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  • Make properties value reflect Nigeria’s economic reality, Fashola tells estate valuers

    Make properties value reflect Nigeria’s economic reality, Fashola tells estate valuers

    The Minister of Power, Works and Housing, Babatunde Fashola, Tuesday, inaugurated the reconstituted Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) with a charge on the Board to reconcile the disparity between the country’s land evaluation system and the current economic realities.

    In his remarks before the brief ceremony at the ministry’s headquarters in Abuja, Mr. Fashola also urged the professionals to develop an open evaluation for the different parts of the country as well as evolve means of making the practice of estate valuation simple enough and responsive to the man on the street.

    Noting that because of the global economic slowdown property owners in some other jurisdictions were offering discounts on their properties to ensure optimum occupancy, the minister wondered why the reverse was currently the case in the country where, according to him, the economy was being greatly challenged by tight capital.

    He told his guests, “For me, I think the most important lessons that I like to share at this inauguration is to pose the question to you whether the current land evaluation system and values are consistent with the realities of our economy. You, as experts, must answer that question”.

    “In a very challenging economy where cash is clearly tight, is the market value really responding appropriately? Are these values consistent with reality? Why are we not seeing rates and rents and values drop? Why are we having many houses unoccupied where people are looking for accommodation?” Mr. Fashola further asked.

    The minister, who noted that property owners in the country had often argued that the properties were valued higher so they could have an “impact on percentages and commissions”, added, “As we reconstitute the new board and as we work together to rebuild our economy, those are the questions that I would like to leave you with to respond to”.

    Recalling recent news that property sellers in the United Kingdom were, because of BREXIT, offering discounts to citizens, Mr. Fashola, who cited as proof that markets react to policies, added, “Many years ago, our Stock Market was immune to policies. But you see today that we have a stock exchange that ranks with some of the best in the world because it reflects the realities of our economy in many respects”.

    “So, I will like to see, therefore, that as you take up the mantle of leadership today after inauguration, these are issues that I think you should put into the front burner agenda in terms of how you regulate the practice and also the quality of people that you admit to the practice,” the minister said expressing regrets that in real estate transactions in the country the customer was clearly not king even with his money.

    Emphasising the importance of Estate Surveyors and Valuers in the economic growth of the country, Mr. Fashola declared, “These are people whose core professional mandate is really putting value on land. The main business that they undertake is the business of how land is turned from a dormant asset really into a valuable asset”.

    According to him, “All of those who are involved in one form of enterprise or the other must first of all appreciate the value of land as a major capital formation asset; whether it is for small businesses, whether it is for large corporations, whether it is for markets or motor parks. I can’t really think of a business that one wants to undertake where land is not a critical part whether it is just to own a small office or a small kiosk where you can sell very basic things, even to roast corn.”

    He continued, “The Ministry of Power Works and Housing employs a number of Estate Valuers for many reasons, as you all know. Whether you are building new roads where we need to acquire Right-of-Way, sometimes compensations have to be paid for farmlands and all of that, you are the people we turn to for evaluation”, adding that some of the members were currently involved in the Second Niger Bridge project as valuers for the government.

    Some of the members, the minister said, have also been recruited to the power side now in the development of the Mambila Hydro Power Dam in terms of assessing the land needed and ultimately quantifying for compensation to be paid; while some were employed in the new Transmission Company of Nigeria (TCN) where the ministry had to acquire Right-of-Way for its transmission lines.

    Charging the board to ensure greater transparency in the building industry, Mr. Fashola further charged the members to evolve means to make the practice of estate valuation simple enough and responsive to the man on the street; pointing out that other jurisdictions have evolved property calculators where all one needed to do was to index one’s location and that of his property to have a fair value of what his asset was worth.

    The minister said one of the areas where Nigeria’s Ease of Doing Business ranking could improve was in the area of real estate valuation, “especially how to develop a harmonised code of charges” adding, “We had this problem back at state level where we found out that we were charging about 10 per cent gross on fees and taxes while other countries close to us were charging one and two per cent. But the truth was that the values were not real”.

    “They were not market values and the solution was to invoke market values so that within its jurisdiction you have a fair market value of what the rate applicable to each piece of real estate, whether it was developed or undeveloped, there was a floor and a ceiling per square metre and on that basis, we crashed the rate to about three per cent”, he said.

    The minister argued that although it may look profitable to charge X values as fees today, when considered that out of every ten possible businesses, the competition would take about six, “because of more competitive rates”, adding, “Are you really doing good business?”

    He challenged the members “to develop a very open and possibly nationwide valuation for real estate in different parts of the country”, adding “So that at least in Jabi, for example we can know what is the minimum rate of undeveloped property is per square metre and what the maximum rate should be if it is not developed.”

    “If it is developed, at least we will have an idea as distinct from Maitama, Asokoro; as distinct from may be GRA Ibadan or GRA Kaduna and so on. At least there will be some database and I don’t think that this in any way imperils your ability to continue to render professional service.”

    Congratulating the chairman and members of the reconstituted board, Mr. Fashola who noted with pleasure the broad mix of experience and value that were brought to the board, declared, “This board has, among many other responsibilities, the responsibility for registering persons who are fit and qualified to serve and practice as estate surveyors and valuers and also the responsibility to regulate the standard and the knowledge and the general practice of the profession in our country”.

    “These are the people whose core professional mandate is really putting value on land. The main business that they undertake is the business of how land is turned from a dormant asset really into a valuable asset and then all of those who are involved in one form of enterprise or the other must first of all appreciate the value of land as the major capital formation asset,” he said.

    In his remarks, the Chairman of the of the Board, Olayinka Sonaike, thanked the minister and the federal government for the opportunity and privilege given the members to serve on the board, adding that the members of the profession were in a fit position to contribute to the economic growth of the country.

    Requesting that the budgetary allocation to the board be released to it expeditiously after the signing of the 2017 Appropriation Bill, the chairman pledged that with the collaboration of the Ministry of Power, Works and Housing, the board would carry out its job effectively.

    He said the Institute of Estate Surveyors and Valuers of Nigeria had already completed a database of properties in Lagos State with the intention to work in other states of the federation promising that the board would continue to work toward reconciling the disparity between land evaluation system in the country and her economic realities.

    Also at the brief ceremony were the Director for Land and Housing Development, Olurotimi Onabanjo, and Director Information, Adebisi Agbonhin, special advisers as well as other top officials of the ministry; while the chairman of the newly inaugurated board was accompanied by the vice chairman of the board as well as other top officers and members of the board.

  • Fashola seeks special funds for power, review of procurement act

    Minister of Power, Works and Housing Babatunde Fashola has advocated provision of special funds for the power sector and approval for the infrastructure Ministries to utilise all funds released even after expiration of a financial year.

    According to a communiqué from the ministry yesterday, Fashola made the call during the Retreat for Directors, Chief Executive Officers of Parastatals and Head of Units of the Federal Ministry of Power, Works and Housing in Abuja.

    The theme of the retreat was teamwork for optimal productivity.

    The retreat, said the communiqué, noted that there was the need for the National Assembly to amend the Public Procurement Act 2007 with a view to reducing the time frame of the procurement process.

    Fashola said there was the need for procuring entities to strictly adhere to the approved threshold as contained in the Procurement Guidelines issued by the Bureau of Public Procurement Act, 2007 and other extant rules.

    The minister advised procuring entities to always have in place, the procurement planning committee and fast track the procurement process based on budget proposals without necessarily waiting for the passage of the Appropriation Act.

    He sought support from highest political levels in the implementation of the Ministry’s projects in line with the Public Procurement Act 2007, guidelines and other extant rules governing public procurement.

    He said that there was the need to compel foreign companies involved in construction projects to sublet certain components of the projects to local/indigenous contractors with a view to building their capacity.

    The minister advised thorough scrutiny of payments to consultants for project supervision in order to obtain maximum value for money.

    The Communique in full:

    COMMUNIQUE OF THE RETREAT FOR TOP MANAGEMENT OFFICERS AND CHIEF EXCUTIVE OFFICERS OF THE FEDERAL MINISTRY OF POWER, WORKS AND HOUSING HELD AT SETRACO CEDAR ESTATE, LIFE CAMP, ABUJA, BETWEEN 18TH & 20TH MAY, 2017

    The Retreat for Directors, Chief Executive Officers of Parastatals and Head of Units of the Federal Ministry of Power, Works and Housing was held at the conference hall of the Setraco Cedar Estate, Life Camp, Abuja, between 18th & 20th May, 2017; with the theme: Teamwork for Optimal Productivity.

    1. The Retreat was declared open by the Hon. Minister of Power, Works and Housing, Babatunde Fashola, SAN, who presided over the three day event attended by the Permanent Secretary of Works and Housing Sectors, Engr Abubakar Magaji, Directors, Chief Executive Officers of parastatals and Head of Units in the Ministry.
    2. The Permanent Secretary, Works and Housing Sectors, Engr. Abubakar G. Magaji, gave the welcome address. In his speech, he reiterated that the retreat was informed by the need for the Ministry to reposition itself in its mandate of providing the much expected infrastructure in the country including good road network, affordable housing and efficient power supply.
    3. In his keynote address, the Hon. Minister thanked all for attending the retreat, pointing out the need for the Ministry to work together as a team to synergize efforts towards achieving its mandate. He drew the attention of the top management of the Ministry and its Parastatals to the need to acquaint themselves with one another by name and also treat each other with respect. Through this he expected that mutual respect and understanding will be built and the quality of services to be provided will be enhanced. He reminded the participants that the ministry has the largest budget because of the responsibility reposed on the ministry. Thus, this accorded maximum value and responsibility on the ministry.
    4. The event had six (6) presentations that border on the various aspects of interest to the public service. These topics are:
    5. Public Procurement- ‘’The Challenges of Effective Execution of Public Procurement Act, 2007’’;
    6. Administrative Procedure in the Public Service:
    • Relationship of the Ministry with Parastatals;
    • Adherence to Extant Rules
    • Regulations and Circulars

    iii. Effective Project Implementation in the Power, Works and Housing Sectors;

    1. Understanding the Emerging Electricity Industry in Nigeria in view of the Power Sector Reform;
    2. Budgetary Allocation, Performance and Challenges of the Ministry; and
    3. Health and Wellbeing Talk;
    4. The Retreat was of the view that team work among staff of the Ministry will not only bring about optimal productivity but also enhance maximum achievements of the Ministry’s goals, objectives and overall mandate. Accordingly, the Retreat resolved as follows:
    5. appreciated the leadership of the Honourable Ministers and the Permanent Secretaries in their drive towards achieving the mandates of the Ministry;
    6. appreciated their wisdom to organize the Retreat with a view to synergizing efforts towards bringing together the top management staff of the Ministry to share ideas and experiences for effective service delivery;

    iii. noted the need for support from highest political levels in the implementation of the Ministry’s projects in line with the Public Procurement Act 2007, guidelines and other extant rules governing public procurement;

    1. noted the need for the National Assembly to amend the Public Procurement Act, 2007 with a view to reducing the time frame of the procurement process;
    2. noted the need to build the capacity of public officials involved in public procurement;
    3. noted the need to compel foreign companies involved in construction projects to sublet certain components of the projects to local/indigenous contractors with a view to building their capacity;

    vii. noted the need for procuring entities to strictly adhere to the approved threshold as contained in the Procurement Guidelines issued by the Bureau of Public Procurement Act, 2007 and other extant rules;

    viii. advised procuring entities to always have in place, the procurement planning committee and fast track the procurement process based on budget proposals without necessarily waiting for the passage of the Appropriation Act;

    1. advised that thorough scrutiny of payments to consultants for project supervision in order to obtain maximum value for money;
    2. noted that administrative procedures are critical to maintaining in regulating order, general principles and rules of providing public service and should be adhered to strictly
  • Reps summon Fashola, Adeosun, others over violation of Procurement Act

    Reps summon Fashola, Adeosun, others over violation of Procurement Act

    The House of Representatives Committee on Public Procurement, yesterday, summoned Minister of Power, Mr Babatunde Fashola; Minister of Finance, Mrs Kemi Adeosun; Comptroller General of Customs, Col. Ahmad Ali (retd), and others over their alleged roles in pre-shipment inspection deals bordering on violation of Procurement Act of 2007.

    The lawmakers also invited Director-General of Industrial Training Fund, ITF, Joseph Ari; Managing Director of Cobalt Nigeria Ltd, Mr Darlington Agha, and Managing Director, Trobell Int’l Nig Ltd, Sede Thomas. They are expected to appear before the committee next Tuesday.

    But an attempt by a member of the committee, Kolawole Gabriel, to include former Minister of Finance, Dr Ngozi Okonjo-Iweala, was resisted by his colleagues, who insisted that the current Minister of Finance has not in any way complained of any inadequacies.

    The lawmakers also expressed displeasure over the failure of Nigerian National Petroleum Corporation, NNPC, towards payment of N25 billion into the Nigerian Export Supervision Scheme, NESS, accounts.

    Oluwole Oke, chairman and members of the committee had during the second day of the investigative hearing on the “alleged abuse, breach and violation of the Public Procurement Act, 2007 in the engagement of Pre-shipment Inspection Agents, PIAs,” also frowned at the NNPC’s non-remittance of $20 million unspent fund to the Federation Account at the end of the 2016 financial year.

    The lawmakers also queried the failure of the appointed Pre-Inspection Agents, PIAs, to carry out inspection of all export terminals where all exports carried were out by NNPC at the inception of the scheme.

  • Just in: How Fashola created 100,00 jobs in two years

    Just in: How Fashola created 100,00 jobs in two years

    The minister of power, works and housing, Mr Babatunde Fashola has revealed that his ministry has created over 100,00 jobs under two years.

    Fashola made the comment on Tuesday, May 16 at the town hall meeting currently holding in the Federal Capital Territory, Abuja.

    According to the minister, his ministry has completed the implementation of their full first year budget.

    He also hailed President Buhari for improving the budget size of the ministry, adding that it has enabled them to embark on more projects across the nation.

    ”Our artisans are getting back to work sites due to the large scale construction going on around the country.

    ”We have gained momentum and it is impacting positively on the economy,” Fashola said.

    1. Works ministry = 17, 749 direct jobs, 52,000 indirect jobs

    2. Housing ministry = 13,680 direct jobs, 41, 040 indirect jobs

    3. Power ministry = 9,000 direct jobs, 60,000 indirect jobs.

  • Ibadan Disco commends FG over on going work on Lagos-Ibadan Expressway

    Ibadan Disco commends FG over on going work on Lagos-Ibadan Expressway

    …Says rehabilitation has eased access to majority of its franchise, shortened travel times for its business and staff

    …Expresses confidence that on completion the road will boost commercial activities, quality of life of Nigerians and neighbouring countries

    The Ibadan Electricity distribution company has commended the Federal Government and Minister of Power, Works and Housing over the fast pace of the rehabilitation works currently on going on the Lagos-Ibadan Expressway.

    The commendation letter signed by the Managing Director of the Company, Mr. John Donnachie, noted that the exigencies of the company’s business demanded that a number of official trips be undertaken via the expressway which it described as one of the busiest within the country and the rehabilitation couldn’t have come at a better time.

    The letter reads in part, “The entire Management and staff of the Ibadan Electricity Distribution Company Plc (IBEDC) write to recognize and acknowledge the herculean task being undertaken by the Office of the Minister of Power, Works & Housing in the on-going rehabilitation work on the Lagos-Ibadan Expressway.

    “Our commendation and gratitude for the good work which your office is undertaking on behalf of the entire citizens of Nigeria cannot be expressed enough. As you are aware, the large portion of the franchise area of IBEDC can only be accessed through this road and many of our staff had in the past undertaken the arduous task of plying this expressway in order to spend time with their families and friends over the weekend. The exigencies of our business also demands that a number of official trips are undertaken via this route which one could rightly classify as one of the busiest expressways within Nigeria”.

    Acknowledging that the repair works initially posed some challenges to road users, the company noted with delight that as the repair work nears completion, “the previous hardship, wear-and-tear on commuters and vehicles has been greatly reduced in addition to the millions of lives and money that have been saved as a consequence of this much needed rehabilitation”.

    Expressing its “support and gratitude for a job well done”, the company declared, “There is no doubt that this project on completion, will boost commercial activities and the quality of life to the inhabitants primarily of Lagos and Ibadan with significant gains recorded by all other road users from other states and neighbouring countries”.

    It would be recalled that recently while inspecting the on going reconstruction and rehabilitation work on the Lagos-Ibadan Expressway as part of his inspection tour of Federal Highways and other projects in the South West Zone, Fashola had alluded to the fact that reports of shorter travel times and better journey experiences had been coming in as commuters testified to making the journey from Ibadan to Lagos in less than two hours even as the project was still on-going.

    The Minister, who also recalled similar reports on other Federal roads across the country during the 2016 Christmas and New Year festivals, promised that both travel times and journey experiences would be even better during the 2017 festivities as many of the road projects across the country would have been substantially completed.

  • Fashola bags ‘Minister of the Year Award’

    Minister of Power Works and Housing, Mr. Babatunde Fashola SAN, bagged the prestigious City People’s ‘Minister of the Year Award’.

    Fashola, who was represented at the 20th City People Awards for Excellence by his Special Adviser on Housing, Mr Abiodun Oki, said although the Government was gaining momentum as the results of its policies, programmes and actions were beginning to manifest, the All Progressive Congress, the architects of Change, knew that the work was not yet done but just beginning adding that even those working in the government also knew that it could be a lot better.

    The Minister, who was presented the ‘Minister of the Year Award’ at the occasion, dedicated the Award to the entire Government body whom he likened to a football team saying just like in a football march, there would be no good striker, midfielder and defender in a team that did not do well.

    Dedicating the Award, first to the President Muhammadu Buhari for “picking a team of Ministers whose commitment to change is unquestionable” and the Vice President for demonstrating “his ability to complement this vision of change and his dedication to help midwife it”, Fashola noted that “it is the team and the work they do together that allows any striker, midfielder or defender to thrive”.

    The Minister declared, “Therefore collective success must be, and is indeed, more important than individual recognition”, adding, “A Government is no different from a football club, to the extent that they comprise individuals of different talents, passions and experiences who must work together to deliver service to the public”.

    “A successful team is led by a Great and resourceful manager, who often has a dependable assistant. In our Government team, President Muhammadu Buhari has discharged that role effectively by picking a team of Ministers whose commitment to change is unquestionable and the Vice President has demonstrated his ability to complement this vision of change and his dedication to help midwife it. On their behalf I accept this Award”, he said.

    Acknowledging that every goal scored by a striker was the result of co-ordinated team play, and interchange of passes, Fashola also dedicated the Award to the Federal Executive Council, the Secretary to the Government of the Federation, Cabinet Office and the Office of the Chief of Staff, saying his Ministry had benefitted from “a well-planned Budget, well-timed cash backing, very massive support and contributions to our Council Memoranda”.

    And because of their support and cooperation in financing the various projects of his Ministry, Fashola also dedicated the Award “to those who exercise the power of appropriation in the National Assembly” the Senators, House of Representatives members and all their Committee Chairmen, members and staff, adding that they were the real owners of the Award.

    Others on behalf of whom he accepted the Award, according to the Minister, were the Judiciary “as members of the team of change” without whose prompt and efficient determination of some court cases the progress so far achieved would have been hindered.

    “No team is complete without the army of backroom staff who we never get to see, but who help the players enormously. The Ministry of Power, Works and Housing is blessed with an army of hardworking civil servants, led by two Permanent Secretaries, Directors, the Heads of our parastatals, Deputy Directors, Controllers and other staff who have signed up for change and are daily working towards it. I accept this Award on their behalf”, he said.

    Reiterating that no individual recognition was worthy of note if the team was not delivering results, Fashola declared, “My Brother, the Hon. Minister of State in the Ministry of Power, Works and Housing, Mustapha Baba Shehuri and I accept this Award on behalf of Government as proof that our team is gaining momentum, and the results of Government policies, programmes and action are beginning to manifest”.

    Thanking City People and its management for inspiring the administration to pursue change, the Minister also acknowledged the All Progressive Congress, whom he described as “the architects of Change”, saying that although some significant progress has been made, the Party knew that the work was just beginning. “We the team members also know this. We know that it can be a lot better, we commit to do more and to make your lives better”, he said.

  • Scarcity of funds not major challenge to completion of federal roads – Fashola

     

    Minister of Power, Works and Housing, Mr Babatunde Fashola has said paucity of fund is not the major challenge to the completion of ongoing Federal Government’s road projects.

    Fashola spoke to reporters on Saturday in Port Harcourt after an inspection tour of ongoing road projects in the South-South zone.

    “There is no problem of paucity of fund on this road again; this road is now a function of man hours.

    “If you have all the money needed to construct this road, you would not finish it today.

    “So let us understand that these roads are built long and wide, and so will take years to be completed because roads are connecting several states.

    “As we are building, it will get better but funding is not going to be a problem on this road again because we make sure that the contractors are paid,” he said.

    He said the contractors handling the road projects would be paid based on presentation of certificate of performance.

    Fashola cautioned contractors against the use of budgetary provisions as excuse not to be on site, adding that the budget had not solved the problem in the past.

    “As at the time we had money, when a barrel of oil sold for 100 dollars, we did not take the issue of roads seriously, because the capital budget then used to be 15 per cent.

    “It is Buhari’s administration that is increasing capital budget to 30 per cent, which means that this government is taking the issue of roads seriously and that is why we are here.

    “Contractors are coming to site after three years of lay off and as you pay a contractor, you are invariably bring people back to work, and that is the commitment that I made,” he said.

    The minister expressed dismay over failure of the past administration to fund the projects it originated.

    “You heard the contractors saying they were not able to continue with the projects because funds were not released until December, 2016.

    “You also heard from all the sites we visited that contractors were not paid for three to four years and that was at a time we were having income of 100 dollars per barrel of oil.

    “People were laid off by the contractors, they could not continue the projects, so the foundation for the recession was built three years ago.

    “In spite of the fall in oil income, the Buhari government is now saying that whatever it will take, we must pay contractors and that is why they have all returned to site,” he added.

    TheNewsGuru.com reports that the projects visited by the minister during tour in Rivers were the Aba-Port Harcourt dual carriage way and the Bodo-Bonny bridge projects.

    The minister said the Bodo-Bonny bridge, when completed, would be the only road linking the people of Ogoni land to Bonny Island.

    He said the project was awarded several years ago but the contractor abandoned the site because it was not funded.

    He said the Federal Government made provision to finance the project in partnership with the Nigeria Liquefied Natural Gas (NLNG) in the 2017 budget proposal.

     

  • Budget defence: Senate uncovers fresh N2bn in Fashola’s proposal

    Budget defence: Senate uncovers fresh N2bn in Fashola’s proposal

    The Senate on Tuesday was thrown into a mild drama session as the Minister of Power, Works and Housing, Mr. Babatunde Fashola could not explain how an additional N2bn came about in his ministry’s budget proposal.

    However, Fashola denied knowledge of the N2bn allocated to Regional Housing Scheme in the 2017 budget proposal of the ministry.

    The minister, who appeared before the committee to defend the proposal, referred the lawmakers to the Ministry of Finance for information on the controversial item.

    TheNewsGuru.com reports that the item was labeled FMOW99934089.

    “I know as much of it as you do,” Fashola told members of the committee.

    He further noted that he had no knowledge on the N2bn allocation as it was discovered in the proposal after it was worked upon by the Ministry of Finance.

    The Chairman of the committee, Senator Barnabas Gemade, requested that the Minister of Finance, Kemi Adeosun, be invited to explain the insertion of the allocation.

    The following conversation ensued between Fashola and Gemade during the budget defence:

    Gemade: Finally, what is this provision of N2bn for regional housing scheme? What is regional housing scheme? Where is it taking place? What is happening? Have you seen it on Page 18?

    Fashola: It is not our project. It came in from, I think, the Budget (Office). It is a Ministry of Finance initiative; saying that they want to do what they called ‘family homes’. It is not from us.

    Gemade: Yes, but they have put it here; otherwise, we will not be in the position to accept it.

    Fashola: I know as much of it as you do sir.

    Gemade: But you are here to defend this budget in totality.

    Fashola: That is why I have come. I am explaining to you now, sir, on how it came into our budget. That is not what we submitted. We didn’t submit that proposal.

    Gemade: So, will the ministry be kind enough to tell the people who put this in this budget to come forward and let us know?

    Fashola: Please.

    Gemade: Let us know what is regional housing programme because government cannot be operated in secrecy.

    Fashola: I think the committee, if you permit me to bring this suggestion…

    Gemade: …should invite them?

    Fashola: Yes, sir.

    Gemade: But you know the people; we don’t know them.

    Fashola: No, sir. We just said finance sir.

    Gemade: Finance ministry?

    Fashola: Yes sir.

    Gemade: We will write to the minister.

    Fashola: Please do sir.

    Gemade: (Pointing to the committee’s secretariat) Write to the minister: We have seen this line, which costs N2bn. Let them send information here for us to know what it is all about.

  • Consumers have right to resist payment when there’s no electricity – Fashola

    …says I’ll resist too

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said electricity consumers in the country have right to refuse paying bills when they are not supplied.

    TheNewsGuru.com reports that the minister said this on Monday at the 12th Monthly Power Sector and Stakeholders’ Meeting in Ibadan hosted by Ibadan Electricity Distribution Company.

    Power generation in the country has worsened in recent weeks after hitting the 4,000 megawatts mark in December last year, with many consumers without prepaid meters complaining about over-estimated bills despite the dip in supply.

    The minister said vandalism of gas pipelines and other important assests in the Niger Delta has led to a drastic fall in the supply of the gas needed to improve power supply.

    In his words: “The 3,500MW to 3,800MW that we have been able to keep on the grid over the last few months will be assisted greatly if we can have the gas pipelines back and add 3,000MW to it. That means we will be able to deliver well over 6,000MW if the gas pipelines are safe.”

    The minister explained further that the sabotage had also created debt and liquidity problems, shortfall in power expectation, and in revenue recovery by power distribution firms.

    “Consumers are more resistant to payment when they don’t have electricity, and I will be, too, and you will be too,” he told the power investors and other stakeholders at the meeting.

    “We see that they (consumers) pay more when the power is more stable. Of course, there are issues also at the retail end – metering, estimated bills.”

    Noting that all stakeholders have different roles to play in solving the problems, the minister said, “You will see that government has begun to act. The Vice President, representing the President, is going round those Niger Delta communities, engaging them more openly, more robustly.

    “The idea is to bring them to the table to stop the vandalism while the issues that agitate them can be treated and resolved. I believe that if we are successful as we expect to be, we should be able to, sometimes, this year recover all the 3,000MW that has been lost to gas pipeline outages,” the minister said.

  • Gurara, Kaduna Power Stations to commence transmission soon – Fashola

    Minister of Works, Power and Housing, Mr Babatunde Fashola, on Saturday said Gurara and Kaduna Power Stations would soon commence transmission into the National Grid.

    Fashola made the disclosure while addressing newsmen in Awka during his visit to Anambra.

    He said efforts were ongoing to ensure that the national power output was increased to 7,000 megawatts from the present 3,500 megawatts.

    According to him, we are completing our transmission lines and commencing new ones.

    “Gurara and Kaduna transmission lines will come up this year while Kashinbura Station will come up much later.

    “We are also working on solar initiative as alternative to complement our efforts in hydro.

    “We have lost about 3,000 megawatts on the western axis of the Niger Delta, we are currently running about 3,500 megawatts.

    “If we can get back the 3,000 we are losing in the Niger Delta, in addition to the 4,000 we are targeting, that will make it close to 7, 000 megawatts.

    “That is why are calling our brothers who are angry with us to sheathe their swords and allow production to go on,” the minister said.

    Fashola also said that the Federal Government was embarking on a power audit to ensure that the issue of metering was properly addressed.

    “We are addressing metering issues with Discos; we know the experience with the estimated billing, and we are doing power audit to ensure that people pay according to the categories of tariff they fall in,” he said.

    In his response, Gov. Willie Obiano thanked the Federal Government for its renewed attention to infrastructural deficiency in the South-East and Anambra in particular.

    Obiano expressed hope that the benefits of the minister’s visit would manifest in no distant time.

     

    NAN