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OPINION: The Return Of Toll Gates In Nigeria By Abiodun Ladepo

When he was governor of Lagos State, Raji Fashola was notorious for collecting tolls. The joke used to be that if he constructed one foot of road, he would charge you for using it. So, when the news broke recently that he announced the return of tolls on Federal roads, some in my political orbit started to grumble. “Oh, this man will make us lose the election in 2019.” “Why do we want to add to the suffering of the common man now that we are getting ready for elections?” And so on and so forth.
But I am glad that we have someone who is not thinking about instantaneous, palliative measures that give us the sugar-effect of temporary joy and excitement which, in the long run, is inimical to our overall growth. We have someone who has not put dubious electoral victory ahead of service…functional and enlightened service…to the country.  
When Obasanjo was about to leave office as military Head of State, he cut the tape to flag off the use of the Lagos-Ibadan expressway in 1978. Boy! Were Nigerians happy about that road! If you were going to any part of Nigeria from Lagos, you had to go through that expressway. Those going to the Middle Belt, the East and the South-South (we didn’t use the word “South-South” in 1978) would use the road up to Shagamu, take the right turn and continue their journey. Those going to the North would continue on to Ibadan until the expressway terminated at Ojoo. Prior to the construction of that expressway, the alternatives were to take the dangerously winding Shagamu – Ijebu-Ode-Lagos or the Abeokuta-Sango-Ota-Lagos routes. Either of these routes added three to four hours to your trip. But once Obasanjo opened the 115 kilometers Lagos-Ibadan express, it only took on average one hour to get from Ibadan to Lagos. It was not only faster, it was safer too. And it was good for your overall health and the health of your vehicle.
To pay for that road, Obasanjo’s regime did what was done in all civilized countries. It installed three toll gates – one at the Lagos end; one at the Shagamu interchange; and one at the Ibadan end. Certainly, a stretch of road that busy, that important to the economic well-being of the country should be able to pay for itself and have more than enough left for routine maintenance, given the high volume of traffic on it. I mean…every merchandized shipped into Nigeria by sea landed in Lagos. And if the merchandise was going to Nguru or Maiduguri or Port Harcourt, it went over that expressway. It was imperative that we maintained that road properly and expanded it as our population and economy grew. That was the natural order of planning followed by every forward-looking society where institutions exist as a continuum even when governments change.
But within a few years, the Lagos-Ibadan expressway fell apart. Small potholes that were not quickly fixed grew into manholes. A journey that normally took one hour now took three if you are lucky and four or five if you traveled when the churches along the route held their crusades. Rather than doing 100 km/hr., you are forced to slow down to a crawl, making you vulnerable to armed robbery attacks on the expressway. The beautiful road of 1978 had become a complete death trap and eyesore by 1995.
The government couldn’t do anything about it apart from the occasional patching of some of the gullies in the middle of it. Most of the funds collected as tolls never made it to government coffers because the toll collectors stole them. It was an open secret that every toll collector on that road owned a couple of houses built with proceeds of those toll booths. I heard of an Inspector in the police who quit the force to become a toll collector! It was that lucrative. Collectors, collaborating with their supervisors, of course, printed their own receipts and issued those to commuters. It was sad. You cannot understand how sad it was unless you knew one or two people who were killed on that road due to accidents caused, in part, by the terrible road condition.
Nigerians love the sound of free things. Everybody loves free things – free education; free electricity; free water; free TV and free transportation. We want good things in life but we don’t want to pay for it. But we all know that these things don’t come cheap and they have to be paid for. In countries where citizens have gotten used to paying for these services, the services have gotten better. Take education for example: Nowhere in the United States is tertiary education free. In some of the countries in the West (Britain and Germany for example) where you may get university education without paying out-of-pocket fees, there are all sorts of charges, levies, and taxes that the citizens have to pay. These things don’t come free at all.
Take electricity for another example: I don’t care how poor you are in Britain, America or Germany; you will pay your electricity bill. If you are late for five days or more in California, there is a punishing late-fee that comes with it. If you are late for more than one month in Maryland, your electricity supply will be disconnected. Of course, if you pay your bill on time, you may never experience electricity outage unless there is a natural disaster like an earthquake or a tornado.  But in Nigeria, we want an uninterrupted supply of electricity, but we don’t want to pay for it. We watch our neighbor illegally tap electricity and we beg him to hook us up. We sabotage our own country. Then we complain about lack of electricity.
Our attitude of not wanting to pay for services is directly related to the ingrained corruption in our polity. Every Nigerian knows that the fees you pay at the passport office are stolen by Immigration officials. The ones you pay at the airports are stolen by airport officials. The fines you pay the FRSC officials don’t get to government purse. The money you pay the electricity company doesn’t get there. School authorities embezzle funds meant for the upkeep of the schools. Governors shave off huge chunks of the revenues accruing to the states, some of which are direct taxes citizens that have paid. So, people have (rightfully) lost confidence in the workability of the Nigerian system.
Nonetheless, I join all rational Nigerians in welcoming the re-introduction of tolls on our highways. In fact, we can start charging tolls on our bridges too. But I do so on the condition that government should first build great roads. By that, I mean roads wide enough for vehicles to ply safely, with lane markings that reflect at night and help keep drivers in their lanes; with effective road signs for all hazards, including dips, bends, steep hills, dangerous slopes, cattle and so on. I like to see speed limit signs appropriate for every section of the roads. I like to see FRSC officials patrol in automobiles and high-speed motorcycles and some static with speed traps. I like to see these FRSC officials equipped with Point of Sale (PoS) machines that can aid in their collection of fines on the spot. I like to see roving towing trucks for all sizes of vehicles so that we can quickly remove broken down vehicles before they cause accidents. I like to see rest stops where commuters can rest if they so wish. I like to see ambulance and firefighter locations. And I like to see police stations at critical locations.
If you put these things in place, and you plug all the potential loopholes that toll collectors can use to steal, Nigerians will pay your toll fees. And they will do so with smiles. We are not animals. We love good things too. We may complain at first. But if we can see where our money is going, we will pay. Look at Ghana and its electricity problem. In 2013 and 2014, the entire country rationed electricity on a 12-on/12-off basis. One half of the country got electricity for 12 hours while the other went into darkness for 12 hours. They switched after 12 hours. But today, electricity is 99.9% stable across the country. I have not heard my generator in almost a year, save for when the maintenance guy services it. Yes, the cost of electricity went up by 400% and people cried. Some workers’ union even threatened demonstrations. But government embarked on an extensive sensitization campaign which helped douse tensions. Now nobody complains about the high cost of electricity because they know stable electricity costs money.
Ever since I started using the Ft. McHenry and Inner Harbor underwater tunnels in Baltimore, Maryland (in the U.S.) some 30 years ago, there had always been a fee. Nobody complains about it. If you are south of Baltimore and you want to go northward on your way to New York, your best bet is to use one of those tunnels. Pay the fee and save yourself about one-hour wahala. If you are taking the I-95 from Baltimore to New York, you will pay tolls like five times. And the trip is just about four hours. If your flight lands at Dulles Airport in Virginia and you really want to get to Washington DC in less than one hour, your best bet is to get on RT 267. No other alternative gets you to DC in less than three hours.
In France, the use of most of the highways comes with tolls. Last summer, my wife and I hit no fewer than seven (7) toll booths on the French section (A4 HWY) of the four-hour drive from Kaiserslautern in Germany to Paris. In Austria, you are required to purchase Vignette/Sticker which must be affixed to the front of your vehicle in order to use their Autobahns (highways). We didn’t get one because we didn’t know and we were slapped with a 200 Euros fine.
So, you can see that Fashola is not pulling toll charges out of his buttocks. These are necessary charges if we want to pay for the roads and bridges we are building and maintain them to last forever. Remember that the Federal government invited some private entities to invest in partnerships for the purpose of raising funds to construct these new roads. Those private entities have to be paid somehow. Nigerians will pay. They don’t mind paying. But Nigerians know themselves and they know their leaders. They know their roguish leaders will steal the proceeds from these toll booths…unless government invests in foolproof measures to block them.

Abiodun Ladepo writes from Ibadan, Oyo State. You can reach him via Oluyole2@yahoo.com



Federal Government to reintroduce toll gates nationwide - Fashola

Babatunde Fashola, minister of power, works and housing, says the federal government has concluded the plan to reintroduce toll gates on various highways across the country.
He said this on Thursday while speaking at an interactive session with the senate committee on the Federal Roads Maintenance Agency (FERMA).
Fashola said they would be reintroduced in 38 points across the roads.
He added that the toll gates would be brought back after the completion of the highways.
“We have concluded plans to reintroduce tollgates across the country,” Fashola said.
“It will be managed by the private sector and it will be located in the old places. Thirty-eight points across the country.
“We are only waiting for the completion of those roads before we introduce the toll gates.”
The minister added that road users would be able to pay for toll on the roads through their phones, and that the money realised would be used for the maintenance of the roads.
He also said the federal government does not intent to ask road users “to pay toll on a road that is not good.”
“While the construction (of gates) is going on, we are working on the design. We want to standardise the design so that people when we ask people to come and bid for the construction, we can control what they are going to construct,” he said.
“They are going to construct the materials we have prescribed. We can also control the price so that nobody is bidding with disparage prices; there will be the floor and the ceiling. Your price will vary according to how many plazas you build and not because you claim to have used ‘foreign’ materials.
“The last part we are working on is the software that drives the management, audit, and payment of toll fares.”



Source: The Cable

FG Comes up With Action Plan for Takeover of Distressed Discos

The Power Sector Recovery Programme (PSRP) recently developed by the federal government and the World Bank to revive Nigeria’s ailing power sector, has come up with an action plan for the sweeping restructuring of the 11 electricity distribution companies (Discos) that would enable government to take over any Disco found to be insolvent.
Details of the action plan, which THISDAY got from a workshop organised by the Ministry of Power, Works and Housing to educate the media on the expected workings of the PSRP, indicated that the government is planning to restructure the Discos to meet their responsibilities in the country’s privatised electricity market after a thorough forensic review of their operations.
The workshop was held on Wednesday evening in the ministry in Abuja. It had in attendance the Minister of Power, Works and Housing, Mr. Babatunde Fashola, the two ministers of state – Mr. Mustapha Shehuri and Mr. Suleiman Hassan – as well as heads of parastatals in the ministry, all of whom took time to explain the government’s plan in the PSRP.
The report further made recommendations for the Nigerian Electricity Regulatory Commission (NERC) to engage the Discos on revised business plans, which will be negotiated, finalised and implemented.
It also requires the government to “start the process of restructuring Discos that are found to require new capital injections”.
“This would involve NERC, BPE (Bureau of Public Enterprises), the Discos and other relevant parties. This may also involve the takeover of Discos with degraded financial positions,” said the PRSP report.
It however explained that before the takeover, technical competence reviews including forensic audits of all the Discos and the adequacy of their technical partners, should be undertaken to ensure that they had not failed in their initial agreements with the government after the privatisation exercise.
The document also revealed that there was an ongoing audit of the performance agreements and all direct agreements the government signed with operators in the sector to ensure that it was in compliance with its obligations.
It explained that there should also be measures to address the operational challenges of the Discos, which should include: “Develop case studies to determine the level of load rejections in the network, develop investment plans with clear impact analyses for increase in load across the network and in metering, and ensure regulatory measures are enforced.”
Also at the workshop, the Managing Director of the Nigerian Bulk Electricity Trading Plc (NBET), Dr. Marilyn Amobi, debunked claims by the Discos through their umbrella association, the Association of Nigerian Electricity Distributors (ANED), that the electricity they distribute to Nigerians at an average of N31 per kilowatts hour (kWh) is retailed to them at N68/kWh.
Amobi, in her response to a question on how much the NBET really sells the electricity it procures from the generation companies (Gencos) to the Discos, stated that its retail price per kWh of electricity to the Discos had not exceeded N18/kWh.


Source: This Day

79 critical road portions need fixing before Christmas, FRSC tells Fashola

The Federal Road Safety Corps, FRSC, says there are 79 portions in the critical road corridors in the country calling for federal government’s attention before the yuletide.
FRSC Corps Marshal, Boboye Oyeyemi, said this in an interview with the News Agency of Nigeria at the FRSC Academy in Udi, Enugu State on Thursday.
Mr. Oyeyemi said that the corps had been talking with the Ministry of Power, Works and Housing on how best to put most of the critical road corridors in shape before the yuletide.
“We have submitted a report containing 79 portions in the critical road corridors throughout the country to the Minister of Power, Works and Housing.
“We believe the report will be given due attention before the yuletide,” he said.
According to him, it is also necessary to fix critical road corridors to check traffic build-ups.
“We thank God that the Minister of Works has graciously agreed to our plea of fixing and doing palliative works on most of the critical road corridors identified.
On Ember month programme, the FRSC boss said the corps was ready to carry out comprehensive enforcement of traffic violations, to serve as deterrent for negative road habits and negligence.
“We will critically look out for expired tyres, speed limiting device (for commercial buses), overloading, reckless driving, seat belt usage, driving licence, among others.
https://ssum-sec.casalemedia.com/usermatchredir?s=183697&cb=https%3a%2f%2fdis.criteo.com%2frex%2fmatch.aspx%3fc%3d25%26uid%3d%25%25USER_ID%25%25
“All these range of items and compliance, when got right, will engender safe and secured road for all road users in all our road corridors during the ember months.’’
He also said that all Zonal, Sector, Unit and Route Commanders had been “well briefed’’ on what to do and look out for, assuring that the corps would be more proactive ever than before.
Mr. Boboye noted that with the rainy season coming to an end and the heat on the increase, it became imperative for drivers to use quality tyres that would stand increasing heat.
He urged drivers in the habit of buying expired tyres for their vehicles to eschew such behaviour to check the rate of road crashes in the country.
“Our people must consider safety and life first and not just looking at cost alone.”
Mr. Oyeyemi called on road users to cooperate with FRSC officials and volunteers to ensure a safe and free-flowing traffic especially during the yuletide season.
Mr. Oyeyemi is on a three-day working visit to the FRSC Academy in Udi, Enugu State where he inaugurated promotion course and examination for 179 officers on Wednesday.
The officers, who are being considered for promotion from Assistant Route Commander to Deputy Route Commander are drawn from all sections of the corps in the country.
The course and its examination will run for two weeks with various professionals coming to lecture and organise practical sessions with them.

Source: PremiumTimesNG

FG releases #100billion Sukuk bond proceeds for 25 road projects

The Federal Government on Thursday released the proceeds of the N100 billion Sukuk bond for 25 road projects across the country.
The Minister of Finance, Mrs. Kemi Adeosun, handed over the N100 billion proceeds cheque to the Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola, in Abuja.
The federal government had issued the sovereign debut Sukuk of N100 billion in September, which was successfully completed last week.
The Sukuk bond has a tenor of seven years.
Adeosun said the offer was oversubscribed to the tune of N105.87 billion.
She also said the milestone was a sign of confidence in the Nigerian economy and the administration of President Muhammadu Buhari.
The minister added that the Sukuk proceeds would unlock the potentials of Nigeria.
She said: “This is the first Sukuk bond issuance for Nigeria. It is about financial inclusion and deepening of our financial markets. The proceeds will be used to further support government capital spending for 2017 – the construction and rehabilitation of 25 key economic roads across the six geo-political zones of the country.”
“The roads will ease commuting, spur economic activities across the country and further close our infrastructural gap.”
“Each of the geo-political zones of the country is expected to receive the sum of N16.67 billion for road projects in their respective zones.
The North Central and South- South Zones accounted for five each of the 25 key economic road projects, while the North East, North West and South East have four road projects each.
“Three projects are to receive funding from the Sovereign Sukuk proceeds in the South West Zone.”
Earlier, Fashola commended the Finance Minister, the Director-General of Debt Management Office, Ms. Patience Oniha and the financial advisers for the bond issuance for their painstaking efforts aimed at realising the milestone.

He assured the ministry’s contractors that the federal government was committed to the funding of its infrastructural projects across the country.

Fashola debunks MDA debts of N90bn claimed by DisCos

Minister of Power, Works and Housing, Mr Babatude Fashola has stated that out of the estimated MDA debts of about N90Billion claimed by the DisCos, only about N27Billion has been verified as debts owed by the FGN.
The Minister who stated this while delivering a key note address at the 3rd National Council on Power (NACOP) with the theme: “Complete Power Sector Reforms” in Jos, Plateau State on Thursday said there are invoices which show that other parts of the debt are attributable to service points at States and local governments.
He implored states and local governments to insist that their buildings are metered so that they can budget for and pay for energy they use adding that this will turn out to be cheaper than diesel generated power and also help reduce loss of income by DisCos.
“Furthermore, I urge state Governments to set up small teams with audit capacity to verify debts owed by them and their local governments, ascertain the quantum and develop a payment plan which can then be budgeted for. This will help to reduce the liquidity issues and contribute to the reforms” He advised.
The Minister further pointed out that the  Government has finally approved the award of the 3,050 MW Mambilla hydro power project after over 40 years of starts and stops adding solar foot print is growing but not just because of what the FGN is doing but because of what Nigerians are doing in their states.
Fashola who disagreed with those calling for the cancellation of privatisation of power sector by the federal government stated that money realised from the exercise were used to settled staff of the PHCN adding that if cancelled there must be refund which must be paid in dollars with the current rate.
“As we are all aware, there have been comments about how effective privatization has been in the power sector and some people have called for its cancellation which I disagree with.
“However, I agree that there are problems, I understand that 4 (FOUR) years post privatization is a transition period, and some more work needs to be done before the expected benefits of privatization come to fruition.
”That is why we developed the Power Sector Recovery Programme (PSRP) which are a set of policies, programmes and actions aimed at solving Generation, Transmission, Distribution, Liquidity, Metering, Estimated Billing, Energy Theft, Safety and other challenges” he said.
According to him, while the country is beginning to see results of increased generation up to 7001MW on 12th September 2017, Transmission up to 6,700 MW and Distribution 4,600 adding that such result is not yet enough.
Let me state emphatically that everything in the PSRP is based on the 2005 Law and that is why I urge everybody to read it.
In his address, Governor Simon Lalong debunked the insinuation doing the round that Plateau State is in crisis adding that the unfortunate incident that happened in the state capital last week Thursday was nip in the bud and normalcy restore immediately.

According to him, as a result of this, the curfew imposed on the state at wake of the disturbance will be relaxed from Thursday to 12; 00 am to 6:00 am and assured those who want to come to the state not to exercise any fear.

Nigeria announces $5.8 billion deal for record-breaking Mambilla power project

According to CNN, the government of Nigeria has announced the award of a $5.8 billion contract to build what will be the largest power plant in the country.

The 3,050-megawatt Mambila hydroelectric power project in the state of Taraba will be delivered by a consortium of Chinese state-owned construction firms.
The megaproject will feature four dams between 50 and 150 meters tall, and take six years to complete, the Minister of Power, Works and Housing, Babatunde Fashola, told reporters in Abuja.
The Chinese Export-Import Bank will finance 85% of the development, with the Nigerian government contributing 15%.
Minister Fashola claimed the project will deliver far-reaching benefits.
"(Mambila) will have a transformational effect on all of Nigeria's socio-economic development," he said through a government spokesman, "It will have considerable positive impact on electricity supply nationwide, productivity, employment, tourism, technology transfer, rural development, irrigation, agriculture and food production."

False starts

The Mambila hydropower plant has been in development for over 30 years, but previous administrations have made little progress.
In 2007, the Nigerian government awarded a $1.4 billion contract to two Chinese construction firms for a 2,600-megawatt plant, but the agreement broke down soon after.
Attempts were made to revive the deal without success. But the deadlock was broken by conversations between the presidents of China and Nigeria in 2016, according to the spokesman of Nigerian President Muhammadu Buhari.
"The major breakthrough in the execution of this project was achieved when President Muhammadu Buhari initiated discussions at the level of the President of the Peoples Republic of China in the course of his State Visit (in 2016)," wrote government official Garba Shehu.
The meeting resulted in the creation of a consortium of Chinese companies to deliver the project, according to Shehu, and an agreement that the Chinese government would commit finance to it.

Power shortage

Despite being one of the largest economies in Africa, over 40% of Nigerians live without access to electricity, according to World Bank figures.
Hydropower, one of the cleanest and cheapest forms of power, is a key target for development as Nigeria is currently exploiting just a fraction of its potential resources.
The country is also seeking to shift away from oil dependency, after plummeting oil prices triggered a recession.
The clear need for the Mambila project could make it more likely to succeed, some analysts believe.
"The prospects of project implementation starting are perhaps stronger than in previous decades," says Elizabeth Donnelly, deputy head of the Africa Programme at UK think tank Chatham House. "Nigeria continues, albeit slowly, with its complex power sector reform and badly needs to generate - and more importantly distribute - more power for its 180 million people."
"Hydroelectricity is an important part of this mix, particularly for rural electrification."


Source: cnn.com

Jonathan's administration Plunged Nigeria Into Recession – Fashola





Nigeria’s Minister of Power, Works and Housing, Babatunde Fashola, on Friday gave insight into how Nigeria slipped into recession.
Mr. Fashola, who spoke at the Lafarge Road Construction Summit in Lagos, said recession didn’t happen overnight and attributed the development to poor budgetary funding by the administration of former president, Goodluck Jonathan.
“There have been various comments about who and what caused the recession, I think that Nigerians know the answer to that, no matter how vehemently that debate goes on,” Mr. Fashola said.
“All I need to say at this time is that if the previous managers of the economy were doing well, the Nigerian electorate would not have relieved them of their jobs in the last general election because a recession does not happen overnight.
“There have also been questions about what the exit of the recession means to the ordinary Nigerian and this for me is the important question; because, even when the economy was growing at 5%-7%, the complaint was that it was a non-inclusive growth.
“Growth was largely oil driven, and sectors like industries, mining and construction had been in the negative since 2014.”
Mr. Fashola said many reasons had been given for the negative trend in the mining and construction sectors, adding that a core reason was the fact that public spending up to 2015 was largely recurrent and minimally capital.
“Government was budgeting about 15% of an annual budget of N4 Trillion for capital, which is only about N600 billion, and was funding barely half of that,” he said.
“If an example is required, it will be found in the 2015 budget, which was the last budget of the previous managers of the economy, where N18 billion was budgeted for all of Nigeria’s roads, N5 billion was budgeted for Power and N1.8 billion was budgeted for Housing.
“As if these were not bad enough (but) barely half of these budget provisions were funded.
“The result therefore was that massive debts were owed to contractors who started laying off workers and closing down worksites, and not driving demand for labour, aggregates, lubricants, etc.
“The 2016 budget of the Buhari government changed that,” the former Lagos governor said.
Mr. Fashola explained that in the Ministry of Power, Works and Housing, a total of N422.9 billion was budgeted, and disaggregated with Works getting N260.082 billion while Power got N91.257 billion, and Housing was allocated N71.559 billion.
“The total sum of N269.271 billion was paid out to fund this budget and in the final analysis N1.2 trillion was spent on capital expenditure across all ministries, departments and agencies in the 2016 budget.
“Out of these N198.300 billion was spent in the works sector on roads and bridges. This is what induced the recovery of growth and the exit from recession.
“It is the exact opposite of what the previous managers of the economy had been doing,” he explained.
In early September, Nigeria broke the cycle of negative GDP growth that characterized a period of recession, and recorded a 0.55% growth that takes her out of recession.
On Friday, the National Bureau of Statistics, NBS, announced that the nation’s inflation rate dropped again for the seventh consecutive month.
Nigeria slipped into recession in the early part of 2016.
Commenting further, Mr. Fashola revealed that the Dangote group had decided to extend the construction of Apapa-Wharf road.
Mr. Fashola said: “You’ll recall that we had an agreement with the Dangote group to rehabilitate and reconstruct the Apapa Wharf road using cement.
“They have since come back to say ‘we want to take the entire road network from Apapa, Liverpool, all through to Marine beach to Mile 2 to Oshodi to Oworonshoki and to the Toll Gate, a stretch of 35km so that we develop one solution to the port evacuation problem’.
“We held a meeting on Tuesday, we have agreed that this is the route they will take and they have written back to confirm their commitment and what is left is for the design consultant to complete the design so that we then use that to determine the cost and we use this solution to solve that road network using concrete.”
The Nigerian government had, in June, signed a N4.34 billion memorandum of understanding with Dangote Construction Company Ltd and other stakeholders for the construction of the road.