FG okays 0.2% new AU import levy

May 20th, 2019

*FCT gets N4bn infrastructure contracts

By Chesa Chesa

The Federal Executive Council (FEC) has approved the domestication of the African Union (AU) Resolution providing for a new import levy of 0.2 percent to enhance sustainable financing of Nigeria’s membership subscription to the continental body.

Minister of Finance, Mrs. Zainab Ahmed, announced this after an extended session of FEC chaired by Vice-President President Yemi Osinbajo at the State House, Abuja, on Monday.

She explained that the new import levy on Cost, Insurance, and Freight (CIF) would be charged on imports coming into Nigeria from AU countries.
The CIF is paid by a seller to cover the possible loss or damage to a buyer’s order while in transit.

The levy however, exempts goods originating from outside AU States; those originating from AU but financed through special purpose facilities; those meant for aid; and goods that have been ordered and are under importation process before the scheme was announced into effect.

“The purpose of this new levy is to enable the African Union member countries pay on a sustainable basis their subscriptions to African Union.

“The Council also approved that for Nigeria knowing that what will accrue from this new levy will be more than what is required as subscriptions to the African Union, the balance will be put in a special account in the Central Bank of Nigeria and will be used to finance her subscriptions to multilateral organizations as as the World Bank, African Development Bank, Islamic Development Bank and institutions like that.

“And if there is any excess left from that in the revenue pool, it will be used to finance the budget”, Ahmed said.

She also disclosed that the FEC approved an extension of a Central Bank of Nigeria intervention that will be used to continue to support the power sector, specifically the generation companies.

She said that “this is based on a commitment that we signed into as a country, where we have several guarantees to the Generation Companies (GenCos) to bridge any gap that they have after the Nigerian Bulk Electricity Trading Plc (NBET) has settled them.

“The CBN facility is to pay the Gencos for any financing shortfall that they have after the bulk trader NBET settles them. So it is a cost on government, it is loan, government will be paying it back to the central bank. The essence is to meet the contract obligations that government signed with the Gencos on the assurance we gave them on off taking any power that they generate after payment is made from the NBET.”

The FEC further set up a steering committee, chaired by the Vice President for the design and implementation of a national single window, “a web portal that would be able to integrate all the government agencies that are operators that are implementers in the Port business or trading in the Port system.

“The trading platform will enable better efficiency of port operations and we project that it will significantly increased government revenues”, she added.

The Minister of Federal Capital Territory, Mohammed Bello, announced FEC’s approval of the award of contract for the rehabilitation of failed walkways within the Wuse District of the Federal Capital City and that contract was awarded at the cost of N1.9 billion.

The second contract was for the preparation of the electricity master plan for Phase IV of the Federal Capital City at the cost of N189 million with a completion of ten months.

The third contract is the design of infrastructure for what we called institution and research district which is in phase III of the Federal Capital City at the cost of N197 million.

The fourth is engineering design of infrastructure for Sector G and H in Phase III of the Federal Capital City awarded at the cost of N118.57 million.

The fifth is for the design of inter-sceptic sewage line for the federal capital city in the total sum of N125 million, while another contract is for the construction of the School of Science at the permanent site of the FCT College of Education Zuba at the cost of N701 million.

The other contract is the final engineering design of infrastructure and production of tender documents for Dawaki District in the sum of N259 million with a six moth completion period.

Also, there was a contract for engineering and infrastructure design for a 41km Nyanya-Guruku-Mpape which will burst out at the Outer Northern Express Way which is called Murtala Mohammed Expressway at the cost of N174 million with completion period of six months. That is, the expressway from the city that goes right through to Zuba.

The next one is for the supply and installation of a city scanner machine for the Maitama District Hospital with a delivery period of eight weeks at the cost of N190 million. While the last contract is for engineering infrastructure for Kabusa District at the total cost of N179 million.

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