FEDERAL MINISTRY OF POWER, WORKS & HOUSING

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Latest Press
12 January, 2018

FG to involve more Nigerians in Meter Manufacturing – Fashola

The Minister of Power, Works and Housing, Mr Babatunde Fashola on Thursday said the Federal Government had concluded plans to involve more Nigerians in meter manufacturing.

Fashola spoke while inspecting the National Meter Test Station in Oshodi, Lagos.

He said that the measure would reduce the pressure on Electricity Distribution Companies (DISCOs) on meter supply.

“The core business of DISCOs is to transport energy; their business is not to supply meters.

“The government will address metering more vigorously this year with regulations which will open up business in metering to more investors.

“This will reduce the pressure on DISCOs so that they can concentrate more on their core business.

“So, we will open up the business to other people who want to play in the sector once the meter regulations are completed this year,” he said.

Fashola said that Nigeria’s meter journey from 1950 showed that consumers depend on meters from foreign countries.

“We have seen Nigeria’s meter journey; the meters from 1950 to date, meters from Greece, Japan, Britain and China. This has shown that how our industry totally depends on meters from foreign countries.

“But now, we are beginning to see meters from local manufacturers like Mojec and Moman; that is a good place to be.

“At present, we have over 100 million telephone subscribers in Nigeria, but let me ask you, how many telephones are made in Nigeria?

“We spend millions of naira to buy telephone from China and still we will go back and borrow money from China.

“So, we want to change that in the meter industry; we are happy that some Nigerians are manufacturing meter in Nigeria and we promise to support them,” he said.

He added that the National Meter Test, under Nigerian Electricity Management Service Agency (NEMSA) was to test the accuracy of meters before installation.

According to him, the accuracy tests are in two steps, so that the DISCOs will not cheat consumers and consumers do not cheat DISCOs.

The minister reiterated the FG’s plan to roll out meters to Nigerian consumers soon.

He said: “We plan to roll out meters, and we must”.

The Managing Director/Chief Executive Officer of NEMSA and Chief Electrical Inspector of the Federation, Mr Peter Ewesor, said all meters being used by the DISCOs passed through the centre before installation.

According to him, it is not possible for the meters that passed through the centre to shortchange consumers. (NAN)

Source: (NAN)

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Aftermath Of Fire Incident Reported By Gas Processing Company : Tcn , Gencos Working To Restore Operation Of National Grid …We urge members of the public to bear with us as we work to overcome this set back which should be temporary- MINISTRY Regrettably, after a sustained period of increasing production and distribution of power since September 2017 to date, the Nigerian Gas Processing and Transportation Company Ltd (NGPTC) has reported a fire incident on its Escravos Lagos Pipeline System near Okada, Edo State on Tuesday, 2nd January, 2018. The incident requires a shutdown of the pipeline supplying gas to Egbin 1,320MW; Olorunsogo NIPP 676MW, Olorunsogo 338MW, Omotosho NIPP 450MW, Omotosho 338 MW and Paras 60MW power stations. The sudden loss of generation due to interruption in gas supply from these stations caused the national transmission grid to trip off around 20:20 on 2nd January 2018. The national transmission grid is owned and operated by the Transmission Company of Nigeria (TCN). Most of Nigeria's power generation is from thermal power stations that require gas for fuel. The gas is produced by oil and gas companies overseen by the Ministry of Petroleum Resources. The gas is delivered to the power stations through pipelines owned and operated by Nigerian Gas Processing and Transportation Company Ltd (NGPTC), a subsidiary of Nigerian National Petroleum Company (NNPC). TCN and the generation companies are working to restore operation of the national grid. Once the national grid is restored output from the hydroelectric power stations and all other unaffected gas fired thermal power stations will be increased to the extent possible to minimize the impact of loss of generation from the affected power stations while NNPC takes necessary steps to restore gas supply. We urge members of the public to bear with us as we work to overcome this set back which should be temporary. Signed: MINISTRY OF POWER, WORKS AND HOUSING
3 January, 2018
NEMSA Embarks On A Nationwide Technical Monitoring And Evaluation Of Primary 33kv Feeder Lines With Associated 33/11kv Injection Substations The Nigerian Electricity Management Services Agency (NEMSA) has commenced a Nationwide Technical Monitoring and Evaluation of the primary 33KV feeder lines and associated 33/11KV injection substations with supply source from 330/132/33KV transmission substations. The exigency of the exercise is to identify constraints militating against quick realization of the Federal Government’s policy and efforts for sustainability of the incremental, steady and uninterrupted power supply as they are achieved through the 33KV primary feeder lines to the 33/11KV injection substations and subsequently through the 11KV feeder lines and associated distribution transformers and finally to the consumers. Also this is to identify the high risk and technical loss points along the 33KV feeder lines. Again this is to enable NEMSA find out the causes/reasons for load rejection by the DisCos and to make recommendations for dealing with identified issues/challenges. Engr. Peter O. Ewesor, the MD/CEO NEMSA & Chief Electrical Inspector of the Federation, while on one of the inspections, said “the importance of the exercise cannot be overemphasized in light of the spate of the increasing number of electrical accidents and incidents, power failures/outages at the downstream-of the power value chain (power distribution networks) even when there is a huge increase in power generation in the grid system”. The exercise, which commenced on the 18th of October, 2017, has so far covered Abuja, Ikeja, Kano, Benin, Port Harcourt, Kaduna and Enugu DisCo’s networks and the exercise is still ongoing. Furthermore, Engr. Ewesor said “the exercise will identify high risk defective networks that pose serious threat and danger to operators’ operational staff and the general public for immediate attention and correction/rectification by respective DisCos and TCN.  Therefore, the importance and the expected positive impact of this National Technical Monitoring and Evaluation exercise which is part fulfilment of NEMSA’s mandate cannot be overemphasized. During the exercise, some of the DisCos were given immediate order to effect rectification of the defects and lack of procedures that were observed.
21 December, 2017
Programme To Provide Uninterrupted Power Supply For University Students, Not A  Mere ‘Streetlighting’ Project - Ministry The Ministry of Power, Works and Housing wishes to restate that the Energizing Education Programme (EEP) of the Federal Government is aimed at rejuvenating the nation’s education system by providing uninterrupted power supply to a total of 37 federal universities and 7 university teaching hospitals. This clarification has become necessary in the light of the misrepresentation of the Programme as a mere “solar –powered streetlight project in nine universities across the country valued at N10bn,” by the Punch newspaper while purportedly reporting the proceedings of the 2018 Budget Defense Meeting of the Senate Committee on Power, Steel Development and Metallurgy attended by the Managing Director of the Rural Electrification Agency on Thursday, 14th December 2017. The Punch Newspaper in a report, which first appeared in its Online version , claimed that the Senate “criticized a solar-powered streetlight project” thereby deliberately misrepresenting the Energizing Education Programme (EEP).Far from being a “streetlight” project, the EEP in fact seeks to rejuvenate the education system through electrifying a total of 37 federal universities and 7 university teaching hospitals, with Independent Power Plants (IPPS), which will boost effective learning, innovation and advancement through uninterrupted power supply. In addition to helping to extend electrification to rural and underserved areas in which the institutions are located ultimately, the Programme will enable the institutions benefit from world-class training schools, for the training of students in renewable energy, as well as provide optimized security, for the safety and well being of students and staff, through the installation of streetlights on campus which is only a small component of the Project. Although implementation of this programme is led by the power sector, through the Rural Electrification Agency, the Vice Chancellors and the Ministry of Education have signed onto this as a critical investment in the education sector. The deliberate attempt to water down the significant impact this Programme will have on the enhanced education of Nigerian students is outright unpatriotic as it seeks to prevent the socio-economic development of our nation. In addition to the open and transparent coverage of the milestones attained preparatory to the take off of the Project like the Meetings and signing of the Memorandum of Understanding between the REA and the first set of participating tertiary institutions, the Ministry holds itself ready to provide further details to the media and any other interested entities to stem any further misrepresentation.
16 December, 2017
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OTHER NEWS
16 January, 2018

Federal Ministry of Power, Works and Housing
Public Procurement Department (Power Sector)

Re - Request for Quotation

The Federal Ministry of Power, Works & Housing (Power Sector) hereby wishes to inform the general public and the contractors who responded to the REQUEST FOR QUOTATION on (SUPPLY OF ITEMS AND SERVICES) earlier issued via our On-Line portal, dated Thursday 8th December, 2017 as extended is hereby stepped down by the Ministry.

2.    This decision was taken due to some difficulties experienced in our On-Line procurement network and web platform; this caused some stalemates which considerably negated some procurement ethics and the due confidentiality the Ministry seeks to advance.

3.    The Ministry sincerely regrets any inconvenience this decision may have caused the public and the Bidders/Contractors. This action taken by the Ministry is to ensure probity and better service delivery.

4.    Interested contractors are hereby informed that the stepped down procurement shall be repeated among the first round of our procurement Notices/Request for Quotation in the Month of January, 2018.

5.    Thanks for your patronage.

Signed
Permanent Secretary

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Speeches
26 September, 2016

Keynote Address Presented At The 32nd Annual Conference And General Meeting Of The African Union For Housing Finance (AUHF)

Theme: Housing and Africa’s Growth Agenda at PDTF Centre, Central Business District, Abuja, 14th -16th September, 2016. By The Honourable Minister of Power, Works & Housing; Babatunde  Raji  Fashola, SAN.

Protocols

I am delighted to address you on the occasion of this 2016 Annual Conference and General Meeting of the African Union for Housing Finance (AUHF) holding in Abuja, Nigeria. The political will and momentum of the present administration in her housing sector agenda are further invigorated by this conference taking place few months after the June 2016 National Housing Summit. You will recall that the outcome of the recent National Housing Summit identified Housing Finance as one of the major pillars necessary for realizing Affordable housing delivery in Nigeria apart from others like Land, Concessions/incentives, Off-taker Strategy and General Skills Acquisition. It is indeed, heartwarming and reassuring to note that AUHF is an association of Mortgage Banks, Building Societies, Housing Corporations and other organizations involved in mobilizing funds for housing on the African continent. Also that the goals of AUHF includes promoting and facilitating housing finance and unlocking its multiplier effects on National economies, hence leading to Africa’s economic growth. I understand that the Conference attracts stakeholders from across the African Continent, all with the purpose of advancing investment in affordable housing.

2. Let me begin by thanking the Nigerian Mortgage Refinance Company (NMRC) and other partners for hosting this important conference. The hosting of AUHF 2016 conference in Nigeria could not have come at a more auspicious time than now that Nigeria needs aggressive unleashing of new housing finance investments and opportunities. I will also like to thank all the stakeholders and experts from Africa and around the world for coming together to proffer solutions to the age long challenge of providing housing finance for Africans, especially Nigerians that are facing harsh economic challenges.

3. Housing, we know is critical to every human development and fundamental right of every citizen. Therefore, Housing is central to this Administration’s policy thrust. However, housing a population of over 180 million is an arduous task that cannot be left for Federal Government alone, especially now that the Government’s revenue and the economy is  under pressure.  The fund to support the construction and mortgages for the end-users is a big challenge for the government. The production cost versus the selling price of the present housing stock is beyond the reach of majority of Nigerians.  Demand for affordable housing has grown over the years as a result of population explosion, rural-urban drift and search for higher quality of life. This demand has rapidly overwhelmed the supply capacity of existing Government resources. Many years of inadequate investment and poor maintenance culture have left Nigeria with a significant housing deficit which is slowing down the country’s development and economic growth and will clearly require close collaboration from stakeholders like the AUHF. The above demanding task is the mandate of my Ministry, Federal Ministry of Power, Works and Housing. Therefore, all stakeholders especially the Private sector and AUHF must play major role in this process of creating innovative housing finance in Nigeria.

4. Every Nigerian’s dream is to have a roof over their head! Hence, for an average Nigerian "owning a house" is a mark of economic success and security.  Housing is also believed to be a long term investment that protects that investment against high inflation and the unpredictable economic down turn. Therefore, provision of housing is a major tool to reduce corruption. Why is it so difficult for the average Nigerian to realize this dream? Lack of Housing Finance in the public and corporate institutions and double digit housing loans are the major culprits while others include land for housing, population explosion, high cost of building materials, inflation that brings about unemployment and decreased purchasing power of the low and medium income earners.

5. The major housing Finance trends and developments in the Nigerian market can be summarized by tracing the historical tendency of the influence of the financial sector in the housing industry. In 1956, a Secondary Mortgage Institution called Nigerian Building Society (NBS) assumed the role of the main conduit for housing finance delivery. NBS was a British and Nigeria partnership arrangement. Nigeria’s housing finance development can be classified under major political periods, namely pre-independence (1914-1960), post-independence (1960-1979) and a second and subsequent civilian administrations (1979 to date). However, the mortgage institutions decree No. 53 of 1989 led to the establishment of the following; Primary Mortgage Institutions (PMI) as mortgage savings for on-lending property development and mortgage creation. And, the Secondary mortgage institution, the Federal Mortgage Bank of Nigeria (FMBN), to function as the Apex mortgage institution for regulation.  While the National Housing Policy of 1991 was a bold step by the Federal Government of Nigeria to address the challenge of lack of finance for housing development and mortgage.  The National Housing Fund (Act. No. 3) of 1992 is a collating reservoir of long term funds in terms of monthly contributions from workers in the public and private sectors. Unfortunately, most Nigerians see mortgage loans from Government as part of their share of the "national cake" leading to high default rates. This has forced the Government to encourage prospective home owners to approach commercial banks who regrettably have high interest rates.  Thus, the Government who is supposed to be a major player in the provision of homes is now seemingly not on the frontline. The Government established the Nigerian Mortgage Refinancing Company (NMRC) to help in reducing the cost of mortgage loan by improving market efficiency.

6. From the inception of Government initiative in organized housing finance system to date, only a meager sum have so far been injected to the system. This accounts for less than 0.5% of the Gross Domestic Product (GDP) as compared to other climes (like United Kingdom, South Africa etc) due to the inability of financial systems in providing low cost finance that meets the need of low and medium income earners. Therefore, the Secondary Mortgage institution (FMBN) should be strengthened by ensuring full compliance with the National Housing Funds (NHF) Act by affected stakeholders, like the Central Bank, commercial banks, insurance companies, Mutual and Trust Fund administrators.  However, I am happy to note that with the greater participation of the private sector in housing and embracing the new initiatives of this Administration, the journey to sustainable housing delivery is on course.

7. Ladies and Gentlemen, it may interest you to note that the current Administration has taken cognizance of the housing sector as an important area requiring priority attention for reinvigoration and revitalization. This accounts for the appreciable budgetary allocation to the sector in the current annual estimate. This vision is increasingly being energized by the Federal Ministry of Power, Works and Housing. Only recently, the Ministry organized a National Housing Summit, where stakeholders met and examined the numerous constraints militating against the provision of affordable housing in Nigeria and proffered a clear, sustainable and strategic blueprint to mitigate same. Identified as a critical factor in the provision of affordable housing was lack of access to construction finance by developers including high risk in current mortgage finance structure which does not support the buying-off of houses to enable developers recoup their investments on time. The Summit resolved that there was need for necessary machinery to be put in place to promote appropriate construction finance schemes. AUHF members are hereby challenged in this regard. In the summit also, various definitions of affordable housing were adduced. However, the consensus from these definitions revealed that there is no one-size-fit all definition for Affordable Housing. The indices that should be used for defining Affordable Housing would include Segregation, Stratification, Classes of people and their income bracket, not more than one-third net household income of the target group and equity contribution of end-users.

8. I am happy to note that despite the challenges that housing delivery has encountered in the country over the years, the renewed vigor and policy re-orientation of this Administration have set the agenda for Housing revolution. In this regard, the Ministry has produced six (6) designs of one bedroom, two-bedroom, three-bedroom flats, bungalows and condominiums that will represent the Nigerian House which responds to our cultural diversity. Another key area of achievement is the pursuit and promotion of local content and standardization of building components such as doors, windows, tiles, roof boards and other accessories to be produced by local manufacturers as part of our support for local industries SMEs and in pursuit of diversification and job creation. Effort is already being made to embrace and deploy modern technology to mass production of housing in all the States of the Federation and FCT using the Traditional procurement platform and the Contractor Finance Initiative model, to reduce the housing deficit.

9. To make the Housing Sector attractive, viable and stimulate growth, the present Administration plans to de-risk lending to approved Housing Developers. This will entail the government providing guarantees and other credit enhancement to developers. Government therefore plans to issue promissory notes to reduce Developers financing requirements. Government recognizes that provision of leverage and guarantees are critical in attracting private sector funds into the industry thereby creating thousands of affordable houses each year as well as generate considerable employment and commercial activities. These are some of the far reaching contribution of the Finance Minister during the Housing Summit.

10. Ladies and Gentlemen, I wish to state here that much discussion has been held on the housing deficit. There is therefore need to change the story to begin to discuss the housing opportunities. Regardless of issues facing the sector, real estate projects are increasingly being launched and completed in Nigeria. With the present Administration’s many incentives, new investors are expected in the market to continue to deliver positive results.

11. It is on this note that I call on all stakeholders, especially members of the African Union for Housing Finance here present to join hands with the Federal Government towards the realization of its objectives in providing affordable housing to the people. As agent of change, members are enjoined to borrow a leaf from Nigeria and influence their respect home governments to domesticate or localize their housing options to reflect the peculiarities and expectations of the people as well as provide the private sector the needed impetus to invest in the sector.

12. Finally, I wish to state that though the challenges to the sector are real and obvious, we are convinced that with the renewed commitment of this Administration, coupled with strengthened collaborations with all stakeholders in the industry, the desired revolution in the housing sector will be achieved in not too distant future.

13. I wish you all very engaging and thoughtful deliberations and thank you for listening.

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Photo News
10 January, 2018

FIRST FEDERAL EXECUTIVE COUNCIL MEETING OF 2018

Left to Right National Security Adviser MajorGen Babagana Monguno left Minister of Power Housing and Works Babatunde Fashola and Secretary to Government of Federation SGF Mustapa Bossduring the first Federal Executive Council meeting of 2018 presided over by His Excellency President Muhammadu Buhari GCFR on Wednesday 10th January 2018

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Power News
Photo News
12 January, 2018

FASHOLA INSPECTS THE NATIONAL METER TEST STATION OSHODI LAGOS

Hon Minister of Power Works Housing Mr Babatunde FasholaSAN 2nd left and Managing DirectorCEO Nigerian Electricity Management Services Agency NEMSA Chief Electrical Inspector of the Federation Engr Peter Ewesor 2nd right during the inspection visit of the Hon Minister to the NEMSA National Meter Test Station OshodiLagos on Thursday 11th January 2018

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