By Johnbosco Agbakwuru
ABUJA—The Federal Executive Council, FEC, yesterday, approved the signing of a multilateral convention to implement tax treaty related matters.
FEC also ratified approval for General Electric, GE, to complete 240MW Afam power project, and completion of Baro River Port, others.
Briefing newsmen at the end of the meeting at the Presidential Villa, Abuja, Minister of Finance, Mrs Kemi Adeosun, said: “I presented a memo, which was approved by council, today (yesterday) and permission was granted 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. One of the means by which major companies evade is a practice called base erosion and profit shifting, which means that the profit that was made in Nigeria using accounting methods is shifted to a country that has little or no tax.
“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.”
…Approves Baro River Port completion, others
On his part, Minister of Transportation, Chibuike Amaechi, said the council gave approval for the completion of Baro River Port and that FEC deliberated on three major contracts that would assist in its completion.
He said: “We got an approval for the completion of Baro River Port, the council deliberated on three major contracts that will assist us in the completion, which is the purchase of forklifts. We hope that in the next four to six months, we should be able to complete the Baro River Port.
Ratifies approval for GE to complete 240MW Afam power project
“The other one that is consistent with infrastructure development in the country is the memo for the Afam emergency fast power, which is part of the ministry’s road map for incremental power to the grid.
“Council ratified the earlier approval given for GE to undertake that project so that we can complete 240MW 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 $2.207million for the components that are offshore and N133.184million for the local components.”