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Feb
02
2026

LATEST PRESS

FG COMMISSIONS REHABILITATED SECTIONS OF GWADA-SHIRORO ROAD, RESTORES CONNECTIVITY AND SAFETY IN NIGER STATE AND BEYOND 

The Federal Ministry of Works has officially commissioned the completed critically failed sections of the Gwada–Shiroro Road Section 1 in Niger State, alongside Emergency Repairs of Embankment Washouts and the Construction of a 2-Cell Box Culvert on the same alignment. The projects are part of the 260 Emergency/Special Intervention Projects carried out, nationwide, by the Renewed Hope Administration of His Excellency, President Bola Ahmed Tinubu, GCFR in order to salvage the nation’s road network. It signals a significant milestone in restoring connectivity, safety, and economic activities in the affected areas.

Speaking at the commissioning ceremony, which forms an integral component of a National Media Tour, the Federal Controller of Works (FCW) in Niger State, Engineer Eyitayo Aluko, welcomed members of the Council for the Regulation of Engineering in Nigeria (COREN), Nigerian Society of Engineers (NSE), Civil Society Organisations (CSOs), community leaders, residents, members of the press, and other stakeholders. He informed the gathering that he represents the Honourable Minister of Works, His Excellency, Sen. (Engr.) David Umahi CON, FNSE, FNATE in the State, describing the intervention as “two projects in one.”
Engineer Aluko explained that the ceremony site was previously a critical failure point on the road, where a one-cell pipe culvert had collapsed due to its flawed design and overburdenedness. The collapse of the culvert severely disrupted the movement of people, goods, and services, moving in and out of Gwada town into a major challenge for commuters and residents.

“Before our intervention, movement through Gwada was a nightmare. The pipe cover here was inadequate and eventually collapsed. We had to intervene urgently,” said the Controller. According to him, the Ministry improved the infrastructure by replacing the collapsed one-cell pipe culvert with a two-cell box culvert measuring 2.0m x 2.0m, significantly enhancing water flow capacity and structural stability, and durability. He noted that the project has since been completed and traffic has fully resumed.
In addition to the construction of the culvert, the FCW disclosed that several failed sections of the Gwada–Shiroro Road were rehabilitated to improve travel time, road safety and reduce wear and tear of vehicles. The scope of work included embankment washout remediation, construction of the box culvert, laying of stone base, granular course, and asphalt surfacing.
The projects were awarded to Messrs Wise Spin Limited and Messrs High Dee Construction Limited, and have been substantially completed and put to use.

Also speaking at the occasion, the Representative of  COREN, Engineer Dr. Bala Saliu, who is also the Chairman of the Engineering Regulation Committee of COREN, Niger State Chapter, commended the intervention, describing it as professional, timely, and impactful.

“This intervention speaks for itself. The project has been put to use, and you can see the community's happiness. Despite how remote this area is, its economic and social importance cannot be overemphasised,” he further noted.

He added that similar critical areas exist across Niger State and expressed confidence that the Federal Government would continue to intervene to ease the challenges faced by commuters and residents.

The Secretary General, NSE, Minna Branch, Engineer Abubakar Kawu also praised the delivery of the two projects. He described the Gwada–Shiroro Road as a strategic route that required urgent attention.
“This timely intervention has significantly reduced road accidents and increased socioeconomic activities. This road leads to the Shiroro Hydroelectric Power Station, a major contributor to power generation in Nigeria,” he recalled. He further stated that the road rehabilitation would positively impact the power and energy sectors, while affirming that the project meets required engineering standards and professional regulations.

The Mai Anguwa (Ward Head) of the immediate benefiting community, Alhaji Alhassan Zarumi, expressed deep appreciation to the Federal Government for extending the nationwide road intervention initiative to his people. He described the road as a former “death trap” and emphasised its importance as a link to the Shiroro Power Station and other surrounding towns and villages.

“If this place were not repaired, I wonder if we would be passing here today. Now, we can move freely and safely. We thank the Federal Government, the Engineers, and the contractors for a job well done,” he said.

In his remarks before performing the ribbon-cutting ceremony, the Vice Chairman of the Nigeria Union of Journalists (NUJ), Niger State Chapter, Comrade Uriah Tsado Gana, thanked President Tinubu and the Minister of Works for ensuring the successful completion of the project.

The Team visited ongoing works on the Bida–Lemu–Wushishi–Zungeru Road, Phase 1, which commences from Yesso Junction in Bida Town to Yazhigi. Giving an update on the progress of work, the FCW revealed that the road shoulders are being constructed with 200mm thick concrete, and that approximately 16 kilometers of asphaltic binder course have been completed out of the 29.5-kilometer project length - representing about 40 percent completion. He added that the contractor is actively on site and is expected to complete the binder course within the next two months, after which the asphaltic wearing course will be applied.

The Project Manager of Gerawa Global Engineering Limited, Engineer Adam S. Adam, corroborated the update and highlighted initial challenges faced during project execution, including security concerns and attempted kidnappings. He disclosed that with the support of the Ministry, community leaders, and security stakeholders, these issues have been fully resolved and work is ongoing. “We are now working day and night. The problems have been resolved completely, and the quality of work speaks for itself,” he stated.

Also present was the NSE official, Engineer Aliyu, who attested to the project’s compliance with engineering standards and professional ethics, giving kudos to the company handling the work.

The Ministry continues to demonstrate its commitment to enhancing national road infrastructure with the execution of major highway projects across Niger State, aimed at improving connectivity between the Northern and Southern parts of the country, guaranteeing safety, and enabling socio-economic development. Another strategic project underway in the State is the Jebba–Mokwa–Bokani Junction Road (Section II), which forms part of the Trans-Sahara Road Network, linking Lagos in the South West geopolitical zone to Northern Nigeria through Kwara State.

The route is a vital artery that carries heavy volumes of articulated traffic on a daily basis. And the project is redesigned as a Dual Carriageway with a pavement structure consisting of 7.3-metre-wide asphaltic concrete carriageways on each side, complemented by 3.0m and 2.75m wide surface-dressed shoulders. The pavement layers include a 200mm thick sub-base, 275mm stone base, and two asphaltic concrete layers of 75mm binder course and 50mm wearing course.

The road section commences at the northern end of the River Niger Bridge in Jebba and terminates at the Bokani Junction, with a total length of 46.0 kilometres. It involves the construction of an additional carriageway that intersects the existing one at various alignments, traversing farmlands, settlements, and diverse terrains, including hills, valleys, streams, and ridges. Interchanges will also be constructed at major intersections to facilitate free-traffic flow. The project is being executed by Messrs CGC (Nigeria) Limited.

In addition, the Federal Government is presently rehabilitating the Minna–Zungeru–Tegina Road (Section I), also a major transportation link connecting Northern and Southern Nigeria and a vital route for the movement of industrial and agricultural goods. The road has suffered severe deterioration over the years, characterized by deep potholes, failed carriageway sections, frequent accidents, and prolonged travel time.

Section I of the project stretches 94.987 kilometres from Minna to Tegina, comprising a 10.90km dualised urban section within Minna town and an 84.087-kilometre single carriageway through inter-urban and non-urban areas. The scope of work includes the rehabilitation of the single-carriageway sections and overlay of the existing dual carriageway, which remains in fair condition. The road traverses about eighteen communities, including Maikonlele, Kuyi, Gusase, Zungeru, Akusu, Garum Gabas, and Gatako, terminating at Tegina.

The existing infrastructure includes several pipe and box culverts, as well as seven bridges, many of which are slated for repair and maintenance due to siltation and structural degradation. The project is being handled by Messrs Develevo (Nigeria) Limited in partnership with Messrs HMF Construction Limited.

Similarly, Section II of the Minna–Zungeru–Tegina Road, covering the Tegina–Kontagora axis, is also receiving intervention. This section is a single carriageway extending from Tegina to Kontagora, with its zero chainage at a Y-Junction off the Mokwa–Makera–Kaduna State border road and terminating at the Kontagora roundabout. The road passes through several semi-rural communities, including Gimi, Babban Gona, Mariga, Bobi, Beri, Tungan Ahmadu, Tadali, and Machanga.

The existing carriageway, though originally constructed to standard specifications, has suffered erosion of shoulders and deterioration of pavement in several sections. The project includes the replacement of substandard culverts, desilting of existing drainage structures, and maintenance works on six bridges along the corridor to ensure structural integrity and improved hydraulic performance. The contractor handling this section is Glamor Engineering Nigeria Limited.

Upon completion, these projects are expected to significantly reduce road accidents, shorten travel time, improve the movement of goods, both industrial and agricultural, and strengthen economic activities across Niger State and its neighbours. The Administration remains committed to delivering quality road infrastructure that enablers of national growth and improves the quality of life of Nigerians. Road users, members of the benefiting communities along the corridors visited, and different stakeholders were full of praises to Mr. President’s infrastructure renaissance.

Mohammed A. Ahmed
Director, Information and Public Relations.
1 February, 2026.

Feb
02
2023

Implementation Of Phase Two Of NNPC-Funded Tax Credit Scheme On 44 Road Projects Nationwide Gains Momentum •      As Fashola Convenes Stakeholders’ Meeting, unveil roads   •      Describes policy as a very defining legacy for President Buhari •      NNPCL, FIRS other stakeholders pledge to sustain funding till completion •      Contractors pledge timely delivery of quality road infrastructure •      This Minister has set a record of achievements – NARTO President With appreciable progress being made in the first Phase, the implementation of the Nigerian National Petroleum Corporation Limited and Federal Inland Revenue Service (NNPCL/FIRS) Second Phase for the rehabilitation and construction of 44 critical roads across the country under the Tax Credit Scheme initiative of the Federal Government gained momentum Tuesday as the Minister of Works and Housing convened a meeting of the Stakeholders and briefed the press while also unveiling the roads. The Meeting came barely a fortnight after the approval of the Memorandum on the proposal by the NNPC and its subsidiaries, NNPC Exploration and Production (NEPL) and NNPC Gas Infrastructure Company Limited (NGIC) to undertake the rehabilitation of 44 roads spread across the six geopolitical zones of the country. The selected roads, amounting to 4,554.19 kilometres, include those in the South-South zone which are the Completion of Benin-Warri Dual Carriageway, Edo/Delta States; East-West Road, (Section I) Warri-Kaiama in Delta/Bayelsa States; East-West Road (Section II –I) Port Harcourt-Ahoada in Rivers State; East-West Road (Section II-II) Ahoada-Kaiama in Rivers/Bayelsa States and East-West Road (Section III) Onne Junction-Eket in Akwa Ibom State. Others are Dualization of East-West Road (Section IV) Eket-Oron also in Akwa Ibom; Upgrading of 15-kilometre Port Harcourt-Onne Junction (Section IIIA) in Rivers State; Construction of Eket Bypass (Dual Carriageway) in Akwa Ibom State; Dualization of Lokoja-Benin Road: Obajana Junction-Benin Section II Phase I: Okene-Auchi, Kogi/Edo States; Dualization of Lokoja-Benin Road: Obajana Junction-Benin Section III Phase I: Auchi-Ehor, Kogi/Edo States; Dualization of Lokoja-Benin Road: Obajana Junction-Benin Section IV Phase I: Ehor-Benin City; and Nembe-Brass Road in Bayelsa State. All the roads amount to a total of 1,308.3 kilometres. The North East Zone has a total of 1,054 kilometres consisting of Rehabilitation of Yola-Mubi-Maiduguri Road in Adamawa/Borno States; Rehabilitation of Maiduguri - Monguno Road; Rehabilitation of Numan-Jalingo Road in Taraba/Adamawa States; Rehabilitation of Yola-Hong-Mubi Road in Adamawa State; Reconstruction of Bali-Serti-(Gashaka)-Gembu Road in Taraba State; and Rehabilitation of Yashi - Deguri - Yalo Road in Bauchi State. North Central zone has 763.13 kilometres consisting of Rehabilitation of Minna-Zungeru-Tegina-Kontagora Road in Niger State, Section I: Minna-Tegina; Rehabilitation of Minna-Zungeru-Tegina-Kontagora Road in Niger State, Section II: Tegina-Kontagora; Shendam-Yelwa-Mato Junction-Taraba Border with Spurs in Plateau/Taraba States; Dualization of Suleija-Minna Road in Niger State: and Dualization of Lokoja-Benin Road: Obajana Junction-Benin Section I Phase I: Obajana-Okene, Kogi State. Others include the Reconstruction of the existing Pavement and Completion of the additional Pavement on the Dualisation of Abuja - Lokoja Highway Section Ill: Abaji - Koton Karfe Road in Abuja/ Kogi State; Construction of the Jarmai-Bashar-Zuruk-Andame-Karim Lamido Road in Plateau and Taraba States; Reconstruction and Expansion of Mararaba - Keffi Road in Nasarawa State. The North West Zone has a total of 980 Kilometres of roads being reconstructed consisting of Dualization of Zaria-Funtua-Gusau-Sokoto Road in Kaduna, Katsina, Zamfara and Sokoto States: Section I Zaria-Funtua-Gusau; Dualization of Zaria-Funtua-Gusau-Sokoto Road in Kaduna, Katsina, Zamfara and Sokoto States: Section II Gusau-Sokoto Road; Dualization of Zaria-Funtua-Gusau-Sokoto Road in Kaduna, Katsina, Zamfara and Sokoto States: Section II Gusau-Sokoto Road in Zamfara State; Dualization of Zaria-Funtua-Gusau-Sokoto Road in Kaduna, Katsina, Zamfara and Sokoto States: Section III Gusau-Sokoto Road in Zamfara and Sokoto States; Dualization and Construction of Kano-Kwanar Dauja-Hadejia Road in Kano/Jigawa States, Section I. Tsalle-Hadejia; Dualization and Construction of Kano-Kwanar Dauja-Hadejia Road in Kano/Jigawa States, Section II. Kano-Tsalle; and Rehabilitation of Kaduna-Pambeguwa-Jos Road in Kaduna/Plateau States. South East has 297.52 kilometres of roads consisting of Rehabilitation of Aba - Owerri Road NNPC Depot Expressway, Abia State; Rehabilitation of Otuocha - Anam- Nzam- Innoma-Iheaka- Ibaji Section of Otuocha - Ibaji-Odulu-Ajegwu in Anambra State; Construction of Ihiala-Orlu-Umuduru Road (Ihiala-Amaifeke Section) and Completion of Spur in Isseke Town-Amafuo-Uli in Imo/Anambra States. It also includes Rehabilitation of Old Enugu - Onitsha Road (Opi Junction - Ukehe Okpatu-Aboh Udi-Oji to Anambra Border) in Enugu State; Construction of Omor-Umulokpa Road in Anambra and Enugu States; Rehabilitation of Ozalla-Akpugo-Amagunze-Ihuokpara-Nkomoro-Isu-Onicha (Enugu-Onicha) with a Spur to Onunweke in Enugu State; and Rehabilitation of Old Enugu – Port Harcourt Road (Agbogugu-Abia Border Spur to Mmaku) in Enugu State. The South-West has a total of 150.56 Km of roads consisting of Rehabilitation and Expansion of Lagos-Badagry Expressway (Agbara Junction-Nigeria/Benin Border) in Lagos State; Dualization of Akure-Ita Ogbolu-Iju-Ado Ekiti State Road, Section I: Akure - Ita Ogbolu - Iju - Ekiti State Border in Ondo State; and Dualization of Akure-Ita Ogbolu-Iju-Ado Ekiti State Road, Section II: Ita Ogbolu - Iju – Ado-Ekiti in Ekiti State. In his remarks at the Meeting and Press Briefing, Fashola described the public private sector agreement as a very defining legacy for President Muhammadu Buhari pointing out that the impact of the “very innovative investment policy” would help Nigeria to really do business both locally and internationally being a sound infrastructure-based investment policy on which business is done. The Minister, who recalled that back in 2015 at the inception of the Buhari Administration, contractors were being owed two to three years’ payment arrears resulting in the shutdown of many project sites and laying off of construction workers by the companies, added that the Buhari administration arrested the situation by budgetary expansion from N18 billion for the whole of Nigeria’s road by the previous administration to N260 billion in 2016. “You were being owed”, the Minister reminded the contractors at the Meeting. “Some of the complaints that I heard at the first meetings that I had with many of you when I was first appointed Minister were that you were paid only 10 percent advance payment two or three years ago. That was how bad the construction industry was when we started”, he said adding that some of the roads were contracted back to “the private sector” to go and raise fund to finance them. Fashola, who also recalled that the roads contracted to the private sector, included the Lagos-Ibadan Expressway and the Second Niger Bridge, among others, added, “But where was the private sector going to raise hundreds of billions of Naira to fund them”. He explained that the Buhari administration had to utilize more practical funding initiatives like SUKUK. Recalling the controversies and criticisms that followed the borrowing option which the administration chose to fund the road and bridge projects, the Minister, who acknowledged the concern of the people over debt, however, added, that the debts “are buying roads, bridges, airports and seaports, assets that will last and sustain Nigeria’s development for the next 50 years”. He pointed out that the administration also met debt when it took power adding, however, that the difference between it and its predecessor was that the debts it met on assumption of office in 2015 had no assets attached to them while the Buhari administration invested its debts on infrastructure assets. He said the choices at the time were either borrow or increase taxation noting that without any of the choices, the economy would collapse. Faced with the choices, the Minister said, the administration took the borrowing option and also utilized an expansionist fiscal budget from N18 billion to N260 billion, adding that it thereafter supported the SUKUK and also went to recover some of the monies taken away from this country which today, according to him, “are building Abuja-Kano Highway, Lagos-Ibadan and the nearly completed 2ndNiger Bridge”. Giving a brief history of the NNPC/FIRS agreement, Fashola, who said that the NNPCL was investing its resources into infrastructure, explained the ideology of the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme as “a new model of partnership with the private sector companies whereby government is saying, “Give me my tax in advance and I will invest it in infrastructure”. “That model is why all of you are here”, he told the audience consisting of funding agencies and government representatives as well as contractors and newsmen adding that the innovation “shows the clear difference between two different government policies and it shows how they affect your businesses”. On the 44 roads, Fashola, who explained that many of them have been contracted but without funds to execute them, told the contractors, “This intervention, therefore, is to complete those roads and the NNPCL is providing the fund. And this is the crux; because it means that whether we are here, Buhari is here but is going in the next four months, there is sustainability in the completion of these roads. And they have assured me that when you work to specification, the money is there”. Noting that there are 21 roads in Phase One of the Scheme covering 1,804.6 kilometres, Fashola explained that there are other interventions by other groups like the Dangote Group, the NLNG Group in Bodo-Bonny, the MTN Group in Enugu-Onitsha Highway and others adding that this represented a very defining moment for the construction industry and allied industries. The Minister appealed to all the communities encroaching on the right-of-way along the road corridors to vacate the places adding that all the claims for compensation by people who have encroached on such right-of-way would not be honoured while they must quit the encroached places or risk forceful ejection. “Our right-of-way is 45.75 metres from both sides of the centre line. Many of the people who have built petrol stations and shops are inside our right-of-way. We will not pay compensation to those who have trespassed into our land, so they must leave”, he said appealing, however, that where the government needs right-of-way outside its zone, State governments, Village and Traditional Heads should appeal to their people to allow passage. Fashola added, “These roads are not taking away your lands rather they are bringing prosperity to you and we expect that in the process of nation building everyone must be ready to contribute something”. Highlighting the benefits of the revitalized construction industry to the economy, the Minister declared, “We have increased the number of quarrying companies, sand quarrying has also increased from 247 to 302. Granite quarrying companies have also increased from 334 to 655 and those who are quarrying laterite have increased from 108 to 259”. Describing quarrying as a driver of the construction industry, the Minister who said it is impossible to build roads without laterite and granite, added “And this translates to jobs as we build more quarries. I am sure members of NARTO and NURTW who are here can begin to calculate how many trucks trips and how much income that could bring. I was at their AGM recently and the least they could say is “Business is good”. This is the impact of a policy that is driving the economy”. The Minister also cautioned the Contractors against variation in the contract noting that the agreement was very specific on the variation. He declared, “So if you are going to ask for variation please opt out and say you cannot carry on with the programme. That is one of the reasons we are signing the agreement; and that is from the investors’ side because they are not factoring in variation”. He appealed to the financiers for timely payment of certificates for work done adding, “We need to improve the governance side of payment so that when receipts come, payments should not be delayed unnecessarily. Delayed payments increase the chances of variation. So, it is critical now that we also, with dispatch, sign the contracts when we are able, start the work so that we can process all the advance payments”. He urged the legal department of the Ministry to hasten the preparation of the documents so the agreement could be signed soon adding, “We have just finished our EMBER Months programme so this meeting is very strategic and we should handle it properly. The NNPC and FIRS are ready to go. So, I call on our legal department to accelerate the completion of this agreement. The Minister also warned the contractors, “Quality must not be compromised; they will have their own consultants. So, if their consultant queries the quality of your job, you don’t get paid. We don’t have the money; they have the money”. Those who spoke at the event included the Group Managing Director of NNPCL represented by the Chief Financial Officer, Mr. Umar Ajiya, the Chairman of the FIRS, Mr. Mohammed Nami, who all pledged to ensure the success of the Scheme, representatives of the contractors and President of NARTO, President of the NURTW who all hailed the Buhari administration and the Minister for driving the economy positively through massive investment in infrastructure. According to the NARTO President, “This Minister has set a record of achievements”. ...

Jan
31
2023

FG Commences Phase II of The NNPC Road Infrastructure Tax Credit Scheme  … Intervention will ensure cash flow, steady projects completion - Fashola The Honourable Minister of Works and Housing, Babatunde Raji Fashola has stated that the Federal Executive Council has approved Phase II of the NNPC/ FIRS Road Infrastructure Tax Credit Scheme. The Minister said that the introduction of the NNPC Tax Credit Scheme will ensure the sustainability of funding critical infrastructure in Nigeria Fashola stated this at a press briefing in Abuja where all the stakeholders, including NNPC, FIRS and contractors were in attendance. The Minister noted that contrary to inadequate funding of infrastructure experienced under the past governments, the administration of President Muhammadu Buhari, has identified alternative sources of funding that could guarantee sustainability from the beginning of the projects to its completion without hitches Accordingly, he explained that the tax credit scheme is a new model that encourages partnership with private companies where taxes are paid in advance to enable the government invest in notable projects that would be beneficial to its citizens like what is going on in the road sectors of the economy. The Minister also mentioned that the Federal Government which has focused on nine major axis of Nigeria, explained that the A1 – A4 axis of the country covers the Northern part of the country, while the A5 - A9 axis covers the East-West zone of the country. He explained that the successful completion of all the roads would lead to sustainable mobility for Nigerians. The roads like Akure – Ado –Ekiti and East-West which people have been complaining about would be adequately catered for with the approval of the second phase of the NNPC Tax Credit Scheme. On payment of compensation, Fashola noted that compensation would not be paid to anyone occupying the government’s right-of-way, saying that the federal government right of way was 5.75 meters on both sides and appealed to members of the communities occupying it to vacate. Earlier, in his introductory remarks, the Permanent Secretary, represented by the Director Overseeing the Office of the Permanent Secretary, Engineer Folunsho Esan, recalled that in line with the Executive Order 7 (2019) approved phase 1 of NNPC/FIRS Road Infrastructure Tax Credit Scheme on the 27th of October 2021. He stated that with the completion of Phase 1, the Federal Executive Council (FEC) has also approved phase II of the scheme to fund 44 critical road infrastructures to the tune of N1.96 trillion naira. Speaking further, Esan said that as it was done with phase I, phase II would be governed by a set of guidelines to be issued to each contractor, adding that there would be a funding intervention agreement to be implemented in addition to the standard condition of the contract governing the execution of the projects. He said: “The availability of this new funding window will ensure steady cash flow and a timely completion of projects.” He also stated that the NNPC intervention which began in October 2021 with phase I has now occupied the top of the log with a portfolio well in excess of N2.6 trillion. On the part of NNPC, the Group Managing Director who was represented by the Chief Financial Officer of the Corporation, Umar Aliya said that funding would not be an issue anymore as the Corporation is committed to fully funding phase II. He said: “We are committed to setting aside funds for phase II. Funding would not be a problem. What is important to us is that our consultant will need to validate the value for money and the quality of work. We will not compromise the quality and timely completion of work. “ The NNPC MD further assured of the availability of fund, saying that “there is no need for excuses. As for us on our part, we are committed and we implore the contractors to do quality work and do it on time so that the road projects can be open for use to Nigerians,” On his part, the Executive Chairman of the Federal Inland Revenue Services, Mohammed Nami, he commended NNPC for the intervention as well as the contractors for the quality of the job done in phase I of the scheme and assured that the NNPC has the capacity to fund the phase II of the scheme. He explained that most of the roads captured by Executive Order 7 to be executed by NNPC were mostly road projects inherited by the administration of Muhammadu Buhari and they are being fixed by the present administration through the taxes paid by Nigerians “So, we are appealing to Nigerians to trust Executive order 007 so that government will continue to provide the physical infrastructure that our people need. “he said. The representative of the indigenous contractors, Isa Muhammed Gerawa, who spoke in the Hausa language, commended the administration of President Muhammadu Buhari for giving equal opportunity to local contractors to execute such contracts. He described the Minister of Works and Housing , Babatunde Fashola as a hardworking and committed Nigerian under whom many dilapidated Nigerian roads have been fixed and a number of single carriageway now dualized. Gerawa also commended the present government for raising the budget of the Works Ministry from N18bn in 2015 to over N200bn, pointing out that it was a clear commitment of the administration’s desire to fix the nation’s road infrastructure for development. ...

Jan
24
2023

FG Hands over 2 Kilometre Road to University of Jos. The Federal Government has commissioned and handed over the two-kilometre road rehabilitated by the Federal Ministry of works and Housing to the Management of the University of Jos, Plateau State. At the commissioning ceremony, the Minister of Works and Housing, Babatunde Fashola who was represented by the Federal Controller of Works in Plateau State, Engineer Usman Abubakar Majin stated that the gap of the infrastructure need was steadily been bridged by the gradual process of repairs, renewal and construction on major highways and schools. The Minister pointed out that the quality of education is connected with the quality of Infrastructure in an institution of learning.  He said, "It is undebatable that quality of education will be impacted by the quality of infrastructure and the learning environment and those who doubt it should simply listen to some of the feedback from students in the schools where this type of intervention has taken place." Fashola further said," We have successfully intervened in 64 internal road projects in various Federal Tertiary Institutions and handed over a total of 46 as at March, 2022 and we now have another 18 ready to be handed over while we are currently attending to 19 roads in similar institutions across the Country making a total of 83." The Vice Chancellor of the University, Professor Tanko Ishaya who was represented by the Deputy Vice Chancellor Administration, Professor Joshua Amopitan, expressed profound gratitude to the Federal Government for the road rehabilitation, adding that it has brought a lot of relief to the students and staff of the Institution. He said, "The road was in a terrible shape before it was reconstructed, it will not only benefit the students because it leads to the hostel but also our staff and parents who normally come to the institution." The VC added that the vehicular hiccups normally experienced in the University had been drastically reduced due to the current good condition of the road. He further said that the forthcoming 22nd and 23rd convocation of the University will be merrier as a result of the road. The occasion was witnessed by the Registrar, Dr Rejoice Songdem, Director Physical Facilities, Halima Auta, the University Librarian, Dr. Thomas Adigun and other staff of the institution. It was a joyful moment within and around the University community in Jos, Plateau state. ...

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03
2025

  


OTHER NEWS

Dec
11
2018

FG Commends Contractors On Quality Of Roads; Advocates For Alternative Funding Sources

The Federal Government has commended contractors handling various road and housing projects in the South South region for doing a good and quality job.

2.      The Honourable Minister of State I for Power, Works and Housing, Hon. Mustapha Baba Shehuri expressed satisfaction on the quality of road   rehabilitation and construction, as well as the construction of mass houses under the present administration,  since its inception three years ago. He added that contractors are now fully back to sites with attendant effects on rejuvenating the economy and enhancing human capital development.

3.      Shehuri noted that in tackling infrastructural deficits across the country, there is a dire need for alternative and innovative sources of funding beside the usual annual budgetary allocations, adding that government is presently using the SUKUK (bond) funding option and Public - Private - Partnerships (PPP) to bridge infrastructural gaps in the country.

4.      The Minister stated this in Yenagoa, Bayelsa State during a working tour to the South South geopolitical zone to inspect ongoing projects being embarked upon by the Ministry.

5.      Earlier in his tour, the Minister inspected the Dualisation of Lokoja – Benin road, Section II: Okene – Auchi, Section III: Auchi – Ehor, as well as Section IV: Ehor – Benin City.

6.     He also visited the ongoing Dualisation of  Sapele - Ewu road, sections I and II, Sapele - Agbor and Agbor - Ewu, respectively.

7.      The Honourable Minister expressed satisfaction in the level and quality of work being carried out, especially in Bayelsa state inspite of the difficult terrain. He said this while inspecting ongoing construction works on Yenegwe – Okaki – Kolo road and the Dualisation of Yenegwe Road Junction – Kolo – Otuoke – Bayelsa Palm road.

8.      While in Rivers State, the Federal Controller of Works, Engr. J. O. Fadire briefed the Minister on the progress of work on the Rehabilitation of Enugu – Port Harcourt Expressway, Section IV, Aba - Port Harcourt, as well as the 39 - kilometre Bodo – Bonny road with bridges across Afa, Opobo and Nanabie Creeks, the only one to link the Ogoni people with Bonny Island.

9.     Engr. Fadire stated that though there are challenges affecting the pace of work such as  the environment, compensation and youth restiveness,  he, however, commended the contractor, Messrs Julius Berger (Nig.) Ltd. for the progress made within a short period of time. He further assured the Minister that the project will be delivered as scheduled because funding is not an issue as the major financiers, Messrs NLNG Ltd. is committed.

10.     The Minister visited the  construction sites of houses under the National Housing Programme (NHP), the second of its kind in the history of the nation since the President Shagari Low Cost Housing of the early 1980s, in Benin City, Edo State, Asaba, Delta State, Uyo, Akwa Ibom State and Calabar, Cross Rivers State. He also inspected the ongoing construction of the Federal Secretariat in Yenegoa, Bayelsa, where the Federal Controller of Housing in the State assured the Minister that the project will be completed by February, next year.

11.    Hon. Shehuri noted that with the construction of these affordable Mass Housing Estates across the country, the present government is delivering on its campaign promise of bridging the housing deficit in the country, creating jobs and  generating wealth.

12.    The Phase I of the NHP projects, according to the Minister, have reached advance stages of completion and will be due for commissioning in the first quarter of next year, stressing that the houses are for all interested illegible Nigerians.

13.     The Minister further disclosed that the procurement processes for the second phase of the Programme will soon be concluded and contracts awarded for its commencement in all the states that have provided the Ministry with land.

14.     During the course of the Tour of Duty, the Honourable Minister also visited the 132 KVA Transmission Substations at Uyo and Calabar in Akwa Ibom and Cross River States, respectively, where the present Government installed and commissioned an additional 1 * 60 MVA Transformer each, in April.

15. While conducting the Minister round the Uyo Facility, the General Manager, Port Harcourt Region of the Transmission Company of Nigeria (TCN), Engr. Solomon Uyouko lamented that out of the 144 megawatts capacity of the transmission infrastructure, the DisCo utilise a meagre 2% daily, leaving most of the generated and transmitted power idle.

16. The story is almost similar at the 132 KVA Transmission Substation in  Calabar, where the Acting Assistant General Manager, Engr. Nasiru Bello stated that out of the 192 megawatts  transmitted daily, the DisCo evacuates between 20 - 30%.

17.      Commenting on the unfortunate state of power distribution infrastructure in the country, Hon. Shehuri said the present scenario is unacceptable, while admonishing the DisCos to up their game or pave way for those with requisite capacities. He further urged Nigerians to start blaming the DisCos for lack of electricity, not the Federal Government.

Speeches

Jul
14
2017

Power Sector Reforms- Challenges And The Way Forward

Being The Text Of The Lecture Delivered By The Honourable Minister Of Power, Works And Housing, Mr Babatunde Raji Fashola, San At The Department Of Economics 2017 Public Lecture Series, University Of Lagos, On Thursday 13th July 2017

I thank you for inviting me to be your guest lecturer at the 2017 edition  of your public lecture series.

I accepted this invitation for many reasons. First it was conveyed through Mr. Ayo Gbeleyi who served with me meritoriously as Honourable Commissioner and Head of PPP Office and he implored me to do the best I could to make time to accept.

Secondly, the topic which focuses on “Challenges and the way forward” resonates with my view of the power sector and I believe that of many, who acknowledge that the sector has challenges; more importantly the topic is solution driven and positive in outlook which is consistent with my attitude, that, instead of recrimination, reproach and cynicism, we should look for the way forward. 

I will like to say that many right thinking and well-meaning Nigerians are now taking this view, which is that the problem of power in the country can be solved, and we all have different but very important roles to play.

I will come to this as I proceed, but I must warn that this may be a fairly long speech, because there is a lot to say, and because there is a lot happening in power, and more importantly because I believe one of the most important things I can do as a Minister is to simplify what is going on for the benefit of the public and to discuss it using street level  terms and not technical terms.

The bottom line really is that people want to know when they will have stable electricity, why they do not have it, and what government is doing about it.

Permit me to share with you, what our road map is.

We recognise that our power supply is not enough and what we have done is do the simplest thing, get more power.

So our road map seeks to get, first incremental power, progress to stable power, and then achieve uninterrupted power.

From this road map it must be clear to any right thinking and well meaning person that this is a journey and not an event that will happen overnight.

As we progress on this journey, we will get to critical milestones from which we can look back and say we are now better off at that milestone, than when we started the journey.

I understand the urgency of now, to get the power, I understand the high level of expectation.

I know that they come from many years of broken promises and a change from government-managed power to privatisation of power.

While I fully support privatisation, I believe what took place in 2013 in the heat of politics was a privatisation that was well intentioned since 2005 but delivered with some deception in 2013 with the expectation of political profit.

It led many uninformed Nigerians to believe that once the privatisation was concluded, the assets sold to the Distribution companies (DisCos) and the Generation companies (GenCos) there was immediately going to be power.

I cautioned then that people’s expectations were being unduly raised without telling them that there was a lot of work to do.

While I believed that the APC government will do a better job, little did I expect that I would inherit the problem. But I am grateful for the opportunity from Mr. President, to contribute to solving a problem that I am deeply passionate about and I will offer nothing but my best while I am at it.

As I have said, there are challenges, which is why I accepted this invitation and they can be solved, which is why I have come to share my thoughts about the way forward.

I have also pointed out that we have a road map whose first objective is to get incremental power and this means power from gas, solar, wind, coastal waves, hydro dams, nuclear and bio mass.

I have also pointed out that all of us have roles to play.

I am inspired by the history of Nigeria that whenever we have united to confront a problem, we have never lost. The number of Nigerians interested in generating power is increasing daily and this is encouraging.

This is evidenced by dozens of letters and proposals I get daily, even though they are wrongly directed to the Ministry, because power is now privatised.

There are people who know about it, there are those seeking to make money from it, there are those who know absolutely nothing about it but are still seeking to try. The positive I take away from it is that we are increasingly looking in the right direction.

I will share a story with you, first for its humour and secondly for its consistency, with our road map to get the incremental power.

I had received a text on my telephone, one of the many hundreds I get daily since I published my telephone number many years ago.

This particular one was interesting because the sender alleged that he had found the solution to our energy needs and was wiling to share it with me.

I called him to discuss this “novel” idea he claimed to have. He then referred me to a news report that showed how somebody was generating electricity from a potato.

I then took the time to explain to him that this was not new technology but indeed what we had shared with school children in my time as Governor, in the Power Kids Club that we set up to introduce people to the fundamentals of electricity early in life.

Just as I was preparing this speech, one of my former state Executive Council members who served with me referred me to an online publication about generating electricity using biomass.

Ladies and gentlemen, these two instances confirm what I said about:

Increasing interest of Nigerians in solving the power challenge, which is positive and welcome.

Generating incremental power from all viable sources.

The hard truth is that generating electricity from potatoes or cow dung is possible. The question is viability and sustainability.

First, how much cow dung can we produce to keep the power going? Because even countries who have enough cows, like Brazil and can export beef, don’t use cow dung for power.

Similarly, how much potato can we produce to fire our power needs?

In any event, in a country where there is poverty and hungry people, and with the proven calorific and nutritional values of potato, I think it would be a poor choice to use it for power generation as opposed to using it for nutrition and well-being of children and people.

I will shortly come to specifics of what we are doing to resolve the challenges, but permit me as I have just clarified the situation about cow dung, potato, (which also by the way applies to all those who want to generate electricity by using waste) to also explain what I think is fundamental about power.

It is that there is no real problem in buying and installing a power plant. It is not different from you buying and installing a generator in your home.

The problem starts when you cannot get diesel or petrol, just as we usually don’t have enough gas supply either because of production shortages or vandalism.

The problem with your generator starts when you have to connect your neighbour and issues arise as to how you share the cost or what appliances your neighbour or even your family can switch on when the generator is running especially if it is not a very big one, in order to avoid damage.

The problem arises if the generator needs maintenance or repairs. Can you use it during repairs if you don’t have a backup?

What is true of the generators we install for ourselves is essentially true of the power plants we have as a country.

Those plants are nothing more than big generators. We connect them through 330KV wires, 132 KV wires, 33KV wires and 11 KV wires that transmit the power from the plant, carrying them across several hundreds of kilometres, injecting and sending them through about 183 sub-stations to the distribution companies before they get to our homes, offices, schools and so on.

In the process wires snap, equipment gets damaged by us or by natural wear and tear and requires replacement. Most of it, we have to import because we do not have enough as backup, the plant is not available during repairs.

In order to get incremental power therefore, we have resolved to use all our sustainable energy sources like hydro, gas, wind, solar, and coal (not potato and cow dung) and work is now going on at:

For Hydro -
a) Zungeru Hydro plant in Niger for 700 MW
b) Kashimbilla Hydro plant in Taraba for 40 MW
c)  Dadin Kowa Hydro plant in Gombe for 29 MW
d) Gurara Hydro plant Nigeria for 30 MW
e) Later this year work should start on Mambilla Hydro for 3,050 MW

As for gas plants, there are many already such as:

Egbin 1,320                              
Geregu I & II                                
Omotosho I
Omotosho II
Olorunsogo I
Olorunsogo II
Alaoji
Ibom
Calabar
Ughelli

to mention just a few, all of which are challenged by Debts owed from the previous administrations, lack of sufficient gas or vandalism of existing gas lines or a combination of them.

Gas supply is the responsibility of the Ministry of Petroleum Resources and its parastatals like NNPC, Nigerian Gas Company and others.

We are working with them to improve on supply of gas to these plants to ensure that their redundant capacities and idle turbines come back into operation to produce electricity.

We have just concluded repairs on Afam IV Power Plant that was plagued by a damaged transformer which we replaced in order to restore 100 MW of gas fired power to the grid.

Simultaneously there is a Presidential initiative with General Electric through our Ministry to deliver 240 MW of emergency power to the site of Afam III using the existing gas resources there.

The turbines are already in country and installation should be complete within year.

As for wind energy, we are completing the abandoned 10MW Katsina wind farm project to pilot wind energy development and if sustainable, we can expand it.

There is no recorded coal power production today. The last one at Orji River Coal Power Plant in Enugu built by the colonial government had been dismantled when I visited.

But we are working with a group that shows the commitment to deliver up to 3,000MW of coal power in the Benue/Kogi belt where there are proven and sustainable deposits of coal about 20 kilometres from the intended power site.

Solar power presents the real window of opportunity to quickly increase power and also give people access.

We have shown that we can deliver solar by completing the 1.2MW solar project in the lower Usman Dam area. We have signed power purchase agreements with 14 developers who potentially can deliver 1,125 MW of solar.

We are partnering with Jigawa state to deliver about 1,000 MW of solar power at a site of 2,000 hectares already delivered to us by the state government. The project is at design and preparation stage.

We have completed the energy audit to deliver independent power to 37 universities and 7 teaching hospitals and one of them is the University of Lagos.

27 (TWENTY-SEVEN) of those plants will be solar plants.

These are only one side of what government is doing to deliver incremental power through solar.

The other side is what citizens have started on their own with solar.

Some of the ones I can recall are those of an oil marketing company that is now powering its petrol filling stations by solar, and initiatives by other groups which I have helped to launch to deliver solar packs to unconnected communities.

Recently, the Acting President also commissioned an Independent Solar Power facility at a village called Wuna in Abuja that had not been connected to the Grid.

For the avoidance of doubt solar is the new power, its appeal is very strong with young people and it provides a unique opportunity to close our power supply deficit.

My final word on these sources of power generation is that they speak to the idea of an energy mix; and we have delivered one for Nigeria which targets 30% renewable of our total energy production by 2030.

Generation of power is not the end of the power value chain. On the contrary, it is just the beginning. To reach our homes the power has to be transported.

This is the Transmission System and the National Grid that co-ordinates 8 transmission regions with 183 substations from the National Control Centre in Oshogbo.

For the record, this Grid is also somewhat misunderstood. People have said it is the problem because it can only carry 5,000 MW.

I will correct this unchanging opinion first by stating that under the Buhari Administration, the Grid has expanded to 6,200 MW because we have completed transmission stations in places like Ikot Ekepene, Okada, Alagbon, Ajah, Katampe, Sokoto and awarded many more in places like Damboa, Pankshin, Osogbo, Kumbotso, Odogunyan to mention a few.

In the last few days we completed work at:
Kukwaba substation in Abuja
Increased transformer capacity at
Ajah substation in Lagos
Mayo Belwa substation in Adamawa

The logic therefore is that if projects to expand the Grid are being completed and new ones started, it is either ignorance or mischief to continue to argue that the Grid cannot wheel more than 5,000 MW.

The correct, informed and sensible view is that the Grid is dynamic and must grow as power production grows.

How we got to this Grid improvement is the story that I will share now.

Since the integrated power project started almost a decade ago, several projects were issued as contracts to develop the transmission system.

Many of the equipment imported by contactors were trapped at the port in over 800 containers for almost 10 (TEN) years because Government did not budget to pay the contactors.

It is in the first full budget of the Buhari Administration that a budget for payment was presented and approved in 2016.

At the time of preparing this speech, we have paid N930, 229, 418 (NINE HUNDRED AND THIRTY MILLION, TWO HUNDRED AND TWENTY-NINE THOUSAND FOUR HUNDRED AND EIGHTEEN NAIRA) and resultantly 387 (THREE HUNDRED AND EIGHTY SEVEN) containers have now been recovered and handed to the contractors for deployment to their site.

Some of those sites whose projects have been held back were:

1.      Design and construction of 2x60 MVA 132/33KV transmission substations at Kachia Kaduna State.    
2.     Ganmo-Ogbomosho 132KV transmission Line Project (45KM) Kwara-Oyo.
3.     Supply of Aluminum conductor composite core for Re-conducting of Onitsha New Haven 330KV transmission line.
4.    Construction of 132KV DC TRX line Yola-Song-Little Gombe-Mubi-Gulak.
5.    Construction of Onitsha Oba-Nnewi-Ideato Okigwe 132KV Double Circuit Transmission.
6.     Even the completion of the 215 MW Kaduna plant was held back because some of those equipment were previously trapped in the port.

We are currently planning to maintain and upgrade the carrying capacity of some old lines by re-conducting them and expanding their transmission capacity.

But while the transmission is being upgraded the last mile of the value chain, which is the distribution end, must be ready to accept and distribute the power.

For the record, there are 11 Distribution Companies namely:

– Kaduna Distribution Company
– Kano Distribution Company
– Yola Distribution Company
– Jos Distribution Company
– Abuja Distribution Company
– Ibadan Distribution Company
– Ikeja Distribution Company
– Eko Distribution Company
– Benin Distribution Company
– Port Harcourt Distribution Company
– Enugu Distribution Company

Many of them inherited old distribution assets like feeders, Transformers, Ring main units and conductors (the lines) to mention a few.

If you are observant you will see falling, bending, misaligned poles and wires in your streets and neighbourhoods.

They don’t look as organised as those you see abroad.

These are the old assets sold to the DisCos which must be upgraded, repaired and replaced over time in order to be able to effectively distribute power (received from the Transmission Company) to your offices, schools, shops and homes.

Therefore, the Transmission Company is a service provider to the DisCo, who is the customer just as the DisCo is the service provider to you and I who are customers.

Therefore, if any one of them is inefficient, you and I don’t get power or it is unreliable.

You will have heard of load rejection and be wondering why what is not enough is being rejected.

Each DisCo has a fixed % of the total amount allocated to it and the DisCo then nominates the area within their business area where they want TCN (the transmission) to send power.

Disco % of total allocated in MYTO2  
Abuja 11.5%
Benin 9%
Enugu 9%
Eko 11%
Ibadan 13%
Ikeja 15%
Jos 5.5%
Kaduna 8%
Kano 8%
Port Harcourt 6.5%  
Yola 3.5%

 

 

 

 

 

 

 

 

 

 

Normally as a business they will nominate supply to places where customers are paying and where their equipment is working.

In places where collection is difficult or equipment is not functioning, they will refuse to energise their power intake or are unable to do so. This is what is called load rejection.

What then happens is that the Control Centre tells the GenCos to reduce their power production because if it is not taken, it results in high frequency which can damage the generating unit, create loss of power, and sometimes result in Grid collapse depending on how severe the outage is.

The problems came on the Horizon as Gas is improving and Rains are  arriving to increase power production on Thermal and Hydro plants.

Eligible Customer

This is why I have exercised the power conferred on me by the Act to declare what is called “Eligible Customer”.

What this simply means is that certain classes of consumers that consume a lot of energy like factories, hotels, state governments or local government secretariats, whose DisCos have poor distribution equipment, can apply to NERC for eligibility to build the distribution facility that the DisCo cannot or refuses to build, and then take their power direct from the GenCo.

Clearly the purpose is to increase service and access to power and we have already received a number of requests; however the power is not cheap.

The cost of building the distribution asset means that it comes at a premium, but offers access to more realistic power, which is cheaper than self-generation and diesel, which is between N60-N70 per kw/h.

The success of this initiative offers many prospects for success:

Competition by small GenCos
Response by DisCos to upgrade their equipment
Disaggregated tariff paid by eligible customers who are high end consumers without materially adversely affecting regular domestic consumers, (whose tariff can only be changed by a major tariff review which I will explain) and creating an opportunity for cross-subsidization. (Rich and heavy consumers bear some of the cost of the poor and small consumers.)

Tariff

This is as best as I can attempt to summarize the value chain and what we are doing. There are of course more technical issues that time and the forum do not permit or compel. However, we must all recognize and accept that tariff is a cost that we must all pay to keep the value chain viable as a business.

It is measured by meters (which I will come to) but every consumer must pay. It is a criminal offence in Nigeria and all over the civilized world to use public electricity and not pay for it.

Tariff is not fixed by the Minister. I have no such power. Tariff is proposed by the DisCos after consultation with their customers, and then approved by NERC (the Nigerian Electric Regulatory Commission) during a major Tarrif review.

The process of determining tariff takes into consideration the amount of power (4,500 MV in 2015) the number of consumers on record who will pay it (6,000,000), the cost of producing and transporting power, operating cost of the operators, exchange rate, inflation and interest rate; and the tariff for each class of consumer is determined.

The classes of consumers are R1, R2, R3 and MD. The tariff of each class is different in their DisCo while the tariff of R2, R3 and M are different from DisCo to DisCo.

It is only R1 that has a fixed tariff of N4 per/kwh across all DisCos and it was not changed in the last tariff review.

I spoke about a major tariff review; there is also minor tariff review.

The 2015 tariff review gave us a 10-year tariff that should be declining as the sector stabilizes.

It provides for a major review after 5 years, and minor reviews every 6 (SIX) months to keep the market abreast of the economic realities of foreign exchange, gas price, and inflation changes.

If we want to experience reliable electricity, we must accept the reality of tariffs and possible upward or downward reviews.

We must stop going to court to get injunctions to stop tariff reviews. We don’t do so, when exchange rate, inflation and prices of other commodities change. (The Court of Appeal has reversed the decision of the Federal High Court which stopped the implementation of the last tariff review).

What we must insist on, is the provision of meters, so that we can monitor and control what we consume.

Government must also not interfere with the power of the regulator when it fixes tariff in the way the last administration ordered a reversal of tariff in order to win electoral votes in 2014.

It created a massive debt for Nigeria, because while the Government ordered a reversal of Tariff, it did not reduce Exchange Rate, Interest Rate , cost of wages or cost of gas and other inputs necessary to produce power.

Why should Nigeria carry a debt created by an individual’s electoral ambition?

This is what the Buhari administration has to contend with.

It might interest members of the public to know that most if not all the oil & gas producing communities where there is electricity connection do not pay for power, somebody is carrying that cost.

It is worsened by the fact that the light bulbs are on during the day and I am told in some communities that they are never switched off. This is waste. What is wasted will never be enough.

Meters

One of the omissions of the privatization carried out by the last administration was lack of compulsory metering before the privatization.

This is compounded by an inaccurate consumer projection of 6 million households, without a consumer audit. These are the problems the Buhari government is now trying to fix with the Power Sector Recovery Program, which I will discuss later.

What the public must know about meters are:

Meters are measuring and safety equipment that must be tested by NEMSA before they can be used.

Different classes of consumers require different types of meters: Single and multiple phases to ensure that your meter matches your consumption.

Meters by the same manufacturers are calibrated for each DisCo use, such that you cannot use a meter calibrated for Ikeja DisCo in Eko DisCo without Re-calibration.

Meters cannot be installed without visit to the home for audit assessment.

DisCos liquidity problem makes it difficult for them to access credit to order and supply meters. One DisCo requires over N20B to meter.

The consumer base does not capture all those who consume power, and without meters, the DisCos aggregate power distributed to a destination and estimate the bill for the known consumer who is perhaps paying for the neighbour who is not known or is stealing energy; (whistle blowing for energy theft is a civic responsibility)

Those who are resisting the installation of meters and assaulting DisCo staff who seek to install meters must stop it. It is a criminal offence.

N37 Billion meter contract

The government of Nigeria had in 2003 (14 years ago) issued a contract for the supply of 3 million meters to NEPA/PHCN

That contract was not performed until the privatization was concluded in 2013, and was inherited by the Buhari government as a court case in which a judgment of N119Billion had been signed against government. We have worked to get the case out of court , negotiate the judgement and go back to the N37Billion contract to see how many meters it can now provide, and how to install them. We are still finalising the terms of agreement.

Gas supply

Although we get power from Hydro and we plan more from solar and coal, I cannot conclude this speech without speaking a little about gas which is managed by the Ministry of Petroleum Resources but which is the fuel for 26 (TWENTY-SIX) plants out of the 29 (TWENTY-NINE) power plants in the country.

2016 was a particularly difficult year for our gas fired turbines because there were at least 16 major gas pipeline attacks with explosions, between February and May of 2016.

This is why we did not experience stability until August when the rains came and we could rely on the Hydros, whose capacity had been upgraded.

Those pipelines are gradually now being repaired as a result of relative peace secured by initiatives of the President, Vice President, Minister of Petroleum Resources, Governors and other stakeholders.

Power Sector Recovery Programme (PSRP)

Without a doubt the privatisation of power is the way to go.

Admittedly it has not yet delivered the kind of results we were all made to expect, for some of the reasons I have stated; political interference, liquidity, metering, debts, governance, technical capacity of operators and the political dishonesty with which Nigerians expectation were raised to the sky.

But I have no doubt at all, having studied the privatization of Brazil, Mexico, India, South-Africa and China (who went through some or all of our current challenges), that reliable electricity will happen in Nigeria.

It is not an event, it is a journey marked by positive trends that have occurred and will occur as the right solutions are deployed to challenges.

This is what the Power Sector Reform Program (PSRP) seeks to achieve.

Because of the current transition challenges, some people have called for the cancellation of the privatization, but such a course of action (which I do not support) has consequences: -

Government will be breaching its own contract in the same way we cancelled the privatization of refineries in 2007 and will send a negative investment signal that we do not respect agreements;

Government will have to refund in dollars, all the monies paid by the DisCos and GenCos most of which have been spent on almost 50,000 workers of PHCN who had to be paid;

Government will now have to re-employ those or other workers back to operate the assets and again increase salary and pension costs, when our recurrent cost is above 70% of budget today.

Instead of doing these, Government believes that the lapses in the privatization can be re-engineered, retrofitted or reformed to deliver.

The PSRP is therefore a set of policies and actions aimed at restoring credibility, liquidity, transparency, efficiency, good governance and improved service delivery to the power sector.

The PSRP is meant to implement and deliver the power component of the Economic Recovery & Growth Plan (ERGP) of the Buhari Government and it is already being implemented.

N701 Billion NBET payment assurance programme

Metering plan (already discussed)

Constitution of Boards of Agencies for Governance (NERC); Rural Electrification Agency (REA)

Change of Government Representatives in DisCos

Procurement and Capital Requirement Guidelines for Discos by NERC

Energy mix, already done to achieve diversity of energy sources and energy security

Tariff Computation Reform

Communication and Advocacy

Technical capacity and equipment upgrade by DisCos for loss restriction

Legislation to restore and punish energy theft and damage to power assets

Ladies and Gentlemen, these are some of the challenges the power sector faces and the way forward as formulated by the Buhari Government in order to reform the power sector for efficient delivery.

As you will have seen, many if not all of them are man made.

Therefore if men and women create problems , only men and women can solve them. 

You and I therefore  have critical roles to play , and I have signed up to play my own.

Have you ?

Thank you for your attention.

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

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