FOR THE RECORDS
At ministerial screening,
Fashola says Nigeria is ‘not
yet the rich nation it will be’
…answers 31 questions from
16 senators, ‘competently and
adequately’, in about two
hours
On 29 July 2019, Mr Babatunde Raji Fashola, SAN, appeared before the Senate
of the Federal Republic of Nigeria for screening as one of the 43 nominees named by
President Muhammadu Buhari for ministerial positions.
According to the President of the Senate, Ahmed Ibrahim Lawan, at some point,
there were at least 40 senators who wanted to ask Fashola a question or two.
Eventually, after spending a little over one hour, 40 minutes, Fashola answered 31
questions from 16 senators. And, as one of the senators from Lagos State, Solomon
Adeola Olamilekan, told his colleagues, after the questions and answers, “I want to
believe that the ministerial nominee has taken in all questions and he has provided us
adequate answers; telling us his capacity and capability to perform.” Many Nigerians
who watched the screening agree.
This is the transcript of the proceedings.
President of
the Senate
Ahmed
Ibrahim
Lawan:
Distinguished
colleagues, the
screening of
the ministerial
nominees will
continue, and
this morning,
we have on
the podium
the former
Honourable Minister of Power, Works and Housing, Mr Babatunde Raji Fashola,
Senior Advocate of Nigeria.
Honourable Minister, let me welcome you to the Senate Chamber. Principal Office
holders of the Senate. On behalf of my colleagues, you are welcome to this
screening exercise, and we already have copies of your CV. You can go ahead to
highlight those things in the CV that you think are so significant for the Senate to
take note of, and even those that you might have not included in the CV but will
be of consequence and significance. Once again, you are welcome, and you can
address the Senate. Thank you.
‘I feel humbled and grateful to the President’
Mr Babatunde Raji
Fashola, SAN: Your
Excellency, the President
of the Senate. Your
Excellency, the Deputy
President of the Senate.
Distinguished senators
of the Federal Republic
of Nigeria, and most
especially, the senators
from the Centre of
Excellence, the State of
Lagos, my State.
Good morning. And let me start by saying that I feel humbled and grateful to the
President of the Federal Republic of Nigeria for considering me worthy of re-
nomination amongst 43 people in a federation of several hundreds of millions of
people.
For me, it is humbling as I have said, and it imposes a sense of immense
responsibility that, should you confirm me, the purpose for which the Office will
be meant will only be to serve the people of Nigeria. And in that sense, Sir, the
only useful contribution I can make to the documents already before you, are to
highlight some of the work that we undertook in the Ministry of Power, Works
and Housing. And, I say, “we” because, at the inception of that ministry, we were
two ministers, and in the course of service, we became three.
‘We left Power, Works & Housing Ministry better than we met it’
Let me say without being immodest that, from what we inherited when we took
office, after your prior confirmation in 2015, we left the ministry much better than
we met it. And, I believe that those conclusions are borne out by reports of the
committees of this Senate on Power, Works and Housing, in their oversight
functions in the course of our tenure.
I could highlight a few things that we did that I think are worthy of information,
just to iterate them for this Senate and also for the people of Nigeria, and to
benchmark what has been done as we set out on another journey of service to
Nigerians.
In the Power
Sector, for
instance, we set
out to achieve
initially
incremental
power, with a
mid-term goal of
steady power,
and ultimately,
uninterrupted
power.
We focused
essentially on
completing what we inherited, and this led us, for example, to recovering 720
containers belonging to the Federal Republic of Nigeria, containing transmission
equipment that had been left at the Nigerian ports for almost a decade. Those
equipment ultimately found their way to over a hundred sub-stations across the
country and we have completed some of them by the time I left office, and I
remember some notable ones like in Sokoto, in Mayo-Belwa, in Ikorodu
(Odogunyan’ in picture), in Ikot Ekpene, in Katampe, in Apo (in picture), to mention
a few.
I also remember that whilst we were managing the grid, we changed Nigeria’s
conversation from on-grid power alone to off-grid power, and for the first time as
far as I can recollect, Nigerians are now talking about, and benefitting, from off-
grid power. A few examples are markets like Ariaria…Sura; markets in Ibadan,
markets in Ondo, and by the time I left the ministry, we had set out a clear
roadmap for 350 markets as a full implementation initiative for this term.
I will also speak to universities, very briefly. We also undertook the power audit of
37 federal universities in Nigeria, with the plan to intervene and strategically deploy
independent power to Nigeria’s federal universities as our contribution to
education development which is a front-burner issue for the country. By the time I
left, based on the limited resources we had, we had commenced nine, as a first
phase, and all those nine are in various stages of implementation at the moment. I
can say with some …authority that, from next month, the…I think it is Ndufu
Alike University, if I
pronounced that
(correctly), in Ebonyi
State, will be the first to
switch on. It’s a project
that has 3,500 solar panels.
It has installed 18
kilometres of street
lighting in that university;
and that will be the first to
be commissioned, I think,
sometime next month, and
from then on, between the end of the year and March 2020,
the first phase of the nine, will be fully operational for
dedicated power in our schools.
I will quickly move, if you permit me, Sir, to Works, and to
just say that the conversation before the last administration,
were conversations of lack of projects in various states of the
federation. I think our Closing Report was that we could say
with some pride, that there was no state in the Federal
Republic of Nigeria where we were not executing at least one federal road; no
“Nigerians are now
talking about, and
benefitting, from
off-grid power.”
Fashola (in brown
outfit) inspecting the
plant at Alex
Ekwueme Federal
University, Ndufu-
Alike
state. Resources were scarce; there was a lot of demand; with the cooperation of
Parliament, the National Assembly, we got things going, even when revenues were
lean. That forced us to make choices; and in making choices, we decided to see
how we could do the greatest good to the greatest possible number of Nigerians.
And, one of the things
that we did was to
categorise roads, I
believe, into seven
categories, starting first
with roads that carried
the heaviest traffic.
These were roads like
Ilorin-Jebba, Abuja-
Kaduna, Lagos-Ibadan,
Enugu-Port Harcourt
Road, Sokoto-
Tambuwal-Jega Road
(pictured is completed Section 1), Kano-Maiduguri Road and so on and so forth. We
also had roads that decongested and provided access to ports. So, there were
roads…. Enugu-Port Harcourt Road fell into that category; the Apapa-Oshodi-
Oworonshoki fell into that category. We had roads to our fuel depots across the
country. One example of that was the Suleja-Minna Road. We also had roads that
evacuated goods from agricultural-prolific areas. Roads like Hadejia-Nguru;
Kirikasamma to Nguru. Roads in Ebonyi and such other roads were strategically
targeted to evacuate agro produce. We also, of course, targeted roads that were
being funded by counterpart funding, and because this had been a problem, they
were never budgeted for, they were not prioritised, and because of our strategy, I
can say now that, we have successfully, with your cooperation, started roads like
the road linking us to Cameroun from the Onitsha…Enugu-Onitsha, to link us to
Cameroun through a bridge. The Akwanga-Keffi Road is one of those roads as
well.
We also started the prioritisation of repair and maintenance of bridges nationwide,
and the Tambuwara Bridge, I believe, in Kano, the Isaac Boro Bridge in Rivers, the
Third Mainland Bridge in Lagos, the Tatabu Bridge, I believe, in Niger were some
of the bridges that benefitted from our strategic outlook as to how to proceed with
limited resources.
Perhaps the last one, was roads inside universities: our universities had been left
for a long time without attending to the roads, and at the time I left, we were
intervening in 14 universities; building their internal road networks.
Lastly, I will just say, in
terms of housing, that, at
the time we left office, we
were constructing houses in
34 states of the federation.
And, for
those who
might ask,
“why not
36?” it was
that we did
not get land
at the time,
in quick enough time, from two states; but I believe work is going on to make
those lands available now, and the 34 states, including the FCT, if I must
emphasise. But, what were we building? We were trying to model an acceptable, an
affordable type of house for Nigerians. We had learnt from the experiences of the
70s; we saw that some of the National Housing programmes had not been
occupied. And, we then conducted a national survey using builders and architects
from different parts of the country to go round Nigeria and tell us what Nigerians
would find acceptable and affordable. The results show that while the northern
part of the country preferred bungalows with courtyards at the back, and were
suitable for that because of the large expanse of land that was available, the
southern part was largely a demand for flats; but whether it was bungalows or
whether it was blocks of flats, there was a consensus about taking one, two and
three bedroom flats. By the time I left, we had finished quite a few and we were
also working on infrastructure, the mechanical and electrical parts. We were also
learning from the model we were designing, because we then saw that because
build-out cost was excessive and likely to be unaffordable by Nigerians, and we
were making corrections, in terms of some places, reducing concrete without
compromising standards and quality.
Your Excellency, President of the Senate, I think this is an appropriate place
perhaps to just stop and take questions as may arise and perhaps the opportunity
to clarify some things might come during that process. I thank you very much for
your patience.
President of the Senate: Thank you very much. Senator Biobarakuma Degi.
Senator Biobarakuma Degi-Eremienyo (Representing Bayelsa East
Senatorial District): Profound pleasure, Mr President of the Senate, well-seated as
the Chair. Most distinguished colleagues. Chair, thank you for the privilege of
“We are trying
to model
acceptable,
affordable
houses”
Houses in Ikot
Ntuen, Akwa
Ibom States, in
progress
allowing me to take the first shot. Mr Nominee, I used to be one of your silent,
quiet admirers in your days as governor of Lagos State; when you took over from
our leader, Bola Ahmed Tinubu, and you continued with the urban renewal
programmes of Lagos State. I want to congratulate you on your re-nomination; re-
nomination as a ministerial nominee by the President of the Federal Republic of
Nigeria. I wish you good luck. I am confident that you will do well.
Mr Nominee, I also think, and I won’t be surprised that if you are successfully
confirmed by the Senate, you may likely be reappointed and redeployed to your
former ministry. In the event that that happens, I want to raise two questions and
maybe clarification from you Sir. You talked about the criteria used for the choice
of projects for execution based on scarce resources. Mr Nominee, I know that that
choice is also based on the critical economic importance of these roads. I just want
to know if Eleme-Port Harcourt Road leading to Port Harcourt Refinery is not
part of the roads that are considered very critical in your choice of roads to be
executed in the country; because this road, Mr Nominee, as you know, leads to the
refinery and you can imagine the number of trucks and vehicles that ply that road.
It is perennially under deplorable condition; that road, as you know. And, even as I
speak to you, if you pass through that road, it is an eyesore. Sometimes, the State
Government also intervenes. Mr Nominee, I think it is important to know, you
know, why that road is not part of your consideration.
The second one, still on roads; you are also aware that the road leading from Kolo;
Yenegwe-Kolo-Nembe Road, passing through the first commercial oil well, oil
field in this country; the Oloibiri axis leading to Nembe to Brass. Brass is an export
terminal of crude oil. And from 1974 till date, that road is under construction. I
just want to also know why your choice of projects to the …particularly the road
projects, that that road is not considered. I know that you are a very strong man,
you are committed and focused person. You performed very well, but this
particular road has not been given attention. That’s on roads.
Secondly… (murmuring), no, no, it’s on roads (louder murmuring)…this is the second
one….I should be protected now….
‘There are 28 senators who want to ask questions’
President of the Senate: Distinguished Senator Degi, you know we’ve set some
rules for ourselves and one of them is a maximum of two questions per person, so
that we allow others; and I can tell you, I have about 28 senators who want to ask
questions. So, I will even advise that no preamble, no introduction, go straight to
your question, so that we are able to take as many senators as possible.
Senator Ike Ekweremadu.
Senator Ike Ekweremadu (Deputy Senator President in the 8th Assembly;
representing Enugu West Senatorial District): Thank you, Mr President. Very
distinguished colleagues. Mr Nominee, I will start by congratulating you on your
re-nomination and also to thank you for your commitment to the development of
not just Lagos where you were governor but also for our country as a minister of
the Federal Republic of Nigeria.
I just have two questions. You will recall, Mr Nominee, that I had a conversation
with you when you were appointed last, regarding the issue of private sector
participation in the road sector development; and one of the challenges at the time,
according to you, was the complex nature of the procurement process for that kind
of arrangement, and you promised that you were going to find a way of simplifying
it. But, four years down the line, we ended up still pursuing the issue of
appropriation as the sole item in the road sector development. Is it something you
think that you can achieve as quickly as possible? Because, as it is today, it’s almost
likely going to be difficult for us to achieve our…maximum expectation in road
sector by just yearly appropriation. So, do you think that there is something you
can do to fast-track the process and get the private sector involved and be
able…so that they can be able to recover their money through a very transparent
process?
The second is in the Energy Sector. It appears to me that we are not making so
much progress in that regard. And, would you like to consider a situation where
unbundling the energy sector, or segment it, in such a way that states or zones will
be able to have independent generation, transmission and distribution? So that we
would be able to have some level of efficiency. Because the present national grid
we have (doesn’t) seem to be working. Because once we have a failure in one place,
it affects every other place. So, Nigeria, as large as it is, would you like to consider a
situation where we would be able to segment our energy sector for purposes of
efficiency?
President of the Senate: Leader of the Senate.
Senate Majority Leader (Senator Yahaya Abubakar Abdullahi, representing
Kebbi North Senatorial District): Thank you, Mr President. My distinguished
colleagues. Congratulations for your second nomination. My question is that,
recently it appears, or we learnt that the Federal Government has concluded some
arrangement, some agreement with Siemens of Germany to participate in the
Power Sector. Can you inform this Senate, what kind of agreement is this? At what
point do we expect this intervention to take place? Secondly, do you expect this
intervention will not affect the kind of agreement that the Federal Government
entered with the private sector people in the power value chain?
President of the Senate: Senator Ibrahim Hassan Hadejia.
Senator Ibrahim Hassan Hadejia (Representing Jigawa North Senatorial
District): Thank you very much, Senate President. My colleagues. The nominee. I
have just one question and it is (with) regards to on-grid solar. As you are aware,
over the last four years, there’ve been a lot of activities toward actualising on-grid
solar investment. And, in particular, I think there were about…14 projects or so at
various stages of financial close until, I think, sometime 2018. The ERGP selected
four. I think two are in my state, Jigawa. There was Bauchi…and Katsina. And, in
my own experience, I have been to your office several times; (it) was very, very
frustrating. We had investors that had come in, acquired land, done all the
regulatory processes. Some of them had signed connection agreement with TCN
(Transmission Company of Nigeria). But the last mile, it came to PCOA (Put
Option Call Agreement) with NBET (Nigeria Bulk Electricity Trading Plc) became
very frustrating. The issue was pricing. Prices dropped from 17 to 11.5 to 7.5 per
kilowatt/hr. We got to a point where these guys were saying, “tell us how much
you want to pay.” But, unfortunately, this was not achieved till you left office. My
question simply put is: are we going to have, on-grid solar, you think, in the next
two, three years? Because the last information I got was that we are reluctant to
bring in solar power because we had issues with distribution and transmission. My
question is: what if we sort out these issues and the variables have changed? The
land for solar might not be there. The investors might have moved on. Simply put,
are we going to have on-grid solar, you think, in the next two or three years, since
we all assume that you might end up superintending the power sector again. Thank
you.
President of the Senate: I will still encourage our colleagues to just go straight to
the question. Senator Teslim Folarin and then the nominee can respond.
Senator Teslim Folarin (Representing Oyo Central Senatorial District): My
highly respected colleagues. Mr President. To the nominee, you talked about
prioritising roads’ projects, but we find it very disappointing that such a strategic
road like the Lagos-Ibadan express hasn’t been finished in four years. That’s No. 1.
Then, No. 2, would you say you were overwhelmed supervising these three major
ministries? Thank you.
President of the Senate: You can respond now.
‘We should consider a N10trillion Infrastructure Bond’
Babatunde Raji Fashola: Thank you, Sir…. Some of the questions have some
generic problems; like roads. So, perhaps, let me just say to the very first question
about the Eleme-Port Harcourt Road and perhaps, Lagos-Ibadan. The common
problem between them was always funding. There was never enough resources and
I made that clear in saying that we were then forced to make choices.
Everybody wants something and that is why we are all here in the Federal
Government. Everybody wants development in his or her own State, and as
the…and let us be mindful, distinguished senators, that, at least, in the last three,
four years that I have been here, there is no year that we have not passed a deficit
budget. And that simply meant that our resources were not enough to match and
sufficiently fund our stated, intended expenditure; and, therefore, we have to
borrow, and there is a large group of people who say that we are over-borrowing.
So…and as I said with regards to that road (Eleme-Port Harcourt), we had to
make choices. It wasn’t that we didn’t want to do it, we had to choose, and to the
extent that, for example, in that area, there was another project, the Bodo-Bonny
Bridge which had been left for a
while. We felt that the
commitment
to that place, at
least would
give us some
opportunity to
say, we are
doing
something also
in this area;
“Our resources
never enough, so
we had to make
strategic
choices.”
Bodo-Bonny
Bridge, in Rivers
State, in progress
because we were also mindful and sensitive to some equitable distribution of what
asset…and the Kolo-Yenagoa Road suffers the same problem; apart from
community issues at a time when I visited. There were some community issues that
had delayed the project.
‘PPPs are complex, not attractive for all projects’
With regards to PPPs, let me
just quickly say that as I have
said and acknowledged by
Distinguished Senator
Ekweremadu, PPPs are
complex, they take time to
negotiate. Even here in the
Federal Government, you need
to go through the ICRC
(Infrastructure Concession
Regulatory Commission), you
need to advertise, you need
to….In a Government that has
four years to show results, and
in a country where there is very,
very high expectation for
results, we must then be more
skillful in how we use them.
That said, let me also say that
PPPs are not attractive for all
projects. I have learnt to
distinguish between social
projects, like roads, and commercial projects, like airports, hospitals, and those
kind of facilities where there is a daily cash count, and those are easier for private
investors to want to put their money into than roads and the risk of construction
that it requires. And so, you will see that one of the things, and there are so many
modes. One mode, of course, has been to take funding through special
instruments like the Sukuk. That was a sort of PPP. To use policies like the
Nigerian Tax Credit Initiative Policy which we are now using to build the Apapa-
Oworonshoki Expressway; which Lafarge has also used to build the road to their
factory in Calabar and a couple of others are showing interest; and I think that at
the time I left, there were about 28 roads on the shortlist for the committee set up
to review and hopefully approve for implementation. I have, in response to your
question, “what do I suggest?” I think there is some opportunity, and I made this
presentation during the last 2019 Budget Presentation that one of the ways I think
Drainage work on Liverpool Road, Apapa, as part of
reconstruction of the Apapa-Oworonshoki Expressway by
Dangote Construction under the Executive Order 7 of 2019
on the Road Infrastructure Development and Refurbishment
Investment Tax Credit Scheme signed by President
Muhammadu Buhari on 25 January 2019.
is to expand instruments like the Sukuk. Maybe it won’t be a Sukuk this time, but I
think Nigeria can seek to leverage from the large pool of funds with ordinary
people who are looking for secure investments and some of them are not even in
the banking sector keeping their cash. And, I proposed then that we should
consider something like a N10trillion Infrastructure Bond backed by parliamentary
support and secured by the Federal Government with a reasonable coupon issued
in tranches each year we need to fund infrastructure, and broken up into even very
small denominations that people can invest as much as only N1,000. Those who
want to invest a billion can do so, and so on. And, in my view… if we don’t try
this, we won’t know whether it has worked. But I am convinced that we can do
something along this line, based on the interests that I saw in the Sukuk. In a
N100billion
Sukuk, for
example,
there were
186 or 286
investors,
and the
instrument
was over-
subscribed.
Which
meant that
there was
an appetite
for it. So, I
will make
that
suggestion,
Sir….The other way, of course, which the president has also used is the
Infrastructure Development Fund by the National Sovereign Investment
Authority, and this is what is helping to fund the Lagos-Ibadan Expressway now,
the Second Niger Bridge, the Abuja-Kano Highway. The East-West Road is listed
there, and it is also to fund our counterpart funding, I think, for the 2019 Budget
for the Mambilla Hydro Project, but we are still waiting for the Chinese to approve
the main loan.
‘We must support NERC to exercise its powers to the fullest’
….In terms of Energy, I think the sector itself has already been…unbundled. And,
I say this, because, and I thank you for the question, because it provides an
opportunity, perhaps, to reach out to more Nigerians to understand what has
Presentation of symbolic cheque for the 2019 N100b Sukuk Sovereign Bond to Fashola
(in suit) by the Former Minister of Finance, Zainab Shamshuna Ahmed (second right);
Director-General Debt Management Organisation, Patience Oliha, and Permanent
Secretary, Ministry of Finance, Dr Mahmoud Isa-Dutse.
happened in that sector. When this National
Assembly passed the 2005 Electric Power Sector
Reform Act, it was a clear statement that the Nigerian
people, through their elected representatives, were
saying to Government: Get out of power, let the
private sector do it. That process led to; and before
that process, the Ministry of Power then used to have
over 50,000 staff as a ministry. And those were the
men and women who manned all the power stations,
they manned the transmission system, they
manned…. The distribution companies that we now
had were manned by officials of the Ministry
seconded to them and posted accordingly. By the
time this law was implemented and privatisation took
effect, the staff strength of the Ministry of Power that
I inherited was about 790. And, in the last Budget
defence that I presented to Senate, we were
accounting for 699 staff.
So, the effect of that law was that the ministry had
ceased to be an operator, and by extension,
Government. We didn’t have trucks, we didn’t have meters, we didn’t have ladders,
we didn’t keep transformers anymore. That was now the business of private sector.
By that law, the ministry was restricted to policy and directives. And the regulator
was NERC (Nigeria Electricity Regulatory Commission). So, they issued licences,
they could sanction the licensees, for non-performance. Not the Ministry. Not any
of the ministers. That was clear by your law: our role was to issue policy. (On 9
July 2018, Mr Fashola held a press briefing detailing some of the policy directions.
Please visit: https://bit.ly/2ZBRieN)
So, some of the things I have spoken to you about today were the results of some
of the policies we made, recommendations we made, not only to the regulator, but
also to our employer, the Government. And, let me also say, Sir, that the
Constitution, as amended, I believe in Article 13, 14 and 15 of the Second
Schedule, which is the Concurrent List, clearly makes provision for States to
participate in Power, contrary to the widely held belief that States cannot. And, if I
can paraphrase the provisions, it is something to the effect that states and state
governments can generate their own power, transmit their own power, and
distribute their own power, where, in places not covered by the national grid. And,
that is a lot of space for States to play. And they can also form their own States’
Power Authorities. The Constitution makes that very clear. But, it is a space that I
think some States have not occupied significantly enough. So, for clarity, Sir, the
The effect of the
Power Sector
Reform Act was that
Ministry of Power
had ceased to be an
operator.
We didn’t have
trucks, we didn’t
have meters, we
didn’t have ladders,
we didn’t keep
transformers
anymore. By that
law, the ministry was
restricted to policy.
and directives.
UNBUNDLED
regulator, NERC, just like if we want to know what is wrong with SIM cards, call-
drops, and all of that, we don’t go to the Ministry of Communications, we go to
NCC (National Communications Commission). If we want to know what is
happening with banks, we don’t go to the Ministry of Finance, we go to the
Central Bank, that is the regulator. And it is the regulator that we must all support
now, to exercise the fullest powers that you have given the regulator, and there is a
lot of powers there to act on behalf of all of us, and as I always say, I am a
consumer myself.
And, that takes me to the question of solar projects, that I don’t like solar projects.
I have one in my house, I have on my roof; and so, it is not true that I am
reluctant, I don’t like…. The truth about those 14 projects, Sir, is that they were
initiated by State governments before we came, and they required Federal
Government to guarantee the purchase of the power. So, it was a State
government that says I want power but Federal Government, guarantee that you
will pay for it. That was the business model. There were so many problems that we
resolved. But, I think that it is instructive to make the point, as you pointed out,
Sir, that the PCOA which is the security document, is not a document issued by
the Ministry of Power. It is a financing instrument issued by the Ministry of
Finance and they were asking for a foreign instrument; which meant that our
Ministry of Finance had to go to the World Bank to say, we want… this
instrument for these projects…. For want of a better word, I describe it as like
asking for insurance policy. So, the World Bank, who issues the instrument now
said, “your tariff agreed with this people is too high. We are doing tariffs for solar
in Zambia, I think, at six cents per kilowatt/hour. Yours is 11 cents. If they want
our insurance, let them reduce the price.” So, it is not correct to say that we were
the ones holding back. It was the price of the instrument that they wanted that
they could not accommodate. We offered them a local security in Naira, because,
at the time when this issue took place, it was during the recession, and one of the
points I made was that we can’t give you a guarantee in dollars because we are
short of dollars but at the time and till tomorrow, I don’t think that Nigeria will
ever run out of Naira.
I think just to emphasise that there is still hope that those projects will be done but
perhaps the business model may have to be looked at again. Because as I have said,
if you have authorised Government to get out of power, why should Government
be the one buying the power? And that is a business model that I think we need to
look at again.
Just to say, again, for Lagos-Ibadan and to PPPs, all of us are living witnesses to
the fact that when the PPP was signed for that project in 2006 or 2007, nothing
really happened on that road until 2012, when the previous administration
cancelled it. So, that is the kind of delays you can have. So, there was five years of
no activity, really; of visible activity. When it was cancelled, then it became a court
case. And the same is true of the Second Niger Bridge. By the time I took office,
the people who were supposed to be the concessionaires said they couldn’t
continue; that the economic variables had changed. The agreement they were
looking at was N165 to a dollar and at three hundred and something, it was no
longer economically viable. They were asking then the Federal Government to say,
look, the traffic count here cannot meet our financing expectations, so give us a
guarantee in dollars, if the traffic count falls short, and I refused to recommend
that, and I recommended that the Federal Government should take over its
projects and continue, and I think, with the benefit of hindsight, I can say that I
am happy that my recommendations were accepted.
The piling works on the bridge have now been completed and as we get into dry
season now, some more progress should be made. Thank you Sir.
President of the Senate: Senator… the Deputy Minority Leader.
Senator Emmanuel Bwacha (Deputy Minority Leader; representing Taraba
South Senatorial District): Thank you, Mr Chairman, I have two questions for
the nominee. One, Mr Nominee, our learned SAN Raji Fashola, whether you have
any reason for the neglect of the Ibi Bridge which is a long-standing project. Year-
in, year-out, we see allocation, and yet nothing done, and it is a bridge that links, I
think, Plateau, Nassarawa, a large part of the Middle Belt to the Trunk A Road;
that links Maiduguri to the South East. What is the reason for this neglect? And,
For more pictures on the progress of work on the Second Niger Bridge, please visit https://www.second-river-niger-
bridge.com/
Number Two, you…I listened carefully to your submission, before questions. You
said all 36 states of the federation, none has no project from your ministry. I am
from Taraba State. And, I know the only project from Federal Ministry of Works;
road project is the one I brought as a constituency project. But, even then, money
allocated for the road has been diverted. Is there one road that you are doing in
Taraba that is not known to me? Thank you.
President of the Senate: Senator Comrade Patrick Abba Moro.
Senator Comrade Patrick Abba Moro (representing Benue South Senatorial
District): Thank you Mr Chairman for the privilege to ask these few questions. Mr
Nominee, you were minister in the Ministry of Works, Power, Housing, and some
concerns have been voiced in recent times concerning infrastructural deficits
across Nigeria. As the former minister, immediate past minister, in charge of these
facilities, are you happy and satisfied; in one, the permanent state of ongoing
projects like the Abuja-Lokoja Road, the Loko-Oweto Bridge and Road, and the
Second Niger Bridge, to mention but a few? Secondly, can you, in all honesty, tell
Nigerians now, what you are going to do different, if per chance, you are
confirmed and posted to the same ministry; to stabilise light, to enable Nigeria
celebrate at least one, two, three, four, five months of uninterrupted electricity, just
like other countries have recently celebrated 50 years of uninterrupted electricity.
Thank you, Mr Chairman.
President of the Senate: Senator ID Gyang:
Senator Istifanus Dung Gyang (representing Plateau North Senatorial
District): Thank you Mr President, seating as Chair, Committee of the Whole. Mr
Minister-nominee, I want to say that, I congratulate you, and to say that one thing
that is condition-precedent for the long-awaited developmental and economic
breakthrough of our nation at the national and sub-national level(s) has to do with
infrastructure, and in particular, roads and power. And, the nation entrusted you
with that responsibility for the past four years, and the president has again seen the
need to reappoint you. Should you be reassigned to that same ministry, your
attention will be brought to the critical artery of the road linking Akwanga, Jos and
Bauchi to the north-east. That is a critical national artery, and also the one linking
Jos and Zaria is very, very important. Secondly, in the housing aspect, would you
subscribe to this very strong opinion that the issue of the displacement of people
that have been affected by violence and banditry that has to do with their
resettlement, should be incorporated into the housing policy in a way that
provision will be made for the rebuilding of those communities as part of the
process of healing the processes of the communities that have been affected and
traumatised by this violence. Thank you.
President of the Senate: Senator Yusuf Yusuf.
Senator Yusuf Abubakar Yusuf (representing Taraba Central Senatorial
District): Thank you, Mr Chairman. Distinguished colleagues. I want to
congratulate the nominee…for coming for the second time. But, my question, Sir,
I am from Mambilla, Taraba State; as senator representing Taraba Central. I have
two questions, Sir. One question is, you said the international challenge for
delaying the progress of Mambilla is actually the slow processing of the Chinese
loan. What is the local challenge? What is the local challenge that is delaying the
Mambilla electricity project? I know it was awarded in November, no, in August
2017, contract signed in November 2017, and today, it is about two years down the
line, and my people are agitated. What is happening to the progress of this project?
That’s Question Number One. Number Two, Sir. Taraba Central is the only
senatorial district in Nigeria which is not connected to the national grid. What is it
that is delaying the hooking of Taraba Central to the national grid? Thank you very
much.
President of the Senate: Senator Rochas Okorocha…. Distinguished colleagues, I
have 40 names, so if you can be generous enough to ask only question per person,
so that it can go round.
Senator Rochas Okorocha (Representing Imo West Senatorial District): Mr
Senate President, seating as the Chair. I think I should rather be standing up, so
that he can see me better. Mr Raji Fashola Tunde (some giggles) my good friend, my
colleague, you are a good man, (inaudible), no doubt about it. (Murmuring. Allow him
now. Go ahead, go ahead) You have all eulogised your colleagues as senators. Let me
eulogise my colleague as a governor; one-time governor. (Murmuring. My Governor,
My Governor. You are on the right path). Mr Nominee, I know that you are someone
that thinks outside the box. But from all I have heard so far, excellent presentation,
like so many other great people have spoken. My question here is that, considering
your experience for the past four years as an honourable minister of this critical
sector of our economy – Infrastructure, Power, Housing, Works, which if summed
together, these are the key infrastructures that determine a nation’s development.
In the first place, I would have expected that the three ministries (are) too large to
have been handled by just one person. And look at my friend now having grey hair
at a very young age ( laughter from the floor). So, my question would be, my friend,
there is one salient point here which I want you to address: issue of funding.
Because this would amount to an academic exercise, if there is no money for you
to perform. My colleagues who have spoken before me have mentioned the
number of roads. I don’t want to talk about Imo that had only five kilometres of
road from Federal Government, the Airport Road. And about four kilometres
have been done or something. The question is how do you want to address this
issue of funding? Would you, and let me give a leeway to it; would you, because I
think in Nigeria, we are cutting our cloth according to material available…our size,
not according to material available, and if we keep cutting our cloth according to
our size, the material cannot cover it. The entire budget of this National Assembly
is not up to the budget of the Fire Department of New York. The question is…is
the funding…how…what would be the new thing you tell Nigerians as to issue of
funding? And, if funding, how much do you really require to tackle the issue of
power, power in Nigeria. How much is required? And issue of DISCOS, would
you say DISCOS is a success story or was it a political roundabout? Thank you.
President of the Senate: Senator Sadiq Sulaiman Umar.
Senator Sadiq Sulaiman Umar (Representing Kano North Senatorial
District): Mr President, seating as Chair of the Committee of the Whole. My
distinguished colleagues. I am Sadiq Sulaiman Umar, representing the good people
of Kwara North. Mr Nominee, congratulations for your nomination. I have a very
simple question, and this has to do with regulation, regulation, regulation of goods
and services. Mr Nominee, the regulation in any country determines how anybody,
the citizens, and in fact, other countries take a country serious. In Nigeria, what is
your opinion, as regards what is responsible for sub-optimal performance for our
regulatory agencies and the regulatory professional bodies, and again what will you
say we need to do to push them in the right path, so that, you know, we can put
behind us, all this building collapse, poor, sub-standard, adulterated drugs, name it,
all these problems? What would you say, what do we need to do? Because, the
activities of regulators (are) directly proportional to how citizens take a
government serious, how to be committed to the country, and how indeed, other
countries will take (you) serious. Thank you.
President of the Senate: Deputy Chief Whip.
Dr Aliyu Sabi Abdullahi (Representing Niger North Senatorial District):
Thank you, Mr President, seating as chair. I am Dr Aliyu Sabi Abdullahi. I
represent the good people of Niger North Senatorial District. I am from Niger
State. Permit me to align myself with other speakers in congratulating you for this
second nomination. My question is: there is a submission that the present
procurement system in Nigeria is serving as a clog (in) the wheel of progress in
executing government projects or contracts. And, it is also said that it does not
favour our indigenous companies in the construction industry, and, in particular,
Small and Medium Entreprises are not getting a good bargain because of the very
many qualifications. What will be your take with respect to this?
Secondly, I am from Niger State, and Niger State has over 2,165 kilometres of
federal roads; which means if you are coming from the north to the south or vice
versa, you are bound to encounter a road in Niger State, and because of the heavy
traffic, currently, I don’t think Niger State has any one hundred-kilometre stretch
of road that is very motorable. I know you’ve made so much effort, but if you are,
perchance, taken back to this ministry, what would you be doing differently, that
the very good people of Niger, will feel very happy that that story of the blind man
who says we are in Niger simply because he has heard the gallop of the road, he
would say, yes, we are now in Niger State, because of the peculiar nature of Niger
roads. What would you be saying differently so that our people will have that hope
that the Birnin-Gwari Road to Tegina and to Makira and the like will come back to
life; because this road has been completely abandoned now. That is why the
Mokwa-Bida Road coming through to Suleja is now the main road that people
take. That itself is also suffering from a lot of pressure. So, what will you be doing
differently, so that we don’t end up losing all the roads that will take us to our
various constituencies? Thank you.
President of the Senate: Senator Francis Alimikhena, then Senator Danjuma
Goje.
Senator Francis Alimikhena (representing Edo North Senatorial District):
Mr Nominee, I have two questions for you. For the past four years now as a
Minister of Works, what have you been doing about this Obajana-Okene Road,
Okene-Auchi, Auchi-Ekpoma, and this road, money has been budgeted year-in,
year-out, every year. And, if you come back again, as a minister of … what are you
going to do about this road? Right now, the road is not passable, especially Okene
to Auchi. They budget money on this road, year-in, year-out. Then you talked
about this….Second question, on housing: money was budgeted for housing, as
well; then, for the past four years, your ministry never commissioned any project,
any housing project. I didn’t see anyone. If you have done anyone in any state, you
have not done anyone in Edo. What are you going to do? What happened to this
fund that was released to you, for housing? The third one is just an advice (shouts of
aha, No, no, no, two, two….)
President of the Senate: Senator Danjuma Goje.
Senator Danjuma Goje (Representing Gombe Central): Thank you, Mr
President, Chair. I am Mohammed Danjuma Goje, representing Gombe Central.
Your Excellency, Mr Nominee. Right now, as you know, there are hundreds of
roads uncompleted across the country; some have been there, they have been
ongoing, sometimes abandoned for two, three years, then work resumes, then
work is abandoned. There are so many roads that have been awarded by the
Ministry of Works, but you hardly, throughout the year, you hardly hear or see
either Mr President or the Minister of Works commissioning a fully completed
road. Most roads are ongoing; every year, ongoing, every year, ongoing, ongoing.
You know, in private, I discuss with you, about this issue, about three or four
occasions. I say, is there no way, Mr Nominee, if you go back, you can categorise
these roads, and in categorising them, make sure each part of this country benefits.
It’s very, very important. (They) should not be categorised in favour of one section
of the country or another, but in a way that, every year, you complete some roads,
two, three, four which Mr President will go, or you will go, or somebody will go
and commission so that they will be put to use. It doesn’t make sense, unless you
have better reasons to tell us now, whereby we keep awarding new roads, new
roads, new upon new, and they are all ongoing always, perpetually ongoing. Is
there no way you can structure this, so that, we can, at least, some roads will be
fully commissioned and completed? That is Question Number One. My second
question is to do with power. Mr Nominee, you know that the power reform
effected by the Federal Government, with a view to giving stable electricity to
Nigeria; somehow, somehow, every day, we hear of complaint from the GENCOs,
no payment, that they are being owed billions and billions of Naira. We hear of
DISCOs complaining that they don’t have money and we hear of stories where
DISCOs don’t invest in transformers, to the extent that now these days
communities buy their own transformers or we in the National Assembly, through
our Constituency Projects, also buy transformers to our various communities,
which should not be the case; should have been the responsibility of the DISCOs.
Now, in your opinion, do you think this present reform won’t have been effected,
whereby generation and distribution have been privatised; only transmission is
retained by Government? Do you think going by this arrangement, we can ever
achieve, without prejudice to the Siemens arrangement with the Federal
Government, we can ever achieve stable power supply in this country? Thank you
very much.
President of the Senate:
You can respond now.
‘We can agree to
pause new projects,
to complete ongoing
ones’
Babatunde Raji Fashola:
Thank you, Your Excellency. If you permit me, I will take the questions in reverse
order. There are some that bear similarities; and maybe, for want of time, let me
just say that, in some other, so, starting with Senator Danjuma Goje’s questions, in
some other jurisdictions, Government has decided to hold the retail end, which is
NERC HAS TO EXERCISE ITS POWERS
‘THE POWERS OF THE REGULATOR FOR
MAKING THE REFORM WORK MUST BE
TARGETED TOWARDS ENSURING THAT
MINIMUM SERVICE LEVELS, LICENSING
CONDITIONS ARE MET.’
DISCOs; so, in some places, they have decided to hold the generation. We chose
to hold the transmission. And, so, there is nothing wrong in what model you
choose. I have alluded here, earlier, Sir, to the powers of the regulator. Let me
speak to two powers that the regulator has. In, I think Sections 73, 74 and 75 of
the Electric Power Sector
Reform Act, on the
complaint of a consumer,
or another licensee, and
DISCOs, GENCOs and
TCN…that any licensee
is not carrying out its
function properly, one of
the powers that was
vested by that law in the regulator, NERC, is to undertake an investigation, and do
one of several things, including amending the licence of that licensee; or, even,
cancelling the licence. As we have seen in cases like the Central Bank. And, as we
have seen in some cases like, with the NCC. As we have seen with the (National)
Broadcasting Commission. So, the powers of the regulator for making the Reform
work must be targeted towards ensuring that minimum service levels, licensing
conditions are met. And, until we fully exhaust those powers, it would be
premature to say that the Reform is not working. But, often times when we
privatise things, who goes back to check the service level compliance. Who pulls a
lever of caution or compulsion, as the case may be, for us? And, I think, that is
something all of us should, spend some time to look at. The South Africa model
with which we have sometimes spoken, sadly, in derogatory nature about our
nation, is not perfect. It is indebted massively; it continues to benefit from
government funding. Now, with the DISCOs, for example, Government is a
holder of 40% of the shares of DISCOs; and it holds 40% on behalf of the Federal
Government, the states, the local governments and the labour unions. So, as a
shareholder, it must also invest, and I think that is my understanding of the
Siemens intervention which was spoken about by one of your distinguished
colleagues, and I want to take them together. Just to say that, at this time, whatever
investment is coming through Siemens would have to be worked into the existing
arrangement, but I was not
Section 73: Amendment of Licences.
1. Subject to this section, the Commission may, at any
time, amend a licence or any term or condition of
licence.
For the other sections and more on EPSR Act, please
visit: https://bit.ly/2Ki9rsR
around when that
agreement was
concluded, so I
can’t speak here to
the finer details of
what it contains
because I have not
yet read it. About
commissioning
roads, I am happy
Distinguished
Senator Danjuma
Goje brought this
up in the open.
These are
discussions we have
had privately
because I
approached him as
chairman of Appropriations Committee, and that if the decision were mine, and I
have made this recommendation in the Federal Executive Council. That if the
decision were mine to make, as I once did when I was in Lagos, that there would
be a year or two years when there would be no new projects. And, if we can come
to that (agreement), as a nation, and this is the challenge of liberal democracy,
really, how to build consensus. Amongst all of the eminent men and women who
are representing various parts of the country, with a mandate to bring home
development, but if we can have consensus about this, and say, this year, let us
have no new projects, let us prioritise, we can’t have everything we want at the
same time. So, if, for example, all of the distinguished senators from the south east,
three from each state, will make the Enugu-Port Harcourt Road, with the senators
from Enugu, 18 of them as their Priority Project; Kano-Maiduguri Road crosses
about seven states, we will have 21 or so senators saying, this is our commitment
to all our people, while we are here. And, if we look at the Lagos-Ibadan
expressway, serving three states, nine senators there. The Ajebandele-Ore-Benin
serves Ogun, Ondo, Edo States, and so on and so forth. We can begin to have
consensus about our priorities. We cannot do all of what we want at once. The life
of a nation cannot be dealt with in more than…in four years. It requires more
than…it’s a going concern. So, those would be my broad recommendations that I
am willing to take up at a more auspicious and time-permitting forum. But I think
they may provide a way forward.
President Muhammadu Buhari watches as the CEO of Siemens AG, Berlin
and Munich President, Joe Kaeser (second right) and Mr Alex Okoh, Director
General, Bureau of Public Enterprises, supported by their officials, shake hands
after the signing of the landmark agreement at State House, Abuja…on 22 July
2019.
And, I think, in a sense, I have answered what Senator Francis Alimikhena alluded
to; except to provide some clarifications. Some sections of that Benin-Okene-
Auchi Road have actually
been finished: the section
from Benin to Azura
(picture right) has been
finished. The problematic
section is the one that you
mentioned, and the
problem there is that
there is currently no drain
to take out water. It is a
low-water table area. So,
if we build, as is currently
is, the road will fail again. And, so, I have challenged our engineers, and they were
working on a drainage solution with the contractors until I left office. So, if we
don’t drain that place, it just will not happen. And, what we have done differently
is what we have done during the rainy season and Christmas when there is heavy
traffic, and flooding, is to, at least, make it motorable, to ease the plight of
commuters, and I think that you will acknowledge that this has happened
repeatedly. We want to find a final solution.
Let me say, again, that I…well, Niger State… Distinguished Senator Sabi
Abdullahi will agree that we have moved the needle a little bit. Again, problem, of
course, is how much money will we get? Because it is one thing to make the
budget, and I think it is common knowledge here that, no ministry has received all
of the resources for its budget. So, yes, we gladly announce Ministry of Power,
Works and Housing has N500b budget, but we seldom get more than 250, 280, at
peak.
‘Onerous conditions keep small people out of Procurement’
So, Nigeria is not yet the rich nation that I know that it will be. It isn’t yet. So,
there is a gap between our anticipated spending and what we really earn.
In terms of Procurement, yes, I agree, and we have discussed this severally. There
are many issues with the Procurement system. It seeks, I think, to achieve value for
money; whether it has done that efficiently is debatable. But it also excludes some
of the most vulnerable people in our society. Small and medium and very basic
people, people who want to pay children’s school fees, who want to pay medical
bills, people who want to pay their house rent. They want to benefit from the
Procurement; people that you represent, people that we represent. And, they can’t
benefit, because the conditions for benefitting are too onerous. So, they have to
bring all sorts of documents which they never have, so the cost of getting those
documents becomes something that makes them unable to benefit. So, we started a
National Infrastructure Maintenance Programme. This is a process by which we
seek to engage a lot of artisans, plumbers, welders, carpenters, bricklayers, R & A
refrigeration, Heating, Ventilation and Cooling practitioners, but I am afraid that as
the Procurement law (currently) stands, it is only the big people who will make
more money. Or, who will get the contracts and then engage these people. So, I
have made the recommendation to many of the distinguished senators and I hope
that we would see a rescoping of that law. The expectation that has been expressed
here also for projects to be completed on time, are not compatible; our expectation
on speed is not compatible with what we’ve enacted in our law where we have to
first do a Procurement Plan. When we finish that, it gets approved, and then
advertise it for six weeks, then there are thousands of bids; then we get human
rights, civil society to come and witness everything. Then, after that, then there are
petitions and so on and so forth. It is not compatible with the speed at which we
want to move. So, our law is holding us back. And, the law is made for us, we are
not made for the law. And, I hope that distinguished senators will rise up to this
challenge and look at this as a matter of expedition.
Let me….
(Murmuring…“Time Up, Time Up Mr President”)
Let me speak on Regulation. It was raised by distinguished senator…it is a very
important point. You would have heard me at some public fora, speaking about
the need to recruit some of the very best of our human capital into our Public
Service. And, I am developing a paper that I hope to share, but the answer, simply
is, we need more professionalism within the regulatory body. Professionals must
be able to hold themselves to the highest possible standards across board, and I
think that if Nigeria’s professional elite take up this responsibility, Nigeria will be a
much better place.
Distinguished Senator Okorocha… I think I have addressed the issue of funding
whilst you stepped out, but the point to make again is to repeat what I said: that
the budgets do not get full cash funding. Our budgets are deficit budgets as you
probably also would have experienced whilst in Imo, and, therefore, we need to
find more money. My recommendation was to suggest: raise an Infrastructure
Bond where all Nigerians can contribute their small, small tokens and let’s see how
far that takes us. We also are utilising PPPs but, again, something like a Tax Credit
Initiative; people have not understood it sufficiently. And, maybe I should say a
word about it here. It is an advance credit of the company’s income tax to
Government; an advance credit of its income tax, and therefore, for a company to
benefit…so if you want to build a N10billion road with your income tax paid in
advance, it means first that you must make profit of an amount that’s equivalent or
have a record of up to N10billion. How many of our companies even turn over
N10billion, before we begin to tax them? So, that is the problem with that, but It
has shown some appetite by some of the big players, and the room for more scope
clearly exists.
The question
about what is
holding Mambilla;
that is a very
important
question.
Mambilla has been
in the front
burner. I think
that this
Administration
can take credit for
having been the
one that finally
issued a binding
contract. There
was never a
binding contract
on Mambilla. All
of the contracts, one thing was wrong; it didn’t pass through FEC… there were
court cases. This was the first time, EPC (Engineering Procurement Contract) was
issued. Now, having issued that contract, as I have said, there’s funding issue by
the Chinese Government. But, there are also issues about demarcating the precise
area to coordinate and we have employed surveyors to do that. FEC approved that
memo working with the Taraba State Government to start that. We were awaiting
their report when I left. That will then lead us to, after defining the territory; for
example, we wanted to build in this Senate, it may well be that the footprint of the
project may not get to your seat, so we have to enumerate all of the senators whose
seats would be affected and who would be paid compensation and draw a
boundary. And from there, of course, some advance work is going on backstage
that people will not see. But some progress has been made.
There was a question about Taraba Central I think from you. I am not sure which
part is Taraba Central now; is it close to (responds to a senator – “I will come to it
Sir”) is it close to Wukari-Takumi area? (Answer probably from the Senator who asked the
question). Bali. I am not quite sure now. I was going to bring your attention to the
Signing of the EPC contract on Mambilla Hydropower Project between the Joint
Venture of the Joint Venture of CGGC-Sinohydro-CGCOC, led by CGCOC,
a subsidiary of CCEC, and Nigeria…on 10 November 2017. Fashola
Imiddle) and former Minister of State in the ministry, Alhaji Mustapha Shehuri
(right) holding the contract folder, their Chinese partners.
Kashimbila project which we had neared the completion of the transmission right
now and I think once that is commissioned, it is possible to extend the width to
some parts of Taraba Central.
The Ibi Bridge, I think, and I have to be careful here; I think it has cleared
procurement now, I am not sure, and I don’t want to say, I can’t recollect very
clearly right now but I think, I think, we awarded it in the Federal Executive
Council.
…Well the policy about displacing people and housing, I think it is a very
important and compassionate point, but I will support a policy along those lines,
but let us remember that the Federal Government is not the one in control of land
and you can’t build houses without land. It is the state governments and state
governors who control land. The models we have started with have actually
proceeded on the basis of asking states to give us land as pilot projects.
…I think there was a question about… I think from Senator Gyang; something
about Akwanga-Jos-Bauchi, I think that road, Phase 1 of it has been awarded.
Phase 2 is under Procurement and the financing approval, we still have to come
back to Parliament because it is funded by a Chinese loan, and I hope that when it
does come, Distinguished Senator Gyang will give support to whoever the minister
assigned to that ministry is, to get the funding for it. But let me again say that,
between policy implementation and results, there is quite some distance that needs
to be covered, and all of us as leaders of government must continue to carry this
message to our people. But I think that Nigeria is making some progress. There’s
infrastructure deficit across the world and none of the Europeans countries now;
the UK, the US, all of them are fighting about making big budgets to rebuild or
renew their infrastructure. So, we are not alone, but we have our work cut out for
us and I believe that it can be done.
I think I will leave it there, Sir. Thank you very much Sir.
(Shouts of ‘bow and go’ from the floor)
President of the Senate: Distinguished colleagues I am not surprised we still have
38 senators who would like to ask questions. As a former minister of Power,
Works and Housing, I am not surprised, but time will not permit us. So, I will call
on the …let me be gender-sensitive…only two…Senator Uche Lillian and Senator
Elisha Ishaku Abbo.
(“Elisha is a man”, shouts a female Senator. Amidst loud and prolonged laughter, she
continues to shout, “Elisha is a man, he is a man, he is not a woman.”)
(Now standing and still laughing, the female senator proceeds to ask her question) Mr
President. Distinguished colleagues. My name is Senator Uche Lilian Ekwunife
(Iyom). Mr President, I am from Anambra State, representing Anambra Central. I
have two questions, but one has been taken care of. So, let me go to the one that
concerns me directly; my constituents too. Congratulations Honourable Minister,
my question is this: the construction of Enugu-Awka-Onitsha Road has prolonged
for too long; it’s been there for too long. It has lingered for so much. I would like
to know: what is holding that road from being completed? Every year, a contractor
will appear and disappear. If you go to the axis of Amawbia; between Amawbia
and Umouku. This is a journey that will take you just three minutes, but it would
take you one hour. From Enugu to Onitsha will ordinarily take you 45 minutes,
but now three hours you are still on the same road. I went to represent Mr
President last Saturday at a function, a journey that would have taken me 40
minutes, I was (not clear) for four and half hours. I wanted to call Mr President to
send me a helicopter to lift me up, but, unfortunately, network was bad too. So, I
would like to know, Honourable Minister, what are you going to do, to, first of all,
put palliatives on the road, to ensure that road users will not continue to suffer,
while the main job of completing the road would come. I will also like you to tell
us the actual story on that road because that road has been there for years. Yes,
thank you very much.
President of the Senate: Well, let me clarify the air, please. I should clear the air.
When I said that I want to be gender-sensitive, I meant to call a female senator and
a male senator. (Loud laughter). So, Senator Abbo.
Senator Ishaku Elisha Abbo (Representing Adamawa North): Thank you so
much, Mr Senate President, seating as the Chair. My name is Senator Ishaku Abbo,
representing people of Adamawa North in the body of the Nigerian Senate. My
question is just straightforward. As a very important voice. As a very important
person, whose voice is respected. As a very important person whose voice is
respected at the Federal Executive Council, I want to know Sir, why in 2019
Budget alone, the Federal Government budgeted over N107billion for railways
alone and the North East was excluded, leaving only Maiduguri Rail; leaving out
now, economically-viable place; towns like Mubi,which is actually the second
biggest market in the whole of Northern Nigeria after Kano State. And, also, the
biggest cow market in the whole of West Africa, leaving it for only road that are
not so good. What is your plan, Sir, of actually extending this railway line to these
places? No. 2. (Shouts of No, no. His own is road), chair, please protect me Sir, protect
me. (Noise subsides). Secondly Sir, since 2013, after a Boko Haram attack, my
people went back home. Till date, the towns of Michika and Madagali is still cut
off from national grid. They are still using candles in the two local governments in
the 21st Century. Our bridge also is still blown up, even though the contract was
awarded in 2016. What is your plan, Sir, to these places? Thank you.
President of the Senate: You can address the questions.
‘President Buhari required his ministers to tackle all inherited projects’
Babatunde Raji Fashola: Thank you Sir. The first question, I think, the story of
the Enugu-Awka Road is true of all of the problems that we met. And I think the
important thing first is that, it may look expected, but it has not happened in a long
time that a government will inherit the projects of its preceding government and
deal with them and own them as if they truly were our own; and it may seem
ordinary, but it
hasn’t
happened…but
that was what Mr
President
required of all his
ministers.
And, so, one of
the problems on
that road, in
context was that,
some of the
contractors to whom it had been awarded had not discharged their obligations as
at when due; not because they were totally blameless, full of blame, because some
of it, must also come back to us; the issue we have spoken about, you budget N10,
you can only raise N3. And if the contractor cannot pay his staff, he can’t lubricate
his equipment, he can’t order granite, laterite, bitumen and pay his suppliers, he
will shut down. Those were the realities. Now, there were also some problems
particularly at the 9th Mile Section and there were issues that required us to
investigate and ultimately change the design. Because there were suspicions that
there might have been some heavy deposits of coal underneath that place that was
making it fail. So, we have resolved all those problems now. The most difficult
section, if I remember, was the Amazia-Umunya section. I was there and I think
they were surfacing it in December. And, I think I sent a team there; the day I was
supposed to go there, I couldn’t get there because of bad weather; because I was to
connect from Port Harcourt. And, my team were there, and I think this was in May
and our contractors were still working. But, trust me, once contractors run out of
money, they will stop work. Contractors don’t keep iron rods, they don’t keep
cement, they don’t keep bitumen, they don’t keep laterite, they don’t keep gravel or
asphalt. They order them when we pay them. So, and, except for basic equipment
that they need to run, they lay off staff too, in order to manage their overheads and
retain profitability. So, that is the big elephant in the room of Nigeria’s
infrastructure. How do we fund that, and I think it is a matter for all of us can
benefit from each other’s experience and learning.
Distinguished Senator Abbo, I am not the minister that was responsible for rail; it
was under the Ministry of Transportation. But, I recall what my colleague used to
tell us at the time, that the cost of the rail from the south east and south-south
through to Maiduguri, which was within his contemplation always, it was
something he was very passionate about was going to cost us multiple of billions of
dollars. If I remember on the top of my head, we were looking at, I think,
something like 12 or 21 billion dollars, and I don’t want to be quoted on this. But,
it was a lot of money and here we are, the funding for the current one had come
from the Chinese; we are looking to raise about $5billion from the Chinese for
Mambilla and all that China has put during the focal lending to the whole of Africa
was just $60billion for 53 countries. So, but, it is a possibility, and I think the way
to look at it is that something has started and therefore if we do one, we will do
two, if we do two, we will get to four and get to eight and get to 16.
Michika and Madagali, I think, the point I want to make here, is that they are
examples; what you feel, what your community feels, are strong reasons, strong
examples of why we must all come together, instead of beating drums of war.
Because when war happens, this is what you see. In my interactions with the Army
Corps of Engineers, because our contractors were leaving the place; they said they
couldn’t work there. So, what we did was to call in the Army Corps of Engineers
to come and take over this road, and we then found out that it was even some of
our own military who blew up the infrastructure as a strategy for containing terror.
So, when war breaks out, people are not, those who fight wars are not about
healthcare, wellbeing. Unfortunately, it is women and children who are the first
victims, and then our infrastructure is destroyed. So, you cannot recognise cities
like homes in Syria and Baghdad in Iraq, anymore; they’ve been levelled by war.
And, what happens thereafter is a rebuilding process. And, I think that it is
important that all of us must learn from what happened in 1966; what it led to and
what followed after: a national reconstruction project. And, I think, that is what we
have started with the North East Development project and I hope the lessons of
the day will endure and take us towards the path of brotherhood and peaceful
coexistence. Thank you.
President of the Senate: Distinguished Senators Oluremi Tinubu, Senator Adeola
Solomon Olamilekan and Senator Sikiru Adebayo Osinowo, you have your task.
Senator Oluremi Tinubu (Representing Lagos Central Senatorial District):
Thank you, Mr President, and I believe that, on behalf of my colleagues, I know
that they are going to say something, to thank my distinguished colleagues for the
support that our honourable minister has enjoyed today, because I know what our
colleagues can do. So, I want to thank you and I am also a senator, so thank you
for even telling us he should take a bow at this point. So, please, I want to really
thank you and also, my only addition is that I remember that even your first tenure,
I didn’t get any chance to give employment letters to my constituents. So, when
you get there this time, just remember senators here, we have people back home
too, our constituents asking us for employment slots, and as senators, we don’t
(responds to an inaudible question)…. Yes, he is qualified, definitely. So, I want you to
put that in your agenda for the second term; that we all need slots for employment
for our constituents. I want to thank my distinguished colleagues again for the
usual support. Thank you very much, Mr President.
President of the Senate: Senator Olamilekan.
Senator Solomon Adeola Olamilekan (Representing Lagos West Senatorial
District): Mr President of the Senate, seating comfortably as the chairman. Very
distinguished colleagues. Let me say that it has been a very, very revealing and very,
very good discussion between the Senate and the ministerial nominee. Mr
President, I want to believe that the ministerial nominee has taken in all questions
and he has provided us adequate answers; telling us his capacity and capability to
perform. He has also made it known to us that, despite our huge expectation,
especially in the three critical sectors, which he held in the last four years, he has
said that the availability of funds has been a major challenge. He also has put
together solutions going forward as to what and what can be done. And, I believe
that with all of this, that we have listened and we have heard from him, I want to
seek the indulgence of the Chair and the benevolence of my colleagues that we
allow the nominee to take a bow and go. Thank you.
President of the Senate: Senator Osinowo
Senator Sikiru Bayo Osinowo
(Representing Lagos East
Senatorial District: Thank you, Mr
Chairman for giving me this
privilege. I thank you. I thank my
senior colleagues, the ranking…I am
almost fed up of ranking, ranking;
even in talking, you called us in
ranking order (laughter in the chamber).
So, I must thank you for calling me
at last. However, Mr Chairman and
distinguished colleagues, I am happy
to be here, and fulfilled today to be
part of you. The man, the nominee
standing over there, is a man of
honour. Sorry to say this, even if you
have a good product, you still need a
little bit of advertisement; because
the more you do the advert, you
advertise, the more the merrier. The
man standing there, he was governor
of Lagos State, that is a known fact.
He is a (gold)fish. The more you ask question, you just want to make him to shine,
because he is a SAN, he is a SAN. With sound mind, so he can take care of the
questions, but where I am going, the man is a lover of democracy and why I must
say this is because of what he contributed in the last eight, nine years in the
development of Lagos and Nigeria, in general, and, of course, to the Parliament. I
would not forget so soon the issue of megacity in Lagos; everybody all over the
world, they are agitating, looking, planning for their state to be a megacity, and this
is a status; you don’t buy it at Mall. It is a status, you earn it. It is possible in Lagos,
the megacity, because of the role he played. He is one of those who make things
happen in Lagos and that singular effort, I am sorry, to measure a state as a
megacity, it is not by your population (loud murmuring), I am sorry, Mr Chairman
(louder murmuring)…Mr Chairman, I am talking, Mr Chairman I believe there is no
preferential treatment in this hall. If you can save others from humiliation, I think
you have to save me too. Thank you, Sir. I am saying this with all assertion,
because for a state to a megacity, all of the states in Nigeria want to be megacity, it
is being combined by your IGR, your population including the infrastructure.
Without infrastructure, with your population and IGR, they can’t give you
megacity. (Loud murmur). Now, where I am going is this, Mr Chairman, we are not
even discussing the issue of megacity in Lagos, we have metamorphosed to the
position of smart city, the like of Europe and Dubai. So, if this man can be
member of those who played that role, I think if there is anything worthy, you are
a worthy person. He is a straightforward person. Honest person. Man of integrity.
Not only that, with uncommon transformation. (Shouts of yea, yea). As a
transformer. And, I am saying this with all assertion: as a transformer, he has
established that, demonstrated that, in Lagos, and as a minister of Federal Republic
of Nigeria. On this note, I am not asking you, Sir, to allow him to take a bow, but I
am appealing, soliciting, that if you give him a soft landing, he is not going to make
you, he is going to make you happy, you will not regret it. Thank you, Mr
President.
President of the Senate: Thank you very much. Distinguished colleagues, you will
agree with me that we have done justice. We could do even more, but time will not
permit. I want to appeal to those who raised their hands but are not able to speak.
We will still have interactions with him when he becomes an Honourable Minister.
Whether it is Works or elsewhere, because I am sure most of us have issues
coming from his sojourn as Minister of Power, Works and Housing. So, I want to
appeal with all of us that we should allow him to take a bow and go. But before I
put that question, let me recognise our former colleagues seated there: Senator
Gbenga Ashafa, Senator Obanikoro, Senator Mudashiru, who was also a member
of the house with us and, of course, honourable members of the House who
accompanied the nominee. I want to thank everyone for this and Honourable
Minister, I want to thank you for responding to the questions, but I think my mind
is also agitated with the fact that we have to think deep and wide enough on how
to fund our infrastructure. Borrowing is an option. Can we really look other ways
to see if we can combine the borrowing with other mechanisms of funding so that
we are able to create the infrastructure that we need for this country. With this, I
put the
question: those
in favour that
the nominee
takes a bow
and go, say
Aye (shout of
Aye), those
against say
Nay (silence).
The Ayes have
it. (Strikes
gavel). You can
take a bow.