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Jul
20
2025

LATEST PRESS

Minister Inspects Damaged Flyover at Keffi, Directs Urgent Intervention

The Minister of Works, Engr. David Umahi, CON, FNSE, FNATE, has inspected the damaged flyover at Keffi caused by an overburdened truck carrying an excavator. The impact of the collision completely dislodged one (1) of the beams and damaged two (2) others. The on-the-spot assessment was undertaken today, Sunday, July 20th, 2025.

 
The Minister, who was accompanied by the Director of Press and Public Relations, Mal. Mohammed A. Ahmed, the Deputy Director, Design and Bridges, Engr. Musa Seidu, Federal Controller of Works, FCT, Engr. Yakubu Usman and other officials disclosed that he had directed the Permanent Secretary, Engr. Olufunso Adebiyi, along with a team of engineers, to visit the damaged infrastructure on the day of the incident, Thursday, 17th July 2025. Following their preliminary inspection, which revealed visible cracks on the structure caused by the force of the impact, he ordered the immediate closure of the affected carriageway of the flyover to traffic to prevent further damage, as well as mitigate risk. 

While one beam has fallen entirely and damaged the walkway and parapet, the other two beams, though damaged, have retained their structural integrity, according to the engineers. The underpass has been cleared, but the overpass remains closed as a precaution.

Engr. Umahi, appealed to Messrs CGC (Nigeria) Limited, the contractor currently working in the FCT, to urgently begin the redesign and molding of a replacement beam, while salvaging the other two (2) that were partially affected. The process is expected to take approximately thirty (30) days, after which a strength test will be conducted before reinstallation. He emphasised that the integrity of the structure will be fully restored before reopening it for vehicular traffic.

These emergency repairs, he revealed, will be handled through an intervention fund, pending the release of resources. He assured the general public that President Bola Ahmed Tinubu, GCFR is fully aware of the unfortunate incident and has directed immediate remedial action to restore the facility, which serves a critical transport corridor. He also commiserated with the families that lost their loved ones, while wishing the wounded, quick recovery.

The Ministry will continue to work closely with the contractor and other relevant stakeholders to ensure a swift and safe reconstruction exercise.


Mohammed A. Ahmed, 
Director, Press and Public Relations.
20th July 2025.

Aug
27
2022

Nigerians Commend President Buhari's Impactful Infrastructure Development President Muhammad Buhari has once more reaffirmed his Administration’s Commitment to infrastructural development. The reaffirmation was made during the commissioning and handover of the completed 66 .10Km Gombe Kaltungo Road at Kumo Town, Gombe State. President Buhari who was represented at the occasion by the Honourable Minister of Communications and Digital Economy, Professor Issa Ali Ibrahim Pantami observed that his  administration has given priority to infrastructure development starting from road, to rail line and broadband development.  Mr.President disclosed that the FG has embarked on the National Information and Communications Technology Infrastructure Backbone Phase 2. Also about 400 Million US dollars has been planned for the project which will commence from Abuja to Borno State. He said that his  administration has given approval for the construction of the  rail line from Borno to Rivers State, adding that the rail line was an  area that lacked attention before the advent of this administration.  The Executive Governor of Gombe State, Alhaji Muhammadu Inuwa Yahaya praised the Federal Government for the completion of the Kaltungo-Gombe Road Project. The Governor observed that the Federal Ministry of Works and Housing had successfully completed several roads to ensure that road users have a rewarding travelling experience.   He added that the Gombe - Kaltungo Road Project  had created jobs  directly and indirectly as well as provided social economic benefits to the people. Works and Housing Minister , Babatunde Raji Fashola, SAN who was represented by the Director Highways North East in the Ministry, Engineer Celestine Shausu disclosed that the road is the sixth to be commissioned in the second phase of highway projects  completion and commisioning. He said," This is the second phase of project completion and handover our country will be witnessing as we progress further in this season of completion and impact which started in the last quarter of 2021," said Fashola. The Minister recalled  the completion of Efon Alaaye - Erinmo Iwaraja road in Ekiti,  Isoko Ring Road Section II covering Aviara- Uzere in Delta State,  Phase II of  Hadejia - Nguru Road covering Kirikasama - Nguru in Jigawa State, Nguru - Gashua- Bayamari Road in Yobe State and Lafia - Obi Awe - Tunga Road in Nassarawa State that were completed in the last quarter of 2021 which he described as major  investments in road transport infrastructure that serve as  drivers for economic growth and prosperity. The Minister said these completed roads are viable assets in proof of what the country's resources are invested in. In his welcome address, the Permanent Secretary Federal Ministry of Works and Housing, Bashir Nura Alkali who was represented by Engineer Amos Thomas stated that the Buhari led administration is focused on the completion of several ongoing road infrastructure projects to stimulate economic development, job creation and promotion of local content. He added that government is also committed to linking the major arterial roads to refineries, ports, tertiary institutions and high volume commercial centres with a view to reducing travel times, vehicle maintenance costs, safety and security of commuters. In his goodwill message, the Emir of Arko, His Royal Highness Alhaji Umar Atiku expressed appreciation to the Federal Government for the construction of the road project. He urged the people of the state to continue to support the Federal and State government and maintain  peace and tranquility in the state by being law abiding.   ...

Aug
26
2022

Road Infrastructure, Catalyst to the Nation's Economic, Social, and Environmental Development – Fashola The Honourable Minister of Works and Housing, Babatunde Raji Fashola, SAN said that road infrastructure promotes the nation’s economic, social and environmental development which has necessitated increased investment in road infrastructure by the government of President Muhammadu Buhari. The Honourable Minister disclosed that while delivering his keynote address at the National Council of Works meeting at Bristol Palace Hotel in Kano, Kano State with the theme, “Infrastructure, The Season of Completion.” Fashola reiterated that the theme of this year’s council is timely as it provides the opportunity for the Council to put policy framework that would create enabling environment to complete several road projects initiated by the administration of Mr. President as he completes his second tenure in 2023. ‘’The theme is timely as it provides the opportunity for the Council to put policy framework that would create enabling environment to complete several road projects initiated by the administration of Mr. President as he completes his second tenure in 2023. It is pertinent to note that the effects of road infrastructure on economic development, productivity and growth cannot be over -emphasized due to its impact at National, State and Local government levels,” he said. The Minister disclosed that the success of the Nigerian government in providing road infrastructure will not be measured by the amount of funds invested but by the extent to which road infrastructure contributes to the nation's economic, social, and environmental goals. Fashola noted that road infrastructure investment should be viewed as a means to an end and not an end itself. “It is important to note the increased investments in road infrastructure which is evident by the number of completed roads and   the need to manage such investments sustainably. The Minister revealed that the anticipated benefits of the investments in the road sector cannot be achieved without timely completion of the road projects as the theme of this year’s Council on Works reflects. He noted that the administration of President Muhammadu Buhari awarded several new road projects in addition to the inherited ones of which many have been completed and commissioned across the six Geo-Political Zones of the Federation while others are yet to be completed. Fashola disclosed that  the investments of the Federal Government in road transport infrastructure has continued to impact positively on communities across the country as President Muhammadu Buhari commissioned the first phase of roads in the following locations: Sokoto-Tambuwal-Jega-Kontagora-Makera Road, the Vandeikya- Obudu Cattle Ranch Road, the Nnewe-Oduma Road, the Kano- Maiduguri Road Section III (Azare-Potiskum) and the  Kano-Maiduguri Road, Section II (Shuwarin-Azare) connecting Jigawa and Bauchi States in the last quarter of 2021. “The Federal Government also commissioned the second phase of road projects in 2022 which include: Efon-Alaaye Erinmo – Iwaraja Road in Ekiti and Osun States; Isoko Ring Road in Delta State, Hadejia – Nguru Road Phase II, Kirikasama – Nguru in Jigawa State; Gombe – Numan – Yola Road Phase II (Gombe – Kaltungo) in Gombe State; Nguru – Gashua – Bayamari Road Sections I & II, Phases I & II in Yobe State; and Lafia – Obi – Awe – Tunga Road in Nasarawa State,” he said. The Minister noted that significant progress was recorded in road development in the year under review in line with the Ministerial Mandates set for the Ministry through the execution of many road projects spanning over 13,000km of roads and bridges nationwide and urged states and other stakeholders to compliment the efforts of the Federal Government in the development of road infrastructure in Nigeria. He urged that we must maintain the infrastructure we build to preserve their live span and get the best value for the money spent on them. He highlighted alternative funding options initiated by the present administration to tackle critical roads across the nation apart from the ministry’s budgetary allocation such as: Presidential Infrastructure Development Fund; SUKUK fund; Road Infrastructure Tax Credit Scheme (RITCS); Multi-lateral loans/grants; Collaboration with other Government Agencies e.g The North East-Development Commission. He urged the delegates to contribute meaningfully during the Council deliberations bearing in mind that their recommendations will have far reaching impact on Nation building that will help the highways to become safer and more comfortable for all and serve as means of sustained economic growth and development of our nation. He also noted that the nation’s economy will be revamped and sustained through continuous and deliberate actions of government at all levels in completing all on-going projects. He expressed his heart felt gratitude to the Kano State Government for accepting to play host of this year’s National Council on Works comprising all other states and other stakeholders, he thanked the governor immensely for that. During his opening address at the Council meeting, the Governor of Kano State, Dr. Abdullahi Umar Ganduje thanked the Federal Government for the provision of various intervention infrastructure projects across the state looking forward for more of such interventions such as: the replacement of road intersections with flyovers particularly at various junctions connecting the ongoing Western Bypass Road and other road and housing infrastructure in the state. Governor Ganduje noted that before the coming into power of the present administration, many Federal highway projects in the state were abandoned, but now they are receiving commendable attention from the Federal Government. He thanked the Minister for accepting to host the Council meeting in Kano and assured all delegates maximum security and safety during their stay in Kano State. While delivering his address, the Chairman House Committee on Works, Hon. Abdullahi Kabir Abubakar stated that this year’s theme “Infrastructure, the Season of Completion” is suitable and well timed because this is indeed a season of projects completion and commissioning in the life of this administration as it is determined to complete as many projects as possible, the projects it inherited and the projects it initiated are highly commendable. He commended the administration for introducing many interventions such as: SUKUK, Highway Development and Management Initiative (HDMI) and the TAX CREDIT SCHEME to compliment the Ministry’s budget in providing funds to develop over 1000 contracts covering over 13,000km of roads across the nation. Hon. Abubakar appealed to state governments, private organizations and government agencies to support the federal government in the area of compensation to local communities because delay by state governors to compensate the local communities for the Right of Way delays speedy completion of road projects. The Kano State Commissioner for Works and Infrastructural Development, Engr. Idris Wada Saleh welcomed the delegates to the 28th Meeting of the National Council on Works and expressed gratitude to the Honurable Minister of Works and Housing, His Excellency, Babatunde Raji Fashola, SAN and His Excellency, The Executive Governor of Kano State for accepting to host this year’s Council on Works and providing the enabling environment for the event in the beautiful city of Kano “The center of Commerce” and wished all delegates fruitful deliberation and a peaceful stay . During his closing remarks, the Honourable Minister of State for Works and Housing, Hon. Umar Ibrahim El-Yakubu opined that the recommendations made at this meeting will re-enforce our resolve to complete and deliver more infrastructure that will not only have far reaching impact on the socio-economic well-being of the citizenry but also generate employment and stimulate economic growth. Hon. El-Yakub thanked the government and people   of Kano state for taking the responsibility of hosting the meeting.  He expressed profound gratitude to all delegates from the states, regulatory and professional bodies for their tireless efforts in making the Council a memorable and successful event. The 28th Meeting of the National Council on Works was attended by the Honourable Minister of Works and Housing;   the Honourable Minister of State for Works and Housing, The Executive Governor of Kano State ; the Permanent secretary Federal Ministry of Works and Housing, Commissioners of Works from States of the Federation;  Permanent Secretaries of Works from 36 States of the Federation and FCT;  Heads of Federal and States Agencies in the road sector, Heads of Regulatory and Professional Bodies, Representatives of the Federal Roads Safety Corp (FRSC) and Department of Roads Traffic Services (DRTS), amongst others. ...

Aug
24
2022

FG's Determination For Successful Completion and Commissioning Of Highway Projects in the Country on Top Gear – Nura Alkali The Permanent Secretary Federal Ministry of Works and Housing, Bashir Nura Alkali has reiterated  that Federal Government’s determination for successful completion and commissioning of highway infrastructure projects across the country  is on top gear. Alkali stated that in Kano, Kano State at the meeting of Permanent Secretaries at the on-going 28th Meeting of the National Council on Works with the theme, "Infrastructure, The Season of Completion.” Alkali said that the timing of the Council meeting is very auspicious and apt as it affords the delegates opportunity to think through and make necessary arrangements, meaningful contributions as well as take critical steps to ensure that road infrastructure projects are completed on time and commissioned. “In order to ensure that the target of completing and commissioning of these projects is achieved, it has become necessary for all stakeholders to consider and provide creative and contemporary ideas and policy suggestions that will support the attainment of the above target,” he said. Alkali reminded the Permanent Secretaries that they are expected to have the objectives of the National Development Plan 2021 - 2025 in mind as they look at ways of ensuring that road projects are completed and commissioned in order to galvanize national growth and sustainability. He added that the recommendations of the meeting should focus on restoring economic growth, the ease of doing business, investing in our people and creating a competitive economy through the provision of good  road networks across the country. He also charged the body of Permanent Secretaries to ensure that money spent on roads and bridges improves the economy and imparts on the citizens positively. The Permanent Secretary appreciated the government and people of Kano State for hosting this year’s Council on Works. “I must quickly thank our host, the Governor of Kano State, His Excellency Dr. Abdullahi Umar Ganduje, OFR (Khadimul Islam) and the good people of Kano State for the gesture of receiving us to deliberate on this crucial theme that was carefully chosen to ensure that the massive spending of public funds by governments at all levels in highways and other roads infrastructure to ensure smooth mobility and access is duly accounted for through completed and commissioned roads across the country,” he said. Earlier in his welcome remarks, the Commissioner for Works and Infrastructure Development Kano State, Engr. Idris Wada Saleh said that it is desirable for government at all levels to strive hard to complete ongoing infrastructural projects within the remaining periods of their tenures. In order to ensure successful completion and sustainability of highway projects Engr.Saleh urged   successive administrations to take it as a duty to complete outstanding infrastructural projects that might be left uncompleted before the end of the tenures of the present leadership to ensure judicious utilization of public funds and continuity. He welcomed and congratulated the delegates for having the unique opportunity to attend the highly educative meeting to contribute to national development and wished the delegates fruitful deliberations and a peaceful stay in Kano, the state capital. The meeting of Permanent Secretaries reviewed 46 memoranda submitted by stakeholders under six (6) Thematic Syndicate Groups: 1.    Policy Formulation and Implementation 2.    Completion of infrastructure and economic growth: The role of maintenance 3.    Institutional strengthening 4.    Completion of infrastructure as a policy priority policy and funding priority of ease of doing business 5.    Sustainable funding as a catalyst for completion of infrastructure in Nigeria 6.    Socio-economic impacts of the completed infrastructure   A presentation on New Innovations on the use of Alternative Technologies in Roads / Infrastructure Development was presented at the meeting.       ...

First First First

PUBLIC ANNOUNCEMENT


Jul
16
2024

 


OTHER NEWS

Jan
15
2019

Hon. Mustapha Shehuri Warns Contractors Against Delay in Project Delivery

The Minister of State for Power, Works and Housing, Hon. Mustapha Baba Shehuri has warned the contractor handling rehabilitation works on Yola - Hong - Mubi road against delay in the delivery of the project.

2. Hon. Baba Shehuri gave the warning on Saturday, while on an inspection tour of Federal Government's ongoing road projects in Adamawa State.
He expressed dismay over the slow pace of work by the contractor, Messrs AG Vision (Nigeria) Limited. Baba Shehuri described the road as a vital artery to the socio-economic development of area, the entire State and beyond, hence the need for urgency in its delivery.

3. The contract, which commenced in May, 2017 with a 24 - month completion period, is presently at a dismal 15.10% completion, which the Minister described as unacceptable. 

4. According to the Contractor, the major cause for the delay is insecurity  occasioned by activities of Boko Haram Insurgents in the area and inadequate funding. Hon. Baba Shehuri, who did not hide his displeasure with the Contractor, agreed that though the project was facing some security and funding challenges, he reminded him of the Federal Government's commitment to ensuring security of lives and properties, while the Ministry is making frantic efforts to ensure that  certificates are being paid. 

5. The Minister urged the Contractor to expedite action on the project by improving on its capacities, stressing that the project is already running out of time. While also commending the communities along the corridor and road users alike for their cooperation and understanding, he reiterated the resolve of the President Muhammadu Buhari's Administration towards the provision of critical infrastructure.

6. In his briefing on the project earlier, the Federal Controller of Works, Adamawa State, Engr. Salihu Abubakar revealed that the  contract sum is N21.8 billion, the Contractor fully mobilised to site in 2017 and presently has a total of N6.3 billion unpaid certificates.

7. In the same vein, Hon. Baba Shehuri has summoned the Contractor handling the rehabilitation of Mararrabar Mubi - Michika - Madagali road, Messrs Rhas (Nigeria) Limited to his Office for apathy to work. The Minister, who was visibly livid with anger, expressed his dissatisfaction with the Contractor for abandoning the project despite being fully mobilised. He added that  based on the tempo of work on the site, the fate of this all - important project is already jeopardised.

8. The Minister also used the opportunity to express misgivings over claims by the Contractor that the project was initially delayed due to non - availability of working drawings.

9. According to the Federal Controller, the 90 - kilometre road with 3 bridges, which were distroyed by Boko Haram Insurgents in 2014, has a completion period of 18 months, which had already elapsed and the project at a mere 1.7% completion.

10. However, the case of the Contractor handling the rehabilitation of Cham - Numan road project in Gombe and Adamawa States is different, as the Minister was highly impressed with the level of  work achieved thus far.  Eventhough the Minister  applauded the pace of project, he still urged for increased tempo, while assuring the prompt release of funds to meet the project's timeline.

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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