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FEC Approves Completion of Odogunyan Power Project

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PHCN Power Plant
  • FEC Approves Completion of Odogunyan Power Project

The Federal Executive Council on Wednesday approved the completion of the abandoned Odogunyan power project in Lagos state at the revised cost of N3.5bn.

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, made this known at a news conference he jointly addressed with the Minister of Information and Culture, Alhaji Lai Mohaamed after the weekly FEC meeting.

The meeting was presided over by Vice-President Yemi Osinbajo.

Fashola said the power project, which was initially awarded in 2009 at the cost of N3.2bn and was to be completed in mid-2011, was abandoned due to lack of funds.

He said, “You will recall that I had in previous briefings told you what the strategy was – incremental power in short time – and that is what we are addressing – expanding the transmission, improving the generation.

“So this approval was an approval to enable us complete the Odogunyan and Ikorodu transmission sub-stations in Lagos and to provide additional transformer capacity at the sub-stations, 260MVA transformers and transmission lines of 132KVA.

“This will complete the works in that area generally known within the power industry as Ayobo West.

“The contract had been awarded before and abandoned, because it was not paid for.

“So, it is part of the completion. It was awarded since 2009. It should have been completed in 18 months, which would have been sometime in mid-2011, but because of lack of funding – which story you know – nothing happened.

“So that is the approval we got today.

“And of course, the cost has been revised as a result of the economic realities so that this can be completed and put into use.’’

On the current epileptic electricity supply being experienced across the country, the minister said the problem was not due to technical issues, but financial and human factors considering that gas suppliers had not been fully paid.

Fashola said, “Apart from the sabotage that we have had from the Western axis of the Niger Delta, the Escravos Lagos pipeline is also not operational, the Forcados export terminal too has been out of operation.

“So, if you can’t produce oil, you cannot take the gas. And the gas is the fuel that the power plants need.’’

The minister, however, assured that government was doing all it could to address the challenges facing the country’s power sector.

He said, “As I have always said, it is not technical; it’s financial. Vandalism of pipelines is not technical. People are destroying (the pipelines), because they are hungry.

“People collect money, but are they remitting everything in a manner that is fair, even if it is not enough?

“So, some people don’t get their own share and they ask themselves why they should continue to supply if they don’t get paid, because they are bankers and financiers.

“So, we are talking with everybody trying to resolve the situation.

“As at (Jan. 24) yesterday, we were back to (the situation in) 2009. But we are building up again and very soon there will be some stability.

“These are set backs on the road to incremental power, but we will overcome them.’’

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

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Egypt Leads Nigeria, South Africa in Foreign Direct Investment

The United Nations Trade Association has Nigeria recorded a total of $2.6 billion in Foreign Direct Investment (FDI) in 2020, below the $3.3 billion posted in the preceeding year.

South Africa, Africa’s most industrialised nation, reported $2.5 billion during the same year, slightly below Africa’s largest economy and 50 percent below the $4.6 billion attracted a year earlier.

The report also noted that Africa recorded a total of $38 billion FDI in the same year, representing a 18 percent decline from the $46 billion posted in the corresponding year of 2019.

However, Egypt led Nigeria and South Africa with $5.5 billion FDI, an increase of 38 percent from the preceeding year.

The report read in part, “FDI flows to Africa declined by 18% to an estimated $38 billion, from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, fell 63% to $28 billion, from $77 billion in 2019. The pandemic’s negative impact on FDI was amplified by low prices of and low demand for commodities.

UNCTAD also noted that global foreign direct investment declined by 42 percent to an estimated $859 billion, down from $1.5 trillion in 2019.

The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. Flows to Europe dried up completely to -4 billion (including large negative flows in several countries). A sharp decrease was also recorded in the United States (-49%) to $134 billion.

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Economy

FG to Partly Fund Six Rail Projects Connecting All Regions

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rail project

FG to Partly Fund Six Rail Projects Connecting All Regions

The Federal Government will pay a total sum of N71 billion to partly fund six rail projects connecting all regions of the country.

In the report obtained from the Federal Ministry of Finance, Budget and National Planning, the six rail projects marked for development this year are Lagos-Kano rail line (ongoing), Calabar-Lagos (ongoing), and Ajaokuta-Itakpe-Aladja (Warri).

Others are the Port Harcourt-Maiduguri railway, the new Kano-Katsina-Jibiya-Maradi line in Niger Republic and the Abuja-Itakpe and Aladja-Warri Port and refinery/Warri new harbour.

The Buhari administration will also spend N15.1 billion on the development of safety and security of critical projects, airport certification, runway construction, terminal building, among others in the aviation sector in 2021.

Last week, Rotimi Amaechi, Minister of Transportation, said the Lagos-Kano line would be connected from the Ibadan end of the Lagos-Ibadan railway and would cost $5.3 billion.

We are waiting for the Chinese government and bank to approve the $5.3bn to construct the Ibadan-Kano. What was approved a year ago was the contract,” the minister said.

He added, “The moment I announced that the Federal Government had awarded a contract of $5.3bn to CCECC (China Civil Engineering and Construction Corporation) to construct Ibadan-Kano, people assumed the money had come in; no.

“We have not got the money, which is a year after we applied for the loan. We have almost finished the one of Lagos-Ibadan. If we don’t get the loan now, we can’t commence.”

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Economy

FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

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FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

In a bid to improve the usage and enhance the convenience of train transport in Nigeria, the Federal Government on Thursday announced the launching of the Electronic Ticketing platform for the Kaduna-Abuja rail services.

The N900 million E-ticketing platform was introduced by the Minister of Transportation, Chibuike R. Amaechi, and the Nigerian Railway Corporation.

Amaechi said the new platform would improve efficiency, promote accountability, reduce leakage and enhance economic growth, as well as save time.

The E-ticketing platform was a Public-Private Partnership project done in conjunction with Secure ID Solutions, who provide and would manage the system for 10 years in an effort to recoup its investment before the Nigerian Railway Corporation take charge.

Kofo Akinkugbe, the Chief Executive Officer, Secure ID Solutions, said as the new E-platform issued 25,000 tickets after a successful pilot test on Thursday.

Potential Travelers can book via three ways:

1. Mobile app
2. Website
3. POS or Cash at the station

A validator would be used to scan the ticket barcode to ascertain its authenticity before boarding.

Amaechi further announced that self-service ticket vending machines at various train stations would be introduced soon.

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