Soon after signing Budget 2017 into law, the Federal Executive Council, FEC, has swung into action to implement key infrastructure projects around the country. For instance, the Council approved $188.807 million and N8.576 billion for road, power and port projects yesterday. The approvals included reimbursement of N7.943 billion to Kwara State for construction of Kayamakishe road. Afam Power Plant was approved for $186.6 million.
The the offshore components of the Afam substation plant get $2.207 million and N133.184 million for the local components. N500 million was earmarked for the completion of Baro River Port.
Accompanied by Kemi Adeosun, minister of Finance, RotimiAmaechi, minister of Transportation and Lai Mohammed, minister of Information, Babatunde Fashola, minister of Power, Works and Housing, briefed reporters after the FEC meeting, that the Kwara State government had applied to be allowed to construct Kayamakishe road and be refunded in the future. “FEC gave approval for the reimbursement of Kwara State government to undertake the construction of the Kayamakishe road which is a road that serves the Agricultural belt that produces Agro Product between Oyo and Kwara state. So Kwara State has applied to be allowed to take that road on the basis that they will be refunded at sometime in the future. We have actually received anticipatory approval from Mr. President and Council has ratified that approval for them to continue. The road contract is N7.943billion,” Fashola stated.
He added that, “The other one is consistent with infrastructure development in the country is the memo for the Afam emergency fast power which is part of the ministry’s roadmap for incremental power to the grid. Council ratified the earlier approval given for GE to undertake that project so that we can complete 240megawatt (Mw) of emergency power through 830Mw turbines this year. Council also approved the contract for the construction and rehabilitation of the sub-station to enable the evacuation of the power, once the turbines are installed. The total package for the Afam power plant is $186.6million and the contract for the substation is $2.207 million for the components that are offshore and N133.184 million for the local components,” he said.
Adeosun explained that FEC gave the Ministry permission to sign a multilateral convention to implement tax treaty related matters to prevent base erosion and profit shifting. “In simple language, this administration is very focused on revenue generation and mobilisation and part of that work is to improve our tax collection,” said Adeosun.
According to her, one of the means by which major companies evade taxation is a practice called base erosion and profit shifting, which means that the profit that was made in Nigeria is shifted it to a country that has little or no tax using accounting methods.
“So really the country in which profit was generated doesn’t get tax, they go and declare those profits in a country that has very low tax. There is a contact among the G20 countries and the OECD to end this and Nigeria was part of those who negotiated this convention and today Council gave us permission to go and sign the conventions,” Adeosun further explained.