The Nation Newspaper

Tag: NIPP

  • Firms seal facility deal

    The Niger Delta Power Holding Company (NDPHC), which oversees the National Integrated Power Project (NIPP), has handed over its new transmission plant to the Transmission Company of Nigeria (TCN).

    The plant, the largest in the country, is located in Oke-Aro community, Ogun State. It was completed last year, having met provisions of the contract, the NDPHC’s spokesman, Yakubu Lawal, has said.

    He said with the plant in operation, power supply to Nigerians would improve substantially.

    Speaking during the handover, the Deputy General Manager, Civil Field Operations, NDPHC/NIPP, Claudius Ogunrinde, said the project had been completed and inaugurated, and the company had been running it under the provisions of the contract.

    “Today marks the proper and complete handover of the facility to the TCN.

    “We are here to examine the effectiveness of what we have done about a year ago and some of the factors listed to be improved upon, and we have seen that most of them have been done and the job is excellently executed to specified standard,” Ogunrinde said.

    He said the TCN was allowed to take partial control of the facility last year with a clause to acquaint them with the technology and also ensure that the plant starts serving Nigerians early enough.

    “The clause was that in case any of the equipment develops problem, they (TCN) have a warranty for one year, so the contractor that did the engineering, procurement and construction (EPC) job, should be around to help solve the problem and guide the staff on how to run the station without problems. So the warranty is over today and it becomes the baby of TCN completely,” he added.

    The transmission plant is to step down power from 330kva to 132kva and then to 33kva.The 33kva is where the DISCOS and consumers get supply from. The facility has four feeders radiating on 33kva and two of them have been in service for about six months while another two has been added, waiting to be inaugurated shortly.

    TCN General Manager, Ijora Region, Mr. Oyeleke Adeoye, noted that the transmission plant would boost power supply to Lagos and Ogun states significantly and ease the load on Ikeja West transmission station at Ayobo, Lagos.

    He said: “The quality of the job done on the station is perfect. It’s one of the best stations we are inheriting, and I hope it will serve us properly in Lagos. The station will relieve Lagos region, because the bulk of power we consume in Lagos is around Ikeja Industrial area, and we all share the power from Ikeja West. Now that we have this, Ikeja area will satisfied appropriately, which means there will be relief in other parts of Lagos.”

  • Power plants: Bid winners to emerge this month

    The Bureau of Public Enterprises (BPE) will this month announce winners of the bids for the power plants built under the National Integrated Power Project (NIPP) by the Niger Delta Power Holding Company (NDPHC).

    The 10 medium power plants, which were built to add at least 5,000 megawatts (Mw) to the national grid, are Alaoji Power Station in Abia State; Calabar Power Station, Cross River State; Egbema Power Station, Imo State; Geregu Power Station in Kogi State; Ihovbor Power Station in Edo State; and Olorunsogo Power Station, Ogun State.

    Others are Omoku Power Station in Rivers State; Omotosho in Ondo State; Gbarian Power Station, Bayelsa State; and Ogorode Power Station, Delta State.

    Stakeholders have urged the Federal Government to evolve a comprehensive gas plan to improve power supply. The President Liquifield Petroleum Gas Association of Nigeria Mr Dayo Adesina said the government’s decision to build more gas pipelines, pressure stations, central processing facilities (CPFs) and stripping plants, among other infrastructure, would help in increasing power generation.

    Adesina said shortage of gas had weakened the ability of the power firms, to improve generation and distribution since taking over the assets of the defunct PHCN late last year.

    The 15 power generation companies (GENCOs) and distribution companies (DISCOs), he said, had battled gas shortage, advising the government not to allow the independent power plants to suffer similar problems when they are privatised in June, last year.

    He said a sustained investment was needed to drive the sector, adding that certain number of megawatts must be added to the grid yearly to achieve growth.

    He said: ‘’There must be a concerted and sustained investment in the sector in the next couple of years. We should be adding 5,000Mw to the grid yearly to meet the demand.

    The population size keeps increasing which means that the demand for energy would also increase. As the infrastructure gets better, more people would come to grips with their jobs especially the small and medium enterprises (SMEs). The manufacturers, artisans and others need electricity for growth.

    “If today, they say the power plants can generate 10,000Mw available, where is the gas to power it? The whole value chain needs to be looked at. If you are producing 5,000MW, how many kilometres of pipelines are coming? How is the gas going to get the targeted power stations? ‘’

    He urged the government to introduce third-party scheme to enable power firms acquire gas through a secondary arrangement, such as buying gas from the Nigeria Liquefied and Natural Gas (NLNG) for power sector development.

  • Presidency approves bid opening 10 power plants

    Presidency approves bid opening 10 power plants

    The National Council on Privatization (NCP) and the governing board of the Niger Delta Power Holding Company (NDPHC) at the weekend approved the opening of the financial bids of the 42 prequalified bidders out of 66 bidding consortia for the 80 per cent equity in the 10 NIPP power plants.

    The joint meeting in Abuja that was chaired by Vice President Mohammed Namadi Sambo that gave the nod also directed that the bids be opened on March 7th, 2014 in keeping with the published timeline for the transaction.

    A statement of the Bureau of Public Enterprises (BPE) which made this disclosure yesterday, noted that the  42 bidders that have been prequalified met the criteria set forth in the requests for proposal (RFP) and passed the due diligence verification conducted on technically qualified bidders.

    The Vice President in his remarks commended the Joint Technical Transaction Committee (JTTC) chaired by Governor of Benue State, Mr. Gabriel Suswan, noting that the PHCN transaction, “was a highly transparent process and government had assured investors participating in the NIPP transaction that the same level of transparency will be replicated”.

    The JTTC is made up of the Technical Committee of NCP and Technical Committee of NDPHC.
    The NIPP Privatization is a joint transaction between the NCP and the Governing Board of NDPHC.  The 10 plants are jointly owned by the three tiers of government; local, state and federal governments with the Federal Government contributing 47% equity stake and the local and state governments with the remaining 53 per cent equity.

    The Vice President further noted that the privatization of the 10 NIPP power plants is the first time the private sector, National Assembly, Federal, State and Local governments are joining forces to ensure an all inclusive transaction process, following a highly successful investors’ fora spanning five countries.

    He said all the three tiers of government and the private sector in Nigeria were continuing to collaborate in the privatization process of the power plants which is being jointly offered for sale by the Bureau of Public Enterprises (BPE) and Niger Delta Power Holding Company (NDPHC) to ensure that the same level of transparency acclaimed the world over in the PHCN transaction was replicated in the NIPP transaction process.

    According to him, if Nigeria was going to be among the 20 largest economies in the world by the year 2020, the right steps must be taken, assuring that the administration of President Goodluck Jonathan is committed to ensuring that those right steps are taken going forward in implementing the Transformation Agenda; adding that this transaction is one such big step.

    The statement recalled that 66 proposals were earlier received from prospective investors interested in the 10 NIPP plants on November 8, 2013,

    An inter-agency evaluation team, including security agencies met from 12 to 22 November to evaluate the proposals, the evaluation report was subjected to the scrutiny of the Joint Transaction Committee and the Joint Technical Transaction Committee before approval by the Joint NCP/NDPHCN Board meeting. The Joint NCP/NDPHC board therefore approved that 42 out of the 66 were prequalified to continue to the financial bid opening stage.

    In order to be deemed technically qualified, the bidders must meet the following criteria in three broad areas as set out in the requests for proposal; namely:  completeness and substantial responsiveness; ability to finance the acquisition and relevant experience and quality of business plan.

    The 10 power plants being offered for sale are: Alaoji , Benin , Calabar , Egbema ,  Gbarain, Geregu , Ogorode , Olorunsogo , Omoku and  Omotoshho

  • ‘We’ll exorcise power demons’

    ‘We’ll exorcise power demons’

    Continued from page 45

     

    and make money will come in.

    So, we are just showing that there is a big boom for the future of solar energy in Nigeria and that rural communities, agrarian communities, local manufacturers, small and medium enterprises in the rural areas, they can all benefit and be fully powered whether or not they are connected to the national grid. We want to open the door to the private sector because they will move faster.

    Is it feasible for Nigerians to have 24 hours uninterrupted power supply?

    Yes. It is possible but it will take time because of our population. It is like university, you design a hostel room for two people and two students will pay the required fees. And they will invite two more students to stay in the same room. The invited two may even invite others to join them in the same room. As a former Vice Chancellor, I know this as a norm. At the end of the day, a room made for two people is occupied by 10 human beings not pigs, not chickens.

    What do you think will happen to the toilet? Will you be able to breathe as you pass through there? The facilities were not designed for that. Our population is huge. Previous administrations did not take the bull by the horns. So there was a cumulative deficiency. The gap is huge. But now, this current administration is doing everything possible, widening the scope, extending the scope in transmission substantially. And now, having handed over to the private sector distribution, we have insisted that they must reduce losses and expand their own facilities.

    Are you satisfied with the funding in the power sector?

    I don’t think anybody will be satisfied with the current funding and the huge challenge is the funding. But again, that is why privatisation took place because the fund is going to come from private people. But with the Transmission Company of Nigeria, the government has now engaged international financing agencies, World Bank, EXIM Bank of China, EXIM Bank of the US, to some extent Africa Development Bank, French Development Bank and even Japan. And then there is a huge fund coming in from the sale of NIPP plants. And so, at the end of the day, we will have a robust national grid that will be ready for the expansion in stages and spots of generation.

    As the generation is done and expanded, the distribution people know that the only way they can make more money is to give electricity to more people so they will begin to now find money to send distribution lines to where it didn’t exist before. And where it is going to take a long time to do, we will meet through our solar and wind and biomass renewable energy system. So, I don’t think any ministry will sit down and say we are satisfied with funding. Oil thieves have done us a huge harm because you cannot fully realise what you have in the budget. The money is just not there.

    Have you been able to deal with the devils you alluded to as plaguing the power sector on your assumption of office?

    Yes, you know the devil comes as human beings. We are fighting them on a daily basis. What do you think of the oil thieves? They are demons in human forms. What do you think of those who vandalise our gas pipelines? They are demons and we are dealing with them. I engaged the services of the National Security Adviser, who engaged the services of the Nigeria Civil Defence Corps and also the Army. And that is the reason that there has been a substantial improvement in the security of our transmission and distribution infrastructure.

    What we have today is whenever you hear of theft and stealing and vandalism it is so much less than what it used to be before. The major problem is the oil and gas pipelines. People actually go to gas pipelines and blow them up, not to get anything but to punish Nigeria. Are they not demons? So I am doing everything to drive them out, using all kinds of legal, military and also prayer, because some of them are so demon-possessed we have to exorcise them. Somebody who will punish himself, punish his mother, punish his father, punish his children and punish the whole country for nothing. Is that not a demon? Is he a real human being? So my brother, there are demons there and I am still dealing with them.

    Is there an enabling law against vandals or are you thinking of sending a bill to the national assembly?

    We have told our policy people to do that. You know, when I was in the university, it is the same problem we had with cultists. There was no enabling law to really deal with them until recently. You catch an armed robber, he will tell you ‘I’m not an armed robber, I’m a cultist.’ You take him to court and deal with him as a cultist and there was nothing that is there to enable you to really punish him. But we worked very hard and started making sure that some states started having laws against cultism. I’m sure you know when I was at the University of Nigeria, Nsukka, I banished cultism. It is a feat that almost no vice chancellor has been able to do in Nigeria.

    Five years of my stay there, there was not a single cult war and I didn’t lose a student to cultism. Two years before I became vice chancellor at UNN, cultists murdered the Chief Security Officer of the university. A year before I became vice chancellor, cultists murdered the Dean of Pharmaceutical Sciences Faculty. Cultists will take over the university and literarily announce that they are now in charge, confiscate all the walkie-talkies of all the people there. That was why that place was called National War College Number 2 before I came there. Five years, it didn’t happen.

    And again for five years, I was able to keep the university away and they didn’t get involved in any ASUU strike. We need that law, we need to engage all the parties, executives, legislative, judiciary to work together to make sure some things don’t continue to happen. I believe that vandalism, by the time we get the legal framework completed, people should be punished. In fact, they can be punished under Miscellaneous Act because this is a sabotage of the entire national economy. And the people who do this should be made to pay dearly for it.

    Do you have time for relaxation?

    I have a wonderful wife and wonderful family. So whenever work allows me, we share a lot of time together and we pray a lot, we gist a lot and we take our walk together where we can, especially when kidnappers are not there. We share a lot of time together in the things of the Lord. We do a lot of church work. I am an evangelist by the way and I am an archdeacon in the Anglican Church.

    Do you do any sporting activities?

    I used to but right now I haven’t found the time. When I was much younger, I played soccer, I played cricket. And I think Golf is for big men.

  • 66 power firms jostle for NIPP plants

    66 power firms jostle for NIPP plants

    About 66 power companies submitted yesterday bids for the purchase of 10 Nigeria National Integrated Power Plants NIPP in the Niger Delta.

    They include; Alaoji (3), Egbema (4),Ogorode (8), Omuku (8), Geregu (8), Gbarai (7), Benin (4), Omotosho (13), Olorunsogo (5) and Calabar power station.

    Though, no firm was disqualified during the bidding but list of approved companies would be made public on 23rd November, 2013.

    The power companies are expected to beat a benchmark of strong capital base of between $100million to $250million, good competence and the ability of the consortium to integrate the power plants.

    Briefing the press after the bid session in Abuja, the Managing Director, Niger Delta Power Holding Company Limited, James Olotu, said the company needed a reliable organisation which is financially capable to manage and improve on the plants.

    He said the NDPHC would strive to avoid situations whereby bidders would procure the plants and due to weak capital, dispose the facility and shortchange the country.

    He said members of the evaluation committee will assemble to scrutinise the bids in two weeks based on deals agreed and subsequently give their approval, adding that the agency would ensure that the entire process is transparent.

    Olotu said: “By 23rd of this month, they should have completed the approval processes. The results will be made ready and made public. The target is in the next two weeks, they will commence the evaluation. They all know the parameters we are looking for.”

    He restated his commitment to ensure that the country is not deceived by any foreign investors.

  • NAPTIN graduates 243 electric engineers

    THE National Power training Institute of Nigeria (NAPTIN) has graduated 243 electrical engineering trainees through its Graduate Skills Development Programme (NGSDP).

    The Minister of Power, Prof Chinedu Nebo, who presented certificates to the graduates at Abuja, noted thier passing out was very timely since the privatization of the Power Holding Company of Nigeria (PHCN) has boosted the demand for skilled electrical engineers.

    He expressed optimistism that the graduates would turn around the power sector.

    Nebo, who noted that capacity building is key to development of the power sector, recalled that federal government recently commissioned two power plants.

    He said that the federal government will soon commission the remaining eight National Integrated Power Project (NIPP), stressing that all the plants would be manned by skilled engineers.

    The Director General of NAPTIN, Engineer Reuben Okeke, said that NGSDP programme was conceived as a pro-reform initiative to build the professional level technical manpower required to match up with the infrastructural expansion in the power sector.

    He said: “NAPTIN realised that the quick delivery of projects in the sector can only be completed by the availability of professional manpower in the sector if the reform process is to have the desired impact.”

    Following the launch of the programme in 2012, Nebo stated that over 1,530 applications were received nationwide with a total of about 243 graduate trainees eventually admitted and enrolled.

    He stated that  nine states including Anambra, Bornu, Ebonyi, Kano, Katsina, Plateau, Rivers, Sokoto and Yobe, sponsored their indigenes for the programmes.

    243 engineers were trained including 92 for generation, 72 for distribution and 79 for transmission.

     

  • Investors to take over NIPP power plants June 2014

    Investors to take over NIPP power plants June 2014

    Successful investors will take over the 10 National Integrated Power Plants in June 2014, the Bureau of Public Enterprises (BPE) has said.

      Mr. Benjamin Dikki, Director General of the Bureau of Public Enterprises, said disclosed this to prospective investors at Roadshow in Hong Kong, according to a statement on yesterday by Head of Public Communication at the privatisation agency, Mr. Chigbo Anichebe.

      The sale of the 10 power plants is currently being handled by the BPE and the Niger Delta Power Holding Company.

      Dikki, who briefed the investors on other investment opportunities available in Nigeria, said that the deadline for the submission of Expressions of Interest remained 19th of July 2013 as contained in the advertisement earlier published in both local and international media. He added that the date would not be extended.

      The privatisation boss noted that the deficit of about 17 million housing units in the country provides a great opportunity for investors.

     He said the BPE and Federal Ministry of Housing and Urban Development were collaborating with other key government agencies to propose the right policies and legal and regulatory frameworks that would attract private sector participation in the sector.

      Dikki added that the general framework of the Federal Government’s Transformation and Reform Agenda was to create a conducive atmosphere for the private sector to bring in capital to facilitate national development.

      In his remarks, the Managing Director of NDPHC, Mr. James Olotu, told the prospective investors that the three tiers of government who jointly own the shares have approved that the expected proceeds from the 10 power plants be ploughed back into the development of more power infrastructure in the country.

      He explained that emphasis would be placed on strengthening the transmission infrastructure and the construction of additional three (600-3000mw) hydro power plants.

      The BPE and NDPHC had in Lagos on June 4th kicked off a four-city investment road show to shore up investors’ interest in the 10 power plants constructed by the three tiers of government.

      The show moved to London between June 12 and 13 before berthing in Hong Kong between the 19th and 20th of June. The final leg of the tour will move to New York between the 26th and 27th of June.

  • Can power plants generate 5153MW?

    Can power plants generate 5153MW?

    The 10 power plants, built under the National Integrated Power Project (NIPP) and supervised by the Niger Delta Power Holding Company (NDPHC) on behalf of the three tiers of government, are expected to generate 5153megawatts(MW) and be fully privatised by mid next year.But can the company generate 5153MW when it is eventually handed over to investors? Assistant Editor (Energy) EMEKA UGWUANYI asks

     

    The planned privatisation of the 10 power generation plants built under the National Integrated Power Project (NIPP) has begun, with the kick off of the road-shows in Lagos road-shows, which also will be held in the United States, the United Kingdom and some Asian countries, are platforms employed by the Niger Delta Power Holding Company (NDPHC) to meet with prospective investors that have capacity to buy the assets.

    The NIPP programme was conceived in 2004 as a fast-track initiative to add significant new generation capacity to Nigeria’s electricity supply system. Besides construction of 10 power plants, the project factored in construction of complementary electricity transmission and distribution infrastructure, as well as the infrastructure required to deliver the natural gas needed at the power plants.

    The NIPP projects are funded from the excess crude account, with the Federal Government contributing 47 per cent of the funds, while the 36 state governments contribute 35 per cent and the 774 local governments 18 per cent. Currently, an approximated S$8.4 billion has been committed to the project, the Managing Director of NDPHC, James Olotu said.

    The NIPP plants were designed to deliver combined installed capacity of 5,453 megawatts (MW). Eight of the 10 power plants are designed as Open Cycle Gas Turbine (OCGT) power plants and the other two as Combined Cycle Gas Turbine (CCGT) power plants. The CCGT power plants, can generate power through gas and steam turbines but because of timeline for handover of the assets to new investors proposed for mid next year, the completion of the steam turbines might not be realistic.

    For instance, the Alaoji power plant was designed as a CCGT project with a plant capacity of 1,131.4 MW. However, it is expected that, by the handover date for this plant, only one of the steam turbines would have been installed. Therefore, the plant will be available for commercial operation as an 831.3 MW plant. As result of some of these hitches, the NDPHC is projecting a combined generation of 5153.1MW as against 5,453MW by the time the assets will be handed over to the new investors.

    Besides the anticipated inability to construct the steam turbines in the combined cycle plants within the stipulated period, there are other concerns including the provision of pipeline to supply gas to the assets. Currently, the NIPP plants supply below 2,000MW, indicating that over 3153MW will be realised from the project in the next one year.

    At several meetings, Olotu has lamented the dearth of gas supply to completed turbines in some of the NIPP assets. Also,there are still some of the power plants that have several outstanding turbines to build. Although the timelines look good, to achieve them seem pretty difficult.

     

    Initial output

    According to the NDPHC chief, Olotu, the Alaoji Generation Company Nigeria Limited located in Abia State, which is the biggest of the power plants will be generating 831.3MW at the time of handover, while the Benin Generation Company Limited in Ihovbor, Edo State, will have 507MW output. The Egbema Generation Company Limited, Imo State, Gbarain Generation Company Limited, Bayelsa State, Calabar Generation Company Limited, Cross River and Geregu Generation Company Limited in Kogi State will have generation capacities of 380.7MW, 253.8MW, 634.5MW and 506.1MW.

    Ogorode Generation Company Limited in Sapale, Delta State will be generating 507.6MW, while Olorunsogo Generation Company Limited in Ogun State will have 754MW output. Omoku Generation Company Limited in Rivers State will be generating 264.7MW with Omotosho Generation Company Limited in Ondo State supplying 512.8MW.

    According to Olotu, seven of the eight OCGT power plants could be upgraded to CCGT configuration, adding that five of the power plants are either fully or partially operating today.

    He noted that four gas turbines of Alaoji Genco will be commissioned by December 2013 while one of the two steam turbines of the plant will be commissioned in May 2014. Other plants that some of their turbines will be commissioned in 2014 include Calabar Generation Company Limited.

    Olotu noted that NDPHC has made some substantial investments in transmission and distribution. He said 2,370MVA of 330kV and 132kV transformer capacities already in service in the national grid, while 519km of transmission lines have been strung out of 2,903km with 346.7km of transmission lines already in service or energised awaiting full utilisation.

    In distribution, 72 injection substations have been commissioned, with 3,517 completely self- protected 25kVA and 50kVA customer transformers installed and 650MVA out of 3,750MVA of 33/11kV Injection substation already in service or awaiting full utilisation.

    He said that 80 per cent of the outstanding shares of the plants will be sold following a competitive bidding process. Each generation company will benefit from a contract structure covering the sale of electricity, the supply and transportation of natural gas, and access to the electricity transmission network, he added.

    Meanwhile, the timelines of the privatisation indicate that submission of expression of interest is July 19, short-listing of bidders August 8, availability of request for proposals August 16, while opening of data rooms is on August 16. The bidders conference in Abuja is billed for September 18-19 while deadline for submission of proposals holds November 8.

  • NDPHC delivers eight projects in Enugu, others

    The Niger Delta Power Holding Company Limited (NDPHC), owners of National Integrated Power Projects (NIPP), has delivered eight distribution projects in the southeast and Southsouth region as part of its mandate to substantially improve power supply by end of this year.

    The Managing Director of the inauguration of the projects, said NIPP projects are meant to provide improved power supply to all parts of the country. “We have said that this year will be a year of bumper harvest with NIPP projects. No part of the country is left out, so we will continue to commission projects as they are completed in different parts of the country,” Olotu stated.

    The Deputy General Manager and Head of Communication and Public Relations of the company, Mr Yakubu Lawal, in a statement, said Olotu stressed the company’s commitment to actualising the transformation agenda of the government. “We are committed to the transformation agenda of President Goodluck Jonathan and that of the vice President who also doubles as Chairman NDPHC to deliver all distribution projects to Nigerians by end of June this year.”

    Lawal listed the projects inaugurated in four states to include, 15MVA 33/11 distribution injection. Sub-station in Uluku Edo, state, 7.5MVA 33/11 distribution substation each in Isele Uku and Illah in Delta State. Also inaugurated were 1×7.5MVA injection sub-station each in Orafite and Amichi in Anambra State.

    In Enugu State, Olotu inaugurated a 2×2.5MVA distribution injection sub-station and 7.5MVA distribution injection substation in the trade fair area of Enugu as well as 7.5MVA injection sub-station in New Heaven.

    The Chief Operating Officer of Benin Electricity Distribution Company, Effiong Umoren and his Enugu Distribution Company counterpart, Suleiman Yahaya, who were in the inauguration team to assist Olotu expressed appreciation to the three tiers of the government for investing in NIPP, pointing out that the inaugurated projects would boost supply to the consumers and relieve existing facilities that were over-loaded.

    Olotu also visited ongoing transmission projects in Asaba in Delta State, Awka in Anambra State, Ugwuaji and New Heaven in Enugu State.

    As part of its project delivery strategy, Chairman of the Board has slated a pre-inaguration milestones meeting in his office with NDPHC management, contractors and project consultants for the end of this month.

    Sambo, at a January 26 meeting with the distribution and transmission contractors, gave up to end of June, this year to deliver distribution projects and December, this year for transmission.

  • Excess Crude Account: States demand shares in NIPP, others

    Excess Crude Account: States demand shares in NIPP, others

    •Supreme Court gives Nov. 21 deadline

    There is a twist to the suit filed by the 36 states against the Federal Government over the legality of the Excess Crude Account (ECA).

    Although it was for hearing yesterday, the matter could no go on because the parties were yet to settle.

    The states have tabled fresh demands before the Federal Government as part of conditions for an amicable settlement.

    Federal Government counsel Austin Alegeh (SAN) said the fresh demands were received last Thursday.

    He told the panel of seven justices, chaired by Justice, Christopher Chukwuma-Eneh, that the Federal Government was committed to an amicable settlement.

    “Happily, the settlement has been ongoing and we are achieving results. On Thursday, we received new proposed settlement from the plaintiff. The defendant is reviewing it and we will shortly revert to the plaintiffs in respect thereof. We believe now more than ever before that the settlement move seems to be yielding results.”

    The Plaintiffs’ lead counsel, Adegboyega Awomolo (SAN), promised to embrace settlement, if there is genuine commitment by the Defendant.

    Consequently, the panel adjourned till November 22 for report of settlement or the taking of all motions.

    According to the Terms of Settlement, the states are asking the Federal Government to first admit that the establishment and operation of and its unilateral deductions from the Ecxess Crude Account during the 2004 -2007 were inconsistent with the provisions of Section 162 of the 1999 Constitution.

    They also asked that the Federal Government should undertake and agree that, forthwith upon the execution of this Terms of Settlement, it shall cause all sums standing to the credit of the Excess Crude Account to be transferred to the Federation Account and distributed, within 10 working days from the execution of this Terms of Settlement, among the beneficiaries of the Federation Account, i.e the Federal Government, State Governments and Local Government Councils.

    Besides, they are asking the Federal Government to bear the legal costs and the professional fees of the lawyers for all the parties. This sum is to be paid within seven days of the execution of the Terms of Settlement, directly to the Plaintiff’s lead counsel.

    The states are demanding equitable shares corresponding to each state and local government council monetary values in the National Integrated Power Project (NIPP), Railway Modernisation Deductions and Ibom Power Plant Project Deductions.

    To start with, they want all the assets, including contracts of the NIPP which was paid for using about $8.425 billion “from the Federation Account to be clearly identified, inventoried and valued by a competent and reputable Nigerian accounting firm.

    Besides, they said the Federal Government should cause a company, whose sole object shall be to takeover and operate the assets and undertaking of the NIPP, to be incorporated as a limited liability company under the Companies and Allied Matters Cap C20 Laws of the Federation of Nigeria 2004 with a share capital in a sum equivalent to the value of assets and undertaking of the NIPP as valued

    •That cause the share capital of the company incorporated is to be issued and allotted among the Federal Government, each State Government and each Local Government Council in proportion to their respective share of the US$8.425 billion from the Federation Account used to purchase and/or acquire the NIPP assets;

    •cause the inventoried and valued assets of the NIPP to be transferred to the company formed in pursuance of sub-clause 2.3.2 above, as payment, on its own behalf and on behalf of each State Government and Local Government Council, for the shares issued and allotted in pursuance of sub-clause 2.3.3 above, and procure the company to issue share certificates in accordance with the allotment;

    •enter into a shareholders’ agreement among the shareholders of the company incorporated , which will govern the rights and obligations of shareholders of the company in relation to the management and control of the company; and

    •waive and/or procure the waiver of the payment of any stamp duties, registration fees or other fees howsoever described relating to the incorporation of the company required to be incorporated.

    The states also stated the above conditions for the Railway Modernisation Project (RMP), which was paid using about $250 million from the Federation Account.

    For the Ibom Power Plant Project deductions, the plaintiffs demand that the Federal Government should

    •transfer to each State Government and each Local Government Council, such part of its shares or equity stake in the project vehicle for the Ibom Power Plant Project as is equivalent to the respective share of each State Government and Local Government Council in the US$80 million sourced from the Federation Account to pay for the said shares or equity stake;

    * procure the issuance of share certificates evidencing the holding of each State Government and each Local Government Council in the project vehicle for the Ibom Power Plant Project in pursuance of the transfer; and

    *forthwith upon the execution of this Terms of Settlement, cause any dividend which has accrued as at the date of this Terms of Settlement from its shares or equity stake in the lbom Power Plant Project to be paid to the Federation Account and distributed among the beneficiaries of the Federation Account, that is, the Federal Government, State Governments and Local Goverrunent Councils.

    Signature Bonus

    The Plaintiffs are asking the Federal Government to accept that notwithstanding the provisions of the Petroleum Act Capt P 10 LFN 2004 and the Petroleum Trust Development Fund Act Cap. P 15 LfiV 2004, its fiscal practice of paying revenue derived from signature bonus into accounts other than the Federation Account is inconsistent with the provisions of Section 162 of the 1999 Constitution.

    They also encourage the Federal Government to within 30 days of the execution of this Terms of Settlement propose legislation and introduce a Bill into the National Assembly to bring such of the provisions of the Petroleum Act Capt Pl0 LFN 2004 and the Petroleum Trust Development Fund Act Cap. P 15 LFN 2004 that are inconsistent with the provisions of Section 62 of the 1999 Constitution into conformity with the said provisions of Section 162 of the 1999 Constitution.

    *the FGN shall, forthwith upon the execution of this Terms of Settlement, cause to be ascertained with exactitude the amount standing to the credit of Petroleum Trust Development Fund, and cause same (if any) to be paid into the Federation Account.

    *The Plaintiff agrees and undertakes to negotiate in good faith with the FGN on developing and agreeing a joint Federal Government, State Governments and Local Government Councils framework for the future funding oftbe Petroleum Trust Development Fund.

    Dividends from NLNG Limited

    The Plaintiffs are asking the FGN to recognise that its fiscal practice of paying revenue derived from dividends derived from its interest, through the Nigerian National Petroleum Corporation (NNPC) in the capital of NLNG, Limited is inconsistent with the provisions of Section 162 of the 1999 Constitution.

    *with effect from the date of execution of this Terms of Settlement, the FGN shall henceforth pay all revenues which accrues from dividends derived from NLNG Limited into the Federation Account for distribution among the beneficiaries of the Federation Account in strict accordance with the Constitution.

    The states left discussion on the Proceeds of Sale of Government and Education Tax open to further negotiation with a clause that after six months of the execution of terms, either party could approach the Supreme Court for adjudication, if Parties have still not reached agreement.

    The states support, in principle,”cost of collection” and concede that by virtue of the provisions of Section 165 199 CF’RN, they have an obligation to pay to the FGN an amount equal to such part of the expenditure incurred by the FGN during each financial year for the collection of taxes or duties as is proportionate to the share of the proceeds of those taxes or duties it receives in respect of that financial year, subject however to certification by the Auditor General for the Federation in accordance with Section 168 of the 1999 CFRN.

    They waive all claims in respect of monies already ceded to FIRS and NCS as cost of collection which have already been expended by FIRS and NCS as at the date of this Terms of Settlement.

    They in return ask that the FGN waives any and all claims as it relates to any obligation to make payment to it under Section 165 1999 Cf”’RN for any financial year preceding and up to the date of this Terms of Settlement.

    The Plaintiffs undertake that consistent with

    Section 168 of the 1999 Constitution, they shall each pay to the FGN on a monthly basis and at the end of every month, an amount equal to one twelfth (1/12) of such part of the expenditure budgeted by the FGN for the collection of taxes or duties for the FIRS and NCS in the Appropriation Act, as is proportionate to their respective share in the budgeted proceeds of those taxes or duties.

    *That the Parties agree that theFGN shall, without notice be entitled to set-off the any sum due to each State Government and the Local Government Councils from the Federation Account or which may otherwise be in its custody, in satisfaction of the payment obligation

    *that Notwithstanding any thing to the contrary in this Terms of Settlement, the amount to be incurred by the FGN as cost for the collection of taxes and duties in any financial year shall not exceed the aggregate amount appropriated for the funding of the FIRS and NCS in the Appropriation Act for that financial year.

    *The FGN shall cause provisions to be made for the funding of the FIRS and NCS in the Appropriation Act.

    * funding level to be provided in the Appropriation Act for the FIRS shall be a percentage of budgeted non-oil taxes while that of the NCS shall be a percentage of the budgeted customs and excise duties collections.

    Provided always that the funding percentages for both the FIRS and the

    NCS shall be determined on a yearly basis by the Federal Government in full consultation with all State Governments.

    *Any funds appropriated for the FIRS and NCS which remains unspent as at 31st December of any financial year shall be paid over to the Federation Account at the end of every financial year.

    Waivers and Concessions

    *The Parties agree that tax expenditure in the nature of waivers and concessions are necessary for the growth of the national economy.

    *The FGN shall at all times ensure that tax expenditure in the nature of waivers and concessions are channelled to critical sectors of the national economy with a view to stimulate economic growth and development.

    *The FGN shall prepare and introduce into the National Assembly a Bill to regulate the grant of waivers and concessions and to guide and streamline the-exercise of discretion in granting waivers and concessions.

    Other Dividends and Internally-Generated Revenue

    *The FGN recognises that in pursuance of Section 162(1) 1999 CFRN, revenues from dividends in respect of shares or interests held by the FGN in any company or statutory corporation are to be paid into the Federation ACCOlmt.

    *The FGN shall with effect from the execution of this Terms of Settlement pay and/or cause to be paid all revenues which accrues, subsequent to the execution of this Terms of Settlement, from dividends in respect of shares or interests held by the FGN in any company or statutory corporation into the Federation Account for distribution among the beneficiaries of the Federation Account in accordance with the provisions of Section 162 of the 1999 Constitution.

    *The FGN shall, forthwith upon the execution of this Terms of Settlement, cause revenues from dividends in respect of shares or interests held by the FGN in any company or statutory corporation which accrued for the period 2004 to 2007, amounting to N573 billion to be paid into the Federation Account and distributed, within five (5) working days from the execution of this Terms of Settlement, among the beneficiaries of the Federation Account, that is, the Federal Government, State Governments and Local Government Councils.

    *The FGN shall pay the sum of N6. 79 billion representing the share of Bayelsa State Government and the aggregate of the Local Government Councils in Bayelsa State in the revenues from dividends in respect of shares or interests held by the FGN in any company or statutory corporation which accrued for the period 2004 to 2007 to Bayelsa State Government within five (5) working days from the execution of this Terms of Settlement.

    Interest:

    *The Parties agree that any interest earned on any sums previously held by the FGN which by this agreement is to be paid into the Federation Account shall also be paid into the Federation Account by the FGN.

    The Plaintiffs waive all claims to interest, save interest actually earned.