the Nigerian electricity supply industry has developed to the point where a more competitive market ought to be established under section 26 having regard to:

    (a) The degree of privatisation that has occurred;

    (b) The existence of a sufficiently large number of potential competitive entities so as to avoid likelihood of an abusive market power; and

    (c) The existence of other preconditions, including the necessary metering and information technology infrastructures, required for the operation of a more competitive electricity market.

    The Minister shall present to the President and the National Council on privatization and the National Assembly each report submitted by the commission under subsection (2) of this section and when the Minister, in consultation with the President  and National Council on Privatisation is satisfied that the electricity market in Nigeria has developed to the point where a more competitive market ought to be established pursuant to section 26 of this Act, having regard to the criteria described in paragraphs (a) (b) and (c) of subsection 2 of this section, the Minister shall issue a declaration that a more competitive market is to be initiated.”

    The critical points to be taken from these provisions are;

    • NERC ought to be providing an annual report on competition, which to the best of my knowledge they have not done to date;
    • The Minister ought to be guided on market development by NERC not the other way round;
    • A more competitive market requires certain pre-conditions to be met;
    • The Minister’s actions and directives in relation to market competition must be taken in consultation with NCP and the President (and there is no indication that either the NCP or the President have been consulted on this).

    Further, one of the critical factors to be considered in moving to a more competitive market as explained in the Electric Power Policy 2001 is that conditions in Para 4.4 have been met and then competition can be introduced without threatening the financial viability of the main participants in the system.

    It is easy to assume that neither the Minister nor NERC was acquainted with the market design and therefore they were easily misled on the appropriateness of declaring this level of eligibility in the Transitional Stage of market development.

    The Minister’s actions are in reality a declaration of a more competitive market without even meeting the conditions of operating the transitional market. The policy document on eligible customers does not say what benefit is accruable to the industry or consumers from this policy save for the scant reference to stranded and new generation.

    The concept of eligible customers was introduced in the industry design as part of competition-enhancing mechanisms when the market had reached a certain level of maturity.

    Eligibility does not reduce market illiquidity nor does it cure payment delinquency. It does not improve the transmission system nor does it improve the financial viability of distribution companies. Indeed if the declaration is anything to go by, the eligible customer will have to rely on the transmission system and distribution network that has been found inadequate to ‘Bluetooth’ its eligible power to it.

    NERC and the Minister have failed to consider that electricity distribution is a volumetric business and the end user tariffs in the sector are currently being subsidised by the class of consumers it has boldly declared eligible. Neither the government nor NERC has demonstrated an appetite to allow the tariffs free float to cost reflective levels. It remains to be disclosed who will pay the differentials that will occur if these class of consumers are indeed removed from the revenue base of DISCOs.

    Despite my reservations about the declaration of eligibility at this stage, it would have served the industry better if the Minister had confined the category he opted to make eligible to that referenced in the market design for this stage, i.e. consumers directly connected to the transmission grid. As unnecessary as this may be at this stage, it would at least not distort the market design.

    Weakening the distribution companies by removing the easier to serve customers does not in any way address the problems that have hindered improved power supply in Nigeria. The ‘cherry-picking’ policy currently being pursued is at first glance only one of the many acts that point to outcomes that will benefit private interests to the detriment of the national interest. Investments will not come to the industry as long as the market returns remain in the negative because of government’s inability to provide sustainable regulations. By looking for quick-fixes, the policymakers only succeeded in introducing more volatility into an already volatile industry’s revenue and operating environment.

    The solution to challenges being faced by consumers and operators are well known. The current approach by the ministry and the regulator that has been subjugated by it only symbolises an ostrich solution.

    It is incredible that since writing this, the Ministry of power has come out with even more destructive policy directions. I will comment on them later.

    • Ojukwu is a Utility Regulation Specialist.

  • Fashola assures on completion of Second Niger Bridge

    Federal Government has put in place workable funding mechanism to ensure completion of the  Second Niger Bridge, the Minister of Works, Power and Housing, Mr Babatunde Fashola, has said.

    Fashola gave the assurance  on Saturday when he visited the site of the project at Oko near Asaba in Delta.

    Fashola said the modified tax credit policy, the Sukuk Intervention Fund and the Presidential Infrastructural Fund, among others, were aimed at funding infrastructure projects that would make the country globally competitive.

    “By my assessment, the piling work is now about 50 per cent.

    “At the time I resumed work at the ministry, only the bridge was designed and work had stopped, but because of the commitment of the president, work has commenced.

    “For the foreseeable future, I don’t see any reason why work will stop again because funding has been provided,” he said.

    The minister said the contract for the construction of the already designed link roads from Asaba and Onitsha to the Second Niger Bridge would be awarded before the end of the year.

    Fashola said the Federal Government was also undertaking maintenance work at the existing Niger Bridge to ensure that it continued to serve the citizens.

    He said the ministry had received compensation claims in the realm of N3.44 billion to owners of land affected by the second Niger Bridge project.

    “We have paid N1.8 billion. Our strategy is to pay in sections where contractors want to commence work immediately.

    “We have also received additional claim of N1.5 billion. These claims are the impediment to the entire project,” the minister said.

    On the Umunya section of the Enugu-Onitsha expressway, Fashola said the contract had been awarded, adding that work would start in earnest.

    Fashola, who later visited Gov. Willie Obiano of Anambra, assured that the Federal Government would collaborate with the state government on the inter-change projects by Revenue House, Awka.

    Also speaking, the Federal Controller of Works in Anambra, Mr Innocent Alumonah, explained that the second Niger Bridge was about 1.5 kilometers in length, with two spans of 40 meters each.

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     He said about 180 piles have been driven into the earth out of over 600 piles meant for the foundation of the bridge.

    “The contractor has also put a lot of geo-textiles to the ground and constructed culverts as part of early works for the project which will soon be completed,” Alumunah said.

    In a remark, Gov. Willie Obiano commended Federal Government’s commitment to the Second Niger Bridge and appealed for the refund of N50 billion spent in rehabilitating federal roads in the state.

    Obiano also appealed to the Federal Government on the Nnewi cluster power supply project as well as the proposed Regina Junction project on Enugu-Onitsha expressway.

  • Fashola orders contractor to complete Zik Mausoleum by October

    The Minister of Power, Works and Housing, Mr Babatunde Fashola has ordered the contractor​ handling the Zik Mausoleum,  Bouygues Construction Limited to complete and deliver the project before the end of October.

    Fashola gave the order on Saturday in Onitsha during an inspection of the project.

    He expressed dissatisfaction over the slow pace of work  and threatened to revoke the contract if the contractor fails to deliver as ordered.

    Fashola  also threatened to report the Project Manager, John Ameh to his professional body, the Nigerian Society of Engineers (NSE) if he fails to deliver.

    The minister said the Federal Government was not indebted to the contractor adding that, there was no reason for the delay in the execution of the project.

    Amen pledged to complete and deliver the project as ordered noting that the only work left was the finishing.

    Mr Newton Okoroafor, the Federal Controller of Housing, Anambra State said the project was awarded in 2012 for N1.5 billion.

    He said the contractor was mobilised effectively to site at that time to continue with the work till 2014 when he was demobilised due to non-payment of certificates.

    Okoroafor said the contractor was again mobilised with all outstanding certificates paid by the present administration in line with its commitment to complete the project.

    According to him, the federal government is not indebted to the contractor and the contractor has promised to deliver the project before end of October.

  • Truck overloading against regulations, barrier to prosperity – Fashola

    The Minister of Power, Works and Housing, Mr Babatunde Fashola, says overloading of trucks is against road safety rules and regulations and constitutes barrier to prosperity and national development.

    Fashola said this on Monday in Abuja during a one-day public enlightenment programme on developments in the road sector organised by the ministry.

    “Why the temptation to overload trucks against regulation and good practice may be appealing, it is ultimately a barrier to prosperity.

    “Such practices may provide cheap and perhaps corrupt riches and income in the short term but they do more damage to our roads for which the cheap income is made.

    “Those who engage in it prosper at the expense of others, this means that in the short run, the road is lost and the opportunities it offers diminishes,” he said.

    He said the enlightenment programme was for stakeholders to recognise that they were actors of the change that would lead the country to prosperity.

    According to him, all over the world, one common trend to prosperity is the level of compliance to laws and regulations for every nation that prosper; there is high level of compliance.

    “In those societies, where there is high level of compliance, what you are likely to see is that the trucks are parked in proper parks and those parks create secondary opportunities to create jobs.

    “You will not see trucks parked on the highways which impede access and opportunities; you will see trucks carrying the specified tonnage of cargo because they want the load protected,” he added.

    He said the programme was for the stakeholders to brainstorm on ways to optimise the opportunities to be created by network of roads within the ECOWAS sub-region.

    “This meeting will deliberate on how we can optimise opportunities that lie in road network like the trans-Sahara highway which connects Nigeria to Chad, Niger Republic, Tunisia, Republic of Mali and Algeria.

    “We will indeed see how we can optimise the opportunities that lie along the Lagos to Abidjan highway that runs through the Republic of Benin, Togo and Ghana,” he added.

    Speaking, Mr Boboye Oyeyemi, the Corps Marshal, Federal Road Safety Commission (FRSC) commended the ministry for the programme.

    He said the public enlightenment for stakeholders ahead of the federal government plan to commence enforcement of the regulations was a step in the right direction.

    He said the commission arrests an average of 200 vehicles daily for excessive overloading, adding that the enlightenment would enhance the operation of FRSC.

    The News Agency of Nigeria (NAN) reports that other stakeholders at the programme commended the federal government for the initiative and pledged their support to ensure full compliance.

    The stakeholders at the event included the Road Transport Employers Association of Nigeria (RTEAN), National Association of Road Transport Owners (NARTO), National Union of Road Transport Workers (NURTW) and Petroleum Tanker Drivers (PTD). (NAN)

  • ‘Nigeria can generate, transmit over 7,000MW of electricity’

    The Minister of Power, Works and Housing, Mr Babatunde Fashola says that the country now has the capacity to generate not less than 7,000 Megawatts (MW) of electricity.

    Fashola, who was responding to questions on the News Agency of Nigeria (NAN) Forum in Abuja, also said that transmission chain had also developed capacity to transmit the same megawatts.

    “Today we have the capacity to generate over 7,000MW, we can transmit also over 7,000 MW but we cannot distribute more than 5,200MW now.

    “So if there is no distribution demand, you don’t load on your 7,000 because your supply is informed by your demand.

    “But its there, so it is like goods that you keep in your warehouse, except that power you cannot store it.

    “So what we are actually doing is that some of the GENCOs that have a capacity to produce 100, control center is telling them put only 60.

    “So that is how we are managing it, because of the real demand at final end based on insufficient distribution capacity.”

    Cue out audio

    The minister who said the country was well over the problem of electricity generation however noted that the challenge was the issue of distribution.

    ‘’Today the March 14, the report I got was that yesterday’s peak energy was 4,822 for distribution, so we are well over that problem of supply, what we are now dealing with is a new problem of distribution.

    “Two years ago the distribution companies were saying they did not have enough power to sell, but today the story has changed.

    “It is not as painful as it was two years ago, people are now using their generators for a shorter periods, buying smaller quantities of fuel for the purposes to power their generator.

    “We are getting longer periods of energy supply, you will see on the diesel purchasing index that the country‘s total use of diesel is coming down,’’ the minister said. (NAN)

  • Fashola decries illegal sand mining at Tamburawa River in Kano

    Fashola decries illegal sand mining at Tamburawa River in Kano

    The Minister of Power Works and Housing, Mr Babatunde Fashola, has decried illegal sand mining in Tamburawa River in Kano state, urging the state government and the Emirate Council to ban the mining activities.

    Fashola made the call in Kano when he visited Gov. Abdullahi Ganduje of Kano State and the Emir of Kano, Alhaji Muhammadu Sanusi II.

    He said continued sand mining at the site would not sustain the Federal Government’s ongoing project of reinstating and protecting the bridge constructed over the river as a result of the earlier exposure of its foundation.

    “There was an erosion problem caused by illegal sand mining which had exposed the foundation of the bridge and endangering the entire structure.

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    “The Federal Government has responded to the problem and in another five months from now, the contractor will complete his work.
    “But we need the Kano State Government to assist us in ensuring that the sand mining activities in the river is moved away from the proximity of the bridge.

    “If it continues, it will continue to endanger that bridge in spite of our efforts, so I am appealing to you, the government and the people of Kano to help us protect the asset.

    “The contractor has recommended that no mining should take place within three kilometres on either sides of the bridge,” he said.

    Fashola told the governor and the emir separately that the Federal Government had awarded the rehabilitation of the 360 kilometres Abuja-Kano road to Julius Berger.

    He said two contractors; Metropolitan Construction Company and MotherCat had been deployed to provide routine maintenance on the Kano-Zaria section of the road.
    The minister said this was to ensure that the road remained passable pending the commencement of the rehabilitation work.

    Fashola said he was in the state ahead of the top management retreat of the Ministry of Power, Works and Housing holding in the state capital on Friday and Saturday.

    In his response, Sanusi commended the minister for the visit and the choice of Kano State as the venue of the retreat.

    He applauded the minister for the award of Abuja-Kano road rehabilitation and other ongoing Federal Government projects in the state.

    The monarch, however, solicited for more and assured the minister that the emirate council would support the Federal Government to ensure a stop to sand mining in Tamburawa River.

    In a related development, Prof Hafiz Abubarkar, the Deputy Governor of Kano State, who received the minister, also solicited for more of the Federal Government presence in the state.

    NAN

     

  • Eko Boys raise funds for school’s new site

    Old Boys of the Eko Boys High School celebrated their alma mater’s 105th anniversary with fanfare last Saturday.

    After a service at the Hoares Memorial Methodist Cathedral Yaba, the party moved to the Lagos Country Club, Ikeja, for an awards and fundraising dinner, during which the national president of the Eko Old Boys Association (EKOBA), Ekorian Idowu Sofola, said the association would require close to N2 billion to complete projects at the school’s new site in Abijo GRA scheme along the Lekki-Epe Expressway.

    The school is presently located in Mushin, where many structures are dilapidated.  However, if the master plan of the Abijo site is followed, the school would boast of state-of-the art facilities.

    Already sitting on the land is a block of 18-classrooms being constructed by the Lagos State Government.

    Sofola said the funds raised would be needed to complete classroom block, hostel (N85 million); Staff quarters (N121million); assembly/dining hall (N61.8 million); and fence work (N 35.8 million).

    Others are: security house (N2.8million); sandfilling (N30 million); perimeter lighting (N4 million); generators/installation (8 million); external works, road layout etc (N15 million) among others.

    Sofola thanked success Lagos State governments – Asiwaju Bola Ahmed Tinubu, Mr Babatunde Fashola, and Mr Akinwunmi Ambode – for supporting the school.  He said the association was intervening to complement government’s effort.

    “We are gathered here today for the sole purpose of taking up the government’s challenge and raise the first tranche of N1 billion of our conservative N2 billion intervention fund to supplement the work of the Lagos State government in order to expedite the construction of the school complex and put our students in an atmosphere of conviviality,” he said.

    In a paper titled: “Being an overview of the progress on relocation of Eko Boys High School to its new site,” Ekorian Funso Owoyemi said Eko High School had fulfilled the dreams of its founding father, Late Rev William Euba, as the first indigenously founded non-denominational private school to educate indigenes of Lagos (Eko).

    “I am confident and grateful to God that the objective of the founding fathers has largely been achieved as it is on record that so many eminent Lagosians such as Late Oba Adeyinka Oyekan, Late General Adeyinka Adebayo, Late Dr Olusola Saraki, the Muri Okunolas, the Lagudas, the Kotuns, Erogbogos, Simpsons, Keshintons and numerous notable families in Lagos State and indeed Nigerai passed through this great institution,” he said.

    Considering this, in addition to the absence of a government school within an eight kilometer radius of the school’s new site (except in Sangotedo and Akodo), Owoyemi appealed to the government to still give more attention to the relocation effort.

    “We envisage a similar situation and almost a total package that was offered to Methodist Boys High School when it was relocated from Broad Street to Victoria Island, Lagos and the entire landscaping of the school was done with a completed perimeter fence.  This has become imperative against the backdrop of the recent ugly experience of Model College, Igbonla around the same axis with the present location of Eko Boys High School,” he said.

    Old students from far and near stood to be counted at the event – donating/pledged various sums towards the cause, including N2 million from EKOBA London “towards the foundation of the school hall”; N10 million from former First Bank Group Managing Director, Mr Bisi Onasanya; N2.5 million from the 79 Set; and N1 million from Mr Kolapo Omidire of the 78’ set among others.

    The programme also featured awards to old boys who had distinguished themselves in their various endeavours and public life including: Dr Olu Payne, Mr Adeniji Raji, a past president, Mr Gbolahan Solabi, Mr Akin Lawrence, Mr Babatunde Johnson, among others.

    Post-Humous awards were given to Rev Akin Adesola, Justice Muritala Aremu Okunola; Olusola Saraki, and Semmie Adisa Olatunji.

    In her speech, the Lagos State Deputy Governor, Dr Idiat Adebule, represented by Mrs Yetunde Odejayi, Permanent Secretary attached to her office, praised the old boys for their passion for their alma mater.  She said she was impressed they had gathered to raise so much money for the school.

    I am impressed by your effort to raise N1 billion for your school.  The Governor has asked me to promise you he will do more than other governors,” she said.

     

  • Senate summons Fashola over $1b power project funds

    Senate summons Fashola over $1b power project funds

    The Senate on Wednesday mandated its joint committee on Power and Public Accounts to invite the Minister of Power, Works and Housing, Mr. Babatunde Fashola, to give a detailed account of the public funds spent on the Fast Power Projects particularly Afam Fast Power Project.

    The upper chamber said that Fashola should also give evidence of feasibility study indicating the viability of the projects and requisite appropriation by the National Assembly as required by the Constitution.

    It said that the minister should also furnish the Senate with presidential approval for the projects

    It also asked the committee to investigate the Nigerian Sovereign Investment Authority ( NSIA), Nigerian Electricity Bulk Trading Company ( NBET) and others to establish the status of the balance of $350million from the $1 Eurobond issued by the Federal Government in 2013.

    The joint committee was given two week to report back to the Senate

    The resolution followed the adoption of a motion entitled “Monumental fraud in the power sector” sponsored Senator Dino Melaye (Kogi West).

    Melaye in his lead debate noted that sometime in July 2013, the Federal Government raised a total sum of $1Billion through a Eurobond issue.

    He said that he is aware that the sum of $350 million was taken by the Federal Government out of the proceeds of the July 2013 Eurobond issue and released to Nigeria Electricity Bulk Trading Company ( NBET) Plc as shareholder contribution to shore up its capitalization.

    He also said that he is further aware that NBET is a Federal Government owned public liability company that deals in electricity trading and management of associated liabilities.

    Melaye noted that the sum of $350 million released to NBET was to demonstrate NBET’s preparedness to assume its role as a government backed electricity bulk trader to provide market confidence in the privatized electricity market.

    He observed that the move by the Federal Government was intended to backstop NBET’S with new investors in the electricity market especially new generation companies and to provide assurance to them that NBET is a credit worthy off-taker of power with the requisite capitalization to meet its payment obligations to both greenfield and brownfields power generating companies.

    He further observed that as confidence building measure, $350 million was domiciled with the Nigerian Sovereign Investment Authority (NSIA) for reinvestment in low risk investment and structured in a manner that N BET can call for funds at short notice when required

    He said that the fund has been with NSlA since 2014 and has helped build market confidence especially among new investors in the electricity market who see NBET’s positive balance sheet as a form of security that their investments are safe and that NBET has the wherewithal to meet its payment obligations.

    He expressed alarm that “there is now a desperate attempt by the Federal Ministry of Power, Works and Housing to retrieve this fund ( $ 350 million) and divert same to fund the so called Fast Power Projects which the Ministry has already spent $35 million of public funds not appropriated by the National Assembly.”

    Melaye said that he is “further alarmed that since the introduction of the Fast Power Project by the Federal Ministry of Power, Works and Housing, a total sum of $35 million has been spent by the Ministry on Afam Power Project alone to pay $29 million to General Electric (GE) as cost for turbines and $6million in consultancy fees to other entities respectively, all without requisite feasibility study of the projects and appropriation by the National Assembly as required by the Constitution.”

    He observed that “a lot of questions are begging for answers as regards the $29 million paid to General Electric and the $6 million paid to other consultants as to: “Who were the Consultants and how were they procured?

    “Was there observance of due process in awarding the consultancy of $6 million and in paying General Electric $29 million for turbines?

    “Why is the transaction cloaked in secrecy?  “What is the true value of Afam Fast Power?

    “Why is the Ministry engaging in constructing new power plant while government has several idle plants that is seeking buyers for?

    “Why is the Ministry that is supposed to be making policies, dabbling into constructing new power plants that we have all agreed is better handled by the private sector?”

    Melaye expressed concerned that the Federal Ministry of Power , Works and Housing is “determined to persist in this brazen violation of the Constitution and extant laws on due process by insisting that the NSIA should release the $350 meant to NBET on the pretext of acting under a purported presidential approval.”

    He said that he is convinced that there is an urgent need to bring the Ministry to order regarding its planned diversion of the sum of $350 meant for NBET and further demand a detailed account of unappropriated public funds spent on the controversial fast power projects.

    Senator Gbenga Ashafa in his contribution said that for the Senate to do a thorough job, those mentioned in the motion should be given opportunity to say their own side of the story.

    He noted that some of the allegations raised in the motion were grave and should not be taken without hearing from those involved.