The FEC also approved the establishment of three more federal universities in addition to the six approved last month, with a promise to later approve three more for the remaining states without a federal university.
The nine newly approved universities will be in Taraba, Gombe, Nasarawa, Jigawa, Katsina, Ebonyi, Bayelsa, Kogi, and Ekiti.
The FEC directed the Education Trust Fund (ETF) to immediately release N1.5 billion as take-off grant to each of them to facilitate the commencement of academic activities by the next academic session.
UNQUOTE
INDEPENDENT
FG begins liquidation of PHCN•FEC approves N79b for power projects, three more varsities
By Chesa Chesa and Christopher Adedeji, Abuja
President Goodluck Jonathan on Wednesday announced the review of the Multi-Year Tariff Order (MYTO) to strengthen the foundation for a reliable power sector. He disclosed in Abuja at the inauguration of members of the Nigerian Electricity Regulatory Commission (NERC), chaired by Sam Amadi, that the government has begun the liquidation of the Power Holding Company of Nigeria (PHCN), to pivot into the full commercialisation of the operating companies succeeding the monopoly. There are also plans for a lifeline tariff for the urban poor and rural dwellers as well as for a Power Consumer Assistance Fund to administer the lifeline tariffs. "We are most optimistic and expectant that with continued focus, this government will achieve its desired goals in laying a solid and sustainable foundation for a viable power sector," Jonathan enthused. He pledged support to the NERC, and reiterated its importance in providing the enabling regulatory environment that will back private sector players to invest and operate in an efficient manner even as Abuja will protect consumers from exploitation. Jonathan said with the support of the World Bank Group, various instruments are being developed to mitigate the regulatory and payment risk in electricity transactions. "Equally important, the industry itself is about to move into the transition state of market development, a period envisaged by the National Electric Power Policy, during which trading will be more commercially-oriented and based on firm bilateral or special contracts." Jonathan charged Amadi and NERC Commissioners to use all policy and legal instruments at their disposal to regulate the electricity supply industry in a transparent, fair, and balanced manner, to the benefit of all. Power sector contracts worth N5.52 billion were approved by the Federal Executive Council (FEC) on Wednesday, which bring the total such approvals in 2010 to N79.23 billion. Information and Communications Minister, Labaran Maku, told journalists after the FEC meeting in Abuja that the projects include installation of transmission lines; construction, refurbishing, and upgrading of power plants and purchase of generation equipment. And they include construction of gas supply pipelines from Ajaokuta through Abuja to Kano. The FEC also approved the establishment of three more federal universities in addition to the six approved last month, with a promise to later approve three more for the remaining states without a federal university. The nine newly approved universities will be in Taraba, Gombe, Nasarawa, Jigawa, Katsina, Ebonyi, Bayelsa, Kogi, and Ekiti. The FEC directed the Education Trust Fund (ETF) to immediately release N1.5 billion as take-off grant to each of them to facilitate the commencement of academic activities by the next academic session. Other approvals include: • The purchase of English and mathematics textbooks for pupils of government schools at a cost of N3.98 billion. • Commencement of a new vehicle number plate and drivers licensing process to rectify the inadequate security features and database in the existing system started in 1990. • A new vehicle number plate manufacturing plants to be established in Abuja and Awka, to complement the only one in Lagos. • A N3.07 billion contract for the installation of an integrated tax system to enhance the work of the Federal Inland Revenue Service (FIRS). • A N258 million contract for the audit of the indebtedness of the PHCN to its staff ahead of the firm's unbundling. • A N5 billion contract to upograde the Lagos headquarters of the National Maritime Authority (NMA). The government introduced the MYTO in 2008 to boost the confidence of lenders and investors in the power sector, and provide for reasonable returns on capital investment, as well as correct pricing of power for an efficient and reliable market-oriented supply system. Consumers would not immediately have to pay more for electricity, as the government would establish an MYTO Support Fund to cover revenue shortfalls during the three-year transition period that began on July 1, 2008 Up to N64.84 billion was then approved to subsidise electricity consumption in 2008 and 2009 period. The government was to provide another N77.41 billion in 2009 and 2010, and N35.80 billion in 2010 and 2011; a total N177.95 billion subsidy in the three-year transition period. However, the NERC disclosed on Wednesday that the successor companies to the PHCN have refused the assessment of their facilities to determine their real worth. Former NERC Administrator, Imamuddeen Talba, made the disclosure in the Abuja when he handed over to Amadi. Talba said the assets valuation is still going on, even as the government continues to invest in the successor companies. Former NERC Chairman, Ransome Owan, and six Commissioners were suspended and arrested by the Economic and Financial Crimes Commission (EFCC) on 3 February last year for allegedly misappropriating N1.54 billion in 2008. Talba was appointed Administrator in February last year, and in the past six months, there have been allegations and counter allegations of illegal employment and redeployment of staff loyal to him. He explained on Wednesday that the challenges the NERC faces with the successor companies include non-responsiveness to the reporting obligations in their terms of licence. But, Talba stressed, the NERC "is somewhat handicapped in enforcing some of these requirements as the companies remain largely owned by the government and monetary penalties do not have the expected consequences, since the companies are notoriously indebted to a number of other agencies." He expressed hope that privatisation will address this challenge. He noted that out of 12 independent power plants licencees, only six are operational. Amadi promised that his new team would bring back the NERC to its original mandate of providing direction for the power sector. "We will focus on our work and on value addition. We will redefine the mission of the NERC. Together, we will discharge our mandate and change this place for the better. We have entered a new threshold. "This place must be returned to a world class status, right all the wrongs in the sector, and also ensure the NERC does its business," he pledged. |
You received this message because you are subscribed to the "USA-Africa Dialogue Series" moderated by Toyin Falola, University of Texas at Austin.
For current archives, visit http://groups.google.com/group/USAAfricaDialogue
For previous archives, visit http://www.utexas.edu/conferences/africa/ads/index.html
To post to this group, send an email to USAAfricaDialogue@googlegroups.com
To unsubscribe from this group, send an email to USAAfricaDialogue-
unsubscribe@googlegroups.com
No comments:
Post a Comment