The Minister of Information and Culture, Alhaji Lai Mohammed in Press Conference today, address the recent issues surrounding the the hike in the price of fuel and electricity tariff. The Adress was as follows:
ON: FUEL PRICES
As you are aware, the long-drawn fuel subsidy regime ended in March, 2020, when the Petroleum Products Pricing Regulatory Agency (PPPRA) announced that it had begun fuel price modulation, in accordance with prevailing market dynamics, and would respond appropriately to any further oil market development.
Recall that the price of fuel then dropped from 145 to 125 Naira per litre, and then to between 121.50 and 123.50 Naira per litre in May. With the low price of crude oil then, the cost of petrol, which is a derivative of crude oil, fell, and the lower pump price was passed on to the consumers to enjoy. With the price of crude inching up, the price of petrol locally is also bound to increase, hence the latest price of 162 Naira per litre. If, perchance, the price of crude drops again, the price of petrol will also drop, and the benefits will also be passed on to the consumers.
The angry reactions that have greeted the latest prices of Premium Motor Spirit (PMS) are therefore, unnecessary and totally mischievous.
Gentlemen, the truth of the matter is that subsidizing fuel is no longer feasible, especially under the prevailing economic conditions in the country. The government can no longer afford fuel subsidy, as revenues and foreign exchange earnings have fallen by almost 60%, due to the downturn in the fortunes of the oil sector. Yet, the government has had to sustain expenditures, especially on salaries and capital projects. Even though we have acted to mitigate the effect of the economic slowdown by adopting an Economic Sustainability Plan, we have also had to take some difficult decisions to stop unsustainable practices that were weighing the economy down.
One of such difficult decisions, which we took at the beginning of the Covid-19 pandemic in March – when oil prices collapsed at the height of the global lockdown – was the deregulation of the prices of PMS. As I said earlier, the benefit of lower prices at that time was passed to consumers. Everyone welcomed the lower fuel price then. Again, the effect of deregulation is that PMS prices will change with changes in global oil prices. This means quite regrettably that as oil prices recover, there will be some increases in PMS prices. This is what has happened now.
Government can no longer afford to subsidize petrol prices, because of its many negative consequences. These include a return to the costly subsidy regime. With 60% less revenues today, we cannot afford the cost. The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this Administration. The days in which Nigerians queue for hours and days just to buy petrol, often at very high prices, are gone for good. Of course, there is also no provision for fuel subsidy in the revised 2020 budget, because we just cannot afford it.
Gentlemen, the cost of fuel subsidy is too high and unsustainable. From 2006 to 2019, fuel subsidy gulped 10.413 Trillion Naira. That is an average of 743.8 billion Naira per annum. According to figures provided by the NNPC, the breakdown of the 14-year subsidy is as follows:
In 2006 Subsidy was 257bn
In 2007 Subsidy was 272bn
In 2008 Subsidy was 631bn
In 2009 469bn
In 2010 667bn
In 2011 2.105tn
In 2012 1.355tn
In 2013 1.316tn
In 2014 1.217tn
In 2015 654bn
In 2016 Figure Not Available
In 2017 Subsidy was 144.3bn
In 2018 730.86bn
And in 2019 Subsidy was 595bn
The Federal Government is not unmindful of the pains associated with higher fuel prices at this time. That is why we will continue to seek ways to cushion the pains, especially for the most vulnerable Nigerians. The government is providing cheaper and more efficient fuel in form of auto gas. Also, Government, through the PPPRA, will ensure that marketers do not exploit citizens through arbitrarily hike in pump prices. And that is why the PPPRA announced the range of prices that must not be exceeded by marketers.
In spite of the recent increase in the price of fuel to 162 Naira per litre, petrol prices in Nigeria remain the lowest in the West/Central African sub-regions. Below is a comparative analysis of petrol prices in the sub-regions (Naira equivalent per litre);
Nigeria – 162 Naira per litre
Ghana – 332 Naira per litre
Benin – 359 Naira per litre
Togo – 300 Naira per litre
Niger – 346 Naira per litre
Chad – 366 Naira per litre
Cameroon – 449 Naira per litre
Burkina Faso – 433 Naira per Litre
Mali – 476 Naira per litre
Liberia – 257 Naira per litre
Sierra Leone – 281 Naira per litre
Guinea – 363 Naira per litre
Senegal – 549 Naira per litre
Outside the sub-region, petrol sells for 211 Naira per litre in Egypt and 168 Naira per litre in Saudi Arabia. You can now see that even with the removal of subsidy, fuel price in Nigeria remains among the cheapest in Africa.
ON: ELECTRICITY TARIFF
Another issue we want to address here today is the recent service-based electricity tariff adjustment by the Distribution Companies, or DISCOS. The truth of the matter is that due to the problems with the largely-privatized electricity industry, the government has been supporting the industry. To keep the industry going, the government has so far spent almost 1.7 trillion Naira, especially by way of supplementing tariffs shortfalls. The government does not have the resources to continue along this path. To borrow just to subsidize generation and distribution, which are both privatized, will be grossly irresponsible.
But in order to protect the large majority of Nigerians who cannot afford to pay cost-reflective tariffs from increases, the industry regulator, NERC, has approved that tariff adjustments had to be made but only on the basis of guaranteed improvement in service. Under this new arrangement, only customers with guaranteed minimum of 12 hours of electricity can have their tariffs adjusted. Those who get less than 12 hours supply will experience no increase. This is the largest group of customers.
Government has also noted the complaints about arbitrary estimated billing. Accordingly, a mass metering programme is being undertaken to provide meters for over 5 million Nigerians, largely driven by preferred procurement from local manufacturers, and creating thousands of jobs in the process. NERC will also strictly enforce the capping regulation to ensure that unmetered customers are not charged beyond the metered customers in their neighbourhood. In other words, there will be no more estimated billings.
The government is also taking steps to connect those Nigerians who are not even connected to electricity at all. As you are aware, under its Economic Sustainability Plan, the government is providing solar power to 5 million Nigerian households in the next 12 months. This alone will produce 250,000 jobs and impact up to 25 million beneficiaries through the installation, thus ensuring that more Nigerians will have access to electricity via a reliable and sustainable solar system.
Gentlemen, please note that despite the recent service-based tariff review, the cost of electricity in Nigeria is still cheaper or compares favourably with that of many countries in Africa.
COST IN NAIRA PER KWH IN SOME AFRICAN COUNTRIES.
Sierra Leone 106.02
Burkina Faso 85.09
Gentlemen, the timing of these two necessary adjustments, in the petroleum and power sectors, has raised some concerns among Nigerians. This is a mere coincidence. First, the deregulation of PMS prices was announced on 18 March 2020, and the price modulation that took place at the beginning of this month was just part of the on-going monthly adjustments to global crude oil prices.
Also, the review of service-based electricity tariffs was scheduled to start at the beginning of July 2020 but was put on hold so that further studies and proper arrangements can be made. Like Mr. President said today, at the opening of the Ministerial Retreat, this government is not insensitive to the current economic difficulties our people are going through and the very tough economic situation we face as a nation. We certainly will not inflict hardship on our people. But we are convinced that if we stay focused on our plans, brighter and more prosperous days will come soon.
The opportunistic opposition and their allies are playing dirty politics with the issue of petrol pricing and electricity tariff. Please note that these naysayers did not complain when the price adjustment led to lower petrol prices on at least two occasions since March. Nigerians must therefore, renounce those who have latched onto the issue of petrol pricing and electricity tariff review to throw the country into chaos.
I thank you all for your kind attention Show quoted text.
I was just passing in Unguwan Jaki, a very busy and one of the business trending streets in Bauchi Metropolis when I heard some youths shouting and arguing heavily on politics in Nigeria. They were about ten, mostly within the age bracket of 30 – 35, sitting in front of one big Printing Press and engaged in a very hot argument about the present administration.
I don’t normally involve myself in unnecessary arguments about political issues in Nigeria, but when I heard one of the youth shouting that someone should tell him ONLY THREE achievements recorded by President Muhammadu Buhari in his five years in office, I felt something like a blow in my head. I quickly stopped and turned around to join the discussion.
I moved closer and greeted them, find a place aside and sat down. The young guy were still standing, looking so frustrated and angered. He kept repeating the same request for three achievements but nobody could respond to him. I quickly chipped in and said “I can mention a hundred and plus achievements for you Sir” .
He turned his head around and with a glaring look said to me “go ahead I am all ears”. I said, I have a plead to make please before we start. “What is it? Say it I am listening. He said in a more angry manner.
“I want you to calm down first so that we can understand each other, and also want you to get a pen and paper in order to jot the points I am about to mention” I said, without looking at him. He bursed into big laugher and asked someone to bring pen and jotter for him.
I asked him to mention any sector that he feels President Buhari has not done anything, so that we can start. He then started to shout loud, “what did he do in all the sectors? This man has failed Nigerians in all ramifications. He promised to pay all pension arrears of Federal Civil Servants during his campaign, he promised to make electricity stable, he promised this and promised that….
As soon as he reached a full stop, I began to respond to him as follows; while he writes the points and other people listen with keen interest.
PENSIONS: In January 2019, President Buhari launched Nigeria’s Micro Pension Scheme – which allows self-employed persons and persons working in organisations with less than 3 employees to save for the provision of pension at retirement or incapacitation. The Buhari Administration is prioritizing the payment of pension arrears owed staff of current and privatized/defunct Federal agencies:
A total of 54 Billion Naira was released to settle outstanding 33% pension arrears (the 33% pension arrears date back to 2010 when the minimum wage was increased to N18,000).
Delta Steel Company (liquidated in 2005): 3,542 pensioners have now been placed on the payroll, ending a 13-year wait for their entitlements.
NITEL: Another 9,216 pensioners were payrolled, after more than a decade of neglect by the previous administration.
Retired Biafran Police Officers (dismissed by the Federal Government in 1971, after the Civil War ended, and pardoned by President Obasanjo in 2000): President Buhari approved the payment of the pensions, unpaid since their pardon in 2000. N571.56 million was paid to a total of 174 beneficiaries in October 2017
Nigeria Airways: President Buhari approved the release of N24 billion in September 2018, for the settlement of 50% of workers disengaged when the airline was liquidated in 2003/4.
Recoveries: The Pension Transitional Arrangement Directorate (PTAD) has recovered cash and non-cash assets totaling N16 billion previously trapped in various insurance companies and underwriters managing the pension funds of Federal Parastatals and Universities.
AGRICULTURE: The Anchor Borrowers Programme (ABP) of the Central Bank of Nigeria, launched by President Muhammadu Buhari on November 17, 2015, has made available more than 200 billion Naira in funding to more than 1.5 million smallholder farmers of 16 different commodities (Rice, Wheat, Maize, Cotton, Cassava, Poultry, Soy Beans, Groundnut, Fish), cultivating over 1.4 million hectares of farmland.
The ABP has substantially raised local production of rice, doubling the production of paddy as well as milled rice between 2015 and 2019.
Between 2016 and 2019, more than 10 new rice mills came on-stream in Nigeria. Many of the existing Mills have expanded their capacity; several new ones are under construction.
More than a billion dollars of private sector investments in the production of Rice, Wheat, Sugar, Poultry, Animal Feed, Fertilizers, etc, since 2015.
Federal Executive Council approval (2020) for a National Agriculture Mechanization Programme, “the Green Imperative”, in partnership with the Government of Brazil and multilateral financing institutions.
The Presidential Fertilizer Initiative: Launched in January 2017, as a Government-to-Government agreement with the Kingdom of Morocco More than a million metric tonnes of fertilizer produced since 2017. This translated to distribution of more than 18 million 50kg bags of NPK fertilizer in the first three years of the PFI)
22 blending plants resuscitated (combined installed capacity of more than 2.5m MT) Price reduction from 9,000-11,000 per bag, to 5,500 FX savings of $150m annually through the substitution of imported components with locally manufactured ones Subsidy savings of 50 billion Naira annually.
A total of 100,000 youths were trained across the 36 states and FCT under the Fadama Graduate Unemployed Youths and Women Support (GUYS) and have received free grants from N300,000 to One Million in order to establish different Agribusinesses.
Presently, N50 Billion loan has being distributed across households to support their living and all SMEs affected by the Covid 19 Pandemic.
AGMEIS Loan scheme is currently on going with a bid to target more than 500,000 Small and Micro Enterprises across the country in order to enhance their production capacity.
President Muhammadu Buhari’s Policies on trade and investment attracted;
WACOT (Largest Rice Mill In Africa) KEBBI STATE
OLAM (largest Feed Mill In Africa), KADUNA STATE
SUNTI (Largest Sugar Company In Africa), NIGER STATE
INFRASTRUCTURE: The Buhari Administration has demonstrated a single-minded commitment to upgrading and developing Nigeria’s Transport, Power and Health Infrastructure. Three major rail projects inherited from previous administrations have been completed and commissioned: Abuja Metro Rail and the Abuja-Kaduna Rail, and the 327km Itakpe-Ajaokuta-Warri Rail, started in 1987, have been completed in 2020.
A fourth Rail Project, the Lagos-Ibadan Rail Project, kicked off in 2017, and is due to be completed in 2020. The tracklaying for the main component of the project was completed in March 2020.
In May 2018, the Federal Government launched the Presidential Infrastructure Development Fund (PIDF), under the management of the Nigerian Sovereign Investment Authority.
The PIDF kicked off with seed funding of US$650 million, and has already disbursed funds for three critical road projects: Second Niger Bridge, Lagos-Ibadan Expressway, and the Abuja-Kaduna-Zaria-Kano Expressway.
Nigeria Sovereign Investment Authority (NSIA) in March 2018 invested US$11m to establish a world-class Cancer Treatment Center at the Lagos University Teaching Hospital (LUTH), which commenced operations in 2019.
Work is ongoing on two US$5m Diagnostic Centers in the Aminu Kano University Teaching Hospital and the Federal Medical Centre, Umuahia.
Abuja’s Light Rail system has been completed; it connects the city center with the Airport, and the Abuja-Kaduna Railway Line.
New Abuja and Port Harcourt International Airport Terminals completed, in Q4 2018.
New Lagos and Kano International Airport Terminals scheduled for completion in 2020. All were inherited from the previous administration at various stages of completion, and in some cases required project redesign and revision.
The Buhari Administration successfully completed the reconstruction of the Abuja Airport runway within the scheduled six-week period (March – April 2017), and will complete the reconstruction of the Enugu International Airport Runway in 2020.
The following Water Supply Projects and Dam/Irrigation Projects have been completed by the Buhari Administration:
Central Ogbia Regional Water Project, in Bayelsa
Sabke/Dutsi/Mashi Water Supply Project, in Katsina
Northern Ishan Regional Water Supply Project, serving Ugboha and Uromi communities of Edo State.
Kashimbila Dam, Taraba State
Ogwashi-Uku Dam, Delta State (Actual Dam completed and reservoir “impounded” in 2016; also spillway discharge channel completed).
Shagari Dam Irrigation Project, Sokoto State
Mangu Dam and Regional Water Supply Scheme in Plateau State
Completion of Phase 1 of Galma Dam, Kaduna
Rehabilitation of Ojirami Dam Water Supply Project, Edo State
The 25 Road Projects being funded by the Sukuk Bonds:
Construction of Oju/Loko–Oweto bridge over River Benue to link Loko (Nasarawa state) and Oweto (Benue state) along route F2384
Dualisation of Abuja–Abaji–Lokoja Road section I (International Airport link road junction–Sheda Village)
Dualisation of Suleja–Minna Road in Niger State Phase II (km 40+000-km101+000)
Dualisation of Abuja–Abaji–Lokoja Road: Section IV Koton Karfe–Lokoja in Kogi State
Dualisation of Lokoja-Benin Road: Obajana–Okene in Kogi State
Dualisation of Kano–Maiduguri Road linking Kano–Jigawa–Bauchi–Yobe
Dualisation of Kano–Maiduguri Road linking Kano–Jigawa–Bauchi–Yobe–Borno States. Section III (Azare–Potiskum) in Bauchi
Dualisation of Kano–Maiduguri Road linking Kano–Jigawa–Bauchi–Yobe–Borno States. Section IV (Potiskum–Damaturu road) in Yobe
Dualisation of Kano–Maiduguri Road linking Kano–Jigawa–Bauchi–Yobe–Borno States. Section V (Damaturu–Maiduguri)
Dualisation of Kano–Maiduguri Road linking Kano–Jigawa–Bauchi–Yobe–Borno States. Section I (Kano–Wudil–Shuari) in Kano
Dualisation of Kano–Katsina Road Phase I, Kano Town at Dawanau roundabout to Katsina border in Kano
Construction of Kano Western Bypass as an extension of dualisation of Kano–Maiduguri Road Section I
Construction of Kaduna Eastern Bypass
Rehabilitation of outstanding section of Onitsha–Enugu Expressway: Amansea–Enugu border
Rehabilitation of Enugu–Port Harcourt dual-carriage Section I: Lokpanta–Umuahia in Abia
Rehabilitation of Enugu–Port Harcourt dual-carriage Section II Umuahia tower–Aba Township Rail
Rehabilitation of Enugu–Port Harcourt Road Section III: Enugu–Lokpanta
Rehabilitation of Enugu–Port Harcourt Road Section IV: Aba–Port Harcourt in Rivers
Dualisation of Yenegwe Road Junction–Kolo–Otuoke–Bayelsa Palm in Bayelsa
Dualisation of Lokoja–Benin Road: Obajana Junction–Benin Section II Phase I: Okene–Auchi, Kogi/Edo states
Dualisation of Lokoja–Benin Road: Obajana Junction–Benin Section III Phase I: Auchi–Ehor in Edo
Dualisation of Lokoja-Benin Road: Obajana junction–Benin Section IV Phase I: Ehor–Benin City, Edo state
Reconstruction and asphalt overlay of Benin–Ofosu–Ore–Ajebandele–Shagamu dual-carriage Phase IV
Reconstruction of outstanding section of sections of Benin–Ofusu–Ore–Ajebandele–Shagamu dual-carriage Phase III
Dualisation of Ibadan–Ilorin Road. Section II: Oyo–Ogbomosho Road in Oyo.
Second Niger Bridge
Loko-Oweto Bridge (Nasarawa-Benue and south east.
Baro Inland water Port
Kaduna Dry Port
Eastern Port (Delta)
Bony Bridge and Road, Rivers State -15 Fertilizer Plants Revived
Northeast Development Commission
FEDERAL HIGHWAYS ROADS:
Lagos- Sagamu- Ibadan Expressways
New Abuja Airport Runway and Terminal
Enugu-Port Harcourt Expressway
Abuja – Kerffi – Lafia – Makurdi Expressway
Enugu – Onitsha Road
POWER SECTOR: The Federal Government’s Energizing Economies Programme is a public-private partnership led by the Rural Electrification Agency (REA), to deliver stable power supply to markets and economic clusters across the country.
The initial phase is ongoing in Ariaria Market in Aba, Abia State (32,000 shops), Sura Shopping Complex in Lagos (1,000 shops), Shomolu Printing Community in Lagos (4,000 shops) and the Sabon Gari Market in Kano (12,000 shops). The Sura Shopping Complex project was completed in August 2018, and commissioned by Vice President Yemi Osinbajo in October 2018.
Launch of a 1.3 Trillion Naira Payment Assurance Programme designed to resolve the liquidity challenges in the Power Sector by guaranteeing payments to Generating Companies and Gas Suppliers.
Implementation of a Willing Buyer, Willing Seller Policy for the power sector, which has opened up opportunities for increased delivery of electricity to homes and industries.
The Nigerian Electricity Regulatory Commission (NERC) has also recently issued an Order capping estimated billing by DisCos. More than 90 Transmission Projects completed or ongoing since 2016.
DAMS AND POWER PLANTS:
Dadin Kowa Power Plant Gombe
Kashimbilla Hydro Power Plant(Completed)
Mambilla Hydro Power Plant(Awarded)
Independent Power Supply to Ariaria Market, Aba, Abia State
Independent Power Supply to Sabon Gari Market, Kano State
Independent Power Plan Sura Shopping Complex, Lagos
Independent Power Plants for 37 Universities Independent Power Plants for 7 Teaching Hospitals
Oil Exploration in Bauchi
Over 200Bn released for Universities (1st in History)
EDUCATION: Grants and Disbursements: The Federal Government has disbursed more than 170 billion Naira in UBE Matching Grants to States and the FCT since 2015, 8 billion Naira in Special Education Grant to States and private providers of Special Education, and 34 billion Naira from the Teachers Professional Development Fund to States and the FCT.
A sum of 200 billon naira released to Universities in Nigeria using TETFUND
President Buhari has also established the following:
Federal Maritime University, in Delta State
Nigerian Army University Biu, in Borno State
University of Agriculture, Zuru, Kebbi State
University of Transportation, Daura, Katsina State
Airforce University, Tafawa Balewa, Bauchi State
The administration has also established NEW FEDERAL COLLEGES OF EDUCATION in;
Federal Polytechnic, Daura
Transfer of Almajiri Schools built by the previous administration to State Governments and credible Scholars of Islamic Education, for efficient administration and impact.
Grants to State Governments: A minimum of $2.5 million disbursed to each State of the Federation and the FCT, under the Saving One Million Lives (SOML) initiative, to improve health outcomes.
Basic Health Care Provision Fund (BHCPF): For the first time since the National Health Act was passed in 2014, the Federal Government included the 1% minimum portion of the Consolidated Revenue Fund – amounting to 55 billion Naira – in the 2018 budget, to fund the Basic Health Care Provision Fund (BHCPF). The Fund is designed to deliver a guaranteed set health services to all Nigerians, through the national network of Primary Health Care centers.
Passage of Enabling Legislation for the Nigeria Center for Disease Control (NCDC), for the first time since it was founded in 2011. President Buhari approved a grant of 5 billion Naira for the NCDC in March 2020.
Tertiary Healthcare Upgrade Programme: A number of key Federal Hospitals across the country are being upgraded to effectively manage cancer and other major health challenges. Cancer Radiotherapy machines and other equipment are being provided to these hospitals. The National Hospital in Abuja has already received two LINAC (cancer treatment) machines.
Also established the following Health Care Institutions;
Airforce Referral Hospital, Daura
Nigerian Airforce Base Stand Hospital Bauchi
Women and Children Hospital, Daura
44 Military Hospital, Kaduna
National Cancer Center, Abuja
Cancer Center at the University Teaching Hospital, UniLag, Lagos
FINANCIAL BAILOUT TO STATES: President Muhammadu buhari bailed out 27 Governors and their states with finances running in billons of dollars.
AVIATION INDUSTRY: -New Abuja Airport Terminal
New Lagos Airport Terminal
Port Harcourt Airport Terminal
Enugu Airport Terminal
Abuja Metro Train
Abuja – Kaduna Train
Itakpe (KOGI state) -Warri (DELTA state)
Lagos – Abeokuta (OGUN)
Abeokuta (OGUN) – Ibadan (OYO)
Lagos – Kaduna Cargo Train
Train Assembly Plan, OGUN
Lagos-Kaduna Cargo Train
SOCIAL INVESTMENT PROGRAMS: President Muhammadu buhari Made It Possible:
N30,000 Minimum Wage for all workers
N30,000 for 500,000 Npower beneficiaries
School Feeding Program
Buhari Young Farmers
WATER SUPPLY AND DAM/IRRIGATION PROJECTS: -Central Ogbia Regional Water Project,Bayelsa -Sabke/Dutsi/Mashi Water Supply Project, Katsina -Kashimbila Dam, TarabaState -Ogwashi-Uku Dam, Delta State -Shagari Dam Irrigation Project, Sokoto State,
HOUSING SECTOR: -10,000 estate housing across each 36 states
Buhari Quarter housing scheme across the 36 states.
As I was busy mentioning these achievements, the guy was already tired of writing. I stopped and ask why he was not writing. He said he was tired, his fingers were paining him, that I should allow him take some rest and we continue tomorrow.
I said, ok no problem but let me mention this point before I forget. I then catsh his right ear and whispered to him, that President Buhari has yesterday Flagged Off a $2.8 billion Ajaokuta-Kaduna-Kano Gas Pipeline Project, which is said to be the largest of its kind in the nation.
“The AKK project is a section of the trans-Nigeria gas pipeline with a capacity to transport 2.2 billion cubic feet of gas per day and will be fed from the existing domestic gas infrastructure”, I added. The guy just fainted. It took the intervention of his colleagues who poured water on him before he could regain consciousness.
He looked at me with a relaxed mind and said, “My brother PMB has really achieved a lot in this five years, only that many people do not know, because free money is not flowing into their pockets”. His friends were surprised that he became speechless at the end. We shook hands and bid each other farewell.
The government of Chad Republic has formally requested the Nigerian government to connect the country to the Nigerian electricity grid.
The request was presented by the Chadian Ambassador to Nigeria, Abakar Saleh Chachaimi during a working visit to the Minister of Power, Engr. Sale Mamman in Abuja.
The Ambassador stressed the historical and economic value of connecting Chad to Nigeria’s electricity as a means of continued collaboration between the countries. Reacting to the request, Engr. Mamman welcomed the development, stressing that it will help in enhancing the long existing relations between the two countries.
The minister said the request from Chad Republic came at the best time as he reassured the Chadian envoy that Nigeria will evaluate it within the various projects under the Transmission Rehabilitation and Expansion Programme (TREP) for possible integration of the request.
“I, therefore, direct the Transmission Company of Nigeria (TCN) whose representatives are part of this meeting, to come up with a business case and implementation modalities. Based on that, we will write to the Presidency to secure all the necessary approvals,” Engr. Mamman said.
The minister also approved the request to host his counterpart from the Republic of Chad for a technical analysis of the request. He further informed the Chadian delegation that currently, Nigeria has bilateral contracts for supplying electricity to Niger Republic and Benin Republic which have been ongoing for decades. Engr. Mamman also noted that under the framework of the West African Power Pool (WAPP) whose objectives include promotion of power exchange among the ECOWAS member states, the Republics of Benin, Burkina-Faso, Niger and Nigeria, are building an 875 kilometre distance of 330 kilovolt power transmission line, the “North Core Transmission line”. The line will interconnect the four countries for improved power supply from Nigeria. He said,
“this project got the concurrent acceptance of the World Bank (WB), African Development Bank (AfDB) and French Development Agency (AFD) to finance different segments of the proposed transmission line. “As at September 2019, all the financing became effective and the implementation structure for the project has earlier been established with Project Implementation Unit (PIU) located in Abuja.” He concluded.