-
FEC okays N2.7b for Zungeru Hydro power project
-
NDDC forensic auditors get additional N766m
By Egena Sunday Ode
The federal government on Wednesday said it is unable to reach its promised target of 5,000 megawatts of electricity generation because of shortage in gas supply.
The Minister of Power, Abubakar Aliyu, stated this while briefing correspondents at the end of the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.
He said whereas government had entered into a firm contract with the Nigerian Bulk Electricity Trading (NBET) Plc, power generation had remained around 4,000 megawatts because of the problem of gas.
However, he assured that every necessary ingredients has now been obtained to resolve the problem as his ministry is working round the clock to improve the situation.
Addressing the drop in power generation, he said: “We have gone far with negotiations to resolve the challenge. We would be experiencing the fluctuations owing to gas issues. We have to pay for gas and would not get gas because of the problem. That is why we are unable to reach the 5,000 megawatts by July 1st, because of the issue.”
He added: “Regarding the drop of electricity, yes, the supply has so many players, gas may cause that drop. If there are issues of gas to some power plants, they cannot switch on their plant, you will experience some drop. Once they switch on, the electricity will increase.
“So it is mostly the generation. I’ve been watching…like yesterday evening, we had a generation of over around 4,600 megawatts. And you know, we told you since July 1, that we’ll be able to raise it up to 5,000 when we activate the contract, and we’ve not been able to do so due to some issues around gas contracts with regards to power, which we are trying to take care of.
“This morning, it dropped to 4100. So, this is what is happening. You will be experiencing this fluctuation due to all these issues around gas to power because gas is not something that we control directly. You have to pay. They will not give you gas until you pay. So we are looking at ways to solve that issue, it is the reason why we’re unable to reach that 5000 we promised you by July 1 of this year.”
Aliyu noted that the Federal Government
had contracts with only five of the 28 Power Generating Companies (GenCos) but have extended it to more GenCos to stabilise supply at 5000 megawatts as of July 1 but is now constrained by the issue of gas supply.
He explained: “We have 28 generating companies and only five or thereabout that we’re having firm contracts with. If you don’t have firm contracts with them…firm contract means that what you agree upon, you must give or else there’ll be a penalty. And there must be uptake. This is what it means to have a firm contract.
“Now, we have extended to other generating companies by July 1, to be able to have a firm contract to generate 5000 megawatts as a baseline, and we’re not stopping there. We’ll start ramping up with the other ones. So, this is the situation. We are working around the clock to ensure that we raise the capacity to the required level.”
Recalled that the Minister of State for Power, Mohammad Notezai, had announced that an additional 5,000 megawatts of electricity would be added to the national grid by March 2023.
Aliyu also revealed that FEC approved N2,740,000,000, the revised estimates for the updated rates of building structures of compensation and resettlement of the communities affected by the construction of 700 megawatts Zungaro Hydro electric power project.
The amount revises the subsisting amount from N19,640,000,000 to N22,380,000,000.
On the threat to embark on strike by Members of the National Union of Electricity Employees (NUEE), Aliyu argued that the workers have no issues with his ministry but the Head of Civil Service of the Federation.
The Minister said: “The issues they have is not particularly something to do with us, but with employment issues with the Head of Service.”
He disclosed that the Minister of State for Power, Minister of Labour and Head of Civil Service of the Federation were absent from the FEC meeting to resolve the crisis.
On the strike by workers of thw Kaduna Electricity Distribution Company, he also explained: “Kaduna DisCo on strike. We have been managing the situation since yesterday. That’s why my colleague is not in attendance at FEC today.
“They are having discussions with Labour. He did not attend for that reason, having discussions with Labour..Joe Ajero. Kaduna DisCo is not on strike. They are trying to switch off electricity owing to the warning strike. We have not been able to go into our offices..the issue is not to do with us but employment issues, but I expects that by now, they must have settled. I believe it’s something that will be resolved very soon.”
The FEC also approved N766 million as additional cost of conducting the forensic audit of the Niger Delta Development Commission (NDDC).
The Minister of Niger Delta Affairs, Umana Umana, disclosed this in his presentation at the post-Council press briefing.
He explained: “You’ll recall that for this exercise, a lead consultant was appointed who had to work with 16 other field auditors and the initial contract sum which covered the lead consultants and the field forensic auditors was N1.786 billion.
“These auditors have since concluded their work. But in the cause of carrying out this work, it was discovered that they had to deal with many more projects than were initially envisaged. And the exercise also took an additional seven months.
“The total number of additional projects considered by the auditors was 3,773. So, for reasons of the additional number of projects and the additional time taken, Council today approved a revised additional sum of N765,974,975.50 to cover the additional works done by the forensic auditors.”
He also said that President Buhari will inaugurate the governing board of the Commission only after a white paper has been issued from the forensic audit report.
The minister said: “I can very conveniently say that the constitution of the board will follow immediately thereafter. Nobody is trying to stall the constitution of the board. Nobody. I want the board in place because it would make my work run smoothly. But we must also follow the due process, conclude on this report and the white paper is issued. So that is the position.”
