Jonathan banking on achievements, reformation policies to retain power

APART from the well-oiled and organised propaganda machinery of the rival All Progressives Congress (APC), which has put the Presidency on its ‘toes’ and somehow in bad light ahead of the presidential election, the Goodluck Jonathan-led administration appears to have gained support of some leaders of industries and professional bodies over some of his achievements in the last four years.

  Indeed, as Nigerians are waiting anxiously for the elections, members of the corporate world are also not relenting in ensuring that the better candidate between the incumbent, President Jonathan of the Peoples Democratic Party (PDP) and Gen. Muhammadu Buhari (Rtd.) wins the presidential contest. The two candidates are the major contenders, out of the 13 candidates vying for the presidency in the February 14 poll.

  The sensitivity of the presidential election may have informed the interactive session between Mr. President and his cabinet members with the Organised Private Sector (OPS) and Leaders of Professional Bodies, held at the Eko Hotels, Lagos last Sunday. The session was well attended by dignitaries and government officials.

  President Jonathan came some of his cabinet members, which included the Minister of Finance and Coordinating Minister of the Economy, Dr. (Mrs.) Ngozi Okonjo-Iweala, Minister for Petroleum Resources, Mrs. Diezani Alison-Madueke and the Minister of Agriculture, Dr. Akinwunmi Ayo Adesina. 

  Others were the Minister of Power, Prof. Chinedu Osita Nebo; Minister of Trade and Investment, Dr. Olusegun Aganga; Minister of Works, Mr. Mike Onolemenmen and the Minister of Water Resources, Mrs. Sarah Ochekpe. 

  The guests seized the opportunity not only to explain the Jonathan administration’s achievements, but to also exchange views and ideas with the leaders of the industries and professionals on why the president deserves a second term in office.

Corporate Forum

  The interactive programme was put together by the Corporate Forum, a non-governmental organisation with the primary objective of supporting and engendering good governance, with a keen interest in the socio-economic development of the country.

  In his opening remarks, the Chairman of the organisation, Otunba Funso Lawal, said the objective of the interactive session was to provide an integrated platform for Mr. President and his cabinet members to interact with leaders of industries and to articulate how the government is going to perform in the next four years.

  He said that the session was also aimed at helping to clarify issues between the government and the invitees, hear their views and integrate such into the administration’s policies in the next dispensation.

  Otunba Lawal explained that Corporate Forum undertakes its activities through a Board of Directors, which is responsible for coordinating the activities of its members.

  He added that the organisation celebrates good governance and supports the aspirations of political candidates through interactive sessions with the Organised Private Sector, Professional Organisations, and opinion leaders, while it also undertakes, on a regular basis, extensive research and reviews of economic performance and governance process through its Strategy Research Group (SGR).

Achievements of the Jonathan administration in the last four years

  The Ministers took turns to address the business of the day, which was to shed light on the “marvelous feats of transformation” the administration has attained in the last couple of years. 

  The Finance Ministry was the first to take the floor.

Okonjo-Iweala (Minister of Finance)

DESCRIBING the scorecard of the government as second to none in the history of Nigeria, the Minister said, “the nation’s economy is one of the fastest growing in the world, at seven per cent GDP growth, with the affirmation that the United Nations (UN) Conference on Trade and Development has named Nigeria as the number 1 destination for investment in Africa, attracting over $8 billion in Foreign Direct Investment (FDI).”

  She stated that in 2013, 1.6 million jobs were created directly and indirectly as a result of the Federal Government initiatives.

  She also said that the Exchange Rate has stabilised between N155 and N160 in the last three years, adding that country’s inflation rate is now eight per cent down from the 12.4 per cent in 2011. “It is projected to be a single digit for another year,” she said.

  “Under the Jonathan government, Nigeria’s External Reserves have reached $42.9 billion, one of the highest ever in the history of the country.”

  Speaking of the nation’s Sovereign Investment Authority, Mrs. Okonjo-Iweala explained that, “Our Sovereign Wealth Fund has been established with three components, which are Stability Fund, Infrastructure Fund and Future Generation Fund.” 

  “This will help protect the economy against future shocks and provide for future generations of Nigerians,” she said.

  To the delight of members of the Organised Private Sector andLeaders of Professional Bodies, the Minister disclosed that Nigeria’s $1 billion Eurobond was oversubscribed  — “a sign of confidence in the country’s economy.”

  Other economic achievements of the government, as mentioned include:

• Nigeria’s Budget deficit of 1.85 per cent to the GDP is one of the lowest in the world.

• Recurrent Expenditure, a major budgetary (instrument) for decades, is now on the downward trend.

• The introduction of Government Integrated Financial Management and Information System (GIFMIS) has improved the acquisition, allocation, utilisation and conservation of public financial resources, using automated and integrated, effective, efficient and economic information system.

 • Personnel costs are being reduced through the Integrated Payroll and Personnel Information System (IPPIS). Over N139.6 billion has been saved and 50,000 ghost workers identified through IPPIS.

 • With the Treasury Single Account (TSA) structure of government bank accounts, there is now a consolidated view of the cash positions; ninety-three (93) MDAs are currently on TSA and our government has gone from an overdraft of N102 billion in 2011 to an average credit balance of N86 billion in 2013.

  Given the fact that the country’s Credit Ratings has improved because of the strong economic indices, as a result of which international opportunities have opened for the Nigerian financial institutions and other companies, Okonjo-Iweala said that over 26,000 jobs have been directly created in the different sectors of the economy, while at least 80,000 more jobs are expected in 2015.

  Other economy achievements of the government include drastic drop in importation of textiles, plastic and rubber, paper and papermaking material.

  The Finance Minister said the banking sector has been well managed and cleaned up in the aftermath of the financial markets crisis of 2008/2009, adding that the 24 banks in the country are fully stable and adequately capitalised.

  According to her: “Non-Performing Loans have fallen to about five per cent. The Capital Market also recovered significantly after series of policy interventions. The sector’s value of listed companies has increased to N13.23 trillion.

  “Through the introduction of micro-insurance, compliance with compulsory insurance, more Nigerians are now aware of insurance policies, while the number of policies holders has also increased from 700,000 in 2010 to 1.5 million.”

  With these “undisputed” facts, Okonjo-Iweala appealed to members of the industries and other well-meaning Nigerians to support the second term bid of Mr. Jonathan, “not in the personal interest or parochial purpose, but for the good of the nation in general.”

Alison-Madueke (Minister of Petroleum Resources)

THE first female to become President of the Organisation of Petroleum Exporting Countries (OPEC) said that since the inception of the Jonathan administration in 2011, the oil and gas sector has witnessed a wave of activities and performance levels, which have placed the industry on a renewed path of growth and sustained development.

  She listed some of the government’s achievements in the sector include: 

• Ensured average crude oil production of approximately 2.3mbopd crude oil and increased gas production from 6.3 to 8.1bcf/d by year-end 2013, despite incessant pipeline vandalism and crude oil theft.

• Maintained unprecedented stability in the supply and distribution of petroleum products across the country, until the very recent episode of shortages created by a combination of supply glitches and panic buying, hoarding and diversions engendered by rumours of increase in the price of petroleum products.

• Commissioned the Usan Floating Production, Storage and Offloading (FPSO) vessel with a processing capacity of 180,000bbls/day operated by Mobil. The Usan field is currently producing 103,000 barrels a day.

• Increased the participation of indigenous oil and gas companies in the industry, leading to the commissioning of several critical infrastructure projects by Nigerian companies, including:

— Establishment of Ebok terminal by an indigenous company, with current daily crude oil production by 7,000 bpd and a plateau production of 50,000 bpd at full capacity.

— Commissioned Africa’s largest vessel, christened Akpevweoghene, an Offshore Pipe-laying/Derrick Barge, in May 2013.

— Commenced the landmark Egina FPSO vessel platform integration in Nigeria.

• Engineered the comprehensive re-draft of the Petroleum Industry Bill (PIB) that is undergoing legislative process within the National Assembly, and when passed into law, shall be the first of its kind in Nigeria in terms of its coverage and sweeping reforms.

• Revamped and rehabilitated previously non-functioning petroleum product depots and pipelines, including:

— The Benin Depot; Warri-Benin pipeline; Aba pipeline; Enugu, Gombe and Port Harcourt Depots and restored product supply to the facilities.

— Totally rebuilt the burnt-down Okrika Products Loading Arm and Jetty.

• In line with the transformation programme, in terms of Gas to Power, we have continued frontier exploration in the Chad Basin and signed agreements for the aeromagnetic survey of other hinterland basins.

• On-going implementation of the Gas Master Plan and announcement of a major investment initiative for the establishment of the Ogidigben Gas Industrial City in Delta State.

• Completed over 307km of critical gas backbone pipeline infrastructure including:

— Itoki-Olorunshogo

— Escravos-Warri-Oben

— Imo River-Alaoji

— Oben-Geregegu

• Kicked-off 1,860km of ongoing gas pipeline infrastructure, comprising:

—Oben-Lagos

—Obiafo-Obrikom-Oben (Ob3)

— Calabar-Ajaokuta-Kano

• Commenced Front-End Engineering Design (FEED) of the 850mcf/d Gas processing facility, to support domestic supply of gas to power the Ogidigben Industrial Park.

• In line with this, we have, with the assistance of the Ministry of Finance, raised $450 million in Eurobonds in support of pipeline extensions for the Calabar-Ajaokuta-Kano pipelines project. We are also in discussions with the International Finance Corporation (IFC) to bring in additional funding.

• Initiated a critical gas flare-down campaign, which, in two years, has seen gas flaring reduced by 20 per cent to as approximately 16.7 per cent of produced gas.

• Completed 100 per cent of the transitional phase objectives recommended by UNEP, including capacity building initiatives; identification of site for Integrated Soil Management Centre; designing clean-up plans and developing livelihood strategies for Ogoniland.

• In collaboration with the University of Port Harcourt, developed a Comprehensive Secondary School Curriculum on the effect of Hydrocarbon pollution.

• We have also put together the provision of critical support to the Joint Task Force that patrols the Niger-Delta onshore oil fields, to apprehend pipeline vandals and crude oil thieves.

• Significantly increased the level of indigenous asset ownership and enforcing utilisation of Nigerian owned assets such as marine vessels and rigs in supporting oil and gas industry operations.

• Maximised local value addition, by encouraging the manufacturing of equipment components and parts, in the country, in furtherance of the Nigerian Content Act of 2010.

• Ensured unprecedented tonnage of work placed in local yards by operators, and growth in indigenous participation in the provision of goods and services to the upstream sector from 10 per cent to 60 per cent in four years.

• Successfully introduced Compressed Natural Gas (CNG) to Nigeria, with over 2,500 taxi cabs now running in Benin City and many THERE is a direct need to enhance Nigeria’s efforts to stem this scourge, thereby increasing government revenue. 

  In July 2013, Mr. President established the National Economic Committee on Crude Oil Theft and Pipeline Vandalism, to assist in combating this menace.   

  Subsequently, choke points have been established at strategic locations within Nigeria’s littoral waters, and collaboration among security agencies and pipeline operators has significantly improved. 

  The Ministry of Petroleum Resources has reached out to various international governments and for a in a bid to stimulate international collaboration to mitigate crude oil theft, sabotage and vandalism. 

  The most recent was an anti-crude oil theft session that Nigeria co-hosted at the 2014 Cambridge Energy Research Associates (CERA) Week in Houston.

  Government is also finalising a framework for a comprehensive strategy that will deal with oil theft at local, national and international levels. This framework will amalgamate the work already being done by a range of agencies at varying levels, to ensure a holistic approach for the stemming of these criminal acts.

Downstream Deregulation

  Now that Nigeria’s power sector reforms are well under way, government’s commitment to restructuring the oil and gas sector remains unwavering. 

  In this regard, downstream deregulation remains an important part of a reform framework that seeks to restore financial sustainability and investor confidence in this vital sector of the national economy. 

  Without belabouring the point, government has sought to deregulate the downstream sector. Continuing regulation has several negative effects — it is fiscally unsustainable, it distorts demand, discourages investment, and principally, it benefits the rich not the masses in society that we intend to reach in the first place.

  Deregulation remains the only way in which capital investments can be encouraged and new employment opportunities created, for both foreign and local operators.

Passage of the PIB into law

  The present administration’s intention to transform the sector is encapsulated in the proposed Petroleum Industry Bill (PIB). 

  The PIB is anchored on re-creating an industry that is open, fair and transparent with fiscal rules of general application and regulatory monitoring that is consistent with international best practices. 

  A lot has already been said, but I will use this opportunity to once again urge our friends at the National Assembly for a speedy passage of this most critical legislation. 

  Such a reform would make Nigeria an attractive destination for oil and gas investments by reducing the risk premium associated with poor governance.

Repositioning the Gas Sector

  If the first 50 years of oil production in Nigeria (1958-2008) can be regarded as the oil age, I think it is safe to say that the next 50 years, if not now but in retrospect would be the age of gas.

  Government’s commitment to gas utilisation is reflected in the Gas Master Plan and the gas regulations issued in October 2008, which laid the framework for reforms in the gas sector. 

  The reforms are basically three-pronged, namely: the domestic gas supply obligation, the gas-pricing framework and the gas infrastructure blueprint.

  The enabling sector policy includes:

1. The Domestic Supply Obligation (DSO) Regulation, which provides

the legal basis for gas supply to the domestic market, and is currently being implemented by the Department of Petroleum Resources.

2. Gas commercialisation aspects of the reforms, including gas pricing; world class contractual frameworks for supply, transmission and access; World Bank revenue securitisation scheme to mitigate risk of payment failures for gas supplied to the power sector; and establishment of the Gas Aggregation Company of Nigeria (GACN) to facilitate DSO, manage price aggregation and mediate in the negotiation and execution of various Gas Supply and Aggregation Agreements (GSAA).

3. A scalable Gas Infrastructure Blueprint, which was articulated in the Gas Master Plan, for which Nigeria recently raised funding, is anchored on a network of critical pipelines and three Central Processing Facilities.

  The Gas Master Plan aims to:

• Create a framework that delicately balances the dual objectives of meeting domestic and export supply obligations, through a gas resource management plan for Nigeria;

• Develop infrastructure delivery systems for the domestic market; and

• Develop a commercial framework that underpins the domestic gas market.

  Nigeria’s adoption of a gas-based development programme is necessitated by the current view, globally, that gas will become the principal fuel of choice in the not too distant future. 

  The International Energy Association (IEA) predicts that in 2035, the global energy mix for fossil fuels will be dominated by gas, coal and then oil, in exactly that order. 

  By preparing the monetisation plan for gas in Nigeria, Nigeria is set to tap into the enormous potential that gas offers for our developmental strides. 

  In practical terms, the gas for developmental strategies encompasses specific projects such as the Ogidigben Industrial Park, which will accommodate fertilizer, petrochemicals and power plants.

  We have also kick-started gas industrialisation. As we speak, Julius Berger is on site doing early site preparation activities in our first purpose-built gas industrial park, which, when operational by 2017, will be Africa’s largest gas park spanning an area of 28 square kilometres and housing fertilizer, CPF, petrochemicals, aluminum, plants, etc. 

  This will create an unprecedented number of jobs addressing significantly, the social challenges arising from high youth unemployment. 

  Our strategy is to better link the oil and gas industry with the wider economy, and with our programme in gas, we are progressing this intent.

Revitalising the Domestic Refineries, Pipelines and Storage Facilities

Revitalising midstream refineries, pipelines and storage infrastructure to support domestic energy needs, requires a significant investment programme for existing refineries and development of new refineries to meet growing petroleum products demand. 

  As all Nigerians are aware, Nigeria is one of the largest importers of petroleum products in the world. This dependence on global suppliers affects our economy in a negative manner. 

  To address this issue, a refinery rehabilitation programme is in place that will bring Nigeria’s refinery availability to 90 per cent by the end of 2014.

Recapitalisation of the National Oil Company

  One of the important recommendations of the Oil and Gas Implementation Committee (OGIC), is recapitalisation of the National Oil Company and positioning it for a leading role in Nigeria’s oil and gas industry. 

  As stated earlier, separating the roles of policy and regulation from commercial operations means that the current NNPC would morph into a commercially viable operating entity, maximising the efficient use of the resources that are vested in it by the state.

  Finally, our roadmap for the industry would be unproductive and incomplete if these various interventions do not create clear benefits for the Nigerian people.   

  Currently, oil and gas provides the highest external income to the 36 State Governments that make up the Federation, but it contributes less than 14 per cent to our GDP.

  Government’s intention is that the final destination in our drive to reform the oil and gas sector has to be in increasing its contribution to GDP, and growing its revenue potentials for Nigeria.

  By establishing linkages between oil and gas and the wider economy, government expects to see expanding employment opportunities, which will address widening social inequalities in Nigeria.

  Distinguished Ladies and Gentlemen, reforms are always difficult to establish due to the inherent change management aspect and, of course, resistance pushback from stakeholders. 

  The journey to transformation is often an uphill undertaking and it requires the joint efforts of all stakeholders to succeed.

  I am confident that the Nigerian Oil and Gas industry possesses the tenacity and courage to overcome the obstacles that I have mentioned today.

  I do invite all of you present here today to join hands and put in our very best to arrive at the desired destination.

Adesina (Minister of Agriculture)

TO the passionate and engaging personality, something has actually changed in the sector and that is government’s efforts over the past three years under President Jonathan, which, he claimed, are paying off.

  He listed, as part of the administration’s achievements in the period under review as follows:

• Ended corruption of 40 years in the fertilizer and seed sector.

• Private sector-driven approach has replaced a system of government contracts.

• Launch of the GES and e-wallet: impacts on 14.5 million farmers.

• Restored dignity to farmers, transparency, accountability.

• Financial inclusion for farmers.

• The impact on the private sector: number of seed companies (from 11 in 2011 to 134 by 2014)); and the growth of investments in the fertilizer sector ($ 5 billion).

• World Bank now to scale up e-wallet across Africa; African countries learning from Nigeria: Nigeria now exporting transparency.

Rice

• Rice policy and acceleration of domestic rice production:

• Turning Nigeria away from being the 2nd largest importer in the world.

• Closing the three gaps: productivity (with improved varieties); milling gap and competitiveness gap.

• Over six million rice farmers reached with improved rice varieties.

• Area cultivated with improved rice varieties expands to two million hectares.

• Total rice production rose by additional 7 million MT.

• The number of private sector integrated rice mills expands from 1 (2011) to 24 (2014).

• Total milling capacity rose from 70,000 MT (2011) to 800,000 MT (2014) — an increase of 1,040 per cent.

• Nigerian rice in the market better than imported rice. Some importers bagging our high-quality rice as “imported rice.”

• The supply gap in terms of finished rice reduced by 45 per cent from 2.6 million MT in 2012 to 1.5 million MT in 2014 and expected to decline to 750,000 by 2016 and zero by 2017. Nigeria should become a net rice exporter by 2018.

• New private sector investors expanding investments: Dangote with $1 billion investments in integrated rice production with modern milling, to produce 1 million MT of rice, with 150,000 ha in five states. Our drive: turn Nigeria into a net exporter of rice within three to four years.

• New rice policy drives up new investments, turning importers to producers: total investments of $2.6 billion by new investors, with performance bonds.

• Dry season policy: first in the nation’s history. Allowed us to recover from the impacts of the 2012 floods. Rice now grown in dry season across 23 states. Jobs, lower migration dampened insecurity.

• Economic impacts of the rice: net economic benefits of N404 billion.

Cassava

• Major effort to turn Nigeria into the largest processor in the world.

• Value chain development to produce starch, HQCF to partially substitute for imported wheat flour, sweeteners, sorbitol, ethanol, chips, etc.

• Over 144 million bundles of cassava provided to farmers.

• Mechanised cassava farms: 35,000 ha of mechanised cassava farms.

• Master bakers: over 3,000 trained in HQCF for bread, with support for equipment.

• Over six industrial bakers baking cassava bread.

• Savings to economy: over N125 billion.

• Major shift: flour millers have embraced the policy, from a purely economic and financial perspective and clear consumer preference.  

  Today, all flour milled in Nigeria for confectioneries have at least three per cent at the industry level. Two months ago, the largest flour millers (FMN, Honeywell) launched 10 per cent HQCF composite flour: cheaper, tastier and accelerating uptake by consumers and bakers.

Oil palm 

  Investments expanded. Newly planted area: several thousand hectares. Okomu, PZ-Wilmar and Presco, and several medium scale operators. 

  Nine million sprouted nuts distributed to farmers, free of charge. Private investments in oil palm into new plantations: 69,431ha

Cocoa

• Ramping up production with new hybrids (matures in 2.5 years, with 5 times the yield), with 114 million seedlings being distributed, free of charge.

• Production rose from 250,000 MT (2011) to 350,000 MT (2014); and we expect to reach 600,000 MT by 2017.

• Export earnings rose from $900 million in 2012, to $1.2 billion in 2013 and $1.3 billion in 2014.

• Plan to establish Cocoa Corporation of Nigeria — private sector-driven.

Financing for the agric sector

• Launched the NIRSAL facility, the largest risk-sharing facility for agriculture anywhere in Africa, to use $350 million to leverage $3.5 billion of private sector lending into agriculture.

• Banks have seen the profitability of agriculture and appreciate the private sector-driven and value-chain approach in the sector, and integrity and anti-corruption policy of government in the sector. They see the money trail and are lending more than ever before.

• Bank lending to GES programme alone rose from N3 billion in 2012 (at the start of the ATA) to N18 billion by 2013 (N8 billion: seed companies; N10 billion, fertilizer companies); and N 24 billion by 2014.

• The share for agriculture in total bank portfolio rose from 0.7% at the start in 2011, to 4.5% by 2013/14 and expected to rise to 7.5%-10% within the next two years. This can even be faster with bank diversification out of the oil and gas sector into the agricultural sector.

• Launched the Fund for Financing Agriculture in Africa (FAFIN); $100 million equity and private equity fund for supporting agribusinesses SMEs; the first of such in Africa. 

  Partnership with KFW with Euro 30 million; according to the KFW Director, this is the first of such by KFW globally, due to the businesslike approach, transparency, accountability and credibility of the way the agriculture sector is managed in Nigeria.

Private Sector Investments:

• $5.6 billion, across the entire agricultural value chains.

• The largest food manufacturing company, Cargill, is now investing in Nigeria, including the three largest seed companies in the world (Syngenta, DuPont, Monsanto) due to favourable agricultural sector investment policies.

Mechanisation of the sector:

• Launched N50 billion private sector-driven Agricultural Equipment Hiring Enterprises (AEHEs).

• Total of 1,200 to be established around the country over three years; goal: take hoes and cutlasses into the museums.

• 80 AEHEs already being rolled out.

Youth in Agriculture: Building the future of agriculture

• Launched the Youth Employment in Agriculture Programme (YEAP); develop a new generation of 750,000 young, commercial farmers and agribusiness owners over three years.

• First set of 27 Nagropreneurs (all graduates across all fields) was awarded grants of N123 million on by the Ministry to boost their businesses.

Staple crop processing zones:

• To address the challenges faced by private sector agribusinesses; to move the private sector food and agribusiness processing companies into rural areas to process and add value to all staple foods.

• Will reduce cost of doing business by 28-30 per cent and revive rural economies, reduce food losses, create jobs and lower food prices.

• Turn Nigeria into a competitive producer of processed foods for the rapidly urbanising society.

• 14 SCPZs master plans completed.

• Will add $ 4-9 billion to the GDP; create over 250,000 quality jobs.

• World Bank, African Development Bank and others have committed $1 billion to support infrastructure in these zones.

  In summary, Adesina said the administration got agriculture right, with global acclaim. It has also laid the foundations for much rapid growth and structural positioning.   

  “This President has been the most farmer-friendly (AgriFest 2015: 23,000 farmers to celebrate him),” he said.   

  “You cannot afford to experiment with those saying they will modernise agriculture. Today, Nigerian agriculture is already being rapidly modernised and is on global stage.” 

Nebo (Minister of Power)

GIVING reasons why Jonathan deserves a second term, Prof. Nebo commended the president, whom he said launched the Nigerian power sector reform roadmap in 2010, to address the power supply deficit in the country.

  “The power sector is one area President Jonathan has committed to leaving an eternal legacy on the life of Nigerians,” he said.

  “The roadmap launched sets out a clear implementation plan of the Electricity Power Sector Reform Act (2005), as a reaffirmation of the commitment to resolve the power crises and setting the path for the power sector.”

  He noted that some of the improvement includes reinstatement of the Nigerian Electricity Regulatory Commission.

  “The regulatory body was strengthened with a new chairman and commissioners sworn in for the purpose of providing appropriate regulatory functions for the electricity market in Nigeria,” he said. 

  “The administration also unbundled the Power Holding Company of Nigeria (PHCN) into 18 successor companies, for greater efficiency and effectiveness in power generation and distribution.”

  The minister noted that by the creation of the Nigerian Bulk Electricity Trading Plc., also known as the Bulk Trader in August 2011, the president inaugurated its CEO and board. 

  The requisite environment for private sector investment in the Nigerian power sector has been created by establishing a credit-worthy off-taker of power, NBET Plc., which provides confidence to the power generating companies that they will be paid for power produced.

  The Jonathan administration, according to Nebo, has launched the Energy Efficiency and Energy Conservation Lighting Scheme. This is to promote and encourage the use of energy efficient bulbs and lighting systems in order to create an energy conservation culture.

  The Federal Government has entered into a MoU with worldwide leaders in the power sector, General Electric. The MoU stipulates that General Electric will invest up to 15 per cent equity in power projects in the country, summing up to 10,00MW capacity by the year 2020. 

  General Electric also proposes to establish local packaging facility for small aero-derivative turbines in Nigeria, which will promote job creation.

Signing of a MoU with the U.S. Exim Bank 

  The Exim Bank of the United States of America signed a MoU with the Federal Government of Nigeria to provide an investment window of up to $1.5 billion for investors willing to invest in the Nigerian Power Sector.

  This is the first time such quantum of money will ever be made available by the US Exim Bank for a specific sector in Africa.

  The Goodluck Jonathan administration has improved the power generation from around 2,000 megawatts to 4,502 megawatts in December 2012, the highest since Nigeria returned to democratic rule in 1999.

By July this year, power generation will hit 6,000 megawatts and by December this year, it will hit 10,000 megawatts.

  The minister said all the 10 Power Plants under the National Integrated Power Projects (NIPP) scheme would be commissioned by the end of this year. 

  “At the moment, majority of them have reached 95 per cent completion stage,” he said.

  Improved power supply has been boosted in part by the emergency declared in the Gas sector last year by President Jonathan. 

  “At the time gas supply was insufficient, but now, thanks to the intervention by Mr. President, Nigeria now produces more gas than is required for domestic consumption,” he said.

  “For more efficient power supply, the Jonathan administration has privatised the power distribution companies (DISCOs) under a most transparent bid process.

  “Today, large parts of an unprecedented number of cities and towns across the country are enjoying between 14 to 16 hours of uninterrupted power supply, except in some few areas where localised problems of power distribution network have created bottlenecks for smooth transmission.”

Onolemenmen (Minister of Works)   

HE told the august gathering of leaders of industries that different parts of the country can attest to the fact that the Federal Ministry of Works, under the able leadership of President Jonathan, is recording phenomenal success in transforming the road sector within this timeframe, even as signs of a better road development are becoming clearer by the day.

  He noted that the future is very bright for the Nigerian roads, as the foundation for world-class roads is being laid, “and for us at the Federal Ministry of Works, the task of making Nigerian roads better and safer, is a task that must be done.”

   According to him, “At the inception of President Jonathan’s administration, we identified a number of challenges facing road development in the country, which include:

• Inadequate planning; Poor design; Ineffective supervision; Bureaucratic project management structure; Lack of strong quality assurance; and Inadequate funding.

  “We moved quickly to address these challenges by restructuring the Ministry to provide the needed capacity through the decentralisation of the bureaucratic project management structure, which we inherited, for better delivery of road projects,” he said.

  “Six Zonal Directorates of Highways were created to better manage and supervise construction works on sites within the geopolitical zones.

  “Independent Zonal Monitoring Teams for the six geopolitical zones were also constituted with membership drawn from the private sector, to provide independent report on projects and activities in the zones.

  “This measure, coupled with the activities of the newly created Department of Materials, Geotechnics and Quality Control, has led to better service delivery in the sector.”

  He added that from the 160 ongoing projects they inherited, “we have pursued the diligent execution of the prioritised projects, ensuring that adequate progress is being made towards completing the projects on schedule, and in line with specifications.”

  Listing some of the projects the administration has achieved on road intervention, which he described as second to none since the creation of the country, Onolemenmen said that the Apapa-Oshodi Expressway, “which was an embarrassment and a source of agony to many Nigerians before the administration of President Jonathan because of its deplorable condition,” has been improved upon tremendously.

  “The road has been expanded with good drainage works, and the construction of a Trailer Park and a dedicated bridge leading into Tin-Can Island Port from Liverpool Round-About, are very re-assuring.

  He said that the Benin-Ore-Shagamu highway is another project where the administration has achieved a major milestone.

  His words: “The highway is 262.5km long. The contract for the reconstruction of the road project is being executed by Reynolds Construction Company Nigeria Limited and Borini Prono & Company Nigeria Limited.

  “Before the intervention on this road by President Jonathan’s administration, Nigerians will recall how motorists spent over nine hours or more to travel from Benin to Lagos or vice versa. 

  “But, thank God today that the travel time has been reduced to four hours or less even when the project (is not completed.”

  The minister disclosed that he receives phone calls from numerous Nigerians everyday, expressing their appreciation over the works that had been carried out on the road.

  “The marked improvement on this road that connects the Southwest to the South-South and the Southeast, has led to the reduction of air traffic between Benin City and Lagos, as citizens now prefer to drive on the largely improved highway,” he said.

  “One of the key performance indicators in the road sector is improved travel times on the road; and this we have achieved on this and other roads in the past 10 months.”

  On the Abuja-Abaji-Lokoja dualisation road project, the minister said that this is an arterial highway linking the Southeast, South-South and Southwest from the nation’s capital city of Abuja.

  The Abuja-Lokoja section of the road is 196km long and was awarded in 2006 in four sections to Dantata & Sawoe Construction Company Limited (Section I), Reynolds Construction Company Limited (Section II), Bulletine Construction Company Limited (Section III) and Gitto Construzioni Generalli Limited (Section IV).  

  According to him, due to poor funding in the past, the project recorded low progress. However, the Jonathan-led government concentrated efforts and resources on the road, resulting in marked improvement on the motorable condition of the road.

  “This road, which was notorious for its high accident rate, has witnessed a reduction, following the opening of the Giri and Gwagwalada Bridges, as well as completed sections of the road to vehicular traffic,” he said.

  He also informed the Corporate Forum that the Jonathan government has intervened successfully on the Kano-Maiduguri Dualisation road project, which is the major arterial highway connecting Kano to Borno States, via Jigawa, Bauchi and Yobe States.

  The road is 553km long and was awarded in 2006 in five (5) sections to Dantata & Sawoe Construction Company Limited (Section I); Setraco Nigeria Limited (Section II); Mothercat Limited (Section III); CGC Nigeria Limited (Section IV); and CCECC Nigeria Limited (Section V).

  He said that the project witnessed increased progress of construction works under the current administration.

  The Onitsha-Enugu road project is 108.6km long. The contracts for the rehabilitation were awarded to CCC Nigeria Limited and Nigercat Construction Limited. 

  “Like other major road projects, the slow pace of work on the road in the past was attributed to inadequate funding,” he said, but with enhanced funding from the Subsidy Reinvestment and Empowerment Programme (SURE-P), “considerable success job has been done and the road is not only motorable, but also now safe.”

  The Ibadan-Ilorin road is a section of Route A1, a major North-South arterial highway. It is 151.5km long and it passes through major towns such as Oyo and Ogbomosho. 

  Contracts for the dualisation of the road were awarded in three Sections: Section I (Ibadan-Oyo) and Section III (Ogbomosho-Ilorin) were awarded to PW Nigeria Limited and RCC Nigeria Limited, respectively, in 2001.  

  “Section III has since been completed while Section I is nearing completion,” he said.  

  “In order to complete the dualisation of the road, contract was awarded to RCC Nigeria Limited in 2010 for the remaining Section II (Oyo-Ogbomosho), and appreciable progress has been made on this section in the last ten months.”

  Other major roads listed that have been intervened on by the current government include: Gombe-bye-pass in Gombe State; Katsina-Daura road, Katsina State; Aba-Owerri road in Abia State; Eleme Junction Flyover and the Dualisation of Access Road to Onne Port, Phases I & II in Rivers State; Ijebu Igbo-Ajegunle-Araromi-Ife-Sekona road, Section II in Ogun and Osun States; reinstatement of collapsed section of Gombe-Potiskum road (Km.12) in Gombe State; completion of the construction of Mararaba-Bali road in Taraba State and Hadejia-Nguru road, Phase I (Hadejia-Kirikasama) in Jigawa State.

  Others are: Onitsha-Owerri road (Section I) and Onitsha Eastern bye-pass (Section I) in Anambra State; Obiozara-Uburu-Ishiagu-Awgu road, Phase I, in Ebonyi and Enugu States; construction of a bridge at Lafenwa in Ogun State; rehabilitation of eight expansion joints on 3rd Mainland Bridge (Phase I) in Lagos State; and dualisation of Ibadan-Ilorin road, Section I, Ibadan-Oyo, in Oyo State.

  “The Loko-Oweto Bridge is another major project that is very dear to the administration of President Jonathan because of its strategic importance in the national road network,” Onolemenmen said.   

  “The Bridge is located across River Benue linking Nasarawa State to Benue State. When completed, the 1,970m long Bridge will increase commercial activities in that part of the country as it will provide a short link, and therefore reduce travel times between the Northern and Southern part of the country.”

  Reynolds Construction Company Nigeria Limited is constructing the bridge for a four-year duration, “but the Federal Ministry of Works plans to fast-track the project so that it can be completed in three years with enhanced funding from the SURE programme,” he said.

  While appealing for Public-Private Partnership on road intervention in the country, the minister said that the Jonathan’s government has in the area of road intervention alone engaged over 60,000 Nigerian youths on road maintenance works, “thereby creating a social safety net and road ownership attitude with abutting communities.”

  Onolemenmen said Nigerians stand to gain a lot, if the incumbent is re-elected in the February 14 election, “to enable the administration complete most of what it started in the last four years, with the ongoing construction of Lagos/Ibadan Expressway.” 

Ochekpe (Minister of Water Resources)

ALTHOUGH the Minister was absent at the meeting, it is, however, expedient to note that the ministry has recorded tremendous achievements in the last four years.

  As record shows, seven water supply projects had been completed, providing about 4.3 million Nigerians access to potable water. Over 4,000 jobs had been created in this process.

  As at 2012, 65.29 per cent of the population had access to safe water, compared to 60 per cent in 2011.

  Nine dams had been completed in Akwa Ibom, Katsina, Enugu and Ondo States, to increase volume of the nation’s water reservoir by 422 mcm.

  The size of irrigated area has more than doubled, from 90,000 hectares in 2010 to 175,000 hectares in 2012 and increased production of over 400,000 metric tonnes of irrigated food products. 

  About 375,000 farmers had access to irrigated land in 2012, up from 236,000 in 2011, and progress has been made on major projects, such as the Bakolori Irrigation Project and the Galama Dam.

  Responding to questions and observations, which some of the dignitaries present at the event raised after listening to the ministers, President Jonathan admitted that most of the achievements were not adequately communicated to Nigerians. 

  He, nevertheless, expressed gratitude for the support and observations of the professionals and leaders of industries.

  To Jonathan, the observations raised by the Managing Director, Emzor Pharmaceutical, Chief Mrs. Stella Okoli, about the missing link between the government’s achievements in the last four years and the people, was vital.

  He assured the dignitaries that his team would look for a different approach in reaching the masses “so that people can know what our administration has achieved.”

  He said that his government was the most documented administration.

  On diversification of the economy, President Jonathan commended the private sector for partnering with his government, promising that the administration would continue to create the enabling environment.

  According to him, the commitment of his government, “is that whatever we do are done in the best interest of the country.”

  He reiterated his position to fight corruption but not in a manner of demonstrating corrupt officials on the television. 

  “We are fighting corruption but it is not about jailing people,” he said, adding that his system of addressing corruption was “through prevention.”

  He said: “Before we took over government, the corruption in the fertilizer area was unprecedented such that despite the billions of money that the government spent on fertilizers every year, it never gets to the farmers. 

  “But today, through the e-wallet system, we have been able to eradicate corruption in the fertilizer distribution and the product is now getting to the farmers.”

  The president also noted the giant strides the administration has recorded in curbing corruption and fraud in the Civil Service and the Pension Scheme.

  He explained that the Economic and Financial Crimes Commission (EFCC) has been able to convict more people on corruption, “more than any other administration in the country.”

  While he pleaded for more support from the private sector, Jonathan said, “since there is fall in the oil price, we need more of the private sector partnership intervention in other sectors of the economy.”

  He sought the cooperation of the private sector in road infrastructure, while he emphasised the need to encourage the youths to participate and show interest in farming.