Federal Ministry of Power Annual Report 2014
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2014 Annual Report of the Federal Ministry of Power Draft Report FEDERAL MINISTRY OF POWER (FMP) Federal Secretariat, Abuja 2014 ANNUAL REPORT Federal Ministry of Power Federal Secretariat Phase I, Annex III 4 th and 5 th Floors Shehu Shagari Way Abuja. March 2014
Transcript of Federal Ministry of Power Annual Report 2014
2014 Annual Report of the Federal Ministry of Power Draft Report
FEDERAL MINISTRY OF POWER (FMP) Federal Secretariat, Abuja
2014 ANNUAL REPORT
Federal Ministry of Power Federal Secretariat Phase I, Annex III 4thand 5thFloors Shehu Shagari Way Abuja.
March 2014
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Arc. Namadi Sambo GCON
VICE-PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA
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Prof. Chinedu Nebo CON
HONOURABLE MINISTER OF POWER
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Hon. Mohammed Wakil OON
HONOURABLE MINISTER-OF-STATE FOR POWER
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Amb. (Dr.) Godknows B. Igali OON
PERMANENT SECRETARY, FEDERAL MINISTRY OF POWER
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2014 ANNUAL REPORT OF THE FEDERAL MINISTRY OF POWER
I. INTRODUCTION
1.1 Power is the critical and strategic need for the development of
any nation. It is indeed a catalyst and a driving force for development.
The current challenges in the power sector of the Nigerian economy can
be traced to the years of under-investment. The injection of private
sector funding has therefore, become imperative. We have made
significant achievements during the past year and indications are that
more will be achieved in the years ahead. This would not have been
possible without the institutionalisation of the right policies and
incentives and the strong commitment of the Federal Government at
restoring the confidence of investors. The Ministry remains the driving
force for Power Development in Nigeria and the present administration
has made the implementation of the development agenda in the sector
an issue to be pursued vigorously in order to deliver the dividends of
democracy.
II. MANDATE
2.1 The Federal Ministry of Power is the policy making arm of the Federal
Government on matters dealing with the provision of electric in the
country. The Ministry is mandated to develop and facilitate the
implementation of policies for the provision of adequate and reliable
power supply to drive the socio-economic development of the Nation. In
discharging this mandate, the Ministry is guided by the provisions of the
National Electric Power Policy (NEPP) of 2001, the Electric
Power Sector Reform (EPSR) Act of 2005, and the Roadmap for
Power Sector Reform of August 2010.
III. VISION AND MISSION STATEMENTS
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3.1 Vision Statement
A robust and sustainable power sector that fully supports the socio-
economic needs of the Nation and contributes to the emergence of
Nigeria as one of the top 20 economies of the World by the year 2020.
3.2 Mission Statement
To provide the Nation with adequate and reliable power supply by
implementing generation, transmission and distribution projects in the
sector and facilitating the emergence of a private sector led competitive
and efficient electric power industry.
IV. FUNCTIONS OF THE MINISTRY
4.1 The responsibilities of the Federal Ministry of Power are as follows:
Initiating and formulating broad policies and programmes on the
development of the power sector (electricity) in general;
Initiating concessions in the power sector of the economy;
Licensing of electric generating sets of 1MW capacity and below, and
electrical contractors.
Conducting investigation of electrical accidents and to ensure safety in
the electricity industry in Nigeria;
Conducting statutory tests and certification of electric poles (concrete,
wooden, steel, etc.) and other major electrical materials before they are
used on the grid and networks in Nigeria;
Implementing Renewable Energy programmes/initiatives (Solar, Wind,
Biomass, Small Hydro, etc.);
Coordinating activities of the power sector;
Handling policy matters relating to research and development in the
power sector;
Promoting the development of hydro power plants through public private
partnership (PPP);
Participating in bilateral and multilateral relations affecting the power
sector; and
Facilitating the overall coordination of the activities of the Parastatals
under its supervision.
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PHOTO GALLERY / PICTURE SPEAKS
Transmission Network and Ongoing Projects.
Completed NIPP Olorunsogo Combined Cycle Plant.
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Utorogu plant Phase 2.
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Ugwuai Transmission Station.
Calabar Power Plant and Switchyard
10 MW Katsina Wind Project – Renewable Energy
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Efforts towards development of Coal.
Onyeama Coal Mine.
Olorunsogo Phase II. Current Scope: 4 x GE PG9171E Gas Turbines + 2 Harbin Steam Turbines combined cycle power
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Sapele Power Station
Current Scope: 4 x GE PG9171E Gas Turbines in simple cycle. [4 x 126MW ISO]
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Ihovbor Power Station Current Scope: Construction of 451MW – 4xGE PG9171E in simple cycle [4 x 126MW ISO]
Alaoji Power Station
Current Scope: 4 x GE MS9001E Gas Turbines + 2 HRSG + 1 Steam Turbine [Second Block of 2 HRSG + 1 ST will not be erected due to project cost escalation], [GTs = 3 x 126MW ISO, ST = 1 x 285MW, HRSG with supplementary double duct firing]
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Calabar Power Station Current Scope: 5 x GE PG9171E Gas Turbines in simple cycle [5 x 126MW ISO]
Gbarain Power Station Current Scope: 2 x GE PG9171E Gas Turbines in simple cycle. [2 x 126MW ISO]
Omoku Power Station
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Current Scope: 2 x GE PG9171E Gas Turbines in simple cycle. [2 x 126MW ISO]
Egbema Power Station
Current Scope: 3 x GE PG9171E Gas Turbines in simple cycle [3 x 126MW ISO]
Geregu Phase II
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Current Scope: 3 x Siemens SGT5-2000 Gas Turbines in simple cycle [3 x 165 MW ISO]
Omotosho Phase II Current Scope: Construction of 451MW – 4xGE PG9171E in simple cycle [4 x 126MW ISO]
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Commencement of Zungeru Power Plant Construction.
Commencement of Zungeru Power Plant Construction- CVC aggregate Processing System
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Wind Map of Nigeria Showing Areas of Potential Wind Energy Development
New Transmission Lines.
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Shiroro Dam – Old units are being renovated.
Electricity Management Services Limited Sensitization Visit to Transmission Company of
Nigeria.
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Presidential Ground Breaking and Foundation Laying Ceremony of the Azura-Edo IPP.
Gas Pipeline for Alaoji PS
V. ORGANISATIONAL STRUCTURE
5.1 The Honourable Minister is the Chief Executive of the Ministry, while the
Permanent Secretary is the Accounting Officer supported by seven (12)
Departments and 7 Units, namely:
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ORGANOGRAM OF THE MINISTRY OF POWER
HUMAN RESOURCES MANAGEMENT DEPARTMENT:
The Human Resources Management Department is one of the Common Services Departments of the Ministry.
Its Mandate is carried out under its two Division, namely; Appointments, Promotion and Discipline (APD) and Staff Welfare and Training (SWT).
The APD Division is charged with matters relating to appointments, upgrading, conversions and discipline of its staff and those of its Parastatals. The SWT Division is charged with the general welfare of its staff especially in the areas of accommodation, sports, cleaning, union activities, stores management etc and the training of its staff both locally and internationally.
The Charter is an expression of the commitment and resolve of the Human Resources Management Department to provide efficient services on Human Resources for the entire Ministry and its Parastatals.
Functions Of Human Resources Department
To ensure proper office management and general administration of the
Ministry;
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To ensure that qualified Personnel are sourced and / or deployed
accordingly to man appropriate officers;
To ensure that qualified staff due for promotion are presented for the
exercise as and when due, thereby ensuring institutionalization of
adequate succession planning mechanisms in the Ministry
To maintain general discipline of staff in line with PSR, FR, and Extant
Circulars and Civil Service norms.
To ensure that staff are exposed to all relevant training programmes.
To ensure that welfare provisions are made available to staff in
accordance with the provisions of the PSR and extant circulars.
To ensure that office accommodation are adequately provided through
liason with OSGF and OHCSF.
To ensure that staff participate in sporting activities to maintain good
health.
To ensure that appropriate working environment and materials are
provided for all staff
PLANNING, RESEARCH AND STATISTICS DEPARTMENT:
The Planning, Research and Statistics (PRS) Department is one of the four (4)
common services Departments in the Ministry. It comprises four (4) divisions,
namely;
a) Planning and Policy Division;
b) Research and Statistics Division;
c) Monitoring and Evaluation Division and
d) Bilateral and Multilateral Division;
2. The mandate of the Department includes the following:-
i. Preparation and submission of the Ministry‟s Federal Executive Council
(FEC)memoranda to the Cabinet Secretariat:
ii. Conveying FEC decisions to the concerned Departments of the Ministry and
Agencies and monitoring the implementation of such FEC decision ;
iii. Submission of return on the implementation of decision(s) of the Federal
Executive Council to the Policy Implementation and Monitoring Unit of the
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Presidency, National Panning Commission, Budget Office of the Federation
,National Economic Intelligence Committee and other relevant Organizations;
iv. Coordination and organization of Workshops, Conference, Retreats and
Summits;
v. Coordination of the Ministry‟s participation in Multi-lateral and Bilateral
matters, including the relationship established by signed Memoranda of
Understanding;
vi. Conduct research studies in identified and approved project in the Nigerian
Power sector;
vii. Management of Power sector Information System in general;
viii. Management of the ministry‟s Energy Data Bank; all ICT related matters and
Library Services;
ix. Setting and Monitoring of Performance and efficiency Targets for the Ministry
and its Agencies;
x. Coordination of the Monitoring and Evaluation of all Power Sector projects;
xi. Coordination of all policies concerning electric power sector and issues
relating to energy policy;
xii. Preparation of work plan for the ministry and Monitoring implementation and
xiii. Preparation of Annual progress reports and Ministerial Press briefing
3. Activities of the Departments:-
The department carried out the under listed activities during one year under
review:
(a) PLANNING
1. The Division organized the review of the Draft Rural Electrification
Strategy and Plan in May/ June 2014.
2. The Division organized the maiden edition of the National Council on
Power held on 11th -13th August 2014.
3. The department produces the Ministry of power 2013-2014
(achievements) as inputs into the President‟s 2015 Budget speech.
4. The 2014 Ministerial press briefing held on 24th November, 2014.
5. The sovereign Rating exercise by Fitch and also the Sovereign rating by
Standard and Poor was organized.
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6. Produced and forwarded of the 2014/2018 Projects/Programe to National
planning Commission. The document is to be included in the National
integrated infrastructure master plan.
7. Organized a retreat on the development, designing and implementation of
the power Sector Local Content Policy .The retreat was facilitated by Frandek
Consulting Ltd.
8. Held the 6th Power Summit on 30-31st January 2014 which brought
together the Power sector stakeholders, Civil Society Organizations and
Development Partners during which important issues were discussed with a
view to moving the sector forward.
9. Participated in the conference of DPRS in the Public Service held from 19th
-20th May, 2014 in Minna, Niger State.
10. Organized (in collaboration with Henshaw Capital Partners) a seminar on
setting up of a private Equity Fund in order to Support the Development of
Renewable Energy on 13th March,2014
11. Anchored a Power Breakfast Forum on 8th May, 2014 as a side event
during the world Economic Forum for Africa (WEFA).
12. Attended the National Council on Development Planning (NCDP) meeting
and Joint Planning Board (JPB) in Bauchi from 21st -25th April, 2014 and in
Ibadan, Oyo State from 29th -31st October2014.
13. Processed electronically, a number of Federal Executive Council (FEC)
memoranda to the cabinet office, OSGF.
(b) BILATERAL AND MULTILATERAL DIVISION
The Ministry participated in various Bilateral and Multilateral Economic
Cooperation activities during the year 2014, aimed at attracting investors to
Nigeria to invest in the Power Sector, building capacity of the staff of the
Division, amongst others.
As a result of these activities, the Ministry participated in a number of bilateral
meetings both within and outside the country aimed at improving power supply
in Nigeria
These include:
1. The Ministry participated in the 6th Session of the Cameroun-Nigeria Joint
Commission held in Yaoundé, Cameroun from the 9th – 11th April, 2014 to
discuss the bilateral agreements existing between the two countries.
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2. The Ministry was part of the Nigerian delegation to the United States of
America for the Nigeria Development and Finance Forum (NDFF) 2014
Conference held at Western New York Grand Central Hotel, New York City, USA
from 29th- 31th May, 2014. The purpose was to partner and attract investors
from the USA to come and invest in the power sector.
3. The Ministry participated in the 1st D-8 Ministerial meeting on Energy
which took place in Kaseri, Turkey in June 2014. The meeting was intended to
promote closer cooperation on joint research, exploration and production of
alternative energy resources, capacity building, technical assistance on projects,
and exchange of expertise and technology transfer between member countries.
4. The Ministry also formed part of Nigerian Delegation to the Nigeria-
Germany Bilateral Commission meeting in Berlin-Germany on 21st October,
2014.
5. On the Home front, the Ministry participated in various meetings on
bilateral issues at the Ministry of Foreign Affairs. They include:
a. Stakeholders meetings on bilateral relations with Belarus held in the Office
of the Director Eastern and Central European Affairs Division, Ministry of Foreign
Affairs, Abuja on Monday 10th November, 2014. The meeting arose as result of
Mr. President‟s directive that relevant MDAs should initiate discussion on
possible areas of Co-operation with Belarus.
b. Inter-Ministerial meeting on Commonwealth Heads of Government
meeting (CHOGM) 2013 Follow-Up Action held on Tuesday 10th June, 2014 at
the Ministry of Foreign Affairs, Abuja.
c. Inter-Ministerial meeting on the Second Session of the Mechanism for
Strategic Dialogue between Nigeria and Brazil held on Tuesday 19th August,
2014.
(c) RESEARCH AND STATISTICS ACTIVITIES.
Preparation & Production of 2013 Year Book for the Ministry;
Coordination of 2014 Ministerial Press Briefing;
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Coordination of Meetings with Agencies;
Processing of Correspondences from other Ministries, Departments and
Agencies. And
Y2015 WORKPLAN FOR RESEARCH AND STATISTICS
Preparation and Production of 2014 Annual Report
Preparation for 2015 Ministerial Press Briefing
Establishment of Standard Committee on Data Management Statistics for
Power Sector
Sensitization Campaign to host Communities where Power infrastructures are
in the country.
Preparation and Publication of Ministry Statistical Data Digest
Preparation and Publication of Monthly Bulletin and Quarterly Digest
Preparation for Research development on Electricity demand study and
Preparation to conduct a visit on the Newly acquired Power Station i.e.
Captive
(d) ACTIVITIES OF THE LIBRARY SECTION IN THE YEAR 2014
1. Maintained smooth organization and running of the Ministry‟s library
2. Supplied newspapers and magazines to the Honourable Minister of Power,
Honourable Minister of State Power, Permanent Secretary and the Press Unit.
3. Purchased some copies copies of book titles on power/engineering, finance
and information communication technology fields.
4. Maintained regular supply of newspapers and magazines for the consumption
of library users.
5. Attended regularly to inquiries from both staff and other library users on
information in newspapers, magazines and other Government publications.
(e) ICT UNIT
Regular Update of Ministry‟s website content
Awarded 5nos Computer Software applications on key power sector
Unified Service Wide Email: Activation of over 70% of staff email accounts
Successfully attracted more than 186,560 users to Ministry‟s website
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Lot of Feedbacks from social media and the Ministry‟s general email
Execution of Ministry‟s Data Centre on-going
Functional Email Addresses have been created for Offices of HMP, HMSP, PSP,
Department and Units for communication purposes
During the period, all ICT staff benefitted from Ministry organized capacity
building
MONITORING & EVALUATION DIVISION:
The M&E Division has carried out /achieved the following:
1. Coordinated the development of the Key Performance Indicators(KIPs) for the Power Sector based on which the Honourable Minister Signed a Performance contract with Mr President .The Performance Agreement flowed down to the Permanent Secretary . Directors and the Agencies. This form basic for the measurement of performance and efficient service delivery to the People. The Ministry submitted the score card on the performance of the Power Sector based on KPIs for year 2011 to 2013.
2. Monitored Power Sector Projects and Programmes in generation, transmission and distribution and reports have been submitted to the management. The unit in collaboration with the Ministry of special Duties, Budget Officer of the Federation and other relevant Department and Agencies monitored the Constituency Projects of the Rural Electrification Agency. These were to ensure the effective and timely completion of projects, their outcomes and outlines to the benefiting community which translates to improve Power supply and rural access to Power.
3. Carried out a survey on the Captive Power generation nationwide with a view to obtaining the data for better coordination off- grid and Mix-grid production/generation cum transmission of energy.
GENERAL SERVICES DEPARTMENT:
The General Services Department was created vide Office of the Head of the Civil Service of the Federation‟s Circular Ref no: HCSF/CMO/EM/243/17, dated 11TH March, 2014 in line with the Federal Government policy on
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specialization in career Management. It is one of the Common Services Departments of the Ministry.
The Department is headed by a Director and is divided into two (2) Divisions, namely; General Services and Maintenance, each division headed by a Deputy Director and assisted by an Assistant Director.
The Maintenance Division is responsible for the maintenance of the Ministry‟s physical assets/properties such as building structures, servicing/repairs of air conditioners, photocopiers, desk tops, laptops, electrical faults, etc. It is also in charge of cleaning Services of the Ministry and the allocation of offices.
The General Services Division on the other hand is in charge of Transport administration, Utility services (Telephones, PABX, Electricity bills and etc), Stores management and Security.
The Department presently has a total number of One Hundred and Six (106) staff.
Vision And Mission Statement
Providing a conducive and sustainable working environment for higher Productivity and maximum human capacity utility and efficiency.
ACHEVEMENTS IN 2014
The General Services Department carried out and achieved the following in 2014:
Renovation of New Ministry‟s Secretariat (Old PHCN Building), EMSL Clinic, Maitama and HYPADEC Office, Minna.
Renting, partitioning and furnishing of PHCN Residual Staff Office and NAPSAS Coordinating Office, Mabushi;
General maintenance of toilets at the Federal Secretariat Complex and the New Ministry‟s Secretariat, Maitama.
Retainership/Annual revalidation of contract extension for outsourced services of sanitary and office equipments.
Supply and maintenance of office furniture/equipments.
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General renovation/refurbishing of offices. Complete repainting of exterior structure of the New Ministry‟s Secretariat
Complex, Maitama. Supply, distribution and maintenance of project monitoring vehicles. Provision of additional security services within the Secretariat.
2015 WORK PLAN
The following work plan will be implemented in 2015:
Supervision of ongoing renovation contracts at the New Ministry‟s Secretariat (Old PHCN Building) Maitama, Abuja, HYPADEC Office, Minna and EMSL Staff Clinic, Maitama, Abuja.
General maintenance of office equipments and furniture. Supply and distribution of stationeries and utilities. Supply and installation of two (2) new elevators at New Ministry‟s
Secretariat, Maitama. Provision and out sourcing of cleaning Services for the New Ministry‟s
Secretariat Complex (Old PHCN Building) Maitama, Abuja. Creation of an asset register for the Ministry. Out sourcing of security services for the New Ministry‟s Secretariat Complex
(Old PHCN Building) Maitama, Abuja. Supply and provision of Renewable Energy Sources at the New Ministry‟s
Secretariat Complex (Old PHCN Building) Maitama, Abuja. Renovation and refurbishing of Staff Canteen at the New Ministry‟s
Secretariat Complex, Maitama. Provision and Installation of Security gadgets at the New Ministry‟s
Secretariat Complex, Maitama, Abuja. Construction of second phase of the New Ministry‟s Secretariat Complex,
Maitama, Abuja.
FINANCE AND ACCOUNTS DEPARTMENT:
The Finance & Accounts Department is one of the common service departments
of the Ministry. The department is divided into three divisions i.e. Finance,
Accounts and Budget with three Deputy Directors. The department is
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responsible for the preparation of the Ministry's annual budget through the
budget division and the payment of the entire Ministry's transactions approved
by the Accounting officer of the Ministry (Permanent Secretary).
FUNCTIONS OF THE FINANCE AND ACCOUNTS DEPARTMENT
Recording and updating of funds allocated into the vote books
Processing and issuing of AlE for approved bills and claims
Preparation of daily, weekly and monthly balances and returns
Preparation of payment vouchers and recording of AlEs
Recording and balancing of vote books on daily basis
Answering of Internal Audit Queries
Maintaining of cash books and mandate summary register
Safe keeping of security documents and writing of payment mandates
Collection of revenue and bank payments
Handling bank transactions
Checking and passing of payment vouchers, salary and LPCs
Receipt and keeping of payment vouchers
Batching and pre-listing of payment vouchers
Analysis of revenue and payments into analysis books
Preparation and submission of monthly transcripts and ATRRS
Reconciling bank statements with cash books
Preparation and submission of bank reconciliation statements.
2014 BUDGET PERFORMANCE
In 2014 the Ministry was allocated a total sum of N63,212,100,632B
(N59,814,290,389B for capital projects and N3,397,810,244B for recurrent), see
summary at table A below. Out of N59,814,290,389B
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TABLE A
SUMMARY OF 2014 BUDGET APPROPRIATION
MDA TOTAL
PERSONNEL TOTAL
OVERHEAD
TOTAL RECURRENT
TOTAL CAPITAL
TOTAL ALLOCATION
FEDERAL MINISTRY
OF ENERGY (POWER)
- HQTRS
828,566,419 434,179,522 1,262,745,9
41 22,360,47
4,381 23,623,220
,322
NATIONAL RURAL
ELECTRIFICATION
AGENCY 594,760,962 146,715,622
741,476,584
10,210,812,584
10,952,289,168
NIGERIAN
ELECTRICITY
REGULATORY
COMMISSION
0 0 0 1,750,000
,000 1,750,000,
000
NATIONAL POWER
TRAINING INSTITUTE 962,087,459 216,992,463
1,179,079,922
2,581,777,924
3,760,857,846
NIGERIA
ELECTRICITY LIABILITY
MANAGEMENT
LIMITED
141,942,763 72,565,034 214,507,79
7 579,490,9
58 793,998,75
5
TRANSMISSION
COMPANY OF
NIGERIA 0 0 0
18,921089,542
18,921,089,542
NIGERIAN BULK
ELECTRICITY TRADING
PLC 0 0 0
1,131,075,000
1,131,075,000
ELECTRICITY
MANAGEMENT
SERVICES LIMITED
(EMSL)
0 0 0 2,279,570,
000 2,279,570,
000
TOTAL 2,527,357,603 870,452,641 3,397,810,244
59,814,290,389
63,212,100,632
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TABLE B. Capital Budget Performance as at 2014
S/N MDA Total Allocation BN
Capital BN
Qtrly Releases BN
1st Qtr 2
nd Qtr 3
rd
Qtr
Total Capital Releases BN
Utilization BN
% utilization
1 Federal Ministry of Power (FMP)
23.6 22.4 4.95 3.07 1.33 9.35 9.35 41.74%
2 Transmission Company of Nigeria (TCN) 18.9 18.9 5.99 1.67 0.89 8.55 8.55 45.24%
3 Rural Electricity Agency (REA)
10.9 10.2 0.42 2.38 1.03 3.83 3.83 37.55%
4 Nigerian Electricity Regulatory commission (NERC)
1.7 1.7 1.79 0 0 1.79 1.79 105.3%
5 National Power Institute (NAPTIN)
3.8 2.6 0.63 0.66 0.29 1.58 1.58 60.76%
6 Nigeria Electricity Liability Management Limited (NELMCO)
.79 .58 0.14 0.08 0.03 0.25 0.25 43.10%
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7 Nigerian Bulk Electricity Trading PLC 1.1 1.1 0.27 0.25 0.11 0.63 0.63 57.27
8 Electricity Management Services Limited 2.3 2.3 0 0.78 0.34 1.12 1.12 48.69
9 Total
63.09 59.78 14.20 8.10 4.00 26.3 26.3 43.99%
SUMMARY OF 2014 REVENUE BUDGET PERFORMANCE: MAIN MINISTRY
FED. MIN. OF POWER
GENERATED REV. 2013
- - REMARKS
HQ 36,684,553.75 39,000,000.00 31,386,277.00
REA 110,000,000.00 300,000,000.00 63,045,765.00
NAPTIN 197,500,000.00 350,000,000.00 -
NBET 271,714,922.00 250,000,000.00 -
NELMCO NA NOT REV. GENERATING AGENCY
EMA NA 200,000,000.00 112,064,953.00
NERC - - - SELF ACCOUNTING
TCN NA - - SELF ACCOUNTING
TABLE D
MDA
Appropriation
(if any)
Releases
Total
Releases
Total Utilization Rem
arks
1st quarter 2
nd quarter 3
rd
quarter
4th
quarter
Amount %
Performance
Main 434,179,523 43,815,950 121,268,753 96,266,830 28,993,124 290,344,657 290,246,752.95 99
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2014 RECURRENT BUDGET (OVERHEAD) PERFORMANCE
PROCUREMENT DEPARTMENT:
INTRODUCTION
1.1 The Procurement Department is made up of two Divisions namely – Capital and
Recurrent Divisions. The Capital Division is responsible for the implementation of Capital
projects that have been appropriated in the Annual Capital Budget. The Recurrent Division
is responsible for the implementation of the Recurrent Budget. The Department is
currently manned by a Director with fourteen (12) Professional Staff, six (6) Secretaries
and three (3) clerical Staff.
1.2 The following activities fall within the purview of the Procurement Department:
i. All activities of the Ministerial Tenders Board (MTB) which include tender
solicitation, analysis, selection and award of contract for the Procurement of goods, works
and services within approved threshold for the Ministry’s project. The Department also
carries out supervisory functions and capacity building on the Procurement process of the
Ministry’s Parastatals including the provision of a Secretariat to MTB.
ii. Conducting and Monitoring Price Intelligence activities for both Capital and
Recurrent projects including maintenance of database.
iii. Superintending strict adherence to all extant regulations and procedures on
Procurement and Contract awards with emphasis on ensuring transparency and
accountability in the tendering process; etc.
Ministry
NREA 60,876,666 15,219,166 15,219,166 15,219,166 15,219,166 15,219,166 99.90
NELMCO 72,565,034 7,783,019 21,034,480 5,468,442 - 34,285,941 28,644,119 83.54
NAPTIN 122,585,990 NIL 30,646,497 30,646,497 30,646,497 91,939,491 87,285,071.62 94.94
NERC 327,891,415 81,972,855 81,972,855 81,972,855 81,972,855 327,891,420 - 99.90
EMS 92,845,741 - - - 92,845,741 92,845,741 73,084,489 78.67
TCN
NBET
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2.0 MINISTERIAL TENDERS BOARD
2.1 The Department has organized Twelve (12) Ministerial Tenders Board (MTB).
Meetings for the 2014 fiscal year to consider the Ministry and its Parastatals Successor
Companies projects. The contracts approved by the board are as follows:
MTB AWARDS AS AT 31st December, 2014
S/N CONTRACT DESCRIPTION CONTRACTOR APPROVAL DATE BY MTB/FEC
CONTRACT VALUE (NGN)
PROJECT STATUS
1
Procurement of 1no. Toyota hilux 2014 model,1no. Toyata Camry 3.5l,V6, 2014 model. 1no. ToyataAvensis, 2014 model. 1no. ToyataLandcruiserV8(full option, 6 speed Automatic Transmission) and 1no. Toyota Prado TXL,2014 model.
MessrsAsmihad Global Resources Ltd
MTB/May, 2014
63,099,250.00 ONGOING
2
Procurement of 1no. Toyota Land Cruiser V8 (full option, 6-speed Automatic Transmission), American spec. and 1no. Toyota Hiace Bus.
Messrs Eric Many Ltd MTB/May 2014
33,314,950.00 ONGOING
3 Purchase of a property located at No. 2 Hospital Road off Maiduguri Rd, GRA, Sokoto, to serve as the Zonal Office.
MessrsIbiam Alexander & Associates
MTB/May 2014 (For NERC)
82,687,500.00
ONGOING
4
Production and Airing of a new 13-Part/25 minutes Television Documentary Series on ‘State of the Ntion’ on AIT (from May-August 2014).
Messrs Spate International Ltd
MTB/May 2014
36,700,000.00 ONGOING
5
Production of 13 episodes of 15-minutes Programme on AIT,NTA and BEN TV to be viewed both locally and internationally.
Messrs BISCON Communications Ltd
MTB/May 2014
29,250,000.00 ONGOING
6
a. Procurement of 5nos. Toyota Hilux 2014 model, 4x4, sShell Specification, Double cabin and 7nos. Toyata Hilux 2014 model,4x4,Shell Specification, Double cabin with complete Military Security Gadgets. b. 1no Toyota Prado TXL, 2014 model and 1no. Toyota Land Cruiser Prado TXL (with complete Military Security Gadgets)
MessrsMandillas Enterprises Ltd
MTB/May 2014
88,504,444.45 ONGOING
7
Production and Airing of Documentary on the continuous Quest by the Ministry at she casing Giant Strides in the Power Sector
Messrs Light-Up Nigeria Group
MTB/June 2014
7,400,000.00 ONGOING
8 Production and Airing of Documentary show-casing Milestones and Achievements in the Power Sector
Messrs E-SenceTechnologies
MTB/June 2014
7,500,000.00 ONGOING
36
9
Engagement of Foreign Affairs Magazine in the Special Publication for His Excellency, President Goodluck Jonathan at the just concluded World Economic Forum
Messrs Foreign Affairs International Publication
MTB/June 2014
13,612,500.00 ONGOING
10
Placement on around “ Focus on Africa” using BBC World News, BBC Command and BBC Mobile Platforms to disseminate information on the activities in the Power Sector
Messrs Metropolitan International Global System Ltd
MTB/June 2014 5,384,750,00 ONGOING
11
Revision of Contract for the Design, Manufacture, Supply, Erection and Commissioning of 33KV Switchgear at Kolo Creek
Meesrs LS Industrial Services Ltd
MTB/June 2014 (TCN)
N257,707,602.62 + US$744,127.64
ONGOING
12
Revision of contract for the Design, Manufacture, Supply, Erection and Commissioning of 1x90MVA-132/33KV Substation oat Gbarantou
Messrs Income Electrix Ltd
MTB/June 2014 (TCN)
N230,623,305.98 +
US$3,665,162.33 ONGOING
13
Supply and Installation of Communication Equipment on Security Patrol Vehicles at the Zungeru Hydroelectric Power Project
Messrs Care Tech Auto Enterprises
MTB/June 2014 (TCN)
20,191,500.00
ONGOING
14 Supply of 1no. Toyota Camry 3.5L, V6 and 1no. Toyota Corolla 1.8L GLi (Full Option)
MessrsElizade Nig. Ltd
MTB/June 2014
16,999,99.00 ONGOING
15 Supply of 6nos. Toyota Prado TXL, 2014 model
Messrs Globe Motors Ltd
MTB/June 2014
80,550,000.00 ONGOING
16 Conduct of Power Sector Stakeholders Research on the Post Reform Progress
Messrs Crystal Research & Marketing Services Ltd
MTB/ June 2014
15,750,000.00
ONGOING
17 Procurement of 1no. Toyota Land Cruiser V6 (2014 model) and 1no. Toyota Land Cruiser V8 2014 model)
Messrs Dilly Motors Ltd
MTB/ July 2014
41,763,750.00 ONGOING
18 Procurement of 1no. Toyota Land Cruiser V8 (American Specs) and 2no. Toyota Hilux, 4x4 D/C
Messrs Eric Many Ltd MTB/ July 2014
38,479,950.00 ONGOING
19
Production, Design and Mounting of Bill Boards at 7 Locations for the on-going National Power Sector Apprenticeship Scheme (NAPSAS).
MessrsWittengeisen& Walter Ltd
MTB/ July 2014
14,437,500.00 ONGOING
20
Engineering,Design,Manufacture,Supply, Commissioning and Protection/Control and Tariff Metering Scheme Equipment for Ibom Power-Alscon 132kv D/C Transmission Line at Alscon Power Plant: For evacuation of over 200MW stranded power to grid network
MessrsMojec International Ltd
MTB/ July 2014 (For TCN)
724,686,470.99
ONGOING
21 Rehabilitation of 12nos. collapsed towers of Sapele-Aladja 330KV Line
MessrsEnergo (Nig) Ltd
MTB/ July 2014
269,371,952.58 ONGOING
37
22 Engagement of an external Legal Advisory Service (Coal to Power) for NBET
MessrsKocharr& Company and Administrative Staff College of India and Vigor Law Firm
MTB/ July 2014 (For NBET)
96,646,230.80
ONGOING
23 Procurement of 1no. Toyota Land Cruiser Prado (Full Option) and 6nos. Toyota Hilux 4x4 D/C
MessrsMandillas Enterprises Ltd
MTB/ July 2014
50,700,000.00 ONGOING
24 Procurement of a. 1no. Toyota Corolla and b. 3no. Toyota Prado TXL (Full option)
MTB/ July 2014
7,300,000.00
39,669,000.00
ONGOING
25 Recovery and Re-Kitting of Faulty Power distribution Transformers
a. Messrs Mandillas b. Lanre Shitu motors Nig. Ltd
MTB/July 2014 39,360,000.00 23,950,000.00
ONGOING
26 Construction and Installation of 10KM of 33KV Lines and Associated 2x15MVA, 33/11KV Substation at Ibuzor
Messrs Power Control & Appliances Limited
MTB/ August 2014
325,792,191.00
ONGOING
27 Additional works on the Rural Electrification of Agyna-Sabon Tasha in Kwali Area Council, Abuja.
Messr Remarks Associated Engineering Consultancy Ltd
MTB/ August 2014
12,672,164.64
ONGOING
28 Procurement of 6nos. Toyota Hilux, 2.7L 2014 model (Double Cabin)
MessrsElizadeNig Ltd MTB/ August 2014
39,375,000.00
ONGOING
29 Procurement of 10nos. Innoson Pick-Up Van 4x4 D/C
MessrsInnoson Vehicle manufacturing Company Ltd
MTB/ August 2014
50,400,000.00
ONGOING
30 Payment for the let/lease of an Office space within SHM Office Complex along Kado/MabushiExpressway,Abuja,FCT
MessrsNawa Properties Ltd
MTB/ August 2014
9,980,000.00
ONGOING
31
Town hall meeting in 12 locations of the Country for a public awareness campaign on the Power Sector Reform Project
MessrsPatike Communication Limited
MTB/ August 2014
59,820,000.00
ONGOING
32 Procurement of 2nos. Large sized Bill Boards to show case giant strides in the Nation’s Power Sector
MessrsGaskia Media Limited
MTB/ August 2014
15,000,000.00
ONGOING
33
Dedicated Coverage and Broadcast of all activities on AIT, RAYPOWER 100.5FM and CHANNELS under DAAR Communications
Messrs Tonj2b Investment & Communication
MTB/ August 2014
18,900,000.00
ONGOING
34 Procurement of a. 6nos Toyota Camry 2.5L b. 1no. Toyota Avensis 2.0L
a. Messrs Eric Many Ltd b. Messrs Eric Many Ltd
MTB/ August 2014 (For EMSL)
51,030,000.00
8,654,625.00 ONGOING
38
35
Procurement of a. 1no. Toyota land Cruiser v6 (2014 model) b. 3nos Toyota Prado TXL (2014 model)
a. Messrs Eric Many Ltd b. Messrs Eric Many Ltd
MTB/ August 2014 (For EMSL)
18,900,000.00 40,005,000.00
ONGOING
36
Appointment of Consultants for Consultancy Services for the Recruitment of Manpower in the 6 Geo political zones of the Country and the Lead Consultant for the National Power Sector Apprenticeship Scheme as follows: LOT 1: North-Central Zone LOT 2 : North-East Zone LOT 3 : North-West Zone LOT 4 : South-East Zone LOT 5 : South-South Zone LOT 6 : South-West Zone Lead Consultant
a. MessrsGreen Consult Ltd b. Messrs I-Path Hub Ltd c. Messrs Infosofia consulting Ltd d. Bridgegap Investment Ltd e. Messrs Febi Consult Ltd f. Messrs Datanics Engineering Ltd g. Messrs Wittengeisen & Walter Ltd
MTB/ September, 2014
19,495,000.00 19,961,700.00 19,629,750.00 19,750,000.00 19,800,000.00 19,364,229.40 45,000,000.00
ONGOING
37 Procurement of 1no. Toyota Prado TXL, 2014 model and 1no. Toyota Hilux,2.7L, Double Cabin for use under NAPSAS
Messrs Dilly Motors MTB/ September, 2014
20,039,250.00
ONGOING
38
Procurement of 1no. Toyota Prado TXL,2014 model as project vehicle by the Special Adviser to the Honourable Minister of Power
Messrs Madillas Enterprises Ltd
MTB/ September, 2014
13,200,000.00
ONGOING
39 Let/Lease of an office space within SHM Office Complex along Kado/Mabushi Express way for NAPSAS
MessrsNawa Properties Ltd
MTB/ September, 2014
10,299,200.00
ONGOING
40
Clearing of 1390 Hectares Resettlement sites for relocation of the Communities affected by the Zungeru Hydroelectricity Power Project
Messrs Global Legend Integrated Concept Ltd
MTB/ September, 2014
520,000,000.00
ONGOING
41
Construction of Sustainable off – grid solar power system for the Electrification of selected communities in FCT
ONGOING
Durumi Community Messrs Schneider Electric Nig Ltd
MTB/October 2014
228,255,351.01
ONGOING
Waru Community Messrs Lordezetech Int Ltd.
MTB/October 2014
238,375,254.00
ONGOING
Shape Community Messrs Lordezetech Int Ltd
MTB/October 2014
218,895,296,.88 ONGOING
Sherepe Community Messrs Golden Grid Solution Inc / M – Raid Global Nig Ltd.
MTB/October 2014
148,187,393.14
ONGOING
39
42
Procurement and Installation of Security Services and Critical Assets Protection (Transmission of Surveillance Systems Application)
Messers Momas Systems Nigeria Ltd
MTB/October 2014
548,010,000.00
ONGOING
43
Upgrading and Improvement of Electricity Supply at Langtang North and Langtang South Federal Constituencies in Plateau State.
Messrs Roodag Nigeria Ltd
MTB/October 2014
22,725,130.00
ONGOING
44 Production of A Video Documentary on 215MW Kaduna Power Plant Project.
Messrs HTP Media Production and Communications.
MTB/October 2014
18,193,660.50
ONGOING
45
Procurement and installation of Security Services and Critical Assets Protection (Supply and Installation Inverters at Federal Ministry of Power Headquarters) Federal Secretariat Complex, Abuja Under The Protection of Critical Assets.
Messrs 4Prestige Prime Gate Services Limited.
MTB/October 2014
87,850,000.00
ONGOING
46 Procurement of 1NO. Toyota Prado TXL Messrs Dilly Motors Ltd.
MTB/October 2014
13,203,000.00
ONGOING
47
Supply of Project Vehicles as Follows: 2NOS. Nissan Pick – Up NP300,2.4L, Double Cabin, 4WD AX. 1No. Mitsubishi canter, 3.9ltr
Messrs Stallion NMN Ltd Messrs Lanre Shittu
MTB/October 2014
11664450
8,700,000.00
ONGOING
48
Rehabilitation and Upgrading of Electricity Supply Network in Kiagbodo Community and University Environs in Delta State.
Messrs Power Control and Appliances
MTB/October 2014
26,754,945.00
ONGOING
49
Production and Supply of 6.750NOS Branded Polo Shirts. 6.750NOS Caps, 6.750NOS Jotters, 6,750NOS Pan and Bags For National Power Sector Apprenticeship Scheme (NAPSAS)
Messrs Network Strategy Ltd.
MTB/October 2014
60,750,000.00
ONGOING
50
Consultancy Services on Upgrading of Accounting System Facilities in The Department Of Finance and Account, Federal Ministry Of Power.
Messrs Data Easy Systems Ltd.
MTB/October 2014
41,050,000.00
ONGOING
51 Consultancy Services and Supervision of The Construction of Hydropower Dams Project in Five Location
MTB/October 2014
ONGOING
. Asejire Hydropower Dam Messrs Quaint Nig Ltd MTB/October 2014
86,932,411.00
ONGOING
. Zobe Hydropower Dam Messrs Goli – Hans Int’l Ltd
MTB/October 2014
87,063,299.90
ONGOING
40
. Owena Hydropower Dam Messrs Northcroft Nig Ltd
MTB/October 2014
79,989,783.30
ONGOING
. Onipanu Hydropower Dam Messrs Helbert Nig Ltd
MTB/October 2014
78,998,896.40
ONGOING
. Gimi Hydropower Dam Messrs Nathados Ventures Ltd
MTB/October 2014
77,618,920.10
ONGOING
52 Construction Of Hydropower Dams On Five Locations. Asejire Hydropower Dam
Messrs Newbay Engr Ltd
MTB/October 2014
243,595,832.56
ONGOING
. Zobe Hydropower Dam Messrs Fosab Int’L Ltd MTB/October 2014
321,565,603.68
ONGOING
. Owena Hydropower Dam Messrs IESG Nig Ltd. MTB/October 2014
265,909,694.45
ONGOING
. Onipanu Hydropower Dam Messrs Tralat Nig Ltd MTB/October 2014
255,063,273.50
ONGOING
. Gimi Hydropower Dam Messrs Powersys Integrated Sys Ltd
MTB/October 2014
316,872,143.42
ONGOING
53 Additional Works On Rural Electrification Of Gawu Village, Doigan Ruwa in Abaji Area Council, FCT Abuja
Messrs Sonsac Contractor Ltd
MTB/October 2014
35,349,167.33
ONGOING
54
Additional works On Rural Electrification Of Sabon Gari, Bwari – Kuchibuyi, Byazhin in Bwari Area Council, FCT Abuja.
Messrs Black Const. Ltd
MTB/October 2014
38, 370,613.44 ONGOING
55
Engagement Of Transaction Advisor For The Development Of Hydropower Dams Comprising Of 10MW Oyan Dam In Ogun State, 6MW Ikere Gorge Dam In Oyo State And 450KW Owena Dam In Ondo State.
Messrs Hebert Nigeria Ltd
MTB/October 2014
76,109,093.88
ONGOING
56 Conduct Of Business Cluster Survey (BCS Messrs No 1 Polls Ltd MTB/October 2014
17,850,000.00
ONGOING
57
Implementation Of Executive Dashboard Solution (Directive Tracking System) For Office Of The Honourable Minister And Permanent Secretary, Federal Ministry Of Power.
Messrs Softtrust Technologies Ltd
MTB/October 2014
14,750,000.00
ONGOING
58
Upgrading And Improvement Of Data Centre At The Power Holding Company Of Nigeria (PHCN) Building At Maitama For federal Ministry Of Power.
Messrs Zinox Computers Ltd
MTB/October 2014
54,951,690.00
ONGOING
59 Construction Of Ishiagu Electricity Distribution Network
Messrs Nathan Christopher Const. Ltd
MTB/October 2014
302,305,001.00
ONGOING
60 Power Improvement In Ewatto, Esan South East LGA In Edo State.
Messrs Kinpatino Projects Ltd
MTB/October 2014
86,934,452.25
ONGOING
41
61
Power Improvement At Ita – Oshin Abeokuta North LGA, Ojokodo Ajitadun Abeokuta North And Amolaso Community Abeokuta South LGA In Ogun State
Messrs Dawn Mara Int’I Ltd
MTB/October 2014
38,118,022.00
ONGOING
62
Construstion Of Interconnecting Roads Between The Resettlement Sites Of The Communities to Be Displaced By The Zungeru Hydro Electric Power Project:
MTB/October 2014
ONGOING
· LOT 1 – Construction Of 18KMS Laterite Road From Maikago – Kango Riyo – Walako – Jagindin Lawo - Lawo
Messrs Redak Nigeria Ltd
MTB/October 2014
895,400,000.00
ONGOING
· LOT 2 – Construction Of 14KMS Laterite Road From Gidan Danbuki – Burmi – Agbegbe - Ashiwe
Messrs Valleren Nigeria Ltd
MTB/October 2014
890,368,000.00
ONGOING
63 Consultancy Services For Socio Economic And Environmental Impact Study Hydropower Plant in Two Location.
MTB/October 2014
ONGOING
. LOT A Messrs I.B. Global Resources Ltd
MTB/October 2014
74,560,432.35
ONGOING
. LOT B Messrs Open Door System Int’L Ltd
MTB/October 2014
72,500,100.50
ONGOING
64 Overhauling Of 4NOS. Elevator At PHCN Building Maitama Abuja.
Messrs BYCO Energy And Petroleum Resources
27,300,000.00 ONGOING
65 External Painting Of PHCN Building in Maitama Abuja.
Messrs Berger Paint Nig PLC.
MTB/October 2014
16,027,948.00
ONGOING
· Supply Of 1NO. Innoson IVM 5000, 15 Seater Bus, Petrol Engine, 2.4L Utility Bus
Messrs Innoson Vehicle Man. Co. Ltd.
MTB/October 2014
4,410,000.00
ONGOING
· 5NOS. IVM – Carrier 4WD Petrol Engine With Air Conditioner.
Messrs Innoson Vehicle Man. Co. Ltd
MTB/October 2014
26,200,000.00
ONGOING
66 For Security Services And Critical Asset Protection.
MTB/October 2014
ONGOING
· Supply And Installation Of Bollard. Messrs Natty Joe Ventures
MTB/October
52,999,093.88 ONGOING
· Construction Of Electric Fence And Hand Held Bomb Detector.
Double Platinum Group
MTB/October
33,371,089.50 ONGOING
· Security Access Control Messrs ASM Technology Ltd
MTB/October 2014
66,062,338.68
ONGOING
· Supply & Installation Of Walkthrough Metal Detector & Baggage Scanner
Messrs Aviastrat Limited.
MTB/October 2014
25,447,433.38
ONGOING
42
67 LOT B7 1MW Solar Power Plant at Shagari Town in Soloto State
Messrs Solar Force Nigeria Limited
MTB/November 22014
105,739,142.00
ONGOING
68
LOT B9 Supply and installation of 3 units of KVA Transformer in Akerebiata Area Ilorin East LGA, Muhyideen Road Illorin South, Kwara
Messrs Setonji Ojugbele Elect Power Works Nigeria Limited
MTB/November 22014
11,785,853.20
ONGOING
69
LOT B10 Provision of Ten (10) Nos 500KVA 33/0.415 Transformers with accessories at Abeokuta North, Obafemi Owode and Odeda LGA, Ogun State
Messrs De-El Shaddai Prestige Nigeria Limited
MTB/November 22014
17,298,382.80
ONGOING
70 LOT B13 Electrification of Kubchi, Baaje and Multe Village of Danboa LGA
Messrs Musty Electrical company Limited
MTB/November 22014
98,209,734.93
ONGOING
71 LOT B18 Construction of Solar Sreet Light in Ikwa West, Abia State
Messrs East Equipment and Co. Limited
MTB/November 22014
24,757,200.00
ONGOING
72
LoT B18 Constuction of 500KVA Transformer relief substation and connection to National grid at Karu district, Jos South LGA Plateau State
Messrs Ogon Asun Co. Limited
MTB/November 22014
6,190,195.28
ONGOING
73
LOT B19 Transformer projects and installation of solar streetlight in Ageva, Etahi, GRA, Idare/Idogido, Idiche, Idoji, Idozumi, Inike, Obehirra, Okeneba, Okengwe, and Ozuwaya
Messrs Lejit Nigeria Limited
MTB/November 22014
19,842,000.00
ONGOING
74 LOT B21 Electrification of Ijakoro-Zhiko/Papsa Village in Bwari LGA (6JM)
Messrs MTC Nigeria Limited
MTB/November 22014
31,805,691.02
ONGOING
75 LOT B 22 Electricfication of Kwara to YEBU Leda, Kwali Area Council, FCT
MessrsVinez Projects and Investment Limited
MTB/November 22014
16,612,152.50
ONGOING
76 LOT B23 Electrification of Paiko-Ibwa, Gwagwalada Area Council, FCT
Messrs Zetex Ventures Limited
MTB/November 22014
10,404,179.38
ONGOING
77 LOT 24 Electrification of Apo to Taku Shara, Amac FCT, Abuja
Messrs Jaal Engineering Services Limited
MTB/November 22014
12,814,308.55
ONGOING
3.0 CHALLENGES
3.1 The Department is presently faced with acute shortage of office accommodation.
43
REFORM COORDINATION AND SERVICE IMPROVEMENT DEPARTMENT:
1.0 INTRODUCTION
The Department of Reform Coordination and Service Improvement (RC/SI) was established
in line with the circular ref. no. HCSF/CMO/EM/243/17 dated 11th March, 2014 by the
Office of the Head of Civil Service of the Federation (OHCSF) on Restructuring and
Establishment of two new Departments in MDAS.
2.0 Sequel to the creation of the new Department, the following mandates and
schedules were given for its operation:
i Manage the Department to serve as focal point for driving all change, reform,
innovation and improvement efforts within the Ministry in line with the overall framework
set by BPSR, OHCSF and other Central Agencies of Government;
ii Work with leadership of the Ministry to identify processes, system and service gaps
and with BPSR and OHCSF to develop interventions to eliminate such gaps;
iii Coordinate, drive, monitor and report on the Reform Agenda for the Ministry;
iv Manage and drive SERVICOM aims and initiatives within the Ministry.
v. Troubleshoot service failures and develop proposals to address them;
vi Research and identify good practices that can be adopted/adapted to improve
service delivery in the Ministry;
vii Liaise with the Ministry’s Departments and the OHCSF to develop refine, improve
and recommend more efficient processes and systems for the Ministry to achieve its
objectives;
vii Develop and launch initiatives to drive and mainstream a continuous service
improvement culture within the ministry;
viii Assist the leadership of the Ministry to articulate and coordinate their change
agenda in line with Service policies and standards
3.0 ACTIVITIES OF THE DEPARTMENT (BASED ON THE YEAR 2014WORKPLAN)
i. Resource Centre Participation (Officers from the Department visit SERVICOM
Office monthly to update the Ministry‟s records on activities and developments)
ii. Sensitization Programme for Staff of the Ministry on Grade Level 04- 06
44
iii. Collating data on complaints by customers on Power Supply from Discos, and
Gencos
iv. Forwarding of Complaints to Gencos, Discos and TCN
v. Meeting of the Department with Parastatal SERVICOM Units (PSUs)
vi. Meeting of the Department with Frontline Officers in the Ministry - Quarterly
Sensitization and Advocacy for Power Projects Communities/General Public
on vandalisation of power facilities.
Capacity Building workshop for Officers of the Department (RC/SI) and
Frontline Officers
vii. Sensitization of staff in the Area Offices on effective service delivery.
4.0 ACHIEVEMENTS OF THE DEPARTMENT FOR THE YEAR UNDER
REVIEW:
4.1 The meetings of the Department of Reform Coordination and Service
Improvement with frontline officers in the Ministry were held on 15th May, 2014
and on 2nd September, 2014 respectively.
i The meetings discussed ways of improving service delivery in the Ministry.
The SERVICOM representatives who are called Frontline Officers met Quarterly
with the Department (RC/SI) to report on activities of their various
Departments/Units. Some of the issues discussed at the meetings which were
recommended to Management were as follows:
Need for effective training programmes relevant to staff schedule of duties;
Need for staff to observe dressing code to create good image for the Ministry;
All Departments and Units were to have schedule of duties for their staff and
Need to provide adequate and functioning office equipment etc in the Ministry.
ii There had been relative improvement on the number of functioning office
equipment that staff are using thereby increasing their morale and productivity.
Similarly there had been improvement on the mode of dressing by staff in the
Ministry. This positive response was attributed to the Management‟s circular on
Dress Code and other fora in the Ministry where staff were sensitized.
4.2 Meeting between SERVICOM Office and Directors Reform
Coordination and Service Improvement (RC/SI) in the MDAs was held on
the 6th November, 2014 at Obasanjo Hall, Office of the Head of Civil
Service of the Federation (OHCSF).
45
i The meeting was at the instance of the SERVICCOM Office in the Presidency
in collaboration with the OHCSF. At the meeting, stakeholders exchanged views on
challenges and the way forward for the newly created department meant to serve
as a focal point in the service delivery in the MDAs. The meeting established the
fact that the effectiveness of government was determined by the quality of service
to the public and one of the Department‟s mandates was to coordinate all the
activities of service delivery in the MDAs.
ii The outcome of the meeting exposed the Directors of RC/SI to improved
knowledge in ensuring service delivery in line with the mandates of the Department
in their MDAs.
4.3 Sensitization Workshop on Efficient Service Delivery for Staff on
Grade Levels 04-06 in the Ministry held between 21st – 22nd July, 2014.
(i) The programme was part of the Department‟s year 2014 work plan and was
organized in collaboration with the SERVICOM Office. The programme created
awareness and equipped staff in the clerical and driver‟s cadre on GL 04 – 06 with
the tools for ensuring efficient service delivery in the Ministry. The 2 day
programme recorded about sixty participants and was a huge success. The
Management was commended for having organized the program to boost the
morale and performance of staff as well as exposed them to ways to diligently
handle their schedules.
4.4 Workshop on Development of Strategic Framework and Key
Performance Indicators for the Federal Ministry of Power was held from
2nd to 4th July,2014 at the Bayelsa Guest House
(i) One of the significant initiatives of the Federal Ministry of Power was the
2005 Power Reform Act which laid a solid foundation for the Privatization
activities that recently took place in the Sector. As part of its strategic initiative,
a Roadmap to drive the Power sector Reform was initiated. The Roadmap
which was meant to refocus the Sector was launched on August 26th 2010 and it
set out Mr. President„s vision for realizing the goal of providing adequate Power
sustainability in Nigeria in line with the provisions of the Electric Power Sector
Reform (EPSR) Act 2005.
(ii) It therefore behooves the Ministry to ensure the availability of appropriate
Polices, Strategic Framework and Key Performance Indicators (KPIs) which
46
included Monitoring and Evaluation Framework to drive the success story of the
Power Sector Initiatives. The renewed drive was to improve on the short and long
term service delivery goal of the Power Sector. The foregoing informed the
conduct of the workshop which recorded about 53 participants selected from the
Ministry and its various Agencies.
(iii) By the end of the workshop, two documents were developed. They
were Strategic Framework and Key Performance Indicators (KPIs) including
Monitoring and Evaluation Framework documents which are currently awaiting
validation before putting them to use.
(iv) The developed Framework was to drive the strategic aims, objectives
and goals of the Roadmap. The document was also to guide, guard and operates
the power sector Roadmap for its effective implementation. The Key Performance
Indicators document was to provide a measurable tool for the assessment of the
achievement of the Power Sector.
4.5 Report on Power Sector Stakeholders Research on the Post Reform
Progress.
4.6 A survey on the Post Reform Progress was conducted by a research
company named Messrs Crystal Research and Marketing Services Ltd on behalf of
the Ministry in August, 2014.
4.7 The Consultant visited some of the Generation and Distribution companies as
well as the Nigerian Electricity Regulatory Commission as the basis for the
execution of the contract. It involved the Focus Group and individual depth
interviews.
4.8 The survey revealed the greatest advantage of the reform to the Government
because it no longer borne the huge burden of financing the Power Sector alone.
It was gathered that the collection of money from consumers had increased and
that many consumers were now on the billing system (prepaid meter). Some
obsolete power equipment had been refurbished and put into use thereby
increasing generation of power.
47
4.9 The survey also revealed that job opportunities were created as a result of
the privatization. The challenges faced by the Generation and Distribution
Companies in attempt to provide power supply in the country were equally not
left in the survey.
4.10 The Workshop on Report and Minutes of Meeting Writing for
Senior Officers of the Federal Ministry of Power took place in
September, 2014
4.11 Another achievement recorded by the Department was the report writing
skill workshop organized for members of the Presentation Team who were drawn
from different Departments and Units of the Ministry.
4.12 The Presentation Team was created based on the directive from the
Permanent Secretary to cover and report on meetings, presentations, events and
activities of the Ministry. The workshop recorded huge success and had
effectively reflected on the performance of some of the participants.
4.13 There were other various workshops organized by the SERVICOM Office
attended by some SERVICOM Frontline officers from the Ministry. One of such
was on Service Delivery: Ethics, Accountability Corruption, Prevention
Workshop held in Benin –City, Edo State between 16th – 19thof June,
2014.
4.14 The workshop among others enhanced officer‟s knowledge and
understanding of corrupt practices as well as acquired useful tools to analyze
corruption in given local setting. It also helped officers to develop ability to
measure corruption using global index and to analyze the current initiative
policies and programme of Government to fight corruption, etc.
4.15 Nodal/Focal Officers’ Workshop: The 3-day Workshop titled
„Understanding Delivery Measurement: Tools, Implementation and Administration‟
was organized by SERVICOM Office for Nodal/Focal Officers drawn from
MDAs and was held between 3rd - 5th December, 2014 at Chesbury Hotel, Zone 4,
Abuja.
4.16 The workshop exposed the Nodal/Focal officers to SERVICOM new
improved measurement tools and its administration towards providing citizen-
focused service delivery by MDAs. Two officers from the Department (Reform
Coordination/Service Improvement) attended the workshop.
48
4.17 The participants acquired knowledge that facilitated the formation and
implementation of a suitable service charter as well as conducted service audit of
services provided by their MDAs to the various customer groups. Participants also
learnt to prepare service Charters of the MDAs.
4.18 Developing Performance Reporting Systems Workshop
4.19 In June 2014, the Federal Executive Council approved that MDAs
should submit performance reports to SERVICOM Office for presentation to Mr.
President bi - annually. It was on the basis of the Council approval that
SERVICOM Office in The Presidency organized a workshop on “Developing
Performance Reporting Systems” from 14th -17th April, 2014 at the Nigerian Union
of Teachers (NUT), Endwell Conference Centre, Mogadishu, and Kaduna. Three
officers from the Department of Reform Coordination & Service Improvement in
the Ministry attended the workshop.
One of the outcomes of the workshop was the review of the existing service
standards to align with the new performance reporting template.
4.20 Improving Organizational Performance: The Balanced
Scorecard Approach
4.21 The workshop was organized by the SERVICOM Institute from 21st - 24th
July, 2014 at the Lagos Chambers of Commerce and Industry (LCCI), Alausa Ikeja,
Lagos and two officers represented the Ministry.
The workshop had helped the Ministry to improve its performance using the
Balance Score Card (BSC) for measurement.
5.0 The followings are some of the challenges experienced by the Department
during the Year under review;
i Funding to execute its programmes ;
ii Office Accommodation ;
iii Capacity Building (Training) of its Officers;
iv Under staffing; and
v Office Equipment such as computers.
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6.0 THE WAY FORWARD
6.1 The Department should be provided with budgetary allocation to enable it
carry out its mandates towards the actualization of the Reform process in the
Ministry.
6.2 The Ministry should endeavor to provide good working environment which
include office accommodation, office equipment, etc. to enhance staff
productivity.
6.3 Further, the Ministry is commended in its efforts at building staff capacity;
however, training programme for staff of the department should be tailored
towards its needs in achieving the mandates.
SPECIAL DUTIES DEPARTMENT:
Responsibilities include:
Assisting the permanent Secretary to provide line supervision and general
management to all the staff of the FOPS;
Execute assigned projects for the permanent Secretary
Manage assigned direct reporting units on behalf of the permanent
secretary e.g. ACTU, Stock Verification;
Assist the permanents Secretary, as required to formulate and articulate
his/her leadership agenda for the ministry;
Provide support in times of leadership transition in the Ministry;
Manage high-level stakeholder access to the permanent secretary;
Provide secretariat Services to high-level meetings of the permanent
secretary
Help the Permanent Secretary manage his/her schedule to ensure that
his/her activities follow espoused priorities;
Coordinate the Permanent Secretaries response to emergencies;
Schedule all staff meeting and briefings involving the Permanent Secretary;
Coordinating the daily briefing session of the permanent Secretary‟s official
schedule;
Represent the permanent secretary in certain functions;
Constituency Projects;
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Liaison with National assembly.
PROFESSIONAL DEPARTMENTS:
RENEWABLE AND RURAL POWER ACCESS DEPARTMENT: The Renewable and Rural Power Access Department was one of the
departments of the Ministry of Power that were established in Y2014. The
Department is tasked to develop and provide a way forward for the
development of renewable energy for electric power generation in the country
as well as implement all renewable energy power projects to ensure
securitization of power supply. In accordance with this mandate, the
Department carries out the following functions:
i. Coordination of renewable energy and energy efficiency issues as it relates
to generation of electric power
ii. Development of policies for renewable energy and energy efficiency
iii. Renewable energy resources assessment for electric power generation
iv. Development of renewable energy and energy efficiency periodic action
plans
v. Promotion of research and development of renewable energy technology
for electric power generation
vi. Promotion of energy efficiency in the electric power sector through
awareness campaigns jingles and adverts.
vii. Development of strategies for Public Private Partnership financing and
development of renewable energy projects.
viii. Development of appropriate schemes for large deployment of renewable
energy technology nation wide
ix. Energy resource mapping of renewable energy sources for power
generation
x. Coordination of activities with stakeholders in the public, private and
development funding institutions engaged in the use of renewable energy and
rural access
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Other Duties
i. Implementation of Constituency Rural Electrification Projects
ii. Coordinates the implementation of the Japanese Grant-in-aid on renewable
and rural electrification projects.
iii. Oversees the activities of Rural Electrification Agency REA
iv. Oversees the activities of Electricity Management Services Ltd.
ACHIEVEMENT IN 2014:
A. Coordination and Policy
i. Draft National Policy on Renewable Energy and Energy Efficiency for Electric
Power Generation
Renewable Energy Policies are critical to attracting investment in the renewable energy sector worldwide and in order to boost both public and private sector participation in the sector, the Department had to facilitate the development of a renewable energy and energy efficiency policy for power generation.
The Department in collaboration with other relevant MDAs through the Inter-ministerial Committee on Renewable Energy and Energy Efficiency (ICREEE) hosted by the Ministry of Power, has drafted a policy on Renewable Energy and Energy Efficiency. After the endorsement of the draft policy by stakeholders at the National Stakeholders‟ Workshop held on 11th& 12th September, the draft policy was forwarded to Mr. President for approval.
ii. Inter-ministerial Committee on Renewable Energy and Energy Efficiency
(ICREEE)
ICREEE has been a platform for coordination and collaboration of
Renewable Energy and Energy Efficiency activities in the country since
its inception in December, 2010. The Department has been the Chair of
the Committee that has been instrumental to the nation presenting
common positions on renewable energy and energy efficiency at both
national and international forums. The Department in Y2014 had to
maintain the collaboration among the renewable energy stakeholders
such as Federal Ministries of Environment, Water Resources, Science and
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Technology, Energy Commission and Nigeria (ECN), Nigeria Investment
Promotion Commission (NIPC), National Biotechnology Agency and etc.
iii. Bilateral relations through, Nordic Working Group, ECOWAS Centre for
Renewable Energy and Energy Efficiency, GiZ, World Bank (NEWMAP), Japan
International Cooperation Agency (JICA)
B. Feasibility Studies (Renewable Energy)
The following feasibility studies which were started in Y2013 were continued in Y2014.
1. Wind Power farms at the coastal areas of
a. Lekki in Lagos State
b. Warri, Delta State
c. Igbokoda, Ondo State
d. Nembe, Bayelsa State
e. Okurike, Cross River State
f. Koluama, Bayelsa State
2. Solar Power plant at
a. Wukari, Taraba State
b. Shagari, Sokoto State
c. Kudu/Bida, Niger State
d. YauLawanti, Borno State
e. Eniwari, Bayelsa State
f. Fugar, Edo State
3. Biomass power plants at
a. Ijebu Ode, Ogun
b. Benin, Edo State
c. Awkananu, Enugu State
d. Ibadan, Oyo State
e. Kano City, Kano State
f. Udi, Enugu State
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C. Project Implementation
i. Ongoing implementation of 40MW Kashimbila Hydropower Plant, Taraba
State
ii. Implementation of Kashimbila Power evacuation project
iii. Operation Light Up Nigeria (OLRN)
iv. A number of constituency rural electrification projects listed under the
Ministry‟s budget were implemented in the Year.
DISTRIBUTION SERVICES DEPARTMENT
SCOPE/ MANDATE/ SCHEDULES
• To handle emerging post privatization issues such as the development of KPIs to monitor service delivery and performance of the new players in the 11 Distribution Companies across the country.
• To review the “Power Sector Master Plan” as the main platform for planning the promotion and facilitation of private investment in Distribution Networks, including the development of appropriate fiscal incentives: e.g. for investments such as embedded generation, strengthening of the distribution infrastructure and metering.
• To assist in, facilitate, or conduct the project development and management of intervention projects funded by the FGN or other sources.
• To assist in, facilitate, or conduct the development of a strategic direction for a viable and credible electricity market.
• To assist in, facilitate, or conduct the development of policies and programs for the development of the nation‟s power distribution infrastructure for a viable and credible electricity market.
• To assist in, facilitate, or conduct a periodic review of the compliance of the distribution sub-sector with market orders, regulations and codes and other legal instruments.
• To assist in, facilitate or conduct the monitoring of the generation level of load allocation to the electricity distribution companies during the transition electricity market.
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• To liaise with the Transmission Company of Nigeria (TCN) Plc to ensure its alignment with the initiatives in the distribution sub-sector and the resolution of any possible interface challenges.
• To provide technical and policy guidance on initiatives towards the closing of the metering gap at distribution level.
• To assist in, facilitate, or conduct the periodic review and monitoring of the commercial performance of the distribution companies and to advise the Ministry accordingly.
• To liaise with Development Finance Institutions (DFIs) for areas of possible collaboration in the distribution sub-sector.
STATUS OF ACTIVITIES
Intervention Projects.
• Power Improvement Projects: Bayelsa State
It must be mentioned that Bayelsa is the least connected and wired State in the country. It has only a single 132/33KV substation. Accordingly the State is least served most of the time.
Lot 1: Contract for the Design, Manufacture, Supply, Erection & Commission of 33kV Switchgear at Kolo Creek:
o Awarded: Messrs LS Industries Ltd
o Sum: NGN 257,707,602.62, USD 744,127.64
o Impact: To improve electricity supply to the southern Ijaw communities in the State.
o Overall Completion: 90%
Lot 2: Supply & installation of a 1 No. 90MVA-132/33KV Substation at Gbarantoro:
o Awarded: Messrs Income Electrix Nig. Ltd.
o Sum: NGN 230,623,305.98, USD 3,665,162.33.
o Impact:
o Overall Completion: Project stalled:
Design completed.
Funding/ LC issues for offshore procurement.
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Lot 3: Contract for the dedicated 33kV distribution line supply to the Federal University at Otuoke with installation of 2 x 2.5MVA & construction of 33kV distribution line from Angiama to Enewari with spur at Oporoma & Federal Polytechnic Ekowe & ancillary substation works:
o Awarded: Messrs Income Electrix Nig Ltd.
o Sum: NGN 725,949,626.00.
o Impact: To supply power to the Federal University at Otuoke.
o Overall Completion.
33kV distribution line & substation – 90%.
Rehabilitation of Kolo Creek to Angiama line – ongoing.
• Power Improvement Project: Ibuzor, Delta State
o Awarded: Messrs. Power Control and Appliances Limited
o Sum: NGN 325,792,191.90
o Impact: To improve power quality and power supply availability to Ibuzor and environs
o Overall Completion: 50%
• Network Improvement Project: Ishiagu Electricity Network, Ebonyi State
o Awarded: Messrs. Nathan Christopher Construction Limited
o Sum: NGN 302,305,050.00
o Impact: To improve electricity supply in the community and its environs
o Overall Completion: 80%
• Power Improvement Project: Agbor, Delta State
o Awarded: Messrs Genco Excel Services Limited.
o Sum: NGN 154,915,856.00.
o Impact: Improve electricity supply in two communities and environs.
o Overall Completion: Awaiting 15% mobilisation payment.
• Power Improvement Project: Ewatto, Edo State
o Awarded: Messrs Kinpatino Project Limited.
o Sum: NGN 86,934,452.25.
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o Impact: improve power quality and power supply availability to Ewatto Community.
o Overall Completion: 40%.
• Power Improvement Project: Abeokuta, Ogun State
o Awarded: Dawn Mara International Limited
o Sum: NGN 38, 118,022.00
o Impact: improve electricity supply in four communities.
o Overall Completion: Awaiting 15% mobilisation payment
• Power Improvement Project: Langtang North & South Federal Constituency, Plateau State
o Awarded: Diamond Leeds Limited
o Sum: NGN 36, 625,130.00
o Impact: to improve quality supply of electricity to the town.
o Overall Completion: 50%
• Power Improvement Project: Boto Community, Bauchi State
o Awarded: Messrs New Moon Nigeria Limited
o Sum: NGN 98,463,283.80
o Impact: To improve power quality and supply availability in Boto & parts of Bauchi township
o Overall Completion: 80%
o Only 15% down-payment effected to date.
The Presidential Initiative for Meter Supply to Nigerians
As part of the power sector reform in 2003 and 2005, the then Government of the President Obasanjo initiated efforts to bridge the 9 million metering gap. Contractual agreements were entered into with some companies to supply meters. These efforts were enmeshed in litigations, claims and counterclaims due to poor implementation.
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In December 2014, the President approved revocation of the contracts. However the implementation itself has become slowed due to requirement for due process and “buy-in” of DisCos for implementation of the scheme which includes 753,000 free distribution and 25m repayments by the latter over a period of five years after 2 years moratorium.
• Under the Presidential Initiative, the Federal Government shall: implement the erstwhile NEPA/PHCN meter supply agreements by paying for the meters and providing 753,002 meters to Nigerians free of charge. Preference will be given to those Nigerians who had already paid for meters to Government under PHCN, but were never supplied.
• FMoP, DMO, NERC, MO will set up a Project Office (PO) comprising their officers and representation from NSE and the Market Operator. The Electricity Management Services Limited (EMS) and Standards Organisation of Nigeria (SON) shall provide the technical services for the implementation of the scheme.
• Due process has been followed in the implementation of the scheme. The Bureau of Public Procurement has issued a Due Process Certificate for the scheme.
ACHIEVEMENTS
Achievement Details/ Description Impact Dates
1 Repair and retrofit of transformers. • Contracts for the recovery and retrofitting of 65 faulty transformers were given to local contractors. • Improved service delivery to multiple communities.
• Promotion of local capacities in transformer refurbishment and maintenance.
CHALLENGES
Challenges Mitigations
1 Post-privatisation delay in Network Expansion.
• Due to the suspension of contracts in the post-privatisation (Nov-2013)/ pre-TEM (Feb-2015) interregnum, there has been little to no expansion of distribution networks. This will jeopardise current service delivery and prevent any improvement in technical and commercial losses. Effectiveness of Privatisation Agreements
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• The start and enforcement of the Transitional-stage Electricity Market (TEM) and full commercial and contractual operations.
• Resolution of cost-reflective tariff issues.
2 Cost Reflective Tariff.
• Despite multiple changes to the retail tariff this year, the most-recent change is seen by most DisCos as not cost-reflective. If true, this will affect the ability for DisCos to operate as a going concern and impact overall market liquidity. Clear Resolution Process.
• It is necessary that all tariff changes are performed in a clear and transparent process with customer and investor stakeholders aware.
• Current owner issues need to be resolved or mitigated.
3 Load Rejection by DisCos.
• Despite the outstanding unfilled demand of customers for power, DisCos appear unable (or unwilling) to take the loads dispatched to them by SO. System Analysis and Market Discipline
• Analysis of TX/DX interface at DisCo level to determine uptake levels.
• Implementation of grid discipline and enforcement.
4 Commercial Losses/ Power Theft.
• Power theft plays a large role in the high-level of commercial losses constituting a threat to market liquidity and sector viability. Government & DisCo Actions
• Stronger role needs to be played by Government at Federal and State levels. Visible punitive measures required to deter offenders.
• Established marketing, metering and technology solutions need to be implemented by DisCos.
5 Collection Losses.
• DisCos appear unable (or unwilling) to collect payments for power supplied to a significant proportion of customers, especially government ones. Payment Mechanism & DisCo Actions
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• Governments to implement payment mechanisms to mitigate late and non-payment of bills.
• DisCos to stop supplying power to established defaulters.
RECOMMENDATIONS/ WAY FORWARD
• As 40% owner in the Electricity Distribution Companies, Government needs to play and commit to a significantly more-aggressive role in assisting, supporting and driving the Distribution Companies to reduce the current high levels of losses that are being indicated.
o Reduction of power theft – security/ law enforcement.
o Non-payment of bills by FG and SG agencies.
• Resolution of Tariff issues to establish cost-reflectiveness.
TRANSMISSION SYSTEM DEPARTMENT:
In accordance with the Power Sector Reform necessitated by Government‟s
determination to provide sustainable electricity supply to all Nigerians, the need
to create the Department of Transmission in Federal Ministry of Power to oversee
wheeling bulk power across the country is apt and timely.
2. Nigeria‟s transmission system, which consists of 330kV and 132kV high
voltage lines, substations, and control facilities is owned and operated by a single
Government-owned company, Transmission Company of Nigeria (TCN). There is
need among others for close monitoring and of the Company‟s activities
especially as it concerns policy direction of Government.
3. In keeping with the Power Sector Reform, a set target is to expand the
national transmission capacity from 4,000MW to 20,000 MW in the next five years
with the aim to wheel bulk power as part of the Federal government drive to
provide electricity to all Nigerians. In light of such huge investment and the
corresponding increase in the implementation capacity of the sector to deal with
such a challenging investment plan, a dedicated department of Transmission is
appropriate to provide and ensure adherence to policy thrust of government.
4. The department of Transmission will primarily ensure the need to access
different options for financing and implementing transmission projects in order to
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substantially increase the electricity transmission infrastructure required to meet
the growing demand of the country.
b) Functions of the Department
The Transmission Services Department is responsible for the initiation and
development of policies in the sector relating to the Transmission of electric
power in the country. It is also responsible for liaising with and monitoring the
activities of the Transmission Company of Nigeria (TCN) to ensure that the
sectoral policy decisions of Government are faithfully implemented. Other
functions of the department include among others:
(i) Liaise with the Transmission Company of Nigeria to provide update on the
nations Transmission Expansion Master Plan;
(ii) Provide technical guidance and advice to the Permanent Secretary on issues
relating to the development performance of the national grid
(iii) Liaise with the system operator to ensure optimal
(iv) dispatch of power, stable operation of the national grid and equitable
access to investors;
(v) Support the Transmission Company of Nigeria Plc in the development of
bankable project
documents with a view to develop Public Private Partnership (PPP) and/or Public
Funding;
(vi) Monitor the performance of investors granted concessions for the
development of transmission Infrastructure;
(vii) Liaise with Development Finance institutions in areas of possible
collaboration in the transmission sector.
(viii) Supervise and coordinate the implementation of all transmission projects
(330/132kV) lines and
substation embarked upon by the Ministry
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(ix) Any other assignment on power projects/programs as may be directed by
the Management.
a) Implementation
The Transmission Department is currently actively involved with the following
policy issues and projects:
i. The Department has signed 15 MOUs with both local and international
investors in the transmission aspect of power development.
ii. The investment plan in respect of the 20,000MW transmission capacity
iii. Liaising with TCN in the short listing of suitably qualified investors to
participate in Applicant
Financing, deferred payment asset sale model or China Exim Bank borrowing
procurement process;
iv. A framework for PPP with TCN is currently being develop with ICRC in order
to develop an Outline Business Case for candidate projects;
v. Collaboration with the Nigeria Infrastructure Advisory Facility (NIAF) on
consultancies relating to
sector development;
vi. Development of a commercial framework for the promotion of private
sector investment in the
sector;
vii. Oversight and appraisal of PHCN procurements prior to consideration by
MTB and FEC;
viii. Reform issues and development of electricity market;
ix. The department is also currently involves with JICA at developing the
following project which is
at feasibility stage.
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a. Badagry 132kV/33kV S/S;
b. Redeemed 132kV/33kV S/S;
c. Mountain of Fire 330/132/33kV S/S;
d. Ogilo 330/132/33kV S/S;
e. New Agbara 330/132/33kV S/S &
f. Arigbajo –New Agbara 330kV DC Trx line – 40Km
g. New Agbara – Agbara – Badagry 132 DC Trx
line – 70Km
h. Arigbajo –New Abeokuta 132 kV DC Trx line
i. Ikeja West/Oshogbo 330kV DC turn in –out (15Km) @ Arigbajo + Ogijo –
Arigabjo DC Trx line – 40Km
j. Olorunsogo – Arigbajo 330kV QUARD Trx line - 15Km
c) Structure:
1.0 The Department is structured along the following functional units namely:
(i) Networks(Transmission Lines & Substation)
(ii) System /Market Operator
Presently, the department has a total of 11 numbers of staff including 5
Engineers.
d) Challenges
The main challenges of the department include lack of fund for implementation of
the various project and training needs, office space and necessary office
equipment to work with.
ENERGY RESOURCES DEVELOPMENT:
1. Introduction
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The Energy Resources Department is one of the newly created Departments
from the old Power Department.
The Department is one of the Departments responsible for the initiation of policy
matter in the power sector and ensuring that the sectorial policy decisions of
government are faithfully implemented by all stakeholders.
The Department is also responsible for the development and supervision of some
of the major publicly funded power projects.
The Department has staff strength of 16 officers, consisting 8 Engineers and 8
administrative and support staff.
The Department under review in 2014 played strategic role in line with the
present administration resolve and determine to increase power generation
capacity in the country
2. Functions/ Activities of the Department
i) Develop policies, programs and projects for the development of electricity
generation with hydropower, coal and gas.
ii) Monitor the performance of the generation companies and advice on
governmental intervention where appropriate.
iii) Provide update on Generation Expansion Master Plan.
iv) Provide technical guidance and advice on development of energy resources
for the generation of electricity.
vi) Develop policies and initiatives for enhancing security of supply and
diversification of the nation‟s generation mix.
vii) Supervision and /or oversight on the execution of generation projects
benefitting from treasury and public sector loans. Such projects include;
10MW KATSINA WIND FARM PROJECT
An EPC contract for the construction of a 10MW Wind Farm at Katsina was
awarded by the Federal Government in favour of MessrsVergnet SA of France
with a completion period of 24 months. The configuration consists of 37No.
275kW wind turbine generators mounted at a height of 55m on an inclinable
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tower. The Project Consultant is Terrawatt GmbH/O. T. Otis Engineering
consortium. The project was fully funded and project implementation has
progressed attaining 95% completion in April 2012 with the installation of all 37
nos. wind turbine awaiting commissioning by December 2012. The
commissioning process was stalled by the unfortunate incidence of abduction of
French commissioning engineer deployed by MessrsVergnet Ltd. MessrsVergnet
demobilized from site with the declaration of „force majeure‟. The Ministry has
agreed with MessrsVergnet Ltd on an alternative strategy of completing the
project through a third party.
Other associated projects including the power evacuation is at an advanced
stage of completion while the perimeter fencing is completed.
3050MW MAMBILLA HYDROELECTRIC POWER PROJECT
The Mambilla Hydroelectric Power project has been designated as one of the
priority projects designed to provide additional generation capacity, ancillary
services and other economic activities such as irrigation, fishing and tourism.
The following milestones of the project development have been completed:
(i) Bankable Feasibility Studies: 95%
(ii) Detailed Engineering Design: Completed
(iii) Transmission Line Route Survey: Completed
(iv) Environmental Impact assessment: Completed
(v) Orthophoto Mapping: Completed
The Ministry expects a resolution of all issues militating against the take-off of
the project and the commencement of the execution of the project.
ZUNGERU 700MW HYDROELECTRIC POWER PROJECT
The contract was awarded in favour of Messrs CNEEC- Sinohydro who has since
moved to site and the following major activities have progressed:
i. Level I – construction design and drawings;
ii. Contractors‟ camp facilities;
iii. Topographic survey / drilling works;
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iv. Exploration for construction materials;
v. Subsurface investigations;
vi. Access Roads
vii. Crushing and Batching Plants; and
viii. Site Clinic
The Consultant engaged by the Ministry have since completed the enumeration
and Valuation of Project Affected Person within the reservoir area and payment
of Compensation for economic trees and crops are being effected
The contract provides for the commissioning of the first turbine and
commencement of delivery of power in 48 months.
7. COAL TO POWER
One of the goals of the Federal Government in the current development effort
of the power sector is the enhancement of security of supply of electricity
through the diversification of the fuel mix. In this respect, it is planned that the
nation‟s vast resource of coal and hydropower potential would be fully exploited
for the socio-economic development of the country.
Pursuant to the above objective, an Inter-Ministerial Committee on Coal to
Power was established with a mandate to develop an Action Plan for the
actualization of coal-fired power plants. The membership of the Committee was
drawn from the following MDAs:
(i) Ministry of Mines and Steel Development;
(ii) Ministry of Power;
(iii) Ministry of Water Resources;
(iv) Ministry of Environment; and
(v) Infrastructure Concession and Regulatory Commission
The Committee has so far reviewed existing studies and literature on the
availability of coal in the country and the following fundamental issues were
noted:
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(i) A significant proportion of the coal blocks in the country have already been
released on concession to the private sector but with little or no development;
(ii) In pursuit of the privatization of the Nigeria Coal Corporation, some of the coal
blocks owned by the company have been put on concession by the Bureau of
Public Enterprises;
(iii) Most of the initiatives by the private sector towards developing coal-fired power
plants are being frustrated by lack of credible and bankable estimate of the coal
reserves;
(iv) Some of the coal blocks owned by the Nigeria Coal Corporation are still being
held by the Bureau of Public of Enterprises and may be offered on concession.
In an effort to bridge the information gap and facilitate the development of
bankable coal to power projects, the Committee concluded that the following
studies would be needed:
(i) A bankable estimation of the coal reserves in identified blocks based on
internationally acceptable standards;
(ii) A detailed evaluation of the quality of the coal;
(iii) An assessment of the infrastructural requirement for developing such coal-fired
power plants;
(iv) A review of the transmission infrastructure in the vicinity of the proposed site;
(v) An evaluation of the Environmental and Social Impact Assessment; and
(vi) A determination of the optimal plant capacity that may be supported by the
identified coal blocks and/or consolidation of blocks.
The Federal Executive Council had considered the procurement and approved
the award of contracts on the basis of above recommendations. The Ministry of
Power had commenced the execution of the contracts with Letters of Credit for
the consultants fully funded. The deliverables of the studies include:
Subsurface Technical Investigation
Geological Maps
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Geophysical investigation, Geodetic Survey and Mapping
Coal Pit design
Coal Mining & Power Plant Economics
Coal Power Plant Basic Design
Infrastructural Evaluation
Environmental Impact Assessment
The procurement process for the subsidiary contracts to conduct further
technical investigations that would provide input data for the studies is in
progress.
INVESTMENT AND SECTOR DEVELOPMENT:
Investment and Sector Development Department was created in 2008 with a major trust of promoting private investment and market competitiveness in the power sector towards the provision of stable and sustainable power to the citizenry. This is in consonance with the Power Reform Agenda of the Federal Government in which the industry will be driven by the private sector.
1.2 Vision:
To have a country where there is adequate and uninterrupted power supply for sustainable economic growth and development.
1.3 Mission:
To create the necessary awareness and enabling environment that would enable investors from any part of the world discover the potentials and prospects in investing in the power sector of Nigeria.
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2.0 ACTIVITIES/ACHIEVEMENTS OF THE DEPARTMENT
2.1 Standing Committee on IPPs
The Department through the IPPs Committee held several presentations by the prospective investors such as:
S/N Company Presentation Date
Company Company Proposal
1. 10th April,2014
Hedgehog The Company expressed interest in Hydro Power Generation.
2. 10th April,2014
Anjeed Kafanchan Sola Project
The Company was interested in setting up a 15MW Photovoltaic Plant (Sola) in Kafanchan, Kaduna State and had carri9ed out all the feasibility Studies required for the project.
3. 10th April,2014
Amadeus Group The Company was interested in Manufacturing Aerodynamic Turbines that would generate between 25MW – 50 MW.
4. 10th April,2014
Shanghai Lighting Tech. Co. Ltd.
The Company‟s aim was to improve Power consumption in Nigeria through the development and production of Energy Saving Lamps/bulbs.
5. 10th April,2014
Bender Co. Germany/Comas Nig. Ltd
The Company intended to build an ultra-modern Cable Manufacturing Company in the country.
6.
23rd July, 2014
Melcon Eng. Ltd.
The company and its partner intended building special machinery that would process gases from dump sites which would used to generate power, fertilizers and waste recycling in Lagos State.
7. 23rd July, 2014
Benco Brazil
The company would want to deliver packaged power plants in units to any amount of megawatts to Nigeria so as to assist in attaining the 20,000MW of electricity by the year 2020.
8. 23rd July, 2014
Korvan The company is a Korea based company designs and builds containerized generator sets that could generate up to 2MW, per unit.
9. 23rd July, 2014
Always Green Power The Company provides consultancy services in Clean and Renewable Energy Services, Climate4 Change, Carbon Assets and Sustainability Services.
10. 6th August, 2014
Dareko Resources The Company was engaged in a joint venture to sponsor funding and PPA based operation for 2 x 450MW (900MW).
11. 6th August, 2014
Gestric Limited The company was interested in supplying prepaid meters of DTSY194 model.
12. 6th August, 2014
Comas Nig. Ltd The Company was into the production of electrical cables and power solutions.
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13.
30th Sept. 2014
Gazneftestroi Nig. Ltd.
The Company was interested in introducing Security infrastructure solution and protection of power infrastructure in the country.
14. 30th Sept. 2014
Rhein Gold Ltd The Company was interested in Gas to power project.
15. 30th Sept. 2014
SIMBA Nig Ltd. The Company was into alternative energy through photovoltaic (Sola) technology and energy saving appliances.
16. 30th Sept. 2014
RED 5 Nig Ltd The Company was interested in renewable Energy that could generate about 3,000MW.
17.
30th October, 2014
IPEC/Daroke Resources Ltd.
The two companies (IPEC Global Services Limited, and Daroke Resources Limited, LLC) aim at generating 250 MW of electricity at Anambra South LGA.
18.
30th October, 2014
Nican Power and Energy Ltd.
The company was interested in investing renewable energy with specific interest on Geothermal
19.
30th October, 2014
Interaf Power Dev. Co. Ltd.
The Company was in Hydro Power Project at Abinsi for 1,090MW at estimated cost of $2.4 billion USD.
20. 30th October, 2014
3E Power & Logistic Services Ltd.
The Company was interested in the area of Renewable Energy.
21.
12th December, 2014
HYBRID The company intended to partner with the Rural Electrification Agency (REA) to deliver Generation Capacity of 1,243MW.
22. 12th December, 2014
Power China Huadong Engineering Corporation Ltd/Bravos Energy Resources and Logistic Ltd.
The Company proposed installation of 40MW Solar photovoltaic project.
3.0 Trade Fairs
The Department participated in the following trade fairs within the year.
Lagos I
Lagos II
Enugu
Abuja I
Abuja II
Niger
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Akure
Akwa-Ibom
4.0 Workshops/Seminars
4.1 The Department in collaboration with ASSECO Poland organized workshop
(Local and International) for the development of software for power companies in
Nigeria. All DISCOS, Gencos and Agencies of the Ministry of Power participated.
4.2 The Department also participated in small and medium scale capacity building
in Akwa-Ibom State.
5.0 Power Forum
5.1 The Department in March, 2014 organized the Nigeria power forum. Issues discussed/reviewed included the following:
- Update of privatization: achievement plans and prospects.
- Market liberalization and strategies for creating an attractive environment for prospective investors.
- What is the role between current and future IPPs and the reform agenda?
- Policy direction and area of priority: What policies should be in play for and effective power sector?
- Legal implications of the new policy and vision?
6.0 Challenges
The Department is faced with the under-listed challenges.
Office accommodation
Office equipment/working materials
Capacity building
Difficulties in actualizing the goals of Memorandum of Understanding (MOU)
signed with companies.
Non-digitalized exhibition system
In ability to access investment impact in the sector.
7.0 The Way Forward
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Appropriate capacity building
Adequate funding for policy advocacy
Expeditious implementation of MOUs
Digitalization of Exhibition/Trade fair practices
Funding of investment impart assessment
REPORTS FROM UNITS IN THE MINISTRY
PRESS UNIT:
There were landmark achievements in the Press Unit during the period under review. In fact the year 2014 has significant achievements in the history of the
press unit in Federal Ministry of Power. The activities are as follows:
2. Printing of four magazines namely:
i. Enabling Nigeria power magazine ii. Federal Ministry of Power – power focus iii. Special publication on National Council on Power (NACOP) of other
sector‟s milestone Achievements iv. Spot-light on Nigerian power reform.
3. These publications were distributed to MDAs, Foreign Missions, Hotels, Airports, Civil Society Organizations, NGOs, National Library, these were also handy at international investors fora. Most if not all of the activities of the Ministry of Power in the year 2014 are contained in those magazines. 4. Some list of Documentaries commissioned by the Ministry:
i A Special Documentary on GENCOs and DISCOs positioned for Transition – aired on NTA Network and AIT.
ii. State of Nation – Documentary on the Power Sector on the Move (AIT) 13 episodes.
iii. Operation Light-Up Rural Nigeria – a special initiative to energize areas far flung from the national grid.
iv. Special Documentary on the inaugural National Council on Power (NACOP).
5. Publication in some National and International Newspapers wherein power activities and achievements were showcased, particularly success in privatization
exercise among others.
6. Coverage of Minister and Permanent Secretary‟s activities such as courtesy calls throughout the year, important policy direction were made manifest at this
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platforms. The Unit also, covered a number of signing of Memorandum of Understanding (MoUs), on gas to power, solar power plants and coal to power all aimed at ensuring robust energy mix and also revived effort at boosting small and medium hydro power plants.
7. Newspapers‟ press review and sending copies to all power stakeholders via e-mails.
8. Sending press releases/pictures to media houses, Federal Ministry of Information and Ministry of Power websites on www.fmi.gov.ng and www.power.gov.ng.
9. Displaying of pictures on the Minister and Permanent Secretary Photo board of all activities of the Federal Ministry of Power.
10. The unit also covered the following activities in the year under review.
a. The Power Summit/Civil Society Organizations Forum 31st January 2014.
b. Ministerial Score Card platform on 24th November, 2014.
c. Dinner in Honour of the Hon. Minister of Power, on his conferment of National Honour Award of CON.
d. Inauguration of the National Council on Power (NACOP) from August 11th – 15th, 2014.
e. Coverage of Africa Business Summit & Business Association Conference on Power Sector April 28, 2014 @ ECOWAS Secretariat.
f. Coverage of the occasion of the Flag-off Ceremony of the National Power Sector Apprenticeship Scheme (NAPSAS) with 7,400 participants.
g. The Unit covered the one year uninterrupted solar power supply of the Operation-Light-UP Nigeria by the Minister of Power in Shape in Federal Capital Territory (FCT), Abuja.
h. Power Sector Investors‟ Forum – February 2014.
i. Power Side-line Corner at the World Economic Forum – June, 2014.
Challenges
i. Funding
ii. Operational equipment
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PUBLIC PRIVATE PARTNERSHIP UNIT:
Introduction:- The demand for basic infrastructure services in Nigeria has grown
rapidly over the years, outpacing supply and leading to a very significant
infrastructure deficit. In order to close this gap, the infrastructure sector will require
massive levels of investment that exceed the public sectors funding capacity. The
Federal Government of Nigeria believes that the private sector can play an important
role in providing some of the new investment required through Public Private
Partnerships (PPPs). In this vain the Federal Government established the
infrastructure concession Regulatory commission (ICRC) with a clear mandate to
develop the guidelines, policies and procurement process for PPPs.
2. In line with the Federal Government‟s transformation agenda for the provision,
operation and maintenance of infrastructure in the Country, approved the
establishment of Public Private Partnership (PPP) units in the Federal Ministries,
Departments and agencies (MDAs). The establishment of this unit is informed by the
need to effectively mobilize private sector resources for national development. This
unit is expected to engender service delivery, faster execution of projects and
reduction in the costs of projects execution thereby enabling the country to fast
track the transformation agenda, meet millennium Development goals and realize
the vision 20:2020.
3. Activities carried out in 2014
The list of Ministry of Power potential PPP projects were advertised in This Day,
Newspaper of Monday September 22, 2014by ICRC but the projects were mainly
for the transmission Company of Nigeria. (TCN).
Blue Print/ Roadmap for the operation and maintenance (O&M) concession of
Kashimbila Dam.
Engagement of Messrs Magnatis Finance Investment Ltd as transaction Adviser by
the Ministry on Bakolori Dam; and others;
Participation of the unit at the quarterly consultative forum on Public Private
Partnership (PPP) organized by the OHCSF and ICRC;
Particicipation of the unit on the World Bank sponsor training course on PPP
advanced technical workshop organized by ICRC in Uyo from 13th -18th October
2014.
Challenges:- Need for Capacity building for PPP unit Members;
Need for office space and support staff.
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LEGAL UNIT:
Novation Agreement (transfer or take – over of the following subsisting PHCN
Legacy Agreement) have been approved and signed by PHCN and NBET, and
PHCN and TCN as follows:
i. Novation Agreement between Power Holding Company of Nigeria (PHCN)
and Transmission Company of Nigeria (TCN) in respect of Nigeria Energy &
Gas Improvement Project Additional Funding (NEGIPAF);
ii. Novation Agreement between Power Holding Company (PHCN) and
Nigerian Bulk Electricity Trading Plc (NBET) in relation to the Shell Petroleum
Development Company of Nigeria Joint Venture (SPDCJV) Power Purchase
Agreement;
iii. Novation Agreement between Power Holding Company of Nigeria Plc and
Nigerian Bulk Trading Plc in relation to the Nigerian Agip Oil Company Joint
Venture (NAOCJV) Power Purchase Agreement;
iv. The litigation threatening the implementation of the Zungeru Projects have
also been resolved;
v. Other legal services assigned to the Legal Unit were promptly handled
vi. MoU were signed with investors in the Power Sector;
vii. Various Contract Agreements were signed between the Ministry and some
Contractors, i.e Operation Light Up Nigeria in some parts of the Country,
Consultancy for Small Hydro Power Projects;
viii. Supplementary Agreement to the Tripartite Agreement between Federal
Government of Nigeria and Ziklagsis / Unister has been completed for the
supply of meters under the Presidential initiative for the supply of meters to
Nigerians;
ix. Supply of meters under the Presidential initiative to supply meters to
Nigerian.
INTERNAL AUDIT UNIT
The Internal Audit Department carries out the statutory audit functions of the
Ministry to ensure compliance with Audit Guidelines, Financial Regulations and
other extant rules guiding the disbursement of public funds, safeguarding
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government assets, preparation of accounting records and rendering of Revenue
and Expenditure Returns.
2. The activities of Internal Audit Department and our achievement in 2014 are;
i) Prepayment and (system) audit of vouchers;
All Receipt and payment vouchers presented for auditing were duly
audited. Nothing much was done on system audit in the year
ii) Periodic Examination of Books of Accounts;
Monthly examination of Accounting records was carried out in all the
sections listed below to ensure adherence to rules guiding disbursement of
Public Funds and accuracy of records kept
Cash office
Project/Capital Expenditure
Recurrent Expenditure
Advances
Salary/Variation
Final Accounts
iii) Audit of Procurement process and contract execution;
Award of contract was ensured to be in accordance with BPP Act 2007. All
the rules guiding contract award were confirmed to be fully observed and
execution duly certified before payment during the year.
iv) Stores Audit;
Internal Audit ensured that goods supplied were received by store in good
conditions and safely kept. Statutory routine audit of stores was carried out in
the year and reports submitted.
v) Audit of Financial Returns;
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All Revenue, expenditure and other statutory Returns were audited and
promptly rendered to the Treasury.
vi) Budget Monitoring and evaluation;
Budget was monitored in the year to ensure proper implementation.
vii) Forensic Audit was carried out on all the financial operations of the
ministry in the year.
viii) Management Audit
The department was involved in policy formulation and review with
appropriate recommendations to the management on audit matters in
accordance with the provisions of audit guidelines and treasury circular.
ix) Audit of Area Offices and Agencies
The department could not carry out audit inspection on the
fifteen (15) Area Offices of the Ministry hence quarterly reports on all the
area offices could not be submitted to the management. Also we were not able
to carry out the statutory periodic checks on the activities of the Commissions
and Agencies under the Ministry in 2014 due to paucity of funds and some
administrative bottle necks.
x) Report Writing
The Internal Audit Department submitted the monthly, quarterly, half yearly
and annual report on the financial activities of the ministry to appropriate
receiving authorities for the year 2014.
3. The challenges of the department in 2014 and way forward for 2015
are highlighted below.
Audit observations and Queries should be promptly responded to.
Payment of unaudited vouchers should be discouraged
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Retirement of previous advances should be the conditions for granting
new ones.
Required information‟s on audited accounting records should be
released promptly.
All goods purchased should be taken on store charge:
Funds should be released for audit inspections of area offices and
Agencies under the control of the Ministry
Prompt updating of accounting records/book will make periodic audit
easy.
SUSTAINABLE DEVELOPMENT / CLIMATE CHANGE, GENDER AND HUMAN
RIGHTS UNIT
INTRODUCTION
The Sustainable Development/Climate Change, Gender and Human Rights
Unit is actually two separate units that was established on the 6th of May
2013 with the approval of the Head of Service. Though The Permanent
Secretary merged both units for administrative conveniences, the need to
create the units in the first instance was:
To ensure that the on-going Power Sector Reform is in tandem with
international best practices;
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To ensure that a unit is totally focused on encouraging the sustainable
development of the power sector in an era of climate change;
to promote respect for Human Rights throughout the power sector and;
to entrench the mainstreaming of gender into all energy policies.
The Unit is located within the Office of the Permanent Secretary and a
Deputy Director, Barrister Mrs. M. Soyinka-Onijala was posted there as the
pioneer head.
FUNCTIONS
The functions of the Unit include but are not limited to the following:
1. Improve service delivery throughout the power sector through the
integration of social dimensions of power sector reforms with the core
technical aspects of generation, distribution, transmission, design of
electrical goods and equipment, etc;
2. Carry out research into, assess proposals and make recommendations for
the training of staff in the areas of sustainable development of power,
renewable sources of energy, gender matters, respect for human rights in
the power sector and climate change issues;
3. Promote the use of energy efficient gadgets and gender friendly
household equipment through public campaigns and advocacy with
promoters and developers;
4. Develop strategies to raise awareness of the relationship between clean
and green energy policies on the one hand and prosperity of the nation on
the other hand;
5. Collaborate with other departments in the promotion of investment by the
government, private sector and development partners in renewable energy
as well as the empowerment of women;
6. Participate in meetings, seminars and workshops on RE, Climate Change,
Gender and Human Rights so as to keep the Permanent Secretary, abreast
of all developments in the above mentioned area;
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7. Participate in International Climate Change negotiations so as to protect
the interest of the Ministry through the targeted reduction of greenhouse
gases by developed nations (mitigation), by advocating for the financing of
adaptation strategies in favour of least developed and developing nations
and view of how bilateral and multilateral climate change commitments are
kept (accountability);
8. Establish and nurture a platform to encourage regular interaction
between the management of the Ministry on the one hand and the Civil
Society/ Non-Governmental bodies/private sector stakeholders on the other
hand that promote equitable gender practices, respect for Human Rights, as
well as access for all to affordable, clean energy;
9. Participate in local and international meetings with the regard to
implementation of the UN framework on Climate Change, the Conference of
Parties, the G-8 Plan of Action on Climate Change, Gender and Human
Rights issues. To provide reports to the Permanent Secretary on the
outcome of such meetings;
10. Represent the Permanent Secretary in various Task forces and
Committees as directed and summit reports on such;
11. Work closely with relevant departments and all bilateral and
multilateral development partners to raise funds to support the work of the
unit in the area of sustainable development of power, gender equity and in
the promotion of human rights within the power sector; and
12. Implement projects and special assignments as may be directed by
the Permanent Secretary.
SUSTAINABLE DEVELOPMENT/CLIMATE CHANGE UNIT
The Sustainable Development and Climate Change arm of the SD/CC,
Gender and Human Rights Units has been gainfully occupied as members of
various Committees that have been charged with ensuring the Ministry
designs policies and implements programmes that will enhance the
mandate to increase access by all to power. The Unit has also been
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privileged to represent the Ministry at various international and local
conferences.
1. 69th Session of the United Nations General Assembly from 19th
September – 28th November, 2014
The Participation of the Ministry of Power in the 69th Session of the
United Nations General Assembly was coordinated by the Sustainable
Development/Climate Change, Gender and Human Rights Units. Dr. Albert
Okorogu, SA to the Honourable Minister on Access to Power, delivered a
speech on behalf of the Minister on the 21st September, 2014, while Barr.
Mrs. M. Soyinka-Onijala (DD-SD/CC and Barr. Mrs. Ify Malo (SA, Policy)
participated in debates of the second and third Committees which took
place from the 13th to the 27th of October, 2014. Specifically the position
of the Federal Ministry of Power was thoroughly canvassed with regard to
Resolution 67/215 . “Promotion of New and Renewable Sources of Energy”,
Resolution 68/212 “Protection of global climate for Present and future
generations of Human kind”‟ Resolution 68/210 “The further
Implementation of Agenda 21 and the outcomes of the World Summit on
sustainable Development and of the United Nations Conference on
sustainable Development”, Resolution 69/204 Implementation of the
Second United Nations Decade for the Eradication of Poverty “and Women
in Development”, as well as Resolution 69/156 “World survey on the Role of
Women in Development, Gender Equality and Sustainable Development”.
The delegation of the Ministry took advantage of the ample opportunities provided to inform participants at the respective sessions of the bold initiatives taken by the Federal Government through the Ministry of Power on all issues relevant to its mandate. The delegation also participated in the daily meetings organised by the Permanent Mission during which the stance of the Federal government on all resolutions were discussed before the meetings at the United Nations. 2. World Bank Mission in Support of Disaster Risk Management and Climate Resilient Development 10th – 21st February, 2014 The World Bank led a mission to Nigeria from the 10th to the 21st of February 2014 in order to discuss possible collaboration with the Federal Government in the area of disaster risk management and climate resilient development.
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Among the various findings of the mission, it was determined that there was a need to; a. Strengthen the institutional policy framework for flood management so as to disaster-proof hydropower dams and other critical power infrastructure, and b. Develop innovation financing mechanisms that could be activated during times of emergency. Subsequently, an inter-institutional working group was established by the Federal Government to design a Technical Program of Assistance through which the World Bank would provide support and enhance the Country‟s capacity to manage climate related shocks. The Permanent Secretary directed the Deputy Director Sustainable Development & Climate Change to lead the team from the Ministry of Power to the Inter-institutional working group which has met several times. Other members were drawn from the Departments of Renewable Energy and Rural Access to Power, Finance, as well as Energy Resources. While consultations are on-going between the World Bank and the various MDAs, some outcomes which would be of particular interest to the Ministry of Power in its quest to ensure the sustainable development of power include:- a. Properly designed structural options for the Benue Basin so as to ensure technically sound completion and dam-safety assurance of the multi-purpose Dadin-Kowa 3 and Kashimbilla Dams; b. The design of various low cost and non-structural options for mitigating the impact of climate induced disasters in the Benue Basin through flood-proofing of key civil infrastructure (Power, Telecoms, etc) at Makurdi, Ibi and other urban centres lying along the part of Benue River, and ; c. The creation of innovative financial instruments such as Development Policy Loans with a Catastrophe Deferred Drawdown Option, Catastrophe Reinsurance and Catastrophe Bonds which would be used to effectively finance the mitigation of the effects of disasters. 3. Campaign Against Vandalisation of Critical Infrastructure in the Power Sector. The Honourable Minister of Power on the 11th of February, 2015 at the Radio House, Abuja signed various Memoranda of Understanding with the Office of the Senior Special Assistant to the President on Youth Matter, the National Association of Nigerian Students and New Wave Production Ltd. The MoUs in conjunction with the working documents produced by the Inter-Ministerial Committee for the Campaign against Vandalisation shall provide a framework for the implementation of the Campaign by the three organisations. Their task shall be to sensitise the public about the dangers
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posed by the nefarious activities of vandals and to highlight the negative socio-economic impact of vandalisation on the economy of the nation, thus greatly reducing if not eliminating, the quantum of incidents of vandalisation. The Inter- Ministerial Committee which was setup in May 2014 and concluded its assignment in September of 2015. The Committee was constituted by representative of the Federal Ministry of Petroleum Resources, Nigerian Security & Civil Defence Corps, the Nigerian Police Force, The Federal Ministry of Information, NNPC, DPR, Officials of the Federal Ministry of Power and other Stakeholders. The Roadmap and strategy developed by the Inter-Ministerial Committee under the Chairmanship of the Head of the SD/CC, Unit, if implemented fully, shall improve greatly, the delivery of Power and the sustainability of its development for all Nigerians. 4. Other Activities in the area of Sustainable Development of Power
a. The Unit continues to engage with stakeholders within and external to the Power Sector in order to ensure that the Ministry is compliant with the Transformation Agenda of the Federal Government. To ensure this end, various organisations have submitted proposals for the development of energy sources that are cognisant of the environment and that are cost and gender friendly. The Unit works with other relevant departments to pursue these leads to their logical conclusion. To this end, the unit is an active participant in conferences and workshops tailored to share information about new technologies and methodologies that would assist the Ministry to fulfil its mandate to deliver accessible affordable and clean energy to its citizens.
i. For example, the Unit is presently preparing to participate in the 1st
African Climate Resilient Infrastructure Summit (ACRIS) which is scheduled
to take place in April, 2015 in Addis Ababa.
ii. The Unit was scheduled to lead a team of Ministry officials to the
20th Session of the Conference of Parties to United Nations Framework
Convention on Climate Change (UNFCCC) which took place from 27th
November to 12 December, 2013 in Lima, Peru, but the trip was aborted
due to paucity of funds. This meeting would have been a follow up to the
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19th Session of COP to UNFCCC which the Ministry actively participated in
last year at Warsaw, Poland.
b. The Unit has served on committees and Task-forces to enhance the
Sustainable delivery of Power, some of these are :
i. Inter-ministerial Committee to Develop a National Policy on
Renewable Energy and Energy Efficiency.
ii. National Renewable Energy Action Plan
iii. Committee on Operation Light Up Nigeria
iv. Ad-Hoc Committee on the perfection of the Land titled
Deeds for PHCN Core Assets
C. GENDER / HUMAN RIGHTS UNIT This Unit has continued to be in the fore front of efforts to ensure as many female staff as possible are given the opportunities to improve their knowledge and skills. This is in fulfilment of the determination of the leadership of the Ministry to ensure that its female staff are given equal opportunities for professional development – thus positioning them for rapid progress in their chosen careers. In furtherance to this goal, the following training programmes have taken place:- 1. Women Leadership Development Training Workshop, Dubai U.A.E., 20th – 24th May, 2014 The participants in this workshop, which was organised by the Centre for Economic and Leadership Development on Organisation in Special consultative status with the United Nations were Ms. Patricia Deworistshe AD(Press) Ms. Sarah Akende AO (Protocol) and Miss Hope Nwokolo E.O. (OPS). At the end of the program, participants capabilities in Administrative procedures, decision making, conflict resolution, consensus building, office etiquette and ICT knowledge were visible enhanced. 2. Workshop on Gender Matters Women Empowerment, Health & HIV Control Toronto, Canada from 5th – 9th May, 2014. It was attended by Mrs. R.M. Audu-Nunghe AD (HRM), Emily Oghechi Anyiam Asst. Chief Conf. Sec. and Mrs. Catherine E. Okpoko SSDO. The workshop was designed to: i. Address the challenges women face in their leadership positions and as they aspire for higher status;
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ii. Enable women become better managers of their health so as to ensure they have the capacity to contribute their quota to the development of the Ministry; iii. Take women through the processes of making quality decisions and use resources better; iv. Inculcate Communication Strategies capacity building at supervisor and managerial level to enhance operational command and control. v. Help women develop effective teams and inter-personal skills in the workplace. vi. Address the intricacies in applying modern management techniques in the workplace. 3. 2014 Executive Leadership and Mentorship Training Program for African Women and Gender Desk Officers 10th – 13th September, at Northgate Hotel, Keffi Nasarawa State. Executive Leadership and Mentorship Training Program for African Women was organised by the Women Think Tank Leadership and Mentorship Center under the distinguished leadership of Dr. Mrs. Remi Aribisala and took place from the 10th – 13th of September, 2014 in Nasarawa State. 12 Female officers from the Ministry participated in the program. (i) Roseline Mudi, HEO (Conference Services) (ii) Mrs. Idowu Areoye CCS (PRS) (iii) Mrs. C.N. Nwagwor CSA (EIS) (iv) Mrs. R.A. Essien PEO II (F&A) (v) Charity S. Bobai PO I (Procurement) (vi) Mrs. Adejoke Raji ACEO (Int. Audit) (vii) Mrs. Felicia Osauyilusi PEO II (Anti-Corruption) (viii) Mrs. T.N. Nwobodo PCS (SD/CC) (ix) Mrs. Ifeanyi Okiya ACEO (National Assembly) (x) Mrs. Ann Odinko PCS (Legal) (xi) Ms. Tammykin Ekanem AO I (HRM) (xii) Mrs. Catherine Okpoko SSD) (OPS) The Ministry of Agriculture as well as Science and Technology also nominated female staff to participate in the training program. All participants commended the organisers of the workshop for the thoroughness with which the various topics and practical exercises were covered. Some of the knowledge gained included but were not limited to:
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The art of delegation Induction, appraisal and supervision Leadership and managerial skills Project management
The Importance of mentoring and time management Ethics and Accountability professionalism in the Public Sector 4. International Conference on Developing the African Women‟s Strength in Leadership-Dubai, U.A.E September, 8th – 12th 2014. The International Conference on Developing the African Women‟s Strength in Leadership was facilitated under the auspices of the Management House Africa Ltd, a company renown for Management, Accountancy, ICT in addition to preparation of candidate of various professional examinations of the Chartered Institute of Administrators and Institute of Chartered Accountants. Mrs. Esther Kwaghe DD(Promotion); Mrs. Amaka Akaegbusi AD (Accounts); and Mrs. Stella A. Abarugo Asst. Chief Conf. Sec. (Special Duties) were participants sponsored by this Ministry. There were Senior female officials from various nations all over the world who also participated in the program. The workshop equipped participants with international best practices in the following areas: (i) Negotiation, arbitration and conciliation; (ii) Effective Management of Human Resources; (iii) Respect for Human and Civil Rights in the Workplace; (iv) Deployment of ICT tools in digital age; (v) Report and speech writing (vi) The use of research and Statistics in the workplace; (vii) Time Management; and (viii) The importance of gender mainstreaming in the organisational development. 5. Women ICT Executive Workshop London, UK14th – 20th December, 2014 This training program which was organised by Hope Factoring & Consultancy Ltd in conjunction with ---- was scheduled to take place from the 14th to the 20th of December, 2014. Its goal is to provide participants with up to date knowledge and skills in the areas of Information Technology, Systems analysis, ICT Troubleshooting, Data Processing, Maintenance of Computer systems, Report formatting and presentation among other skills Sets. The Permanent Secretary graciously approved the
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participation of Mrs. Aolat Dosumu (Senior Systems Analyst), Mrs. Grace Francis Adebisi (Senior Systems Analyst), and Mrs. Pauline Kenda (Higher Data Processing Officer) who are all of the ICT Department. In this training. Unfortunately, due to the paucity of funds, these staff have been unable to proceed to the U.K for the training. It is expected that as soon as the financial situation improves, they will be able to reschedule the course and attend. 6. 16th International Conference for Women Engineers and Scientists (ICWES 16), , 23rd – 25th October, 2014 Los Angeles, USA The Ministry was able to sponsor the only 3 female Engineers to attend the 16th International Conference for Women Engineers and Scientist as well as the 14th Annual meeting of the Nigerian Society of Women Engineers (SWE-14) which took place in Los Angeles, USA from 23rd to 25th of October, 2014. The lucky participants Engr. B. Sapke (Ag. Director Distribution) Engr. Chika Dilys (Comp. Engr. I ICT) and Engr. Chinwe O. Okeke (Electric Engr. I – distribution) acquired cutting edge technological skills and up to date engineering knowledge with which they are now equipped to assist the Ministry attain its goal of ensuring the steady and affordable generation, transmission and distribution of Power to all. 7. Technical Advisory Group on the ECOWAS Centre on Renewable Energy and Energy Efficiency (ECREEE) Programme on Gender Mainstreaming in Energy Access (ACOW-GEN). In continuation of the 2013 mandate given to the Unit under the authority of the Permanent Secretary by ECREEE, the Unit in conjunction with staff from the Department of PRS, researched issues relating to access by women in Nigeria to energy supply and used the result to submit a comprehensive write up on some of these challenges. These ranged from the high cost of electricity, inadequate supply of energy, low economic earning power of most women, transportation problems, health and environmental challenges, etc. The submission also brought to light various barriers encountered by women as they strive to participate equally in the development of energy in Nigeria. In this segment, the Unit uncovered challenges such as lack of technical know-how, cultural inhibition, lack of exposure to female role models, difficulties accessing commercial funds and grants, absence of quota based programmes deliberately aimed at encouraging distributing and transmitting of energy and in the manufacturing of various equipment used to further the delivery of power.
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The Commitment of the Ministry to fulfil the mandate of ECOWAS and ECREEE continues. 8. Sponsorship of African Gerontological Society – AGES NIGERIA November 2014 The Unit was privileged to represent the Permanent Secretary at the Launching of a fund to build a centre for the African Gerontological Society (an International NGO) in Ibadan on the 19th of November 2014. The occasion was also used to launch the maiden edition of AGES magazine, an informative publication that focuses on the health, social development and other issues surrounding the process of ageing in Africa. This activity was approved as part of the Corporate Social Responsibility of the Ministry to the larger society and to positive impact the Human Rights of the older generation. In continuation of the determination of the Federal Government to improve the totality of the wellbeing of its citizens, and as a Ministry that is conscious of its responsibility to the less privileged and the youth, various activities were financed and supported through the SD/CC, Gender & Human Rights Units. To this end: a. The National Gallery of Art, FCT was sponsored in the amount of N1,000,000 to enable it host more than 500 school children who participated in a National Art competition tagged “SAY NO TO CHILD LABOUR”. The fund was used to provide lunch and refreshments as well as branded gift items to the school children in June, 2014. b. The Ministry, through this Unit sponsored two Students of Junior Secondary School Garki also in the amount of N1,000,000.00 only, who were members of the national acclaimed and prestigious team to the International Competition for SAGE World Cup in MOSCOW, Russia from 8th – 15th August, 2014. The competition recognizes and rewards the most innovative and brilliant Secondary School Children from all over the world who have blended creativity with science and technology to create environmentally friendly products, thus aligning with the mission of the Ministry to encourage Sustainable Development in all its facets. c. The Ministry donated the sum of N500,000.00 as support to NTA-ETV Children‟s Arts, Science and Technology Expo 2014. The donation was used
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for the purchase of gifts for the children which was branded with the Ministry‟s name and logo. d. Support of Child Aid Project (CAP) in FCT and its environs. The Ministry gave a donation of N500,000.00 in support of the programme by some Corps members headed by Miss Ojo Feyisola. A total of 3 Primary schools and three Orphanages were visited. i.. LEA Primary school Bmuko Bwari, ii. LEA Primary Scholl Wuse Zone II, iii. Science Primary School Kuje The names of the homes are. a Divine Wounds of Jesus Christ Orphanage Kubwa. b. Christ foundation orphanage Kuje, Abuja. c. Hope for Survival orphanage Gishiri, Abuja. The N500,000.00 was used to purchase food items for the orphanages and also to buy books and stationeries for the various Primary School pupils. 9. Collaboration with Federal Ministry of Women Affairs Finally, the Gender and Human Rights desk of this Unit continues to represent the Ministry in all meetings activities organised by the Federal Ministry of Women Affairs and Social Development as well as those organised by the UN Women. Thus, the Unit participated fully in all meetings preparatory to the hosting of the International Women‟s day, the UN Women‟s Beijing plus 20 conference and for the completion of the National Gender Policy. The theme “Empowering Women, Empowering Humanity, Picture it, Make it Happen”as propounded for the IWD provided an excellent opportunity to take stock of the accomplishments of women in Nigeria and to assess the outstanding challenges which still impede the achievement of our goals and objectives. The Ministry of Power was able to render a good account of itself with regards to the progress of female staff while acknowledging that much still needs to be done. However, due to inadequate financial resources, no one was able to represent the Ministry at the UN Women Beijing plus 20 Conference which took place in March 2015 in New York.
CHALLENGES
1. The SD/CC Unit still does not have a dedicated budget line therefore it
depends on approval of the Permanent Secretary to finance its activities.
This makes it difficult but not impossible to plan ahead.
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2. The Unit also lacks adequate number of officers that are knowledgeable
in its core functions. Apart from the DD, the Unit has just one Gender
officer and one Secretary but is grateful to acknowledge the ad-hoc
assistance of two officers usually loaned to the Unit by the Director PRS.
3. A major challenge facing the Unit is lack of awareness about the
existence and functions of the Unit within the Ministry and among other
arms of Government as well as development partners.
4. Lack of office equipment, tools, stationary, reference books and irregular
access to the internet for research purposes are issues militating against the
ability of the Unit to perform excellently.
5. The functions of this Unit often overlap with some departments as such
there would be need for some clarification and assignment of
responsibilities.
FUTURE PLANS
1. The Unit intends to carry out a comprehensive gender audit not only
within the Ministry but also among its parastatals and agencies. This will
provide a methodology for assessing institutional capacity deficits and
strengths for the purpose of gender mainstreaming leading to the
production of a baseline report on the social dimensions of power sector
reforms.
2. The Unit is repositioning itself to become a hub that will equip the
Ministry with the knowledge and skills required to address the underlying
social issues which often limits the fulfilment of the mandate of the Ministry
to develop policies and programmes that would enhance the delivery of
clean and affordable sources of power.
3. The Unit intends to engage experts to carry out research into the impact
of present methods of generation, distribution and transmission of power on
the climate and environment. This research will also provide an indication of
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the level of compliance by the Ministry with the National Renewable Energy
Master Plan, the Rio + 20 Commitments and the ECOWAS Renewable
Energy Policy.
4. This year, the Unit also desires to carry out various training programmes
on Gender, Climate Change, Human Rights and the Sustainable
Development of Power. The workshops shall also shed light on the
relevance of the Unit to the fulfilment of the Ministry‟s objectives, the
interface between all the departments with the SD/CC, Gender and Human
Right Unit, the critical role of women in the Ministry‟s activities, as well as
the importance of integrating green energy principles into all facets of
engineering and administration.
5. The Unit also plans to cooperate with the Federal Ministry of
Environment, Federal Ministry of Women Affairs and Social Development,
Rural Electrification Agency, National Bureau of Statistics, some parastatals
of the Ministry as well as other relevant non-governmental organisations
and developmental partners to carry out regular surveys nationwide on the
use of the availability of renewable energy sources as well as access by all
to affordable clean energy. The data would be desegregated according to
gender, socio-economic indices, location and other indices.
6. Finally, this Unit is aware that without the availability of funds, none of its
plans for the future can come to fruition therefore; it intends to collaborate
with International donor agencies, development partners, the private
sector, foundations and non-governmental organisations that are in the
business of providing grants for the activities outlined above, or that can
provide training and other forms of developmental assistance in kind to
enable the Unit fulfil its mandate.
AGENCIES UNDER THE FEDERAL MINISTRY OF POWER
NIGERIA ELECTRICITY REGULATORY COMMISSION (NERC):
1.0 EXECUTIVE SUMMARY
The Electric Power Sector Reform (EPSR) Act, 2005 established the Nigerian
Electricity Regulatory Commission (NERC) and gave NERC the mandate to regulate
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the Nigerian electricity supply industry (NESI). The Commission is headed by the
Chairman and six Commissioners, each of whom oversee the strategic functions of
a Division to ensure smooth running of the Commission‟s activities. The Divisions
are:
i. Office of the Chairman;
ii. Engineering, Standards and Safety;
iii. Legal, Licensing and Enforcement ;
iv. Government and Consumer Affairs;
v. Market, Competition & Rates;
vi. Renewable Energy, Research and Development;
vii. Finance and Management Services;
The Commission during the Year 2014 proceeded with its activities in line with its
strategic goals of Uninterrupted Electricity Supply, Private Sector Participation,
Consumer Protection and Fair Regulation. The Commission has developed business
objectives that are mapped to each of these key goals and has ensured that the
objectives are aligned with its activities and functions as defined in the Electric
Power Sector Reform Act, 2005.
One of the primary instruments for the actualization of the Commission‟s mandate
of regulating and promoting private sector participation in the Nigerian Electricity
Sector Industry (NESI) is the licensing of existing as well as prospective private
operators of electricity services. All service operators are required to obtain the
relevant licenses from NERC via the license application process and comply with
the stipulated requirements. In line with this mandate, the Commission, during the
Year 2014, approved the grant of Licenses to Ten (10) Companies to generate
power as well as Captive Power Generation Permits to Fifteen (15) Companies.
Further to its monitoring role, the Commission receives and reviews updates from
licensees regarding compliance with the timelines in the License terms and
conditions. The Commission also maintains an update on milestones attained by
existing licensees.
The Commission in a bid to provide a cost reflective tariff that will incentivize
efficient consumption and increase Generation, Transmission and Distribution
capacity of Electricity has successfully carried out the bi-annual Minor Review
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exercise of the MYTO 2 during the year 2014. As a requirement, the Commission
obtained the required data from relevant organisations namely the Central Bank of
Nigeria (CBN) with respect to foreign exchange rate, the Nigerian Bureau of
Statistics (NBS) with respect to inflation rate, NNPC with respect to gas price and
the System Operations (TCN) with respect to available generation capacity. Also, a
notice was published in three national newspapers requesting interested parties to
send in comments or objections concerning the Minor Review of the MYTO 2.
However, no comment or objections were sent to the Commission. The new tariff
took effect from 1st of January, 2015 with an order from the Commission.
On the other hand, the Transmission Company of Nigeria (TCN) has requested for
the review of its tariff. Based on this, the Commission has also commenced the
review of the TCN Tariff application.
The NESI currently experiences high level of Aggregate Technical, Commercial and
Collection Losses (ATC&C) losses in the distribution system, estimated at 21% in
the Second Multi Year Tariff Order (MYTO2) and 35-40% in the Request for
proposal issued by the Bureau of Public Enterprise (BPE) as part of the privatisation
process. It became critical to establish the accurate level of losses in the
Distribution Companies (DISCOs). The Commission has worked closely with an
independent consultant to develop the ATC&C Baseline Losses. The objective of
this project is to establish a baseline of the current level of ATC&C losses and
customer numbers in the relevant Electricity Distribution Network, for each of the
customer categories defined in the MYTO.
In exercise of its powers to make Regulations conferred by the Electric Power
Sector Reform Act 2005, the Commission has in the Year 2014 developed the
following Regulations and Guidelines for the NESI which includes the Regulatory
Framework on Electricity Theft and other Related Offences, a Regulation on
Investment Networks by Entities, a Regulation on New Power Procurement,
Regulation on Construction Safety, Local Content Regulations as well as the
Guidelines for Assessment of Participation in Regulated Electricity Undertakings. In
the same vein, the following Regulations and Guidelines were at various stages of
completion which includes the Smart Metering Regulation, Regulatory Framework
for Rural Electrification, Regulation on Electric Fencing, Framework for Power
Consumer Assistant Fund, Procedure for Electricity Tariff Review, Guidelines for the
Accreditation of Electrical Metering Equipment Testing and Calibration laboratory,
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Development of a Uniform System of Account, development of a Feed-in Tariff,
Guidelines on Derogation from Technical Codes and Standards in Electricity
Generation, Transmission, Distribution & Supply, Nigerian Electricity Supply and
Installation Standards, Guidelines for the Certification of Electrical Contractors,
Guidelines on Management of Vegetation near Electric Power Facilities as well as a
Charter of Corporate Governance for directors of licensees.
In an effort to ensure the development of the Electricity Market, the Commission in
the year 2014 focused mainly on activities that would bring the Transitional
Electricity Market (TEM) speedily to fruition. The date of commencement of TEM
was set for the 1st of February, 2015 so all hands were on deck to ensure the
smooth evolution of the Nigerian Electricity Supply Industry (NESI) to TEM. Some
outstanding conditions precedent to TEM were however yet to be achieved such as
the payment of security deposits by the Distribution Companies, imposition of cost
reflective tariff, joining up and execution of contracts, shadow trading, amongst
others.
Also, the Commission has made an effort to offset the shortfalls during the interim
Period through appropriate channels. These shortfalls were to increase sector
viability going forward with the TEM. So far, the market has recorded an average
monthly revenue shortfall of about N12Billion and these had to be settled before
TEM to ensure the bankability of the Sector.
NERC as part of its mandate to encourage private sector participation in the
electricity industry has collaborated with the BPE and other Stakeholders in
ensuring seamless conclusion of the privatization of the PHCN Successor
Companies. Several meetings were held to address issues raised by the core
investors. As part of the monitoring process in the implementation of the “Rules for
the Interim Period between completion of privatization and the start of the TEM
also known as “The Interim Rules”, the Discos were required to submit copies of
their November bank statements which were then reviewed by the Commission. It
was thus decided that upon careful examination of the Rules and after the monthly
meetings with the new owners, there was a need to revise the Rules to make it
more robust and to encompass all realities in the market. The process of the
amendment of the Rules began in the first quarter of 2014 with the Commission
presenting some of its proposals at the monthly meetings with the new owners on
the 12th of March, 2014.
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The Commission‟s activities during the year 2014 also included an Open Book
review of the accounting and financial records of DISCOs to monitor compliance
with the rules for the Interim Period between completion of privatisation
transaction and commencement of TEM. Similarly the Commission channelled its
effort towards verification/valuation of various State Governments‟ investments in
electricity distribution assets.
The Commission is also at the tail-end of finalising the statutory Audit of the
financial statements of PHCN Successor companies and Geregu Power Plc for the
period covering 2006 to 31st October 2014.
The Initial Stakeholders Advisory Panel (ISAP) has to a large extent concluded on
its major assignment of compiling amendments of the Grid Code and Market Rules.
All amendments were approved in December, 2014 by the Commission. The
amended copies of the Market Rules and Grid Code were then uploaded on the
Commission‟s website for use by market participants and members of the public.
Pursuant to section 71(2) of the EPSR Act, disputes arising from the Electricity
Market are to be referred to arbitration determined by NERC through its multi-tier
dispute resolution mechanism. This will be done through the engagement of the
services of a competent professional with in- depth knowledge in the field of
Alternative Dispute Resolution and the electricity sector to assist market players in
resolving disputes that may arise in the Electric Power Sector. The Commission in
collaboration with the Dispute Resolution Councillor (DRC) has appointed Members
of the Dispute Resolution Panel in the year 2014.
As part of the Commission‟s role to create, promote and preserve an efficient
industry as well as ensure adequate supply of Electricity to customers (section 32
of the EPSR Act), the Commission has observed the need for development of a
NESI bankability Strategy. The lingering liquidity shortfall in the NESI is posing a
serious challenge to the industry and needs to be addressed. In line with this
objective, the Commission in collaboration with the Central Bank of Nigeria and
other key stakeholders is exploring various options with a view to enhancing
liquidity in the NESI with the ultimate aim of addressing the accumulated gas and
power debt as well as provide adequate resources for Operating Expenditure
(OPEX) and Capital Expenditure (CAPEX) investment by licensees. The Commission
has developed a pronged strategic framework to address the viability and liquidity
problems that have been identified in the NESI.
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The Central Bank of Nigeria (CBN) has approved a loan facility to DISCOS with a
Ten (10) year tenor and 10% interest rate. The facility is strictly a loan and not an
intervention or a grant/subsidy from the Federal Government. This signifies that
the parties making use of the facility (i.e. the consumers) will be expected to repay
over a given period of time. It should further be noted that the liabilities were
mainly accumulated by the Discos in favour of the Generation Companies
(GENCOS) on the basis of short invoice remittances and unaccounted ATCC loss
tariff calculations.
The Transition Steering Group (TSG) met on several occasions during the year
2014 which mainly focused on reviewing the checklist of the conditions precedent
for the commencement of TEM and Shadow Trading. Shadow trading is a process
anticipated before the commencement of TEM in the Market Rules to seal the
preparations for TEM. NERC has deemed it necessary to simulate and analyse the
operability of the Electricity Market under full TEM conditions. The rehearsal ran in
parallel with standard operations (systems, processes and procedures) in the
market settlement cycle. The key organisations involved were Market Operations
(MO), Systems Operations (SO), Transmission Service Provider (TSP), Nigerian Bulk
Electricity Trader (NBET), Distribution and Generation Companies and NERC. These
parties therefore had smaller meetings aside the Transition Steering Group in order
to realize the objectives of shadow trading.
During the period under review, the Commission received a total number of Three
Hundred and Seventy (370) complaints from aggrieved Electricity Customers which
were forwarded to the CEOs of DISCOs concerned for redress. A review of the
DISCOs‟ submissions reveals a very slow response rate indicating non adherence
with the provisions of the timelines for complaint resolutions as provided for in the
Commission‟s Customer Care regulations. Another inference to be drawn from this
is the functionality or otherwise of the Customer Compliant Units established by the
DISCOs. The Commission therefore embarked on monitoring visits to all Customer
Complaints Units within the DISCOs to ensure its functionality in compliance with
the Regulations.
2.0 HIGHLIGHT OF ACTIVITIES The Commission‟s activities are tailored along the lines of its identified focus for
2014 which include Uninterrupted Electricity, Private Sector Participation, Consumer
Protection and Fair Regulation. These key focus areas are strategically adopted for
the purpose of providing world class service to Nigerians and electricity industry
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stakeholders as enshrined in the strategic goals of the Commission. All the
activities of the Commission can be categorised under the following goals:
2.1 UNINTERRUPTED ELECTRICITY SUPPLY:
Through appropriate regulations, the Commission is determined to ensuring that
the nation gets safe, adequate, reliable and affordable services in the Generation,
Transmission, Distribution and Trading of Electricity. The objective is to maximise
access to electricity services and ensure reliability and quality of service in the
production and delivery of electricity to consumers. Below are some of the tasks
performed by the Commission in the Year 2014 towards attaining this goal:
2.1.1 Regulatory Framework on Electricity Theft and Other Related Offences: In an
effort to curb the incessant and rampant cases of electricity theft in the country,
the Commission in collaboration with the Federal Ministry of Justice has developed
a draft Regulatory Framework on Electricity Theft and Other Related Offences. This
Regulation will be uploaded on the Commission‟s website for comments by the
public and subsequently, a Public Consultation shall be conducted in line with the
Commission‟s rule making process.
2.1.2 Regulatory Framework on Investment in Electricity Networks by Entities:
The Commission has developed a draft framework on investment in Electricity
networks by entities. This Regulatory Framework provides policies and procedures
that will govern wider connection through investment in networks. The draft
regulation is being reviewed by the Commission.
2.1.3 Guidelines and Regulations on New Power Procurement:
This Regulation is aimed at establishing a systematic, transparent and competitive
process of new power procurement in the current stage of the market. The
Commission has approved the Bulk Procurement Regulations and Guidelines.
However, modalities for the implementation of the Regulation are yet to be
concluded. This will require to a great extent the participation of the Bulk Trader
and inputs from TCN which are not yet available.
2.1.4 Performance Monitoring:
Efforts are being made by the Commission to ensure efficient operations including
the attainment of MYTO targets by licensees. In line with this objective, efforts are
geared towards loss reduction and performance improvement by all licensees. A
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consultative workshop was held between the Commission and Successor
Companies under new ownership.
2.1.5 Regulatory Framework on Electric Fencing: The Commission has
developed a draft regulation on Electric Fencing. This document gives the basic
requirements needed for the Installation, Earthing and Maintenance of electric
fences. It also includes ways to improve the performance and safety of electric
fences and decrease the likelihood of electromagnetic interference on
communication systems. This consultation paper was being reviewed by the
Commission.
2.2 PRIVATE SECTOR PARTICIPATION The Commission in fulfilment of its mandate to promote competition and private
sector participation in the NESI ensures that regulations developed are
implemented to encourage profitable pricing and effective competition among
market players. The Commission has also developed appropriate Codes of Conduct
and Rules of Engagement to ensure an efficient and investor-friendly market.
Towards achieving this goal, the Commission during the Year 2014 carried out the
following activities:
2.2.1 Issuance of Licenses/Permits:
The Commission approved the following applications for license:
1. Mobil Producing Nigeria Unlimited; 2. Yankari Power Company Limited; and 3. Ikot Abasi Power Projects Limited 4. Yellowstone Electric Power Limited 5. Tombay Power Generation Limited Turbine Drives Limited 6. Pan Africa Solar Limited 7. KVK Power Nigera PVT Limited 8. Aluminium Smelter Company Limited 9. Turbine Drives Limited 10. Oma Power Generation Company Limited In the same vein, the following companies were granted Permits for Captive Power Generation: 1. Guinness Nigeria Plc; 2. Lucky Fibres Plc; 3. Lekki Port LFTZ Enterprise; and
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4. Dangote Cement Plc.
5. Nestle Nigeria PLC
6. Nigerian Breweries PLC
7. Chevron Nigeria Limited
8. Northern Noodles Limited
9. Cement Company of Nigeria PLC
10. Emerging Markets telecommunication Services Limited (ETISALAT)
11. Capital Hotels PLC
12. ROM Oils Limited
13. Aluminium Smelter Company of Nigeria PlC
14. Innoplas Company Limited
15. World Mission Agency
2.2.2 Develop Tariff for Combined Cycle Gas Turbine (CCGT):
For the purpose of having a more robust and encompassing tariff structure in
Nigeria, the Commission has commenced the process of developing a Combined
Cycle Gas Turbine Wholesale contract price for CCGT plants. A position paper is
being prepared in this regard to be deliberated by Stakeholders and the public.
2.2.3 Connection Charge Methodology:
The Commission has developed a draft Connection Charge Methodology that will
ensure fairness and efficient service delivery to all consumers connected to
Electricity Network. A Public Consultation shall be conducted for final adoption of
the Methodology by the Commission.
2.2.4 The Transition Steering Group (TSG):
To facilitate the commencement of the Transitional Stage Electricity Market
development, several meetings were held by the TSG. The meetings focused on
the Market Operator‟s readiness for the commencement of the TEM in terms of
metering, registration of participants, meters and contracts, enterprise settlement
statement as well as the provision of data to the Nigerian Bulk Electricity Trading
Company (NBET) for shadow trading. NBET identified gaps in the commencement
of TEM which include Novation of legacy Power Purchase Agreements (PPAs) and
international agreements. NERC‟s gaps were also discussed and update was given
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on the appointment of the appointment of the Dispute resolution panel, Market
Rules amendment, ATCC, Loss Study and Customer Validation, Amendment of the
Interim Rules, Fit & proper Review, Gas issues, Industry agreements, etc.
2.2.5 Ensure the Realization of all Conditions Precedent for the
Commencement of the Transitional Electricity Market:
Efforts were made by the Commission to ensure the attainment of the Transitional
Stage Electricity Market. In line with this objective, several meetings were held with
the TSG to review the various tasks assigned to participants. A Workshop was also
held with NEXANT to enlighten Stakeholders on the gaps in the initiation of the
TEM. Consequently, a working group was constituted to close few remaining gaps
in System and Market operations as well as Bulk Electricity Trading.
2.2.6 ATC&C Losses and Customer Number Validation:
The Commission has also developed a draft terms of reference for the
determination of Aggregate Technical, Commercial and Collection (ATC&C) losses
for the Nigerian Electricity Supply Industry and validation of customer numbers.
Kick-off meetings were held with Ikeja, Eko, Benin, Enugu, and Abuja Discos.
There were elaborate discussions on the methodology adopted by the Discos in
carrying out the exercise, sample size and the work plan of the Discos. To further
standardize the methodology and reporting format, letters were sent to all the
Discos regarding the approved methodology sample size and reporting format for
the exercise
2.2.7 Development of Feed in Tariffs for the NESI:
For the purpose of having a more robust and encompassing tariff structure in
Nigeria, the Commission has developed feed- in tariffs for small hydro, solar and
wind for the NESI. ACIL TASMAN, the initial MYTO consultant was assigned the
task of preparing a draft paper to update the existing MYTO model to kick start the
process. This has been accomplished and the Commission has also moderated on
each of the assumptions for the various sources. The next step will be to conduct
the final public consultation to all Stakeholders and the public.
2.3 CONSUMER PROTECTION:
The Commission constantly communicates with consumers to ensure that they
understand their rights and obligations and ensures that literature on Consumer
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Rights (safety, service etc) is up to date, available and readily accessible. The
Commission liaises with DISCOs on all consumer related matters to ensure that
consumers are treated fairly by the utilities through effective service rendition in
compliance with the Commission‟s Customer Complaints Handling Standards. The
following activities were carried out during the Year 2014:
2.3.1 Tariff Affordability Study:
The Commission is in the process of conducting a study to identify the level of
affordability of electricity tariff being charged by the DISCOS. A consultant was
engaged to assist the Commission in carrying out this exercise. The objective of
this study study is to assess the effectiveness and adequacy of the current tariff
system, taking into account the ability of consumers to pay, with the overall aim of
ensuring the provision of affordable energy services to electricity consumers.
2.3.2 Monitoring of Customer Complaints Unit (CCU):
Modalities were put in place by the Commission to ensure the speedy resolution of
customer complaints in conjunction with the CCUs for the DISCOs. The CCUs are
expected to liaise with the DISCOs to ensure that Consumers are treated fairly
through effective service rendition to consumers in compliance with established
regulations of the Commission. As part of its activities for the year 2014, the
Commission continued with its analysis of the compliance level of DISCOs to the
monthly reporting obligations stipulated in the Commission‟s Regulation on
Customer Complaints Handling Standards and Procedures. A summary report of the
compliance levels of all DISCOs were forwarded to all CEOs.
2.3.3 Review of 2013 Complaints received in the Commission :
Complaints received in the Commission in preceding year were reviewed to
establish trends for regulatory interventions. A total number of 464 complaints
were received from various DISCOs in 2013. A total of 141 complaints were
responded to indicating the actions taken to resolve the complaints. The Unit
mined the data to establish the prevalent categories of complaints to proffer
interventions. Prevalent category amongst the complaints received was the Billing
category, followed closely by Meter and Interruption in all the DISCOs thereby
suggesting that the DISCOs are not fully implementing their metering plan and the
CAPMI scheme. Furthermore, the trend indicated non compliance with the
provisions of the Methodology for Estimated billing 2012 Regulation.
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Consequent upon the appraisal of the complaints, it is therefore critical that the
following regulatory interventions should commence to mitigate the adverse effect
of the identified trend.
a) Monitoring of DISCO‟s metering plan and CAPMI scheme to ensure adequate
metering of customers and conformity with the provisions of the CAPMI scheme.
b) A review of the estimated billing methodology taking into cognizance the
comments and challenges from the operators with respect to its implementation.
c) Monitoring of the Customer Complaint Units (CCUs) to ensure its functionalities and
compliance with the Commission‟s Regulation.
2.3.4 Monthly Health and Safety Report:
One of the primary and major routine activities of the Commission is to collate and evaluate monthly Health and Safety reports submitted by Licensees on their Health and Safety Issues as well as carry out analysis of these reports. The Commission received One Hundred and Fifty (150) monthly reports from industry operators as against the target of Four Hundred and Fifty (450) reports expected. The plausible reason for this can be attributed to change in management and officers of the newly acquired operators (GENCOS and DISCOS)
2.3.5 Ensure the Efficient Running of Forum Offices and speedy
Resolution of Disputes before the Forum:
As part of the Commission‟s mandate to ensure that the rights and interests of
electricity consumers are protected at all times, structures are being set up to
ensure effective operations of Forum offices in all the Distribution Zones across the
country. The creation of a Forum office in all the DISCOs to aid in the resolution of
electricity customer complaints within such areas represents a critical element of
the Customer Redress Mechanism. To ensure effective operations of these forum
offices, the Commission has appointed forum members for Jos, Benin and Yola
DISCOs. Accordingly, the Forum Rules/Guidelines which will be the operational
document for all the Forum Offices in the country have been developed by the
Commission.
2.3.6 Investigation of Accident/Electrocution Cases:
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With respect to the accidents received within the year, the Commission stepped up
enforcement on operators to carry out the investigation of such accidents and send
the reports to the Commission in compliance with the provisions of the Distribution
Code. Accident investigation reports submitted were analyzed and appropriate
correspondences were carried out with the affected companies to ensure
implementation of recommendations made in the reports.
2.4 FAIR REGULATION: The Commission ensures that it is even-handed in its regulation of the industry and
ensures vigilant oversight of the industry by being both firm and fair in the
enforcement of Rules and Regulations. The objectives are to ensure that regulation
is fair and balanced for Licensees, Consumers, Investors and other Stakeholders, to
facilitate the effective implementation of appropriate operating Codes, and
Standards and to develop as well as implement an equitable dispute resolution
mechanism for Operators and Consumers. In line with the above objectives, the
Commission was engaged in the following during the Year Quarter of 2014.
2.4.1 Legal and Regulatory Framework on Construction Safety in the
NESI:
In an effort to ensure the health and safety of the public during construction works
in the Nigerian Electricity Power Sector, the Commission is in the process of
developing a Regulation on Construction Safety in the Nigerian Electricity Power
Sector. This Regulatory framework is aimed at articulating policies and procedures
that will govern Health & Safety Guidelines for Construction Works in the NESI.
2.4.2 Statutory Audit of PHCN Successor Companies:
Efforts are being made by the Commission to undertake the statutory audit of
PHCN Successor Companies and Geregu Electric Power Plc with a view to having
credible financial information required to facilitate review and analyze the health of
the utilities. The consultants engaged by the Commission to audit 11 Discos and 7
Gencos have so far completed carried out the exercise in the following companies:
1. Geregu Electric Power Plc.
2. Ughelli Electric Power Plc
3. Enugu Electricity Distb. Plc
4. Afam Electric Power Plc
5. Ibadan Electricity Distbn. PlcJos Electricity Distbn. Plc
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6. Benin Electricity Distbn. Plc
7. Kano Electricity Distbn. Plc
8. Kaduna Electricity Distbn. Plc
2.4.3 Development of Uniform System of Accounts (USOA) for the NESI:
The Commission in collaboration with the Financial Reporting Council (FRC) has
developed a draft USOA for the (NESI) that will ensure uniformity in the financial
reporting to aid in tariff determination and ensure transparency and consistency in
dealing with industry operators and prospective investors in the power sector. The
Uniform System of Accounting establishes a uniform format and set of accounting
records that licensees are required to adopt in submitting accounts for regulatory
purposes. Such records assist in providing an adequate information base for
establishing tariffs and monitoring licensees performance. The goal is to make
available accounting information which will enhance the efficiency and
transparency of the regulatory process. The draft USOA is being finalised by the
Commission in consultation with various stakeholders.
2.4.4 Inventory and Valuation of Electricity Distribution Assets provided
by State and Governments:
The objective of this is to recognize the extent of State Governments investments
in the Discos in order to facilitate the design and implementation of new ownership
structure of PHCN successor companies post privatization era. Inventory reports
were received from most of the States & forwarded to the respective DISCOs for
confirmation. Accordingly, reports were received from few Discos.
2.4.5 Development of Local Content Regulations for the NESI:
The Commission has developed a clear framework for ensuring local content in the
development of NESI to ensure its orderly development with optimal participation
of Nigerians in the public interest. This regulation is being reviewed by the
Commission in line with Stakeholder comments.
3.0 0THER ACTIVITIES OF THE COMMISSION:
3.1 Litigations Involving the Commission:
The Commission is currently involved in the following litigations:
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Chief Izy Nwaiwu &3 ors Vs NERC suit no. cv/1037/11: This case was
instituted against NERC on the legality or otherwise of the meter maintenance fees
and rental charges, and the request for refund. The parties have filed the
necessary processes in court and adopted same. The judgement was slated for 17th
of December, 2014 but was adjourned indefinitely.
Gluson Investment Ltd Vs NERC & Alh Abdulkareem Adesokan Suit No.
CV327/09: This case was instituted at the instance of Gluson Investment Ltd
against the Commission claiming the balance of Fourteen Million, Three Hundred
Thousand Naira (N14, 300,000.00) alleged as variations of the contract sum of
N42, 857,142.86 which was for the supply of Six (6) pathfinder jeeps. Ruling on
the preliminary objection raised by the Commission‟s Counsel has finally been
made available by the Court. The Commission has a pending appeal in the Court of
Appeal against the ruling of the trial court. However, the judge has been removed
and hearing date is yet to be issued.
Aretes Logistics Vs NERC, Ministry of Power & Minister for Power Suit No.
CV/1532/10: The matter is based on an alleged breach of contract by the
Commission. This contract was executed between the Commission and Aretes
Logistics Ltd on the 23rd of December, 2008. The contract was for the supply of
wireless amplifiers, projectors and screens. By clause 8.0 of the said contract, the
equipments were to be supplied two weeks after execution of contract. The
equipments were not supplied as provided in the contract. In May, 2009 the
contract was terminated pursuant to clause 11.1(e) of the contract. Having
terminated the contract, the money deposited at Intercontinental Bank as Advance
Payment Guarantee for payment of the contract sum was recovered. The arbitral
hearing was concluded and award given in the Commission. The Commission
Counsel has applied to the Court for dismissal of the matter. However, Aretes filed
an application to set aside the award. Ruling had been delivered dismissing Aretes
application challenging the award. The Suit was transferred to Court 21, Apo for
mention on February 19th, 2015 after the previous judge was elevated to the Court
of appeal.
Sunnet Systems Vs NERC Suit No. CV/979/11: This case was instituted
against NERC by Sunnet Systems claiming a breach of contract involving the supply
of electronic security system and unified communication system. An appeal against
the judgment of the High Court has been filed by the Commission‟s Counsel in the
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Court of Appeal. The Trial Court however ordered in the garnishee proceedings
that the judgement sum should not be paid to the judgement Creditor but to be set
aside, pending the hearing of the appeal filed by the judgement Debtor. The Court
of Appeal has delivered its judgement in favour of the Commission and affirmed
the decision of the trial court on the 11th of November, 2014. However, the
Commission still has a pending appeal before the Court of Appeal to get the matter
dismissed. No hearing date was fixed.
Campfield Ltd Vs NERC Suit CV/1000/11: This claim was made by Campfield
Ltd claiming a refusal by the Commission to pay some outstanding professional
fees due for consultancy services. Judgment has been obtained against the
Commission for N29, 544,410.00 as against N15, 477,231.00 owed by the
Consultant. An appeal against the judgment of the High Court has been filed by the
Commission‟s Counsel in the Court of Appeal. The matter came up on the 30th of
June, 2014 and the Commission‟s application to amend its Appellant‟s brief was
granted. The Court however adjourned the matter to 13th of January, 2015 for
adoption of briefs and continuation of hearing.
Femi Falana Vs NERC & Anor FHC/L/CS/579/12: This case was instituted
against NERC to discontinue the increase in tariff which took effect on the 1st of
June, 2012. The Plaintiff also seeks to prevent an infraction of Sections 59 (1) of the
1999 Constitution which applies to (a) „an appropriation bill or a supplementary bill
for the payment, issue or withdrawal from the Consolidated Revenue Fund or any
other alteration in the amount of such a payment, issue or withdrawal (b) a bill for
the imposition of or increase in any tax, duty or fee or any reduction, withdrawal or
cancellation thereof‟ and Section 76 (2) of the EPSR Act, 2005 which states
„Electricity Tariff shall be regulated according to one or more methodologies
adopted by the Commission for regulating electricity prices‟. A Counsel has been
appointed by the Commission. All processes have been prepared and filed by the
COUNSEL. The Federal High Court overruled the Commission‟s preliminary objection
and insists that Mr. Femi Falana has a Locus Standi to institute the action. The
matter was adjourned to 10th of December, 2014 for ruling on the Commission‟s
application for stay of proceedings, pending appeal at the Court of Appeal on the
issue of Locus Standi. However, the Court did not sit and no date has been given.
Electricity Consumer Association of Nigeria Vs Hon. Min, NERC & 3 Ors
FHC/CS/317/12: This case was raised against NERC on the legality or otherwise
of the meter maintenance fees and fixed charges collected by PHCN, and the
106
request for refund. All Court processes have been prepared and filed by the
Commission‟s Counsel. The matter was adjourned to 3rd of April, 2014 to enable
the Plaintiff amend their Claims in light of the ongoing Privatization.
Ndubuisi Atuziego & 1 or VS NDPHC, Alaoji Generating Co. Nig Ltd, NERC
& AG Fed. FHC/CS/118/12: Defence against the suit seeking for declarative
and injunctive orders from the court particularly against the first and second
defendant. (NERC issued a license to Alaoji Generating co). NERC has instructed
NDPHC to enter appearance on its behalf as the Commission is a nominal party in
this matter. NDPHC has filed a joint defence including the Commission. This
matter has been transferred to Abia State Judicial Division of the Federal High
Court. The Commission has written to NDPHC for an update on the matter. Yet to
receive the update.
Governor Aliyu Wamakko Vs Leaders & 9 Ors FHC/CS/90/12: : This case
was instituted against the Chairman of NERC, Dr. Sam Amadi, on the alleged
libelous statement made by him in his capacity as the Chairman of NERC in respect
of lashing of PHCN Staff by Governor Wamakko, the executive Governor of Sokoto
State. All court procedures were duly prepared and filed by the Commission‟s
counsel. The application file by the Commission‟s Counsel for dismissal and striking
out of 6th defendant (D. Sam Amadi) was overruled. The matter was adjourned to
3rd of June, 2014 for ruling on and continuation of the motion filed by Counsel to
the 4th, 5th, and 7th defendants. The Court‟s register called and informed parties
that the court will not sit on that day but a new date has not yet been
communicated.
Incorporated Trustees of Utako Shop Owners/Traders Assocation VS.
PHCN,NERC ,Mr. Festus Okoro FHC/ABJ/CS/79/3/2013: Defence of NERC
against the action brought against them by the Utako Traders Association praying
the Court for An order mandating the 1st to 3rd Defendants to remove forthwith from
Utako Market, Abuja, two 500KVA generating sets installed by the 4th Defendant at
Utako Market for illegal generation and distribution of electricity for commercial
purpose on the grounds that it constitutes danger to the entire market and the
general public. The matter came up on the 19th of February, 2014 before Justice
Grace Olotu but was adjourned to July 15th, 2014 to enable Plaintiff effect service
on the Defendants and show proof accordingly. However, the Judge was
compulsorily retired and the case is yet to be assigned to another Judge.
107
Joshua Elaigwu Moses VS Abuja Electricity Distribution Company, Mr.
Mike, and NERC HC/CV/1065/14: Defence of NERC against the action
brought against it on the wrongful disconnection and billing by AEDC (a Licensee of
the Commission) and request for reconnection and damages. The Commission has
filed Conditional Appearance. The matter came up on the 17th November, 2014
for hearing of the two preliminary objections filed by the 1st and 2nd Defendants.
But on that date, parties requested for time, for out of Court settlement.
Mr. Chibuike Onunka VS Geometric PHCN NIG, PLC and NERC: Defence of
NERC against the action brought against it on the legality or otherwise of the
electric poles and transmission wires mounted by PHCN close to the Claimant‟s
Property without leave, license and/or authority of the Claimant or payment of
adequate compensation to the Claimant. The Unit has prepared a brief to the
Commission, recommending that it enters a conditional appearance and appoint a
Counsel to represent it.
RE: SUIT NO: HC/CV/1310/14 GARKIDA PRESS LIMITED & ANOR VS
Abuja Electricity Distribution Company and NERC: Defence of NERC against
the action brought against it on the legality or otherwise of the R3 Fixed Charges
collected by PHCN, and the request for refund. The Plaintiffs filed an Amended Writ
of Summons dated 6th August, 2014, against the Defendants alleging inappropriate
and arbitrary electricity billing especially the fixed charge component of the bill;
and refusal of the 1st Defendant to change their MD Meter to 3 phase Meter. The
matter came up on the 5th November, 2014 for hearing of the Motion on
Notice, seeking to join the Commission as a party in the suit. The matter was
discontinued by Plaintiff but later relisted. 26th Jan, 2015, fixed for mention of the
matter.
SENATOR ISA MOHAMMED VS. AEDC & ANOR: Defence of NERC against the
action brought against it on the legality or otherwise of his tariff classification by
AEDC from R2 to R3, which he alleged, which resulted in arbitrary Electricity
charges. Brief done and forwarded to the Commission, counsel is yet to be
appointed and matter has not been set down for hearing
4.0 Financial Report:
REVENUE
FGN Special Intervention
2014 Appropriation Total
108
Act
IGR For HQ
BUILDING Revenue
N N N N
6,749,685,192.19
6,000,000,000.00
1,793,765,508.00
14,543,450,700.19
6,749,685,192.19
6,000,000,000.00
1,793,765,508.00
14,543,450,700.19
Personnel Goods & REGULATORY Total
Non Personal EXPENSES Capital Expenditure
N N N N
2,615,293,631.
93
1,441,473,456.
67
131,687,562.
83
10,294,815,852.
88
14,483,270,504.
31
2,615,293,631.93
1,441,473,456.67
131,687,562.83
10,294,815,852.88
14,483,270,504.31
Revenue earned January to December 2014 14,543,450,700.19
Actual Expenditure incurred January to December 2014
14,483,270,504.31
5.0 Constraints and Issues
1. Non Adherence to Reporting Obligations and Technical Standards by
the Operators: There is a continued non-adherence to reporting obligations
by Operators. Consequently, some outstanding issues dependent on availability
of reports could not be resolved. This includes ambiguous and inaccurate
monthly customer complaint reports received from the DISCOs.
6.0 Proposed Activities for the Year of 2015 The Commission intends to carry out the following activities in addition to
other day to day regulatory activities:
1. Commissioning of Forum Offices in some State capitals
109
2. Engagement of consultants for the determination of benchmark cost for TCN
and Distribution companies.
3. Commence the 5th minor review of MYTO-2
4. Review TCN tariff application request
5. Develop a consultation Paper on TCN tariff application
6. Publish an Order for the TCN tariff
7. Develop a TOR for Power affordability study
8. Develop a consultation paper to determine the Tariff for Combined Cycle
Gas
9. Verification and valuation of electricity distribution and transmission assets
procured through the National Integrated Power Projects (NIPP) managed by
the Niger Delta Power Holding Company (NDPHC).
11. Conclude on Discos‟ responses to NERC‟s resolution on Open Book Review
of the financial/accounting records of the Discos;
12. Review and finalization of audited financial statements for and years ended
2012, 2013 and 2014 respectively.
13. Approval and implementation of the Uniform System of Accounts (USOA)
for the Nigerian Electricity Supply industry (NESI)
14. Submission of report on valuation of State Governments‟ investments in
the networks of electricity distribution companies (Discos) to the National
Economic Council
7.0 Annexure
State of Power Generation for the Year 2014
FIRST QUARTER, 2014
110
SECOND QUARTER, 2014
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
4,000.0
4,500.0
Peak Generation (MW) Ave.Generation (MWH/H) Ave.Power Sent out (MWH/H)
111
THIRD QUARTER, 2014
FOURTH QUARTER, 2014
0
500
1000
1500
2000
2500
3000
3500
4000
4500
41
73
0
41
73
3
41
73
6
41
73
9
41
74
2
41
74
5
41
74
8
41
75
1
41
75
4
41
75
7
41
76
0
41
76
3
41
76
6
41
76
9
41
77
2
41
77
5
41
77
8
41
78
1
41
78
4
41
78
7
41
79
0
41
79
3
41
79
6
41
79
9
41
80
2
41
80
5
41
80
8
41
81
1
Ge
ne
rati
on
(M
W)
Peak Generation (MW) Average Generation (MWH/H)
Average Power Sent Out (MWH/H)Month
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
41
82
1
41
82
4
41
82
7
41
83
0
41
83
3
41
83
6
41
83
9
41
84
2
41
84
5
41
84
8
41
85
1
41
85
4
41
85
7
41
86
0
41
86
3
41
86
6
41
86
9
41
87
2
41
87
5
41
87
8
41
88
1
41
88
4
41
88
7
41
89
0
41
89
3
41
89
6
41
89
9
41
90
2
41
90
5
41
90
8
41
91
1
Ge
ne
rati
on
(M
W)
Peak Generation (MW) Average Generation (MWH/H)
Average Power Sent Out (MWH/H)
Month
112
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
41
91
3
41
91
6
41
91
9
41
92
2
41
92
5
41
92
8
41
93
1
41
93
4
41
93
7
41
94
0
41
94
3
41
94
6
41
94
9
41
95
2
41
95
5
41
95
8
41
96
1
41
96
4
41
96
7
41
97
0
41
97
3
41
97
6
41
97
9
41
98
2
41
98
5
41
98
8
41
99
1
41
99
4
41
99
7
42
00
0
42
00
3
Ge
ne
rati
on
(M
W)
Peak Generation (MW) Average Generation (MWH/H)
Average Power Sent Out (MWH/H)
113
PRESIDENTIAL TASK FORCE ON POWER (PTFP)
The Presidential Task Force on Power (PTFP) was established by the President
Goodluck Jonathan administration, in June 2010, to drive the implementation of
the reform of Nigeria's power sector. It brings together all the agencies that have a
role to play in removing legal and regulatory obstacles to private sector investment
in the power industry. It also has the mandate to monitor the planning and
execution of various short-term projects in generation, transmission, distribution
and fuel-to-power that are critical to meeting the stated service delivery targets of
the Power Reform Roadmap.
The PTFP collaborates closely with various ministries and agencies that have
specific contributions to the reform process, including the Federal Ministry of
Power, the Federal Ministry of Finance, Ministry of Petroleum Resources, the
Bureau of Public Enterprises (BPE), the Nigerian Electricity Regulatory Commission
(NERC), the Nigerian Bulk Electricity Trading Company (NBET), the Nigerian
National Petroleum Corporation (NNPC), the Bureau of Public Procurement (BPP),
National Gas Company Limited (NGC) and the Niger Delta Power Holding Company
(NDPHC) to mention a few.he Presidential Task Force Board of Directors is
charged with setting and maintaining the direction of the Task Force.
They are responsible for implementing PTFP's mandate while providing
overall leadership and its strategic direction. All Board Members have
been instrumental in setting policy for the Task Force as well as
114
ensuring it has all the necessary resources and capabilities to achieve its
objective.
OVERALL IMPACT OF THE POLICIES
The programmes of the Ministry of Power as outlined above were designed to
achieve the intent of the Policies set for the development and sustenance of power
business in Nigeria. The privatization exercise is the most extensive ever seen and
adjudged to be successful in the world though some problems exist to be solved.
The major issue of liquidity which will sustain the fuel to power chain is being
pursued vigorously among market participants. This is being demonstrated by:
the freedom given to NERC to regulate the industry,
supporting NBET with funds to securitize the market,
Allowing for justified increase in gas price to assure profitability for the gas
suppliers and recovery from the power tariff on a pass through cost.
Signing of contracts for gas and its transportation as well as Power Purchase
Agreements for the Power plants is creating the avenue for contractual operation
in the market a position that was non-existent in the past.
Some of the other activities are the putting in place a facility to fund the market
on basis of refundable loan to cater for the cash shortfall in the market arising
from lateness in attaining cost reflective tariff by CBN as well as offsetting the gas
debts a major reason for reluctance of the gas suppliers to invest and supply
additional gas for power.
115
All the activities stated above have laid the required foundation for the
establishment of a market that will fend for itself going forward and provide for
investors to invest in Nigeria with minimal market risk as the problems are solved.
Problems of interrupted gas from vandalism of oil and gas facilities must however
be exterminated and projects to bring additional gas must be followed up to
completion. Diversification if fuel sources (coal, solar and other renewables) for
power generation as well as new large and small hydros should reduce the risk of
gas interruption in the power grid.
The transmission network need to be stable and outstanding projects, the most
important being the NIPP North South Loop in the and associated power plants in
the east namely Alaoji, Calabar and Gbarain must be completed and operated with
the completion of North South loop. TCN must be funded and with the expected
conclusion of a cost reflective tariff it is expected that TCN should be able to
secure loans from the market to operate by paying back its loans from the
commercial market. Completion and implementation of the outcome of the
ongoing Load Demand Study should create the data and an atmosphere for
informed development of the power grid.
With the concept of embedded generation within the distribution companies and
the renewables catering for remote and distant locations from the grid the
requirement and foundation for availability of power to all parts of the country is
being established.
The final agreement on cost reflective tariff to sustain the fuel to power chain and
being put in place at this time of reduced Government revenues to fund projects
will ensure the sustainability and growth of the industry. The earlier this is being
practicalised fully the better for the country. Nigeria is indeed set for a growth of
the power business.
HUMAN CAPACITY DEVELOPMENT
A major challenge in the Industry was the neglect of employment of new
generation staff and lack of development and training for the staff working in all
branches of the industry across the power chain. This resulted in the shut down
and extinction of all the training institutions which were bench marks in the
country in the past. NAPTIN has recommenced the development of new entries
and existing staff of the industry to produce workers with capacity at all levels of
the industry from cable jointers to professional engineers. These initiatives include
116
working with international organizations and Universities to progress development
of human capital the most important resource in the Country. Funding of the
NAPSAs program has been a challenge to the some Governments hence contacts
need to be made to them to encourage them to pay up for the continuation of the
closure of the dire gap of expertise in the industry. The industry also need to be
encouraged to allow training to be exposed on life facilities.
LONG TERM OUTLOOK
The Power Reform Process which was commenced by the development of the
Road Map initiated by the Presidential Task Force on Power (PTFP) carrying out a
monitoring and facilitating role need to be continued and completed to the stage
of market viability and willing buyer willing seller mode. This will form the kernel
for investors to come to Nigeria and invest with the assurance of recovery of their
investments with adequate returns. The regulator NERC need to continue to work
with industry participants to make a success of the venture.
The Nigerian Power supply grid is founded on gas supply occupying over 70% of
the base power generating capacity. Experience has shown that the gas supply is
prone to regular interruption and as the practice of not putting in place adequate
contractual framework was absent we did not get gas as and when required.
Additionally the power industry had a reputation for not paying as and when due
for gas utilized. With the market now in the process of being operated on a
commercial basis with the power tariff expected to be cost reflective indeed and
the NBET and NERC processes requiring gas supplies and transportation
agreements to be in place before PPAs and Licenses are issued the problem is
expected to be history soon. In spite of this development, there is a need to
diversify the sources of generation by completion of Zungeru and Mambilla hydro
power plants and to develop coal power plants with the failure of previous non-
contractual arrangements for gas being used as lessons learned. Nigeria is in an
excellent solar zone in the world and it is necessary to take advantage of this
abundant fuel especially in the Northern part of the country where availability of
fossil fuel is limited and remote off-grid locations as part of the plan to provide
100% access to power for the citizenry of Nigeria. Solving the issue of vandalism
is an item that must be given priority to ensure sustainability of power supply and
stability in the network.
117
With the concept of cost reflective tariff in place and the TCN carrying out its
financial audit, arrangement for financing growth of the transmission system
through PPP must be explored more so as the revenue accruing to the
Government for investment and recurrent expenditure will continue to be
threatened as a result of the current mono source of revenue for Nigeria. An
expedited completion of the proposed Load Demand Study need to be expedited
and to become a routine in the Nigerian Power market so that it becomes the
regular planning tool as per the practice all over the world. As an interim demand
gap closure in local distribution companies and for customers willing to pay more
for power supply, embedded generation should be encouraged As the grid grows
bigger the concept of installing the largest unit of not exceeding 10% of the grid
capacity should be used to quicken the pace of closing the gap between supply
and an increasing demand in the country. This will also reduce operational cost
and increase efficiency though reducing number of people engaged.
Zungeru Hydro Power Plant Construction (Contractors‟ Camp)
118
Zungeru Hydro Power Plant Concrete Coffer Wall Construction
Zungeru Hydro Power Plant CVC Aggregate Processing System
119
Human capacity development that had been missing for a long period of time need
to be maintained and NAPTIN grown to become a real power Institute of repute. A
reorientation of the industry to commercial implementation and running of
businesses and projects is a necessity for progress.
Safety need to be enhanced with the development of EMSL to monitor and
supervise the development of the industry to avoid deaths and avoidable accidents
through adequate regular inspections and testing.
COMMITMENTS AND LIABILITIES
Federal Ministry of Power
Summary of Bank Balances as at 17th April, 2015
Description ₦
Presidential Initiative on Metering 37,276,049,158.00
Other Balances 480,865,848.96
Total Balance 37,756,915,006.96
Summary of Liabilities as at 17th April, 2015
Federal Ministry of Power
Recurrent Liabilities
Year ₦ ₦
2013 6,149,611.40
2014 68,824,502.90
2015 25,099,007.93 100,073,122.23
Capital Liabilities
2014 to 2015 4,467,108,560.40
Total liabilities (FMoP) 4,567,181,682.63
PTFP 98,463,283.80
Total (FMoP + PTFP) 4,665,644,966.43
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INTERNATIONAL OBLIGATIONS
The International Obligations Nigeria has to neighboring countries to prevent their
interruption of water flow to Nigeria from Upstream of the Niger River outside of
Nigeria and thereby reduce water flow to produce power in Nigeria is a contractual
commitment to supply through:
A 132 KV line from Birnin Kebbi to Niamey 60 MW and
Another 132 KV line from Katsina to Gazaoua (27 MW), Gaya (4MW) and
Damasak/Bissa (4MW) to supply a total of up to 95 MW of power to Niger
Another international obligation is to supply from Ikeja West to Sakete up to 200
MW of power at the 330 KV voltage level.
With the Nigerian power market being implemented on a cost-reflective basis,
negotiations are in progress with NBET to update the contract price for the
continuing supply of power.
Our relations with EU, JICA, DFID, USAID, GIZ, World Bank, AfDB, US EXIM Bank,
China EXIM Bank, Nigeria-German Energy Partnerships.
OVERALL CONCLUSIONS & RECOMMENDATIONS
The Power Reform in Nigeria has been adjudged to be the biggest and most
successful in the world. Though it has some challenges to overcome hence it is
important for the Government to continue to give it its full support to progress it to
the stage of commerciality which will make it sustainable and no longer require
funding from the Government. Without knowing or expecting the oil price to drop
as per the current condition, in hind sight it is good that the progress made so far
will prevent Government from securing funds directly to the power market once it
becomes self-sustaining but we are still enroute this stage of the market. In the
interim such support may be unavoidable for now to prevent the market from
collapsing. This has traditionally happened in most jurisdictions.
The biggest challenge to the power business in Nigeria is lack of liquidity as a
result of non-resolution of cost reflective tariff and low collection of revenue by the
distribution companies both of which have resulted in inability to pay for services
provided within and upstream of the fuel to power chain. This has caused inability
to maintain facilities as and when due, accruing debt to gas and power suppliers
and inability to invest in gas, power generation, transmission, and distribution
businesses. Effective cost reflective tariff should make this issue a historical
121
experience. With the private sector now handling collection of revenues in the
downstream of the business, it is expected that money will be available to pay the
bills for services rendered. This successful reorientation of the market to cost
reflectiveness and collection should prevent future demand for special securitization
arrangements
Considering the fact that power supply to the country will always be from various
sources of fuel there is a need for the Inter- Ministerial Forum to be continued and
for the PTFP to continue its monitoring and facilitating role in conjunction with the
Ministry of Power.
Power growth projection in excess of 4,000 MW had been elusive for a long time however the jinx has been broken since it
has been demonstrated that the grid can handle up to 4,500 MW and the ingredient to attain new power and energy peaks
are in place. The issue of vandalism of gas and crude oil infrastructure supplying gas to power virtually became an
anathema. The issue of vandalism of crude oil and gas facilities must be continuously addressed to sustain the growth of
the power business in Nigeria. Embedded generation is a short term option for local improvement of power supplies with
distribution companies that should continue to be explored for customers that can afford to pay and by mutual consent
with the distribution companies.
Historically the power industry did not make contractual arrangement for gas supplies contrary to the norms in gas supply
industry where the gas is sold before it is developed. Since the market is to be operated with declaration of TEM on a
contractual basis, the issue should not occur again as Gas Supply and Transportation agreements are preconditions for
issuance of licenses by NERC and precursors to issuance of PPAs by NBET.
Diversification of the Nigerian power energy sources is critical hence installation of coal fired power plants, large and small
hydros and solar generation including other renewables need to be planned and implemented consistent with the output
and requirements of load demand studies. Embedded Generation and distributed power must be vigorously pursued as a
quick win in lighting up and powering up Nigeria. Small power plants of sizes 1 MW to 20 MW should be encouraged to
spread across the whole length and breadth of Nigeria and to cover industrial manufacturing, agricultural and trade clusters
in addition to direct sale of such generated power to DISCOs.
Transmission is another bottleneck in the power system which is limiting ability to deliver all the power available to the
customers and expansion plans for TCN Network need to be funded while the distribution companies must also be ready at
all times to take the power available for improvement of the lives of the citizens. The transmission business must be made
attractive for investors to fund expansion plans possibly by PPP or contractor finance. Project management skills and issues
of land acquisition which had been causes for delays in project completion must be addressed for future successes.
Training and capacity building at all levels and all categories of staff is a necessity that need to be funded and implemented
for system reliability and sustainability. Succession plans must be put in place for aging staff and for continuity of the
business. NAPTIN is an excellent starting point for achieving this requirement.
There is a need for all issues related to the occupation of the old PHCN Headquarters now Ministry of Power’s office to be
resolved to ease the current problem of congestion in the current Secretariat Office.
Completion of NEMSA bill need to be pursued to ensure EMSL is empowered to do its job of instilling safety as a culture in
the industry as well as carry out the responsibility of testing and quality control on equipment especially meters and
materials. Due recognition must however be given to the Regulatory role of NERC to avoid concurrence of responsibilities
with NERC.
122
The dream for Nigeria to be one of the greatest countries in the world will be realized if the above concepts are duly
implemented and this will create an environment for investors to come and invest their monies in Nigeria with the
assurance of getting adequate returns on their investments.
123
Matters for Immediate Attention Moving the industry forward to meet the aspirations of Nigerians for increased power supply is required to sustain and
improve the economy and the quality of lives of the citizenry. In this regard it is necessary for the following activities to
continue or started as applicable. The activities are:
1. Completion of the exercise on cost reflective tariff to reasonable satisfaction of investors and customers.
2. Improved collection of bills from the market by Distribution companies.
3. Provision of meters to reduce collection losses and avoid a situation where cases of estimated billing is greatly rampant.
4. Debts to gas suppliers, power providers, Transmission Company and other market participants must be paid as and when due NELMCO will need to be empowered to carry out some of these responsibilities for historical debt.
5. Additional gas to be secured for the industry by NNPC and allocation not discriminative to the power industry.
6. Vandalism of gas supply lines is stopped with dispatch.
7. Gas supply and Transportation Agreements are effected, especially for NIPP Plants and the concept becomes the practice in the industry. All other industry agreements to be implemented as and when due
8. All outstanding power plants in the east are completed and commissioned.
9. Transmission evacuation facilities in the east are completed and commissioned.
10. Load demand study is carried out in the nation as a basis of future planning.
11. Investment in transmission infrastructure is carried out possibly on basis of financing and PPP.
12. Planning for succession and training of new employees to be encouraged and NAPTIN to be utilised as much as feasible.
13. Issue of safety and inspection to be given priority and implemented by EMSL as applicable. The NEMSA Bill need to passed as soon as possible to empower EMSL
14. With the accommodation problem in the industry, movement to the New Ministry of Power’s Office to be effected as soon as possible.
15. An Inter-Ministerial forum for all sources of energy and chaired by the President is recommended for implementation for problem resolution across Ministries to assure future development of the power growth in Nigeria. It is desirable that representation be constituted from Ministries of Power, Petroleum, Mines, Water Resources and Environment. It is pertinent that the Ministry of Finance, BPP and Energy Commission of Nigeria be a part of the team as well. In this respect there is need to continue the work of the PACP.
16. The PTFP being a monitoring and facilitating entity be retained to continue to monitor, report on the progress and resolve issues from Fuel-to-Power in the industry.
17. Plans for breaking up the TSP into regions must be advanced to bring about greater grid efficiency.
18. Privatization/concessioning of the transmission infrastructure should be seriously considered.
19. Embedded generation and distributed power should become a priority policy matter and encouraged as a quick way to bridge the yawning energy gap.
20. Renewable energy development should become a crucial policy priority and the private sector should be incentivized to invest in it.
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ELECTRICITY MANAGEMENT SERVICES (EMS):
Introduction
Background
VISION: To be an efficient world-class technical services provider that ensures
standardization, quality, safety and competence for the competitive Nigeria
Electricity Supply Industry.
MISSION: To ensure efficient, stable, safe and reliable networks for electricity
supply, safety of lives and property in the Nigeria Electricity Supply Industry
through deploying a well-motivated workforce and appropriate technology.
MDA Mandate
These are to ensure:-
Electrical materials/equipment/instruments used in NESI are of the right quality, standards and specifications.
That the power systems and networks put in place have been well planned, properly designed and executed before use to ensure that such systems are capable of delivering safe, reliable and regular power supply to consumers nationwide.
The Certification and advancing the skills and expertise of all technical personnel engaged in practice of electrical installations along the value chain and utilization in NESI.
Electricity meters and instruments used in NESI are of the right type, class and accuracy for proper accountability of energy supplied, transmitted, delivered and utilized by the customers in the entire power supply value chain.
Regular monitoring of the compliance level of the regulations, standards and specifications used in NESI.
Provision of data, information and library services for stakeholders, investors, researchers, academia, etc., through the proposed Electricity Information Management Systems (EIMS).
Management
The management team of EMSL was approved by the President of the Federal
Republic of Nigeria, Dr. Goodluck Ebele Jonathan, GCFR and was inaugurated by the
Hon. Minister of Power, Prof. Chinedu Nebo, CON, NPOM, FNSE on the 10th
September, 2013.
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Legislative Issues: During a National Assembly Public Hearing on the private member
NEMSA bill, Electricity Management Services Limited (EMSL) made a presentation on
the critical roles and responsibilities of EMSL in NESI and the needs to pass the NEMSA
bill by the assembly.
S/N DESIGNATION NAME
1 Managing Director / CEO Engr Peter O. Ewesor
2 Executive Director – Technical Services Engr Tukur Gidado
3 Executive Director – Corporate Services Ms Ikechi O. Nwosu
4 Executive Director – Commercial Services Ambassador Ayuba J. Ngbako
5 General Manager – Finance & Accounts Mr Gbeworo Oyinemi
6 General Manager – Legal Services/Company
Secretary Barrister Funke Stanford
7 General Manager – Audit Mr Tijani Baba
8 General Manager – Public Affairs Mr Uche Aneke
9 General Manager – Meter Test Stations Engr A. Ezeugwa
10 General Manager / Head, Technical Standards &
Inspectorate Services Engr Tukur Tahir Aliyu
11 Head Procurement Engr Adeyemi J. Adebayo
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Policies Schemes & Initiatives
Programme 1: Engagement of EMSL Staff
Received concurrent approval of the Honourable Minister of Power (HMoP) and the
Head of Civil Service of the Federation (HCSoF) for transfer of all former federal
ministry of power EIS department technical staff to EMSL.
Impact Report:
Gave EMSL the capacity, capability and competence to carry out its mandate.
Issue Report:
N/A.
Programme 2: Transfer of EIS Zonal Office to EMSL
Status Report:
Received the approval of the HMoP for the transfer of the zonal offices of EIS with all
the logistics; comprising of vehicles, test equipment etc. to EMSL.
Impact Report:
Gave EMSL the capacity, capability and competence to carry out its mandate more effectively and efficiently.
Programme 3: Strategic Policy Training
Status Report:
Organised strategic policy training for the Top Management Team.
Impact Report:
Charted a path for realising the organisation‟s mandate, roles and responsibilities Issue Report:
Programme 4: EMSL Structure and Manpower Requirements
Status Report:
Received HMoP‟s approval for the company‟s organisational structure and manpower
requirements.
Impact Report:
Simplified the work flow process for effective discharge of her statutory duties.
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Programme 5: Strategic Technical Cooperation (EMSL & CPC)
Status Report:
Strategic technical co-operation between EMSL and Consumer Protection Council
(CPC) in place.
Impact Report:
Facilitated sensitisation of consumers on safe use of electricity.
Programme 6: Strategic collaboration between EMSL and Standards Organisation of Nigeria (SON)
Status Report:
Strategic collaboration between EMSL and Standards Organisation of Nigeria (SON) in
place.
Impact Report:
Strengthened EMSL‟s capacity to carry out inspection, testing and certification of
electrical installations in NESI.
Programme 7: PHCN Staff Engagement
Status Report:
Engagement of few former competent PHCN staff in strategic business units.
Impact Report:
Provided EMSL with additional cumulative technical expertise.
Programme 8: Establishment of Technical Inspectorate Field Office
Status Report:
Opened a second Technical Inspectorate Field Office in Lagos (Oshodi)
Impact Report:
Enabled wider coverage and fast tracked service delivery on the inspection, testing
and certification of electrical installations and power projects in the two DisCos and
Transmission Company.
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Programme 9: EMSL Staff Establishment
Status Report:
Obtained approval for EMSL staff establishment from the Head of Civil Service of the
Federation.
Impact Report:
Enabled EMSL make progress towards the achievement of full complement of staff.
Programme 10: National Meter Test Station Remodelling
Status Report:
Remodeled the National Meter Test Station (NMTS) Oshodi, Lagos.
Impact Report:
Increased capacity for a more efficient and effective type testing and routine testing
of electricity meters in line with international best practices.
Programme 11: Approved Inclusion in 2015 Federal Budget
Status Report:
Received the approval of the Federal Ministry of Finance (CME) for inclusion in Y2015
budget for personnel and overhead costs
Impact Report:
Will enable EMSL to carry out its statutory duties and functions in NESI.
Programme 12: Publication of Safety Manual
Status Report:
Published safety manual for electricity utilisation titled; “Safety Instruction Guide:
Using Electricity Safely & Wisely.”
Impact Report:
Improved safety awareness nationwide.
Programme 13: National Electric Concrete Pole Manufacturers‟ Directory
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Status Report:
Re-validation of the National Electric Concrete Pole Manufacturers‟ Directory
(NECPMD).
Impact Report:
Ensured Standardization and Traceability of Electric concrete poles; and provided a
ready reference of manufacturers of standard electric concrete poles for use by
industry stakeholders. This also ensured uniformity of poles in NESI achieved and less
confusion in the industry, stability of the networks, reduced incidents of failures, and
increased revenue for investors.
Programme 14: Re-activation of Chemical Laboratory and Transformer Workshop
Status Report:
Re-activation of Chemical Laboratory and Transformer Workshop
Improved and increased capacity for more efficient and effective testing of chemicals
and materials used in NESI and allied industries.
Programme 15: Inspection of Electric Concrete Pole Manufacturers
Status Report:
A total of 91 electric concrete pole manufacturers‟ facilities have been inspected and
9 failed.
Impact Report:
Ensured the deployment of standard electric poles for construction of electricity
projects and reduced pole failures in the networks, reduced economic wastages,
guaranteed safety of lives and property.
Programme 16: National Electric Concrete Pole Manufacturers‟ Directory
Status Report:
Monitored a total of 462 existing networks for defects and recommendations
forwarded to DisCos for corrective action.
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Impact Report:
Improvement of existing networks and systems safety, reliability and stability.
Reduced connection or power losses, improved voltage profile and delivery; reduction
in supply outages, enhanced utilisation of assets, improved revenues for the investors
and industry stakeholders. Enhanced safety of lives and property.
Programme 17: Electrical Installation Competence
Status Report:
Renewed a total of 975 electrical installations competence certificates.
Impact Report:
Provided a database of certified electrical installation professionals who provide
improved quality and safe new electrical installations/power projects. Ensure that
only competent and certified electrical contractors handle installations in NESI and
other allied industries.
Programme 18: Electrocution Investigations
Status Report:
Investigated 33 electrical accidents/electrocutions to find out root causes and to
forestall future occurrence.
Impact Report:
Improved safety of lives and property nationwide. Also, it provided opportunity for
publicity on need for better safety awareness and prevention of future occurrences of
electrical accidents/electrocutions.
Programme 19: Electric Meter Testing
Status Report:
Tested a total of 15,348 electric meters, Type Test – 1,525 with 10 failed, Routine Test
- 13,730 with 83 failed.
Impact Report:
Ensured that only standard and quality/specified electric meters of the right accuracy
are deployed for use in Nigeria. Eliminated substandard electric meters within the
Utilities (GenCos, Transmission and DisCos). Thanks to these tests being carried out,
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millions of non-standard /conformity meters have been prevented from being
installed in various premises nationwide saving the nation its scarce resources. The
bad meters if deployed would have resulted in:
Wastage of government‟s scarce resources
Loss of energy
Loss of revenue to Distribution companies and customers alike.
Industrial hazards/waste, environmental issues on how to deal with abandoned electric meters in the industry
Supplier/customer disaffection
CHALLENGES
Status Report:
Reluctance on the part of GenCos and DisCos to accept the technical enforcement
roles and responsibilities of EMSL, and reluctance to accept and implement
recommendations arising from EMSL Monitoring of their Systems and Networks.
Mitigation:
Courtesy visits to the Utilities Companies (GenCos and DisCos), emphasizing to
them the mutual benefits of implementing EMSL recommendations.
Status Report:
Resistance of other major stakeholders in Power sector/NESI and other allied
industries to accept the enforcement roles of EMSL in technical inspection, testing
and certification.
Mitigation:
Paid courtesy calls and instituted collaboration/technical co-operations with
NDPHC, SON, Consumer Protection Council (CPC), and Department of Petroleum
Resources (DPR).
Status Report:
Lack of risk management policy in the organisation.
Mitigation:
Meetings with Development Partners/Consultants i.e. JICA, DFID etc. to formulate
risk management policies for the organisation.
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Status Report:
Delayed recruitment of staff
Mitigation:
Advertised for job openings, interviewed the shortlisted individuals and recruited
successful candidates to fill the available vacancies.
Status Report:
No recurrent budget provision for Y2014
Mitigation:
Presentations made to Ministry of Finance Budget Office leading to inclusion of
these budget heads in Y2015 budget.
Status Report:
Lack of enforcement authority.
Mitigation:
During a National Assembly Public Hearing on the private member NEMSA bill,
Electricity Management Services Limited (EMSL) made a presentation on the
critical roles and responsibilities of EMSL in NESI and the need to pass the NEMSA
bill by the National Assembly.
Status Report:
Test equipment shortfall
Mitigation:
Provisions have been made to procure more sophisticated test and measurement
equipment in Y2015 budgetary allocation.
LONG TERM OUTLOOK
To be self-sustaining by the Year 2018.
To establish additional Technical Inspectorate Field Offices to cover the entire country more adequately and bring EMSL services closer to the people.
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To establish additional Meter Test Stations to cater for the increased demand for the deployment of energy meters in the power sector.
Acquire the permanent building property for the corporate headquarters.
Acquire state-of-the-art test equipment for the Technical Inspectorate Field offices and the Meter Test Stations.
Human capacity development geared towards increasing efficiency and enhancing service delivery.
To establish a Research & Development team to improve on existing deployed technologies and strive to adapt best world practices in the discharge of its statutory duties.
To carry out massive electronic, internet and print media awareness campaigns on the need to utilise electricity safely, wisely and efficiently.
To establish database for power sector information access and dissemination.
RECOMMENDATIONS
1. EMSL to be self-sustaining in a couple of years – 2 to 3 years 2. EMSL would require a lot of Human Capacity Development to provide its staff
with requisite skills and hands-on experience for the deployment of new technologies in inspection, testing and certification.
3. To bring services closer to the people, EMSL requires the establishment of additional Inspectorate Field Offices and
4. Also, EMSL needs to establish additional Meter Test Stations, remodel and upgrade existing ones.
5. Furthermore, the capacity to deliver quality service to NESI and other allied industries would be enhanced through the procurement of specialized test equipment and test vans.
6. EMSL will require adequate funding for enhanced service delivery. 7. EMSL will require a legal backing to effectively carryout its mandates.
HUMAN CAPITAL DEVELOPMENT
Approved Organisational Structure is in place.
Job evaluation, Job description and a Performance Monitoring System are being developed and deployed for implementation.
Total staff strength is 375
Outstanding vacancies are nil.
Comprehensive Human Capital Development Training Programme approved for 2015 – 2016
Terms and Conditions of Service and Staff Welfare to be developed and documented in a Staff Handbook.
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FINANCIAL STATUS
The year 2014 Capital Budget appropriation was N2,279,570,000.00. The releases made from January to December 2014 was N1,537,820,122.24 out of which the sum of N1,037,820,122.24 was accessed, leaving a balance of N500,000,000.00 which is still awaiting release from Office of Accountant General of the Federation.
In 2014, the total contracts awarded as Capital projects was N1,615,771,843.96 and these were executed to various stages of completion and payments made commensurately. However, the total outstanding liability to date is about N584m. The outstanding release of N500,000,000.00 being expected from OAGF is to be deployed towards offsetting these outstanding Liabilities.
Total funds received from the Market Operators was for payment of salaries to retained technical staff of defunct PHCN. To date, N289,811,958 has been released, N258,201,308 already paid out while the balance of N31,610,650 is being processed for payment at the time of this report.
CONCLUSION
Enforcement of Technical Standards, Inspection, Testing and Certification is a very
important aspect of managing the growth of the Electricity Industry in any Nation. As
a result, most countries have created dedicated agencies for specific functions of
enforcement of technical standards and safety regulations, inspection, testing and
certification services for monitoring and evaluation of the power sector.
Thus, the establishment of EMSL with the mandate to enforce technical standards and
specifications in the entire power sector value chain and allied industries became one
of the most apt policies of Government.
The transfer of the staff of the EIS department of the Federal Ministry of Power along
with the test equipment and test vehicles provided a major platform for enhanced
performance of EMSL in providing quality testing, inspection and certification services
to NESI.
EMSL has extensive collaboration with Standards Organisation of Nigeria (SON), and
serves in several of the latter‟s technical committees in making codes and standards
for the country. Through this collaboration, EMSL has concluded plans for the
publication of the revised Electric Concrete Poles Manufacturers Directory come June
2015.
The impact of EMSL in the power sector has been established in the quality, efficient
and professional manner with which it has carried out independent assessment of
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power projects being undertaken by NDPHC/NIPP, TCN, the Discos, IOCs (Shell,
Chevron, Agip, Mobil etc) electrical installations and some Independent Power
Producers (IPPs); such as Paras Energy and Standard Metallurgical Company (SMC).
RURAL ELECTRIFICATION AGENCY (REA):
1.0 INTRODUCTION
The Rural Electrification Agency year 2014 Annual Report consists of the Agencies
activities, achievements, challenges, and the way forward. A brief of the 2013
Analysis of Project execution, completed grid and Solar Projects in the year 2014
and the projected budget for the year 2015 is discussed as well.
Rural Electrification Agency (REA) was established by Sections 88 -91 of the
Electric Power Sector Reform Act (EPSRA) 2005.
MANDATE
I. To promote Rural Electrification in Nigeria
II. To coordinate Rural Electrification programmes in the country
III. To mobilize investible capital for sustained private sector driven
investment in rural electricity development in Nigeria through the
administration of the Rural Electrification Fund (REF).
2.0 ACTIVITIES FOR THE YEAR (2014) UNDER REVIEW
During the year under review, REA made collaborative efforts with public private
sector participants for rural electrification development stated hereunder.
S/NO NAME OF ORGANISATION(S)
PURPOSE
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1 Nigeria Infrastructure Advisory Facility (NIAF)/Nigeria Electricity Regulatory Commission (NERC)/Federal Min. of Power (FMoP)
In conjunction with REA, reviewed the Draft for REA Strategy & Implementation Plan
2. Japanese International Corporation (JICA)
On-going for the production of Rural Electrification Master Plan
3 German International Corporation (GIZ)
Collaboration on Centre for International Migration and Development (CIM) expert and renewable energy project in the zones.
4. ECOWAS Renewable Energy & Energy Efficiency ( ECREE)
Participation in the draft policy on ECOWAS Renewable Energy & Energy Efficiency
5. Federal Ministry of Power To facilitate the production of Action Plan and Position Paper on Rural Electrification for the National Council on Power )NACOP)
6 Inter Governmental Relations
REA is part of the media group that designed and implemented a communications Stakeholder Engagement strategy.
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2.0 ACHIEVEMENTS
2.1 Reviewed the Draft Rural Electrification Strategy and Implementation
Plan in line with the comments and observations of the Presidency
and resubmitted same. (Appendix I)
2.2 The Agency has strictly adhered to the procurement process
according to the provisions of the Public Procurement Act 2007.
2.3 The Agency also carried out Surveys, Designs, Procurement and
Award of 211 nos. new rural electrification projects in the year 2014
Capital Appropriation. ( Appendix II)
2.4 The Agency has released the performance bond to the contractors
that have completed their projects for the year 2013.
2.5 The Agency also carried out series of Procurement activities that
involved the use of National Shopping method for Goods, Works and
Non-Consultant Services. This involved projects with values less than
Two million five hundred thousand naira (N2, 500,000).
2.6 Contracts were awarded to successful bidders and out of those
successful contractors that mobilized to site, some of them
completed their projects before the end of the year 2014.
2.7 The Agency embarked on technical monitoring and evaluation
exercise in the second quarter of year 2014 to determine the level of
implementation of the projects. (Attached is Appendix III)
2.8 There were a number of reviews carried out on Project and Business
Development Plans with some prospective Investment stakeholders
that applied to partner with us.
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2.9 In 2014, the Agency carried out sensitization and formation of Rural
Electricity Users Cooperative Society (REUCS) tours in some selected
villages of the 36 states of Nigeria to sensitize them on the need of
ownership and understanding of the productive uses and benefits of
the networks to their communities and to improve on the economic
activities in their localities.
2.10 The REA’s quarterly journal was also published, and it is a very
informative document that speaks about the activities and
development of the Agency.
2.11 Some Management staff were promoted from Deputy Directors to
Directors during the year under review. Other cadres of staff were
also recruited into some existing vacancies in the Agency as well.
2.12 The Agency recorded 99% performance in personnel expenses,
99.5% performance of overhead expenses was utilized, while Capital
Appropriation performance was 81%. Attached is the balance of
payments made in year 2014. (See Appendix IV)
2.13 Revenue was internally generated from the sale of bid documents
and a proceed of ₦84, 024,741 was realized.
2.14 Income earned on the Rural Electrification Fund was ₦85,000,000
in the year under review bringing the REF to ₦2,104,266,885.27
2.15 The Agency completed 73 nos. projects as at the time of compiling
this report and more projects are at the verge of being completed in
a few weeks time. (See Appendix V) for completed projects.
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2.2 SUMMARY OF COMPLETED PROJECTS (GRID & SOLAR) IN YEAR 2014
APPROPRIATION
S/NO ZONES NEW PROJECTS
ON GOING PROJECTS
TOTAL
1. S/E 10 0 10
2. S/W 19 0 19 3. S/S 10 1 11
4. N/C 11 5 16
5. N/E 1 2 3 6. N/W 4 10 14
TOTAL 40 17 73
2.3 CHALLENGES
2.3.1 Non approval of The Draft Strategy & Implementation plan has
hindered REA from starting pilot projects that would have attracted
investors and Donor Agencies to partner with the Agency in rural
electrification.
2.3.2 Consistent under funding of the overhead budget and late releases of
funds have hampered early take off of the activities of the Agency. It
has also slowed the procurement processes and expected higher
levels of project executions.
2.3.3 The Agency’s debt profile is very high due to insufficient and
untimely releases of funds to pay for projects executed by its
contractors (Appendix VI for debt list)
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2.3.4 Due to insufficient overhead, staff training in the year 2014 was
limited.
2.3.5 Lack of continuous funding of the REF as stipulated in the EPSR Act
2005.
2.3.6 National Assembly approvals are still pending in respect of
remittances due REA from NERC as provided in the EPSR Act of 2005.
2.3.7 There are no sufficient basic office working tools in the Agency.
2.3.8 There is inadequate staffing in most of the Directorates of the
Agency.
2.3.9 Some projects were abandoned, and others vandalized due to lack
of continuous funding
2.3.10 The Agency has not been able to renew its insurance policies on all
assets and human policies, thereby contravening the labor law that
stipulates insurance coverage for any organization with 5 or more
employees.
2.4 THE WAY FORWARD
2.4.1.1 There is need for final approval of the draft Strategy and
Implementation Plan to enable us commence the major
activities in renewable energy projects.
2.4.1.2 It is recommended that there should be continuous funding of
the Rural Electrification Fund (REF).
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2.4.1.3 A special fund should be set aside annually, for monitoring,
and evaluation to ensure efficient, effective and successful
implementation of our projects. These measures when
implemented will save us from the hassles of dearth of
information and data for external request from the Ministry of
Power, Donor Agencies, stakeholders, etc.
2.4.1.4 The Agency requires timely approvals and funding to
commence the procurement processes early enough and
execution of previous years uncompleted projects
2.4.1.5 The Agency requires increased funding of the overhead and
Capital Allocation to be able to carry out staff training,
improved monitoring, supervision as well as promotional
programmes of its projects.
2.4.2 REA’S STRATEGIC FOCUS
REA has strategically positioned itself to address and manage the
challenges arising from the emerging deregulated electricity market.
This involves putting in place all conditions precedent for the
application of the Rural Electrification Fund (REF) especially in the
off-grid renewable projects (selection criteria, business models,
private investors and donors)
2.4.3 INVESTMENT OPPORTUNITES
REA is in a strong position to deliver a reliable, affordable and
environmentally friendly and sustainable energy. Renewable energy
will be used to solve the energy problem in a conducive way and
performance will be driven by favorable political, economic and
demographic realities.
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It is expected that a bulk of the investment need will come from the
private sector, bilateral and multilateral agencies, and the Federal
Government of Nigeria (FGN).
2.4.4 FLARED GAS POWER
Nigeria holds the largest natural gas reserve in Africa but has limited
infrastructure in place to develop the sector which leads to the
flaring of the gas. These flared gases can be used to provide captive
power for the communities in the Niger Delta.
Multinational oil companies, bilateral and multilateral funding
agencies, NGO’S as well as power companies can harness these
flared gas to provide electricity in the region under a public and
private sector participation arrangement.
2.4.5 DAM WASTING ASSET
Nigeria has about 200 dam wasting assets which hitherto were
constructed for purely irrigation purposes some can be adapted for
small hydro electricity generation.
2.4.6 RENEWABLE ENERGY (SOLAR)
Nigeria is endowed with an annual average daily sunshine of 6.25
hours, ranging between 3.5 hours at the coastal areas and 9.0 hours
at the far northern boundary and an annual average daily solar
radiation of about 5.25kw/m2/day at the coastal area and
7.0kw/m2/day at the northern boundary. There are many potential
sites for solar electricity deployment.
2.4.7 INVESTMENT STRATEGY
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Rural Electrification networks undertaken by the Federal
Government could be advertised to DISCOs.
With increased private investment in the electricity industry (power
sector), electricity generation and distribution will increase
significantly hence the various rural network expansions undertaken
by the Federal Government could be handed over to distribution
companies (Discos) at no cost so as to encourage them, or they could
be made to pay the cost over a period of time.
Apart from the brown- field investment opportunities that
privatization provides, green field opportunities still remains in
Nigeria indeed, early opportunities are still available for local and
foreign investors in the rural areas.
2.4.8 FEDERAL GOVERNMENT INCENTIVES
The following incentives are provided for by the Government of
Nigeria to encourage private investors.
Up to 5years Income Tax Holiday under the Pioneer Status for
Manufacture of electrical appliances, equipment and parts.
0% import Duty on Power Generation equipment meant to use
Nigerian gas as source of power.
Very low VAT regime – 5%
Capital & Investment Allowance (20% of cost per annum for 5years)
which can e carried forward and used after the tax holiday period
Power plants using gas are assessed under the companies income tax
act at a reduced rate of 30%
100% foreign ownership of electricity plant
Repartition of 5% withholding tax
Putting in place necessary foundations (e.g. reliable transmission
infrastructure) that would create a level playing ground for efficient
private sector participation in the supply of electricity.
2.5 CONCLUSION
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Inspite of the pattern of funding as shown in the table below with
particularly very low overhead cost to drive the execution of the capital
budgets, the Agency procured 360 nos Rural Electrification Projects in Year
2013 and 250 in Year 2014. Out of these, over 250 projects were completed
in Year 2013 and 73 projects also completed in Year 2014.
However, most of these projects are now owed as debts to the contractors
due to insufficient and untimely releases of funds.
BUDGET ALLOCATION
AMUONT RELEASE
AMOUTH UTILIZED
REMISSION TO CONSOLIDATED REVENEUFUND ACOUNT
REMARK DEBT
Y2013 CAPITAL 16.87B PERSONEL 583M OVERHEAD 60.87 SERVICE WIDE 83.21M RECURRENT REVENUE 118.48M
9.945B 530.45M 60.87M 83.21M NILL
9.916B 507.57M 60.82M 83.21M NILL
28.8M 22.88M 48,580.13 NILL 118.48M
NO CASH BANKING REMITTED TO CRF
DEPBT 2.8B
Y2014 CAPITAL: ON-GOING, 8.99B NEW & DEBT CONSTTUENCY 1.21B PERSONNEL 659.3M OVERHEAD 146.71M REVENUE 84.024M
3.44B (38%) 562.93M (46%) 575.4M (88%) 88.272M (60%)
2.796B (81%) 315.72 (56%) 575.3M (99.9%) 88.270M(99.5%
648.2M 247.2M 124,747.83 2,168.79 83.0M
NO CASH BANKING REMITTED TO CRF
DEBT Including previous year rose to7
Y2015 BUDGET PROPOSAL ENVELOPE AS SHORTFALL
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CAPITAL 6.61B
PERSONNEL 1.004B
OVERHEAD 550M
500M
738.427M
135.34M
6.11B
265.6M
414.66
NIGERIA BULK ELECTRICITY TRADERS (NBET)
VISION
A Nigeria where electricity is taken for granted.
MISSION
To be an effective and efficient catalyst for private sector investment into the electricity
industry in Nigeria.
OVERVIEW
The creation of the Nigerian Bulk Electricity Trading (NBET) Plc is at the heart of the power
sector reforms. NBET, through the negotiation of bankable Power Purchase Agreements
(PPAs), gives confidence to prospective IPPs that the government will ensure the offtake of,
and payment for power generated and supplied to the national grid. 2014 marked NBET’s
third anniversary. In its three years of existence the organisation has rapidly grown in its
ability to meet its mandate.
NBET is tasked with the following responsibilities:
Management of portfolio of over sixty (60) brownfield and greenfield unsolicited
applications towards meeting the requirements for negotiations and eventual
execution of a PPA
Management of the competitive bulk power procurement process
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Develop and negotiate Power Purchase Agreements (PPAs) with IPPs
Develop framework for management of the PPAs and Vesting contracts for
successor GENCOs and DISCOs
Engage GENCOs and DISCOs to ensure Conditions Precedents in the PPA and
Vesting contracts are satisfied in accordance with pre-TEM requirements.
UPDATES
One of the hallmarks of NBET’s achievements in 2014 was the Presidential Ground
Breaking and Foundation Laying Ceremony of Azura-Edo IPP
The Azura-Edo IPP comprises a 450MW open cycle gas turbine power station. The
overall transaction is underpinned by financial support provided by the Federal
Government of Nigeria through a Put and Call Option Agreement agreed by Dr
Ngozi Okonjo-Iweala, the Coordinating Minister for the Economy and Honourable
Minister of Finance; complementing the Power Purchase Agreement that was
signed in 2013 between Azura and the Nigerian Bulk Electricity Trading PLC (NBET).
The Azura-Edo IPP is the first Nigerian power project to benefit from the World
Bank’s ‘Partial Risk Guarantee’ structure.
NBET has finalized Addendum to Azura PPA and received approval from NERC for
the execution of the Addendum to Azura Edo IPP PPA with the attendant tariffs.
Received grant of “No Objection” from the Bureau of Public Procurement (BPP) to
the execution of Azura’s PPA.
The Nigerian Bulk Electricity Trading Plc. (NBET), CLDP and USAID partnered to
host a regional stakeholders’ workshop entitled Refining the Annotation of Africa
Power Purchase Agreements: A Regional Stakeholders Workshop. The three day
regional workshop focused on:
o Acquainting Power Africa governments and private sector stakeholders in the
West African Sub-region with the draft annotated PPA tool, which delineates
choices and consequences to a core set of PPA provisions;
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o To further develop and refine the annotated PPA provisions, with the added
perspectives and input from relevant government and private sector
stakeholders in West Africa.
NBET has also recorded substantial progress in delivering on its mandate as follows:
o In addition to the its existing contracts, PPAs with each of the six (6) successor
generation companies and Vesting Contracts (VC) with each of the eleven (11)
successor distribution companies, NBET has executed PPA agreements with the
following brownfield IPPs
Omotosho Power Plant (305MW)
Olorunsogo Power Plant (305MW)
Three of River State Government’s First Independent Power plants
o Omoku (150MW)
o Eleme (111MW)
o Trans Amadi (100MW)
o NBET has finalized the form Put and Call Option Agreement (PCOA) which provides
for Government’s purchase of the power plant from a developer in the event of
PPA termination.
o Three additional projects were nominated for Partial Risk Guarantee (PRG) namely:
Nova Solar (30MW), Pan-Africa Solar (24MW), and Proton Energy (150MW).
o NBET in collaboration with Nexant has developed Form PPAs for renewable energy
projects that is adaptable for both solar and wind.
o Finalized draft PPA and PCOA for the on-going privatization of 10 NDPHC power
plants with a total combined installed capacity of 4575MW. Both drafts were given
to prospective investors as part of the package of transaction documents
Negotiations are progressing between NBET and some front-runner IPPs such as:
o Zuma Energy 1200MW Coal in Kogi State and gas project in 400MW gas fired
power plant in Egbema, Imo State
o Century Power for a 495 MW gas fired power plant in Okija, Anambra State
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o ExxonMobil / MPN for a 530MW gas fired power plant in Qua Iboe in Akwa Ibom
State
o JBS Wind Power for a 100MW a wind power plant Maraban Pushit, Plateau State
o Nigerian Solar Capital Partners in a 100MW solar power plant in Bauchi State
o Pan Africa for a 54MW Solar power plant in Kankia, Katsina State
o Bresson A.S for a 60MW gas fired power plant in Magboro, Ogun State
o Proton Energy for a 150MW gas fired power plant in Sapele, Delta State
o KVK Power (Nig) PVT Limited for a 50MW solar power plant in Yabo, Sokoto
State
o Pan-Africa Solar Limited for a 24MW solar power plant, in Kankia, Katsina State
o Nova Solar Farm Limited for a 30MW solar power plant in Kankia, Katsina State
o LR Aaron Power Limited for a 100MW solar power plant in Gwagwalada, FCT
o Ikot Abasi Power for a 250MW gas fired power plant in Akwa Ibom State
o Oma Power (Geometric) for a 500MW gas fired power plant in Osisioma, Abia
State.
Power Contract Management
o Commenced Shadow Trading to ensure full scale testing of invoicing, collection and
payments systems to be implemented at the onset of the Transitional Stage
Electricity Market
o Legal and Contract Management concluded the novation of Shell and AGIP PPAs.
o Legal and Contract Management progressed discussion with international
customers with a view to reviewing the tariffs, to mitigate financial risk to NBET
(June 2014).
o Build comprehensive database for all executed contracts: Contacts. Tested Capacity,
Escalation etc.
o NBET participated in the review of NERC’s Interim Market Rules (version 2) which
came into effect on 1st April 2014.
o Engaged extensively with the System Operator, Generation Companies and
Distribution Companies through workshops to ensure smooth data flow for the
management of the national grid and the respective contracts
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Organized Enlightenment Workshop for the New Successor GENCOs and DISCOs in
February 2014
o NBET provided clarifications to key clauses within the PPAs or Vesting Contracts;
o NBET presented the Conditions Precedent (CPs) that must be met to activate the
PPAs and Vesting contracts. Activation of the PPA and Vesting Contracts is one of the
requirements for commencement of the Transitional Electricity Market (TEM)
o NBET provided a detailed presentation on the concept Available Capacity as set out
in the PPAs to boost industry knowledge on the subject.
o The workshop had in attendance key industry players such as the GENCOs, DISCOs,
MO, SO, TSP and NERC.
o Organized sensitization workshop for market participant’s i.e GENCOs, DISCOs, TCN
in November, 2014 in preparation for commencement of Transitional Electricity
Market.
Investment of Eurobond Proceeds.
o On the 24July, 2014 NBET and the Nigeria Sovereign Investment Authority (NSIA)
signed a Funds Management Agreement for the $350M allocated to NBET from the
$1B Eurobond issued by the Federal Government of Nigeria (FGN). This contract
signing is to earn interest for the Bulk Trader to offset some of the interest payments
until such a time when NBET will require the funds.
Engagement of Payment Agent.
o NBET and Stanbic IBTC have signed a contract appointing Stanbic IBTC as the
payment management services provider (payment agent) to the Bulk Trader. This
appointment is a critical marker for NBET’s preparation for the Transitional
Electricity Market (TEM).
Optimize Investment of NBET idle fund
o Generated over NGN1.67 billion income from investment of NBET idle funds
GOING FORWARD
Timely processing on invoices and payments to all counterparties
Commencement of competitive bulk procurement for additional capacity
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Seek approved investment opportunities to improve resources for operational and
working capital
Figure 2- Mr. Rumundaka Wonodi, MD/CEO NBET, the Chairperson of NBET, Dr. (Mrs)
Ngozi Okonjo-Iweala, & the Vice Chairman Mr. Saka Isau SAN at NBET’s Board
Meeting in Abuja.
Figure 3 - The MD/CEO of NBET, Rumundaka Wonodi; the Honourable Minister of Power, Prof. Chinedu Nebo exchanging greetings with the with Hon. Mohammed Kumalia a member of the Board; the former Vice Chairman of the Board, Alhaji Saka Isau, SAN, looks on at NBET’s recent Board Meeting in Abuja
151
Figure 4 - Mr. Waziri Bintube, CFO of NBET; Mr. Rumundaka Wonodi, MD/CEO of NBET; Mr. Uche Orji, MD/CEO of NSIA; and Mrs. Stella Ojekwe-Onyejeli, ED & Chief Risk Officer of NSIA at the NBET-NSIA Eurobond Funds Management Agreement signing ceremony
Figure 5 - Mr Waziri Bintube (CFO NBET), Mr. Rumundaka Wonodi (MD/CEO NBET),Mr. Joseph Tegbe Partner (KPMG); Mr. Yinka Sanni (MD of Stanbic IBTC) &Mr. Inwang Akpan (Head TPS Sales, Stanbic IBTC) at the recent contract signing appointing Stanbic IBTC as
payment management services provider to NBET, in Abuja
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CONCLUDING REMARKS
The year 2014 was a year of landmark activities for NBET that help moved Nigeria closer
to the actualisation of “a Nigeria where electricity is taken for granted”. As an
organisation, NBET continues to impact the Sector. As one of the leading
implementation institutions for success of the post privatised sector, we will continue to
work with our stakeholders, including the Ministries of Power and Finance respectively,
NERC, BPE PTFP, and NELMCO towards the attainment of critical milestones. NBET
remains confident that with the continued support of these partners, it is on course to
deliver on its mandate and achieve it mission, “to be an effective and efficient catalyst
for private sector investment into the electricity industry in Nigeria”.
NIGERIA ELECTRICITY LIABILITY MANAGEMENT LTD/GTE:
Figure 6 - Nnamdi Ezera, Senior Counsel Commercial Law Development
Program (CLDP), US Department of Commerce; (b) Prof Onyia Chief of Staff to
the Honorable Minister of Power (c) Sharon Pauling Director, Economic Growth
and Environment Office, USAID & (d) Rumundaka Wonodi, MD/CEO NBET at
the Refining the Annotation of Africa Power Purchase Agreements: A Regional
Stakeholders Workshop a CLDP Power Africa initiative coordinated by NBET
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WHO WE ARE
We are the Nigeria Electricity Liability Management Ltd/Gte (NELMCO).
We are one of the “other transferees” companies envisaged under S.22 (1)
EPSR Act. 2005.
Our set up was approved as one of the successor companies of PHCN by the
National Council on Privatisation (NCP).
We were incorporated under the Companies and Allied Matters Act, 1999 in
August, 2006 as a company limited by guarantee, with Registration Number
RC664658.
Our shareholders are the Federal Ministry of Finance Incorporated (MOFI) and
the Bureau for Public Enterprises (BPE), providing guarantee to the extent of
90% and 10% respectively.
OUR MANDATE
To assume and administer the stranded debts and assets of PHCN in pursuant to
the provisions of the EPSR Act 2005.
To assume and manage the pension liabilities of employees of PHCN.
To hold the non-core assets of PHCN, sell or dispose of or deal in any manner
for the purpose of financing the payment of debts or other related matters.
To take over the management and settlement of PHCN‟S Power Purchase
Agreement (PPA) debts as may be determined by the National Council on
Privatisation from time to time.
To sell, mortgage, dispose of, deal in any manner of the property or assets of
the company as may be expedient with a view to promoting its objects.
To do all such other things as are incidental or maybe thought conducive to the
attainment of the above objects or any of them.
Our Vision, Mission & Core values
VISION
To be a world-class manager of liabilities and stranded assets in a transitional
electricity market
MISSION
To ensure sanctity of contracts and settlement of pension and third party liabilities
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CORE VALUES
Honesty, Integrity, Accountability and Transparency
OPERATIONAL STRATEGY:
NELMCO‟s operational strategy will be as follows:
Engage professionals to provide consultancy advisory and due diligence services
over stranded Debts and Non-Core Assets.
Engage in transparent and competitive bidding process in the disposal of the
Non-Core Assets.
Engage the Union of PHCN Pensioners and negotiate transfer and harmonization
of pensions.
Engage PHCN Creditors and negotiate settlement modalities.
Engage DMO and MOFI on foreign debt relief and swaps.
BUSINESS STRATEGY:
Settle inherited PPA liabilities, pay monthly pensions of PHCN Pensioners.
Use of reputable professional and consulting firms to provide advisory services
in the areas of:
- Actuarial valuation, Property valuation, Legal search, Negotiation skills and
Capacity development.
OUR CORPORATE GOVERNANCE
NELMCO is supervised by a Board that directs the activities of the management.
The membership of the Board is as follows:
1. Hon. Minister, Federal Ministry of Finance - Chairman
2. Hon. Minister, Federal Ministry of Power - Member
3. Director General, Bureau for Public Enterprises - Member
4. Director General, Budget Office of the Federation - Member
5. Director General, Debt Management Office - Member
6. Managing Director/CE NELMCO - Member
MANAGEMENT
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The management of the company is responsible for the implementation of the
mandate of the company under the supervision of the Board. The management of the
company is composed of the following:
1. Managing Director/CE
2. Executive Director - Operations
3. Executive Director - Corporate Services
4. Executive Director - Pension Management
5. Head Legal/Secretary
The management is supported by the Internal Audit Department.
OPERATIONS (ASSET & LIABILITY MANAGEMENT)
The purpose of transferring PHCN Liabilities to NELMCO is to provide investors with
some degree of confidence and comfort that they will not be encumbered with
PHCN‟s huge debt liabilities. NELMCO as an undertaker is to guarantee or assure the
creditors that they will not be short changed and that they will get paid. Therefore,
NELMCO‟s position is of strategic importance to the privatization process.
ACHIEVEMENTS:
NELMCO collated and updated Non-Core Assets records transferred to it.
Reconciled various claims of liabilities and updated the database.
Third party creditors inherited from defunct PHCN received attention.
Many sundry local creditors got paid.
Settlement of indigenous contractors‟ liabilities through intervention
fund from the Federal Ministry of Power.
NELMCO collaborated and interacted with other relevant government
agencies to ensure the success of the Federal Government Power Reform
Programme.
CHALLENGES:
Inadequate budgetary provisions to pay off the huge inherited PHCN liabilities
(legacy debts, PPA unpaid bills, other obligations).
NELMCO is currently constrained from selling the Non-Core Assets.
Inability to conduct due diligence and valuation exercise due to lack of funds.
Delay by NERC to implement a top up “Reform charge” on current tariff to
compliment budget appropriation for liabilities settlement.
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WAY FORWARD:
Better budgetary funding for NELMCO to pay creditors.
Implementation of top up “Reform charge” by NERC on current tariff.
Authorize NELMCO to sell the Non-Core Assets.
PENSION MANAGEMENT
Considering the PHCN Pensioners and the need for the continuous payment of their
pension entitlements and other benefits after the sale and transfer of PHCN to the
new investors, NELMCO is saddled with the responsibility of assuring the unions that
pensioners will continue to receive their monthly pension and other retirement
benefits as at when due in order to avoid any hiccup in the Power Sector Reform.
ACHIEVEMENTS:
Management of PHCN staff pensions with the end objective of having a
comprehensive pensioners‟ nominal register through the compilation of
data collected from the biometrics report.
Commencement of the payment of PHCN monthly pensions since August
2012, and ensuring that workers receive their retirement benefits as at
when due.
Successful updating of pensioners bank payment details (NUBAN) and
payment of outstanding arrears owed pensioners by virtue of account
number validity.
Stoppage of cooperatives‟ deductions contributions of the different
cooperatives and grossing up their deductions to their monthly pensions.
Development of a cordial working relationship with the NUP (Electricity
sector)
Payment of arrears of cooperatives‟ deductions to the affected
cooperatives in PHCN
Monitoring pensioners‟ enquires and following up with responsible
officers in order to give them (pensioners) appropriate and prompt
feedback.
CHALLENGES:
Delay in finalizing the PHCN biometric exercise carried out in 2013.
Challenge of PHCN Pensioners‟ harmonization exercise that will result in about
50% increase in monthly pension obligations.
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Not having pensioners‟ staff files in NELMCO to ascertain the correctness of the
information as contained in their compensation and Benefit letters.
Management of data and information from the database not easily accessible
for purposes of investigations and enquires from pensioners due to
inconsistency in pensioners details received.
WAY FORWARD:
Conclusion of PHCN Pensioners‟ Biometric exercise and transfer of records to
NELMCO so as to mop up current database.
Increased budgetary funding in order to meet up with Pension obligations after
the conclusion of the harmonization exercise.
NATIONAL POWER TRAINING INSTITUTE OF NIGERIA (NAPTIN):
The National Power Training Institute of Nigeria (NAPTIN) was established on 23rd
March 2009 and commenced full operation in September, 2009. The primary purpose
for its establishment is to provide training for power sector personnel and coordinate
training activities in the sector. In pursuit of this mandate, NAPTIN has taken over the
management of existing seven regional training centres of PHCN. NAPTIN Corporate
Headquarters is situated at Plot 1124, Eldoret close, Wuse 2, off Aminu Kano
Crescent, Wuse 2, Abuja.
NAPTIN plans to embark on the development of a world-class training program which
will require many international experts working with Nigerian experts. NAPTIN
training focus will be along the following themes: Technical course (covering
Generation, Transmission and Distribution), Management/Computer Application skills,
Commercial/Financial, Leadership/Business, Regulatory/Reform courses.
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Business Objectives / Goals
To create a strong, dynamic and world-class power training institute called NAPTIN.
To create a Cadre of Expert and professional Trainers. To develop partnerships, affiliations and linkages with Local and International
Training Institutes and Universities. To develop a marketing strategy to market the value of training in power
utilities in Nigeria. To Design, Develop, and Deliver a wide variety of Training Courses that will
enhance the skills and capacity of both technical and non-technical power utility personnel.
To publish various professional, informative and educative Journals, and newsletter.
To a create an Interactive, informative website on Training. To achieve certification for our Core Course. To obtain in the long term, International Accreditation of NAPTIN from a
Recognized Body. To develop a marketing strategy for providing training to utilities outside
Nigeria in the Long Term. To become a Professional Diploma/Degree awarding institute in utility
Management, Power Engineering and Other Similar Fields in the long term.
NAPTIN TRAINING CENTERS
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TRANSMISSION COMPANY OF NIGERIA (TCN):
Introduction
Background
The Transmission Company of Nigeria (TCN) is being managed by Manitoba Hydro International
(MHI), the Government designated management contractor. TCN is one of the successor
companies of Power Holding Company of Nigeria (PHCN) charged with the responsibility of
wheeling electric power from the various power stations to the load centres across the
country and beyond. TCN consists of three Business Units: Transmission Service provider
(TSP), System Operator (SO) and the Market Operator and operates two licenses: 1 TSP
License and 1 ISO License for both SO and MO functions.
To ensure an efficient and affordable transmission grid, system operation and improved
service delivery, TCN is responsible for the following crucial activities:
• Management of assets of the high voltage transmission system, system operations
as well as generation dispatch functions.
• Operate as the provider of open access transmission service based on regulated
transmission tariff and non-discriminatory system operations and economic
dispatch services within a regulatory framework provided by the Nigerian
Electricity Regulatory Commission (NERC), the Grid Code and the Market Rules.
• Load forecasting and system expansion planning.
• Acquiring the necessary ancillary service for defined reliability and quality service
standards.
• Managing the market settlement system.
• Providing market administration services for the Wholesale Electricity Market.
• Development of the network through the construction of new transmission lines
and substations for efficient transmission and system operations with respect to
the provisions of the Grid Code, Distribution Code and Market Rules.
Policies Schemes & Initiatives
Programme 1: Corporate Culture & Business Positioning.
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As part of the Management Contractor was appointed in August 2012 to midwife the paradigm
change at TCN from parastatal to „going-concern‟ business mode. Preparing TCN to operate
successfully in a commercial and contractually-driven market required a significant change in
organisational practices and processes and invariably in corporate culture
Activity A: Right-sizing:
Status Report:
Right sizing exercise was successfully completed at the end of December 2013. 522
new engineers have since been integrated into TCN. Extensive training programs
have been developed and are being carried out.
Impact Report:
With recruitment of new engineers, organisational size and balance of technical/ non-
technical staff more in line with a transmission company and improved effectiveness and
responsiveness.
Issue Report:
N/A.
Activity B: 5-Year Business Plan
Status Report:
Comprehensive Five Year Business Plan was completed for TCN and each of the Business
Units. The Five Year Business Plan incorporated the expansion costs and funding associated
with the Five Year Network Expansion Plan. A Cash Constrained Budget was also completed
for 2014 and 2015 to reflect the reality of limited revenues.
Impact Report:
Improved forecasting and integration of Five Year Network Expansion Plan.
Issue Report:
Operational and capital funding sources still not concluded.
Activity C: Regulatory Licenses
Status Report:
Formal Operating Licenses for each of TSP and ISO were signed with NERC. TCN has been
devolved into two business units, TSP and ISO, as part of the overall ring fencing Initiative.
Organization charts and job descriptions have been completed for all staff.
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Impact Report:
Separation of the technical and commercial management of system with the maintenance and
expansion of the network.
Issue Report:
N/A
Activity D: Business Process Re-engineering
Status Report:
Banking transactions have been moved to electronic platforms where technically
possible. 99.9 per cent of the FGN Revenues released in 2014 were expended.
More stringent attention is being paid to procurement guidelines. Procurement
plans were prepared for 2014, and preparation of 2015 plans are underway.
The Enterprise Resource Plan (ERP) Project was initiated. Tendering for the
supplier has been completed and a winning bidder identified.
Review of existing Treasury function within TCN with recommendations in line
with best practices.
Impact Report:
Improved organisational efficiencies experienced (Timely employee payment and pension
contributions). Swifter payments of contractors when funding available.
Issue Report:
Continuous and targeted capacity building required.
Activity E: Human Resources Remodelling & Development
Status Report:
Recruitment of 170 new staff from 3,000 applications has been completed.
Organization charts (TSP and ISO) and Job Descriptions (403) completed for all
staff.
SO has been restructured into eight operational regions.
Succession plans for 50 top level management positions have been completed.
Management development plans have been completed for 104 senior positions.
Skill Development Plans development for 1,623 staff commenced and will be
completed before July 2015.
Employees Conditions of Service updated.
Training Policy created for TSP and ISO.
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Impact Report:
Improved organisational efficiencies experienced.
Issue Report:
N/A.
Programme 2: Improved Technical Performance.
Activity A: System Reliability & Network Stability:
Status Report
Spinning reserves contracts totalling 295 MW signed.
Under Frequency Load Shedding program implemented. A cross-functional team
was established to study, document, and implement a new UFLS (Under
Frequency Load Shedding) scheme.
Black start contracts put into place.
Impact Report
System collapses reduced from 22 (in 2013) to 9 (in 2014) and better management of system
frequency
Issue Report
Programs still ongoing.
ACTIVITY B: IMPROVING NETWORK COMMUNICATIONS:
Status Report
Test equipment requirements were carefully indicated with specifications and
this is being procured through World Bank.
Spare part needs, considering modern equipment are being introduced to the
grid, were also indicated, and are being procured partly by World Bank.
Reactivation of the existing telecommunication infrastructure and gradual phase
out of obsolete equipment in the grid are ongoing.
Funds were made available to the regions for maintenance and provision of
various communication infrastructures.
Discussion on the progress of the network Fibre Optic Concession Agreement was
embarked upon and is ongoing.
Proposed expansion of telecommunication infrastructure in the grid and
conversion of the radial Power Line Carrier (PLC) and Fibre Optic Cable (FOC) to
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ring networks for enhanced availability and resilience were included in the 2015
capital budget. …….
Impact Report
Improved network communications resulting in improved operational coordination and
network stability.
Issue Report
Minor communication issues still outstanding with NDPHC generation plants..
Activity C: Improving Network Control (SCADA):
Status Report
Verification and correction of switchyard elements (circuit breakers and
isolators), position indications, alarms, measurements, and RTU wiring is
continuing.
Wiring of VT to SCADA transducer on 10T2B transformer at Akangba 132 kV TS.
Efforts are underway to implement a totally new SCADA system. World Bank has
expressed an interest to fund a new SCADA telecommunications project along
with a new control centre.
Impact Report
Improved network communications resulting in improved technical coordination and network
stability.
Issue Report
Long lead times for World Bank Group (WBG) procurement.
Programme 3: Network Planning, Maintenance & Expansion.
Activity A: Technical Studies
Status Report
The procurement process for a load demand study is underway. Also, A 20 Year Power System
Master Plan has been initiated supported by $3 million of World Bank funding. In addition, a
25 Year Generation Adequacy Master Plan has been initiated by JICA to focus on Least Cost
Generation.
Impact Report
Technical and commercial foundation for Network Expansion to raise funding.
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Issue Report
N/A
ACTIVITY B: 5-YEAR NETWORK EXPANSION PLAN
Status Report
A Five Year Network Expansion Plan was completed internally to expand the evacuation
capacity from approximately 5,500 MW to 20,000 MW by 2020. Expansion projects were
grouped for ease of cost estimation and contractor participation.
Impact Report
A 10 GW, 13 GW, 16 GW, PSSE based model has been produced for future expansion planning.
Further system models for 20 GW are under development. Project packages and
corresponding bankable plans have been developed for the projects needed to grow the
system to 20 GW by the year 2020.
Issue Report
N/A.
Programme 4: TEM Readiness and Conditions Precedent.
Activity A: SO/ MO/ TSP Readiness:
Status Report
TEM was initiated on February 1st 2015 after it was found that the Conditions Precedents, as
required by EPSRA 2005, had been sufficiently and adequately met by all required parties,
including the units of TCN.
Impact Report
Commercial start of Nigerian Electricity Market.
Issue Report
Although TEM has just started, outstanding issues with Market Liquidity and Enforcement may
– if continued – put NEM at risk.
Programme 5: Operational Financing & Expansion Funding.
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Activity A: Financial Audit:
Status Report
Firm of External Auditor, PWC has been appointed for the audit of TCN for the period 2006 to
2014.
Impact Report
Valid and certified corporate reports are the basis for solvency considerations for corporate
borrowings and bankability.
Issue Report
Audit exercise expected to conclude in Q3/Q4 2015,. It is only after this that bankability may
be determined and there are expected to be significant lead times before funding can be
accessed. Legacy debt inherited from PHCN (as PHCN Successor company) on partly funded
letters of Credit, local contractor‟s debt, NSITF, ITF, Taxation, Market Fund settlement etc
N131.78Bn.
Activity B: Commercial Tariff:
Status Report
Fixed-asset and premises registers provided to NERC in support of tariff application.
Application filed with the NERC on May 26, 2014.
Impact Report
Increased and cost-reflective funding from market.
Issue Report
Despite tariff level, current market invoices are not paid in full. TCN main source of revenue
is through Electricity tariff dictated by MYTO. Revenue billed in 2014 was (Wheeling charges)
N50.3Bn while only N31.7Bn was received through the Market Operator).
Activity C: FGN-Backed Borrowing:
Status Report
Until conditions in the Nigerian Electricity Market improve to allow full collection of fees
owed to TCN and the financial audit is complete, TCN will have no significant nor
independent source of funds. Outside of the Market and financial sources, the only remaining
source of funds is from the FGN. Sources of funding are still being explored for transmission
project investments. The status of activity for the utilization of each funding is below.
World Bank ($700 Million)
The list of transmission projects to be financed under the World Bank loan has been
forwarded to the World Bank office for approval in October 2014.
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Japan International Cooperation Agency (JICA) $200 Million Loan
JICA and TCN teams have jointly carried out validity and selection of projects in the month of
October 2014. The list of Lagos transmission projects to be financed under JICA loan ($200
million) has been finalized.
Preliminary surveys of project site have been completed in October 2014. Topographical and
geological survey by local subcontractor was concluded in November 2014.
The Exim China Loan ($500 Million)
The list and scoping on the projects is still on going.
Agence Franciase de Development (AFD) – $370 Million
Listing and Scoping of the projects is ongoing. The loan is for the rehabilitation projects.
The draft of the Request for Quotation (RfQ) and Specific Procurement Notice (SPN) for the
project has been completed in October 2014, and is still awaiting approval by the agency.
NIPP Power Plants (Proceeds from the sales $1.6 Billion)
Listing and scoping of the projects under this financing is in progress.
Contractors Financed Turnkey Transmission Projects ($1 Billion)
Evaluation of bids is ongoing
Impact Report
No additional source of funds source of funds will…….
Issue Report
TCN‟s request for intervention funding from MoP has not been approved by the Ministry of
Power, also The Ministry of Finance has declined the possibility of providing sovereign
guarantees for contractor financed projects.
Activity D: Bankability and Project Finance:
Status Report
TCN with the MoP hosted a successful Investor Funding Conference. Contractor Financed
Projects put into place. TCN is exploring the application of PPP relationships. The World Bank
is assisting in developing a PPP model for evaluation.
Impact Report
Future ability to fund projects without direct recourse to budgetary appropriation.
Issue Report
Awaiting completion of audit. Sovereign guarantee will most-likely be required.
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Key Challenges
Transmission Service Provider:
Issues
• Untimely flow and inadequacy of operations and capital funds limits TSP‟s ability
to properly maintain the system.
• Delayed approval of TCN tariff has slowed down investors‟ confidence towards
funding TCN‟s projects.
• The Ministry of Finance has declined the possibility of providing sovereign
guarantees for contractor financed projects.
• TSP has recently discovered that at least 12% of trading meters may require to be
either replaced or recalibrated for which no funding is currently available.
• TCN‟s request for intervention funding from MoP has not been approved by the
Ministry of Power.
• TSP needs to replace unserviceable system equipment.
• Vandalism and security issues are preventing TSP from properly maintaining the
infrastructure, especially in the remote northern parts of the country.
• Lack of spares for materials and equipment is constraining TSP‟s maintenance
program.
• Lack of vehicles in all TSP Regions has badly limited TSP‟s ability to carry out
necessary line patrol and maintenance activities.
• Lack of capacity building for both the regular and newly recruited engineers and
other staff in the TSP Regions.
• Office accommodation: The office accommodations in many of the Regions are in a
despicable state and in dire need of urgent repairs.
• Tools: Lack of special test equipment / tools / spare parts like the Infrared
Thermal vision Camera is a major challenge for all the Regions.
Mitigations:
• Timely flow and provision of adequate funding will enhance TSP‟s capacity to carry
out all its maintenance activities, provide the much needed spares, tools vehicles,
trading meters , replace unserviceable equipment, provide adequate office
accommodation where lacking and build the capacity of staff for greater
productivity.
• Transmission Expansion Program:
o Five year transmission expansion planning program has been prepared by
TCN; the primary targets for expanding the transmission system is to
increase the wheeling capacity.
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• Performance Improvement Initiatives:
o PPP Framework: One of the current initiatives of TSP is the Public Private Partnership (PPP) program for 61No. greenfield substations and Lines projects for 330 kV and 132 kV systems, which has been approved in principle and if implemented will increase TSP Transfer Capability as well as guarantee system reliability.
o Proposed Rehabilitation Project under China Exim Funding. o The listing and scoping of critical TSP Rehabilitation Project utilizing the Exim –
China Loan ($500m) currently being sourced is in progress. o Enterprise Resource Planning (ERP) Project to ease managing information is in
progress.
System Operations:
Issues
System Operations Section
• Inadequate and irregular gas supply to power plants. • Operational problems such as inadequate voltage and frequency controls and absence of
required system compensation. • Frequent system collapse due to the radial nature of the grid, which does not permit
system flexibility. • Large number of uncompleted transmission reinforcement and expansion projects. • Inability to effectively dispatch generated energy to meet the forecast load allocation. • Poor voltage profile in most northern parts of the grid. Communications Section
• Manpower deficiency
• Unavailable modern test equipment
• Lack of spare parts
• Ageing and obsolete communication equipment
• Capacity building
• Available fibre-optic cable network in the grid is radial without redundancy and
the concession agreement between TCN, PHASE 3 Telecoms and Alheri Engineering
Company has not allowed TCN full usage and complete exploit of the technological
benefits inherent in it.
• Inadequate funding for the Section.
SCADA Section
• Unavailability of spare parts and servers as the SICAM eRTU is out of production.
• Data communication link problems particularly in stations where microwave radio
and PLC are used.
• Inadequate maintenance vehicles.
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• Inadequate training on RTU parametization, SDM and database administration.
Mitigations
System Operations Section
• Provision of adequate statutory value for spinning reserve (10% of available generated power on the grid).
• Adequate supply of gas to thermal generating plants. • Completion of reinforced Transmission projects to guarantee N-1 contingence
requirement e.g. Geregu-Lokoja-Gwagwalada 330 kV line 2 and completion of the loop between Ugwuaji and Makurdi so as to improve the low voltage profile in the northern axis of the grid.
• Provision of adequate funding for generating stations in the area of cost reflective tariff to pay all power stations that render ancillary services (so as to encourage them).
Communications Section
• Provision of modern test equipment and spare parts.
• Recruitment of additional personnel and capacity building.
• Reactivation of existing telecommunication infrastructure and a gradual phase out
of obsolete equipment in the grid.
• Provision of adequate funding for maintenance activities.
• A review of the concession agreement on Optic fibre agreement between TCN,
Phase 3 and Alheri is important.
• Funding for the conversion of the radial FOC to a ring network is paramount.
SCADA System
• Due to congestion of the existing SCADA system, adequate plans should be made
for new SCADA system.
• Provision of industrial UPS to provide longer downtime backup to SCADA servers in
case of power system outage and generator breakdown.
• Data communication links such as microwave radio, PLC and SDH should be
available always and downtime reduced.
• Availability of spare parts and upgrade of existing servers.
• Provision of maintenance vehicles for SCADA RTU maintenance.
• Adequate training of SCADA engineers on RTU parametization, SDM and Database
Administration
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Long Term Outlook The basis has been established for TCN to take a longer-term, more holistic view of itself and
by extension the Nigerian Electricity Market. Organisational changes have been made that will
change the business culture and TCN – as the technical backbone of the entire sector – has
embarked upon long-term studies to provide backing to its long-term plans to access the
required long-term funds necessary to grow and develop both the Power Sector and the
Electricity Market.
Human Capacity Development
Highlights
• Right sizing exercise covering 4,000 staff resulting in the disengagement of 25 per
cent has been completed.
• 522 new engineers were integrated into TCN.
• Recruitment of 170 new staff from 3,000 applications has been completed.
• Organization charts (TSP and ISO) and Job Descriptions (403) completed for all
staff.
• SO has been restructured into eight operational regions.
• Succession plans for 50 top level management positions have been completed.
• Management development plans have been completed for 104 senior positions.
Financial Status Invoiced funds not remitted in full. Until such a time as this can be accomplished, TCN will
most-likely not be operationally and financially liquid. Financial Audit yet to be concluded. A
solution to the PHCN legacy debt needs to be found. Until such time as these can be
completed, TCN will most-likely not be financially solvent. Resolutions need to be found to
TCNs current illiquidity and insolvency status. This will require FGC resolve.
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CONCLUSION:
The year 2014 was considered as a pivotal year for the consolidation of the work
needed to both provide reliable power to the people of Nigeria and pave way for the
future development of the sector through private sector driven projects. During the
past year, Federal Ministry of Power made strong progress in building the enabling
environment that will drive the private sector funds needed for future power projects
in Nigeria. The Ministry has also consolidated the reforms programme through the
successful privatisation of the Generation and Distribution companies. Investment in
transmission infrastructure is critical and the Ministry is being guided by a policy
framework that is forward looking and in consonance with best practice.
