03-12-2020, 12:19 PM
FEC approves N43b for road, agric
March 12, 2020
in Business, News Update
[/url]![[Image: Fashola.jpg]](https://thenationonlineng.net/wp-content/uploads/2019/11/Fashola.jpg)
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“So, should the VAT on those contracts be 7.5% or 5% as earlier signed on to? A final decision was reached today. This is that new contracts that are signed from February 1 going forward will attract 7.5% VAT. Contracts earlier than February 1 signed on 5% VAT will remain at 5%. So, there is no more confusion on this matter”, he said.
March 12, 2020
in Business, News Update
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[url=https://thenationonlineng.net/wp-content/uploads/2019/11/Fashola.jpg]
The Federal Executive Council (FEC) on Wednesday approved N43.3 billion for a road and various agricultural projects across the country.
The Minister of Works and Housing, Mr Babatunde Fashola (SAN) and Minister of Agriculture and Rural Development, Alhaji Sabo Nanono, dsiclosed this State House Correspondents.
Speaking on the project approved for his ministry, Mr Fashola, said FEC approved the reassignment of the 9th Mile section of the Enugu-Onitsha Highway from a previous contract to a new one.
According to him, the project is a 15 kilometre section of the road, costing a total N29.4 billion and now reassigned to the contractor handling a substantial part of the entire stretch of the road.
“We had one memorandum in respect of the 9th Mile section of the Enugu-Onitsha Highway just to disengage the contractor who was previously handling that 15 kilometre section and award it to the contractor that now has the majority of the rout, which is RCC. That section was determined and approved for re-award to RCC so we now have a wholesome strategy to complete that road.
“Of course, the 9th Mile section, as you might know, is a very tricky, difficult area; very steep, dangerous, a point of many accidents before, so we have to change design and do a lot of other alterations in quality to ensure now that we manage, not only the erosion there, but that very good work is done.
“So Council approved that in favour of Messrs RCC for the sum of N29.4 billion. It’s rolled into the existing contract, which I think was for 24 months,” he said.
Alhaji Nanono said FEC approved N13.9 billion for a number of projects, which are centred around combating some pests and diseases militating against food security.
“We had one memorandum from the Federal Ministry of Agriculture and that was on pest control, animal diseases like rabies, lungs and liver diseases as well as Quella birds, especially in the Northeastern part of the country. There are 12 frontline states that are being affected affected by Quella birds, grasshoppers and those that have been pestering us.”
Also presenting the FEC’s approval of the report of a Cabinet Committee on the effective date of take off for the new 7.5% VAT on government contracts, Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu, said the takeoff date has been set for February 1, 2020.
“By law, the new VAT came into effect on the 1st of February, 2020. Government had worried about the implications of this on contracts that had been issued earlier than this year. So, the contracts that are being handled by various ministries, particularly Ministry of Work, for instance, are coming from many years back.
“So, should the VAT on those contracts be 7.5% or 5% as earlier signed on to? A final decision was reached today. This is that new contracts that are signed from February 1 going forward will attract 7.5% VAT. Contracts earlier than February 1 signed on 5% VAT will remain at 5%. So, there is no more confusion on this matter”, he said.