FEC approves 0.2% import levy, School of Science, nine others get N4bn

The Federal Executive Council (FEC), on Monday, approved the rate of 0.2 per cent as the new import levy of Cost, Insurance and Freight (CIF) on goods coming into Nigeria.
Minister of Finance, Mrs Zainab Ahmed, disclosed this while addressing the  State House correspondents after the FEC meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa.
 
She said, however, there were exemptions to the new levy.
 
“Council approved a rate of 0.2 per cent as the new import levy of CIF that will be charged on imports coming to Nigeria but with some exceptions.
 
“The exceptions include goods originating from outside the territory of member countries that are coming into the country for consumption.
 
“It also includes goods that are coming for aid and also it includes goods that are originating from non-member countries but are imported through specific financing agreement that ask for such kind of exemptions.
 
“It also exempts goods that have been ordered and are under importation process before the scheme is announced into effect.’’
 
According to her, the purpose of the new levy is to enable African Union (AU) members pay on a sustainable basis, their subscription to the AU.
 
Ahmed said that Nigeria knowing that what would accrue from the new levy would be more than what was required as subscription to the AU, that the balance would be put in a special account.
 
She said that the special account would be used to finance subscriptions in multilateral organisations such as the World Bank, African Development Bank  (AfDB), the Islamic Development Bank, and institutions  like that.
 
The minister said that if there was any excess left from that revenue pool, it would be used to finance the budget.
 
She said the second approval was for the setting up of the Steering Committee to be chaired by the vice president for the design and implementation of a National Single Window.
 
“The National Single Window is a web portal that will be able to integrate all the government agencies that are implementers in the port system or trading in the port system.
 
“The trading platform will enable better efficiency of port operations; also, we are projecting that it will significantly increase government revenue.
 
“The third approval is for the extension of the Central Bank of Nigeria (CBN) intervention that will be used to continue to support the power sector particularly, the generation arm of the power sector.
 
“This is based on a commitment that we signed into as a country where we gave seven guarantees to the Generating Companies (GenCos) to bridge any gap that they may have after the Nigerian Bulk Electricity Trading (NBET) Plc has settled them,’’ she said.
 
On his part, the Minister of Budget and National Planning, Sen. Udo Udoma, said he briefed the FEC on the first quarter of Gross Domestic Product (GDP) performance numbers released by the National Bureau of Statistics (NBS), a parastatal under his ministry.
 
He said that the GDP indicated continuing economic growth.
 
According to him, the economy recorded a real GDP growth of 2.01 per cent in the first quarter of 2019.
 
Udoma said that the growth reflected the strongest first quarter performance in GDP since 2015—a development which he said pleased the council.
 
“FEC is most encouraged that the economy continues to be driven by the non oil sector which affects most of our population.
 
“Also, Agriculture grew by 3.17 per cent and this represents the strongest growth in agriculture since the first quarter of 2017.
 
“FEC is also pleased to note that are improvements in other economic indicators such as the inflation rate which tend to be high during the election period but it has been stable.
 
“Our trade balance has also remained healthy during the period while our exchange rate to the dollar has also been stable notwithstanding the elections, there has been stability,’’ he said
 
The minister said that the council believed that the dividend arising from the peaceful elections and the re-election of President Muhammadu Buhari would lead to a further boost in economic growth.
 
He said that the country would expect faster growth rate as the incoming cabinet would continue to intensify work on the implementation of the Economic Recovery and Growth Plan.
FEC also approved N3.8 billion for the execution of various projects in the FCT
The Minister of the FCT, Malam Muhammed Bello, who made the disclosure, named the approved projects as the construction of the School of Science, Zuba at a cost of N701 million.
He said that N1.9 billion was for the rehabilitation of the failed walk ways in the Wuse District with a completion period of 12 months.
Bello stated that the council approved N189 million for the preparation of the Electricity Master Plan for phase IV of the FCT with a completion period of 10 months.
“The third contract is the design of infrastructure for what we call the institution and research district which is in phase III of the Federal Capital City at a 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 a cost of N118.575 million with a completion period of six months.
“The fifth is for the design of inter-septic sewage line for the federal capital city in the sum of N125 million.
“The next one is the contract for the construction of the School of Science at the permanent site of the FCT College of Education, Zuba at a cost of N701 million with a completion period of 42 weeks.
“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-month completion period.’’
The minister disclosed further that the council approved N174 million contract for engineering and infrastructure design for the 41-km Nyanya-Guruku-Mpape road.
According to Bello, the road will link the Outer Northern Expressway, which is called Murtala Mohammed Expressway with completion period of six months.
“That is the expressway from the city that goes right through to Zuba.
“Ultimately that road is going to give another access entry point into the city and also will open up that section of the city for development.’’
The minister said the council also approved N190 million for the supply and installation of a scanner machine for the Maitama Hospital with a delivery period of eight weeks.
He said that N179 million was likewise, approved for engineering infrastructure for Kabusa District.