FG to probe abandoned N37b PHCN’s meter contract

….as Lagos moves to generate 300 MW

The Federal Government will revisit abandoned 2003 N37 billion NEPA/PHCN fraudulent contract, Power, Works and Housing Minister, Mr. Babatunde Raji Fashola, has said.

Fashola, who was the guest lecturer at this year’s edition of the public lecture series of the Department of Economics of the University of Lagos, recently, spoke on ‘Power sector reforms: Challenges and the way forward.’

According to the minister, the Federal Government wants to improve power on sustainable basis. Through the Power Sector Reform Programme (PSRP), the government, he said, would achieve, among others, the metering of customers, and their appropriate billing.

He said that meters by the same manufacturers were calibrated for each DisCo’s use, such that you cannot use a meter calibrated for Ikeja DisCo in Eko DisCo without recalibration. The minister added that, Meters, cannot be installed without a visit to the customer’s home for audit assessment, saying that DisCos liquidity problem makes it difficult for them to access credit to order meters.

“One DisCo requires over N20billion 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 of the bill is difficult.’’

Reinforcing the need for whistle blowing for energy theft as a civic responsibility, he said such reports would expose customers who don’t pay or steal energy,” Fashola said:

He said,“Those who are resisting the installation of meters and assaulting DisCo workers, who seek to install meters must stop it. It is a criminal offense. The government had, in 2003, 14 years ago, issued a contract for the supply of three million meters to NEPA/PHCN estimated at N37 billion.

“That contract was not performed until the privatisation was concluded in 2013, and was inherited by the Buhari government as a court case in which a judgment of N119 billion had been signed against government. We have worked to get the case out of court, negotiate the judgment 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.”

According to the former governor of Lagos state, “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.”

He said, “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.”

“Instead of doing these, the government believes that the lapses in the privatisation policy can be re-engineered, retrofitted or reformed to deliver, he said.’’

Meanwhile, Lagos State Governor Akinwunmi Ambode, has said that his administration was planning to generate 300 megawatts of electricity to enhance businesses and welfare of the people across the state.

The governor said that the initiative would also go a long way in improving the state’s economy and make life more comfortable for its residents.

He made the disclosure at the 7th Annual Public Lecture of the Lagos State Public Service Chapter (LSPSC) of the Institute of Chartered Accountants of Nigeria (ICAN) held on Monday in Ikeja.

Ambode stressed the importance of adequate power supply to unlock the economic potentials of the state, noting that the sector remained strategic in reducing the cost of doing business and improving the living condition of Lagosians.

He described the theme of the lecture as in line with the resolve of his administration to identify, explore and exploit the untapped potential of the Lagos economy, which according to him, was why the state government was adopting the approach of strategic, innovative, as well as long-term thinking and planning.

The governor stated that with high population growth of 3.2% annually and high immigration rate estimated to be one of the highest in the world and rapid urbanisation, the state government was not oblivious to the fact that the most effective and efficient way to unlock the economic potentials of Lagos was to open up the economy for private enterprise to thrive.

According to him, this is why his administration has been delivering first-class infrastructure and putting in place right policies to ensure business-friendly environment.

Ambode further attributed the ongoing projects in some parts of the state to the resolve of his administration to unlock the tourism, entertainment and arts potentials of Lagos which he said were all critical.

He said, “Our smart city initiative will help to ensure that the state is cleaner, safer, productive and then more resilient thereby making the state more attractive for Foreign Direct Investment. Upon assumption of office in 2015, our administration created the Ministry of Wealth Creation and Employment and subsequently launched the N25bn Employment Trust Fund and as at today, over 3000 entrepreneurs have benefited from the fund through access to low-cost credit for their business.”

“Lagos State is also actively involved in the Development Agenda for Western Nigeria (DAWN), a body comprising all the South-Western states. We are working on a collaborative development plan, a regional economic integration which will help to minimise some of our current challenges, such as, high immigration, infrastructure deficit and traffic congestion,” he said.