FEDERAL MINISTRY OF POWER, WORKS & HOUSING

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20 February, 2019

FG Denies Plans To Stop Payment Of Shortfalls To GENCOS

Following a report in a national daily newspaper, the Ministry of Power, Works and Housing Wednesday denied that the Federal Government has stopped the payment of shortfalls to Electricity Generation Companies (GenCos), describing the report as both false and unfounded.

The report, contained in the Wednesday edition of Punch Online media, held that the Federal Government on Tuesday ordered power generation companies to find customers and sell their power directly to the identified customers as, according to the report, “plans are on the way for it to ultimately exit the monthly payments to Gencos to help cushion the revenue shortfalls on the books of the power generators as a result of the poor remittances from the power distributors”.

The report titled, “FG to stop payment of shortfalls to Gencos” and attributed to the Permanent Secretary (Power) in the Ministry, Engr. Louis Edozien, emanated from the remarks of the Permanent Secretary at a Workshop organized by the Nigerian Electricity Regulatory Commission (NERC) on Tuesday, 12th February, 2019 on the Eligible Customer Regulation.

But in a Statement signed by the Permanent Secretary in person, the Ministry asserted that at no point in his remarks did the Permanent Secretary state that "FGN is to stop payment of shortfalls to Gencos", pointing out that the Payment Assurance Programme of the Federal Government that authorized the Nigerian Bulk Electricity Trader (NBET) to guarantee payment for any power it has contracted from generation companies on the national grid had not been reversed.

The Statement read in part, “The Payment Assurance Programme of the Federal Government of Nigeria that authorized NBET to borrow N701.9 billion to guarantee payment for any power it has contracted from generation companies on the national grid and their gas and other suppliers has been in operation since January 2017. The amount NBET is authorized to borrow is not yet fully drawn. The Federal Executive Council (FEC) approved the programme. FEC has not taken any decision to stop it. FEC is the appropriate authority to comment on the Programme’s tenure and borrowing ceiling”.

In order to set the records straight, the Statement clarified that at the workshop organized by NERC on the Eligible Customer Regulation, the Permanent Secretary urged generation companies to more aggressively take advantage of the regulation to sell the power they can generate, of which 2,000MW is now stranded, to Eligible Customers who need it and are willing and able to pay for it.

Insisting that it would be better than waiting for NBET to pay for it or to guarantee it, for which NBET needs support from the Federal Government due to shortfalls in payment by distribution companies, the Permanent Secretary decried that though the Minister issued the policy direction to NERC that gave rise to the regulation in May 2017, and NERC has issued the regulation, none of the interested consumers and their generation company suppliers have been given licenses to buy and sell power as Eligible Customers. He encouraged NERC to accelerate and simplify the licensing process.

He further stated that the Transmission Company of Nigeria (TCN) should continue to support the regulation by making targeted investments in the national grid, as needed to service specific contracts with generation companies and Eligible Customers to transmit the power, with penalties for failure to transmit, adding that TCN could finance such targeted investments with the expected revenue from such bilateral transmission contracts.

Encouraging electricity distribution companies (DisCos) to embrace the policy, the Permanent Secretary argued that if the DisCos were satisfying the power supply needs of their consumers of bulk power adequately such consumers would have no reason to generate the power by themselves or to want to become Eligible Customers adding that by embracing the regulation, the DisCos could partner with investors and generation companies to build new distribution infrastructure to better serve specific paying customers.

“They can buy power directly from generation companies and contract with TCN to deliver it, and give premium service to selected customers or customer groups”, the Permanent Secretary said adding that in such cases the distribution company must be willing and able to guarantee the payment for the power they buy, “because the shortfalls in payment which characterizes their power purchases from NBET, would not be possible in such bilateral contracts”.

The Permanent Secretary then enjoined dissatisfied consumers to take advantage of the Customer Care platforms set up by all the distribution companies in compliance with the provisions of their license, and escalate unresolved complaints to the NERC Consumer f Forum offices, as provided for in regulations, emphasizing that dissatisfied consumers could take advantage of the Mini-Grid Regulation, NERC's up-coming Franchising Regulation and the Eligible Customer Regulation to get premium power that meets their needs.

The Workshop revealed that the Ministry has received forty four (44) expressions of interest with a total demand for 600MW from underserved and unserved consumers desirous of becoming Eligible Customers. Of these, 14 have submitted license applications to NERC, two have fulfilled all NERC's conditions and expect to be licensed imminently.

The Ministry enjoins the public to discountenance the false report, and requests that the news outlets purveying such fake news cease and desist.

Fashola Charge Estate Valuers On Ease Of Doing Business In Nigeria The Minister of Power, Works & Housing, Mr Babatunde Raji Fashola, SAN, has challenged the newly reconstituted board of Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) to come up with harmonized code of charge that will promote ‘’real estate’’ as this will impact on the ease of doing business in Nigeria. He stated this at the inauguration ceremony of the new board at the ministry’s headquarters in Abuja. The Minister charged them to develop an open and nation-wide valuation of real estate database across the nation in order to greatly improve and grow the nation’s economy. Fashola congratulated the chairman and members of the Board and expressed confident in the broad mix of experience and values the Board is bringing to the nation. The Minister added that ‘’these are people, whose professional mandate is really putting value to light in the area of over seeing how land is turned from dormant into a valuable asset’’. In his remarks, the Chairman of Estate Surveyors and Valuers Registration Board of Nigeria, Esv. Olayinka Sonaike, on behalf of the 21 newly inaugurated board members expressed appreciation to be called upon to serve in a rather different capacity of regulating the practise of the profession. Sonaike stated that the profession is willing to collaborate with the Ministry in the on-going construction of Housing Units across the nation under the National Housing Programme of the Buhari’s administration. He urged that the board be given necessary support to play its regulatory role as expected. The Estate Surveyors and Valuers Registration Board of Nigeria among other responsibilities is charged with registering persons who are fit and qualify to serve and practice as Estate Surveyors and Valuers; and also regulate the knowledge and the general practice of the profession in the country.
30 May, 2017
Grow What You Eat; And Produce What You Use – Osinbajo The Acting President, Professor Yemi Osinbajo, SAN has called on Nigerians to “Grow what they eat and Produce what they use” day to day. He made this call during an Interactive session he held with Public Servants on salary Grade levels 8-14 at the International Conference Centre Abuja. He added that the future of Nigeria is in the hands of Civil and Public servants, because they are the engine room that provides and prepares for every sitting administration; noting that it is only the Public Servants that determine if jobs can be created; bearing in mind if resources are available to accommodate the new hands and this can be determined through the taxes and revenues generated. Osinbajo stated that Nigerians need to promote economic diversification and boost the non-oil sector in the face of the current global economic realities; therefore “Made-in-Nigeria” initiative is committed to increase the production of locally manufactured goods and services. The acting President called on Ministries, Departments and Agencies of the government to grant preference to locally manufactured goods and services, adding that such support for local content in Public Procurement will strengthen the Naira, expand the country’s entrepreneurial capacity and thus lead to greater competition thereby improving the quality of goods and services. The acting president said the Federal Government is counting on the support of the Public servants to drive the initiative because Information about government’s requirement for products and services will be easily accessible by the general public in order to improve the Nigerian business environment. Earlier in her welcome address, the Head of Service of the Federation, Mrs Winifred Oyo-Ita, thanked the acting President because it is the first of its kind in the history of the Nation that Officers within these grade levels (8-14) will be meeting with the top Head of Government. She encouraged public servants to be good ambassadors at their various MDAs and informed that as the Government is handling the abandoned projects, it is also committed to settling the outstanding arrears in all the sectors. Also present at the occasion where Ministers of Power, Works and Housing Babatunde Raji Fashola; Interior, Gen Abdulrahaman Danbazua (Rtd) Industry Trade and Investment, Okechukwu Enelamah; Foreign Affairs, Geoffrey Onyeama; Head of Service, Mrs Winifred Oyo-Ita and Permanent Secretaries. 
25 May, 2017
Apapa Is A Priority Area For FG, We’re Very Close To Starting Enduring Work On The Roads - Fashola *  Minister appeals to residents, those earning livelihood from Apapa for patience *  Design, other requirements for reconstruction of Wharf road with concrete to last for at least 30 years ready *  Procurement details, Heads of Agreement ready for signing of MOU with Companies supporting project ahead of presentation for FEC approval The Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, has reiterated that the Apapa Area in Lagos is a priority for the Federal Government under the Ministry’s programme to solve the issue of roads leading to critical ports in the country. According to the Minister, who was interacting with newsmen in Abuja at the weekend, at the end of Day One of the Federal Ministry of Power Works and Housing’s Retreat, arrangements for the deployment of an enduring solution on Wharf road were near closure. Fashola who explained that a couple of private companies had offered to work with Government in terms of fixing Wharf Road, said the design and other requirements for the road were ready adding what was left now was to sign a formal Memorandum of Understanding before proceeding to the Federal Executive Council for approval. “ I just want to appeal to residents of Apapa, to people whose livelihood depends on Apapa, that Apapa is one of the priority roads under our priority of Works to solve roads that lead to critical ports. We also have Calabar on our radar. But one by one there would be an enduring solution. We’ve done the design, we’ve done everything for Apapa, it’s ready. It’s going to be a concrete road, I believe, that will last another 30 years. So we are close to starting work,” Fashola said. The Minister, who was certain that work would start in a couple of weeks, pointed that irrespective of the fact that the fund of the Companies, offering to support the project,was private money there had to be some transparency on how to procure it adding that those procurement guidelines were being followed because, according to him, “In government, if you receive a gift, it must have a value and you must declare that value”. “So we needed to get certification of all these prices before we get approval from the Federal Executive Council to allow this to happen, that is the only delay. But we are very close; we have held two meetings in the last 10 days with the companies. We have agreed Heads of Agreement. What is left now is to sign a formal Memorandum of Understanding before which we can then proceed to Council”, he said. Fashola also explained that government wanted to be clear whether what the companies were offering was simply Corporate Social Responsibility (CSR) or they wanted a tax refund for what they were offering adding that the challenge of inadequate budgetary allocation had affected the roads over the years. “Year on year , you will see that the provisions for the budget funding of Apapa and the Tin Can Island and Mile 2 – Oworonsoki Roads, all of which evacuate the Port have not been sufficient really to deal with the cost”. Appealing to residents and other users of the road to exercise a little more patience, Fashola explained further, “The cost that we are getting from the contractor there is in the region of about N100Billion and above and the annual budgetary appropriation that is approved for us is about N7 Billion. And then there are debts that we met”. The Minister also noted that the problem of the Apapa area has been compounded by the excess tonnage on the access routes due to the absence of a rail link which used to take the tonnage off the roads which is also being looked at.” Apapa has many problems one of which is the excess tonnage. There used to be a rail link there to evacuate the Port. From the time we stopped using the rail link and went on to the road, we started degrading the quality of the road. There is only so much tonnage that you can put onto a road”, he said. On the purpose of the Retreat for Directors, Heads of Departments and Agencies which focussed on “Teamwork for Optimal Productivity”, the Minister said it was for team building for service delivery adding, “A good team where members know their strength and weaknesses, know their strong points and their common purpose is likely to deliver more results in quicker time and more effectively”.
22 May, 2017
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PUBLIC ANNOUNCEMENT
5 October, 2018

APC CONVENTION SATURDAY, 6TH OCTORBER, 2018

This is to inform FCT Residents, Visitors and Motorists that due to the National Convention of the All Progressives Congress, APC slated for Saturday, 6th October 2018 at the Eagle Square, Abuja, an unusual influx of human and vehicular traffic will be experienced within the city with the attendant traffic congestion in and around the venue of the convention.

To this effect all vehicular movement through Shehu Shagari Way from the early hours of Saturday, 6th October, 2018 to Sunday, 7th October  will be diverted at Ralph Sodeinde Street by Bullet Building to link Central Business District. Motorists will also be diverted at Kur Mohammed Street and Constitution Avenue at Bayelsa House to Central Business District.

Traffic on Ahmadu Bello Way will equally be diverted at Ralph Sodeinde Street by Finance Junction to Central Business District. Motorists will also be diverted at Kur Mohammed Street or Constitution Avenue by Benue Building to link Central Business District.

The Federal Capital Territory Administration have mobilized Officers of the Police, FRSC, FCT Directorate of Road Traffic Service and other relevant Traffic Enforcement Agencies to various flash points to ensure seamless traffic flow.

Parking has been made available at the National Stadium for ALL Delegates coming from outside Abuja from where they will be conveyed to the venue by dedicated Buses.

In the same vein, ALL Delegates from within the FCT should converge at the Old Parade Ground  from where they will be conveyed to the venue.

Please note that parking around the Eagle Square and its environs will not be tolerated as offending vehicles will be removed.

The understanding of the public is hereby solicited

Secretary, Transportation Secretariat
Federal Capital Territory

OTHER NEWS
16 February, 2019

FG To Erring Contractors, Up Your Games Or Face Sanctions

The Zonal Director of the National Housing Programme in the North- West, Federal Ministry of Power, Works and Housing, Architect Joseph Toluhi, has urged erring contractors handling the on going construction of housing project in Kebbi State to step up their games or face necessary sanctions.

He noted that contractors, who fails to perform diligently on the job will have to give way for others to be engaged, adding that relevant clauses in the contract agreement can be invoke for appropriate sanctions.

This was contained in a statement by the Zonal Director on Wednesday in Biriin Kebbi during the North-West inspection tour to the project site.

Toluhi stated that the federal government is committed to provide decent and affordable housing to its teeming population and reduce the housing deficit in the country, adding that the NHP project is designed for the medium income earners who have the affordable means to acquire these houses across the nation.

The National Housing Programme, Kebbi State consist of 76 housing units of 1bedroom, 2 bedrooms and 3 bedrooms semi-detached bungalows, are being handled by 19 indigenous contractors.

In a similar development, the zonal inspection team led by Toluhi also visited the National Housing Programme site in Sokoto State to have on-the-spot assessment of the on going construction works which has reached 95 per cent completion stage.

“I must say that I am pleased and happy with the level of progress of work on this site because we have a very high level of competition. Most of the building here have been completed”. He noted that out of 20 contractors engaged, 12 of them have already been completed while four are yet to be roofed.

According to him, “this means, we are ready to move into these buildings. The infrastructure such as water supply, road arterial and water supply have reached a very high level of completion”.

The Team Leader in Sokoto State, Mr lliya Kastuda also confirmed that construction work has reached 95 percent completion, adding that there is provision of worship centers, school, market to give necessary comfort and police post to ensure adequate security within the housing estate.

The zonal Director and other officials of the Ministry inspected a similar project in Gusau, Zamfara State, which is put at 65% completion stage. He however expressed disappointment in the poor quality of job done, stressing that government will not tolerate sub-standard jobs from any contractor.

 

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SPEECHES
1 February, 2019

Speech Delivered By H.E, Babatunde Raji Fashola, SAN At Press Briefing On National Infrastructure Maintenance Framework At Federal Ministry Of Power, Works And Housing Headquarters Mabushi, Abuja

I welcome you warmly to this press briefing to share information about two very important developments that occurred in the month of January 2019.

The first was that on the 9th January 2019, the Federal Executive Council, Nigeria's highest decision making organ of the Executive arm of government approved a National Maintenance Framework for public buildings.

The second is that on the 24th January 2019, President Muhammad Buhari signed into law a bill to prohibit discrimination against persons living with disabilities which included provisions for specific actions that must be taken within a period of 5 (FIVE) years to provide opportunities for such persons to live as normal a life as possible.

This briefing is meant to discuss what these developments mean for Nigeria and Nigerians, and to highlight the possibilities that they offer for our way of life and our economy.

National Maintenance Framework for Public Buildings

Let me start with the National Maintenance Framework on Public Buildings and first point out that for now, this only applies to public buildings but will ultimately extend to other public assets like roads, bridges, rail, power installations and other infrastructure of a public nature.

What the FEC approval means is that after decades of agonizing about lack of maintenance, the Buhari government has chosen to act.

This is policy decision of enormous profundity because the records do not indicate that any such policy decision has previously been taken at the federal level.

The decision was provoked by a memorandum from the Ministry of Power, Works and Housing that challenged the conventional thinking that "Nigeria does not have a maintenance culture".

The memorandum argued and FEC agreed, that maintenance of infrastructure whether public or private, is not a cultural issue but an economic one.

The memorandum showed that in the built industry, only about 23% of the workforce is employed by Design (6%) and Construction (15%), Governance (2%) , while the remaining 77% are employed by Maintenance and operation.

Council was persuaded to accept that while skill training and vocational centres exist almost nationwide for training artisans like plumbers, painters, bricklayers, welders, tilers, electricians etc., there is a lack of National policy that makes the practice of these vocations economically worthwhile on a sustainable basis.

The available data showed that many people trained in these vocations often resort to earning a living by resorting to other vocations in which they do not have a training, such as riding motor-cycles and tri-cycles in order to make a living.

Therefore, the federal government’s decision on maintenance is an economic one, to empower Nigerians at the base of the economic pyramid who are artisans, those at the middle of the pyramid who own small businesses, SMEs who are involved in manufacturing of building and allied materials.

What it entails is that:

* Site assessment of the affected buildings will have to be conducted, measurement are to be taken, valuation conducted and data is collated. This on its own requires the employment of people to carry out this process and therefore jobs will be created from the very first step.

* It will also provide for credible data such as lettable space, value of the property and so on which can form the basis of the economic decisions or even actions in emergency periods.

* Condition assessment is the next step that requires people to be trained and employed to assess the conditions of affected buildings from foundation to roof and for mechanical and electrical sustainability for purpose.

* In one of our sample buildings leading up to the memorandum to FEC, we found out that out of 63 air-conditioning units, 11 required replacement or repairs. We also identified windows, doors, tiles, roofing materials, plastering works that required replacement or repair.

* The maintenance program is then developed from these assessments as to what jobs need to be done to restore the building to fitness, what needs to be replaced and what needs to be repaired.

* This is the basis for the award of the maintenance contract following the existing procurement law.

* This provides a window of opportunity for small businesses who are into facility management and for young graduates of building tech, architecture, engineering and even technical schools to register for these contracts.

* Successful bidders are then in a position to employ artisans to execute the maintenance contract they have won in the bid.

* Each ministry, department and agency will be responsible for its own procurement for its own building  after training of their designated personnel by the staff of the Ministry of Power, Works and Housing who will guide them through the framework approved by FEC.

* Because data is critical to the programme, each MDA will file data with the Ministry of Power, Works and Housing who will centrally manage data and use it to advise government and brief the public, while the MDA reserves the right to keep its own data.

* The award of contracts will not only drive employment for artisans, it will drive demand of manufacturing and suppliers of parts like wood, pipes, paint, tiles, electrical fittings, windows and tools, in addition to those of  cleaning items like soap, detergent, polish, varnish etc.

This is the economy that we see ahead as we set out to implement this approval starting from buildings, and as I said, and extending to roads, rail, bridges etc. as we progress.

Our pilot programme covered 9 buildings  comprising a Federal government college, a Federal Hospital,  a Federal Court building, a federal prison, a federal secretariat and our office buildings at our headquarters here in Mabushi.

The pilot survey showed that these 9 (Nine) buildings will cost N40.3 billion to reconstruct, while it will cost N922.8m per annum to maintain them which is about   2.3 % of the cost of replacement.

Just these 9 (NINE) buildings will require about 448 people to keep them well maintained a year. For example, the school will require at least 30 people to be employed per school for maintenance; and the federal government owns 104 Unity schools which potentially will require 30 X 104 = 3,120.

So you can see the economy we see when this extends to all our hospitals, all our courts, all our prisons, all our police stations, all our universities and covers all public buildings.

This is an economic choice by this government to drive the small business sector, to drive skill utilization and to move the economy from growth without jobs to growth driven by new jobs that reward services.

But as if this was not enough, President Buhari raised the bar for construction, services and a new way of life for Nigerians when he signed the law to protect people living with disability from discrimination and exclusion.

We have 5 years to comply, and this requires that all our buildings must have lifts and ramps. (By this I mean well designed ramps for people confined to their wheelchairs, not hills they cannot use on their own).

We must modify all our toilets with support for our brothers and sisters who are living with disabilities, as we must build sidewalks for them to use our roads without colliding with vehicles.

Our airports and parking lots in buildings must become compliant with international best practice by providing corridors and facilities for people living with disabilities at arrival and departure points, while a minimum number of slots clearly designated must be provided for vehicles owned by people living with disabilities.

This is another opportunity for jobs to re-design, to re-model, to retrofit all our assets nationwide to comply with the law as signed by Mr President.

Ladies and gentlemen, this is the Nigeria that beckons upon us from today and the immediate future. A Nigeria where public infrastructure works because they are maintained.

A Nigeria where everybody has a secure sense of belonging because they can use their skills and labour to earn a decent income and retain their dignity.

A Nigeria where government cares for the people living with disability by providing the basic minimum facilities that gives them a sense of belonging to demonstrate their ability.

Government has taken the leadership role to provide the policy and the how to make this Nigeria possible.

It is now your responsibility and mine to take ownership of this platform of opportunities and make it work for all of us.

Thank you for listening.

Babatunde Raji Fashola, SAN
Honourable Minister of Power, Works and Housing

Thursday 31st January 2019

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Photo News
15 February, 2019

COMMISSIONED 60KW GRID CONNECTED HYBRID SOLAR PV MINI GRID POWER PROJECT IN TORANKAWA VILLAGE YABO LGA SOKOTO STATE

The recently commissioned 60KW Grid Connected Hybrid Solar PV Mini Grid Power project in Torankawa village Yabo LGA Sokoto State Initiated by the Ministry of Power Works and Housing Power Sector under the Renewable Energy Micro Utility REMU Programme which was commissioned on Tuesday 12th February 2019

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Power News
Photo News
1 February, 2019

FASHOLA ADDRESSES THE PRESS ON THE NATIONAL PUBLIC BUILDINGS MAINTENANCE POLICY RECENTLY APPROVED BY THE FEDERAL EXECUTIVE COUNCIL IN ABUJA

Hon Minister of Power Works Housing Mr Babatunde Fashola SAN 2nd left Permanent Secretary Works Housing Mr Mohammed Bukar 2nd right Chairman Committee on Housing House of Representatives Hon Mahmud Mohammed right Deputy Chairman Committee on Works Hon Dr Abubakar Kannike left shortly after the Hon Minister s Press Briefing on the National Public Building Maintenance Policy recently approved by the Federal Executive Council at the Ministry of Power Works Housing Headquarters Mabushi Abuja on Thursday 31st January 2019

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