Ben Agande and Kingsley Omonobi
19 February 2008
Lagos — PRESIDENT Umaru Yar'Adua yesterday took his first major step in ameliorating the current electricity supply crisis in the country when he constituted a committee for the Accelerated Expansion of Nigeria's Power Infrastructure with a mandate to deliver 6,000 additional megawatts over the next 18 months through the National Integrated Power Project.
The committee which is private sector-driven is also to add an extra 11,000 megawatts by 2011 through diverse sources.
Besides, President Yar'Adua has directed the Minister of Finance, Dr. Shamsudeen Usman and the Central Bank Governor, Professor Charles Soludo to immediately release the sum of N18 billion to the Army, Navy and Air Force to enable them clear the backlog of the salary arrears of soldiers.
The Committee on Accelerated Expansion of Power Infrastructure is headed by the Minister of State, Energy (Power), Mrs. Fatima Ibrahim. Other members are: Mr. Austine O. Ometoruwa, Chief Executive Officer of the Africa Finance Corporation (AFC), a private sector-led development finance institution which is expected to play a central role in the new initiative with its significant investment and technical capacity, Alhaji Aliko Dangote, Chairman, Dangote Group; Mr. Lewis Tung, Group Managing Director, Wempco Group; Mr. Cyril Odu, Executive Director, Exxon-Mobil; Mr. Kola Adesina, Executive Director, Sahara Energy; Mr. Atedo Peterside, Chairman of IBTC Bank, Mr. Abubakar Lawal Yar'Adua, Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mr. Tanimu Yakubu, Chief Economic Adviser to the President and Engr. Joseph Makoju, Special Adviser to the President on Power.
The committee Secretary is Dr. Rowland Owan, Chief Executive Officer of the Nigerian Electricity Regulatory Commission.
Its terms of reference include: the following: Conduct an independent technical, financial and legal audit of infrastructure in Nigeria's power sector; Source funding for the completion of ongoing NIPP projects based on terms and conditions mutually-acceptable to the Federal Government and investors; Provide inputs for the design of an appropriate securitisation structure to attract credible investors to the power sector; and Provide inputs for a power purchase agreement template that will ensure a reasonable level of return on investment for investors and affordable tariffs for consumers.
The interim report of the Committee which is expected to be submitted within 30 days will provide a vital component to the administration's plan to declare a state of emergency in the power sector.
President orders release of N18bn soldiers' pay
President Yar'Adua has also directed the Minister of Finance, Dr. Usman and the Governor of the Central Bank, Prof. Soludo to immediately release the sum of N18 billion to the Army, Navy and Air Force to enable them clear the backlog soldiers' salaries.
Of the N18 billion, the Nigerian Army and Defence Headquarters will receive N8 billion and N1. 5 billion respectively, Navy N4 billion and Air Force N4.5 billion.
The President gave the directive at a meeting with the Minister of Defence, Alhaji Yayale Ahmed, Minister of Finance, Dr. Usman; CBN Governor, Prof. Charles Soludo; National Security Adviser, Gen. Sarki Muktar; Chief of Defence Staff, Gen. Andrew Azazi; the service chiefs and the Chief of Defence Intelligence, Maj.-Gen. Musa Said.
Vanguard gathered that during the meeting, AlhajiYar'Adua, having been convinced that the N6 billion of the initial N11 billion released to the Army to pay salary arrears, did not disappear into thin air as was alleged and directed Dr. Usmna and Soludo to raise the money using ways and means without delay.
The President was also said to have discovered that the Navy and Air Force which paid more than six months or half of the consolidated arrears to their personnel, did so by taking money meant for other contingencies to avoid the type of problems the Army is currently facing.
When reminded that the money was not in the budget, he told the Finance Minister and CBN Governor to ensure that the was captured in the budget and that it should be deducted at source from the Services allocations later.
The President explained that a situation where soldiers cannot get their salaries which they solely depend on between the 22nd and 27th of every month was not acceptable to him.
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Probably because in a country that now trumpets the "rule of law", the contracts between Shell, Elf etc and the govt do not obligate them to build us power stations. Yes, they've benefited from Nigeria, but so has the country because they pay us for this oil. It's not their fault if we can't manage our house properly or if the oil dividends don't accrue to most of us. If we simply quit robbing the national purse, actually have a DETAILED plan to build one plant and FOLLOW THROUGH (perhaps even using such a plan as a future template of what to do or not do), we might begin to see some light. We should also have maintenance plans and PERSONNEL for keeping the plants we do have in good working order.
For Christ sake! what stopped the president to order NNPC and Shell to increase the Afam power plant from 750 to 7500 mega watt? After all NNPC and Shell had been stealing our oil in the name of joint venture. MObil, Elf, Chevron all should be ordered by Exeutive Presidential Fiat to build at least 5000 MW each or leave our oil alone. They have benefited from Nigeria and they should show concern for the problems we have.
None of them have any refinery in Nigeria but the do in South Africa that has no oil! Until we stop all this external rats that steal our oil, we will continue to stumble. I was once in Kuwait and it is 'HARAM ' for any IOC to drill oil in Kuwait. The president should sit tight , else he will fail like his former boss.