FG Reviews $18.12m Port Scanner Projects, Incorporates VAT

The scanners are to be installed at Onne, Port Harcourt and Tin Can ports to help the Nigerian Customs Service to fast-track container inspection and generate accurate revenue for the Federation.

Minister of Finance and Budget planning, Mrs. Zainab Ahmed, says government is worried over the fate of oil revenue / Photo credit: premiumtimesng.com
Minister of Finance and Budget planning, Mrs. Zainab Ahmed, says government is worried over the fate of oil revenue / Photo credit: premiumtimesng.com

The Federal Executive Council on Wednesday reviewed the $18.12million port scanner installation projects to incorporate Value Added Tax.

The initial approval, which was done in 2018, did not include VAT, according to the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed.

The projects have an added N3.2bn local component.

READ ALSO: FG Projects N12.6trn Budget For 2021

The scanners are to be installed at Onne, Port Harcourt and Tin Can ports to help the Nigerian Customs Service to fast-track container inspection and generate accurate revenue for the Federation.

“This contract is awarded to a company that is named Messrs Airwave limited, and the contract is in the sum of $18.12m of foreign component. There is also local component of N3. 255bn, inclusive of five per cent VAT.

“The review became necessary in order to accommodate VAT, which was not included in the initial contract and also due to a dispute that we had arisen from exchange rate differential.

“So we have now a resolution and an understanding and FEC approval for this contract to go on.

“The scanners are designed to aid effective revenue collection, with features that will screen for narcotics, weapons and undeclared items. They can also detect arms and ammunition, illegal importation and possession of arms and light weapons in Nigeria.

READ ALSO: FG Budgets N1.6bn For 2nd Abuja Runway

“The scanners will obviate the need for physical examination of goods and fast-track the trade business report. This contract is for the Nigerian Customs Service”, Ahmed told State House Correspondents after the FEC meeting.

A second approval for the customs was the sum of N288.9million for the “supply of five ballistic assault boats and five patrol boats with all associated accessories.”

The contract was awarded to Messre CY West African limited.

“The Nigerian Customs Service needs these boats to enhance its operational efficiency and combat smuggling activities on our waterways.

“This will also significantly boost revenue collection and other core duties of maritime unit of the Nigerian Customs Service” she added.

Written by The Interview Editors

The Interview is a niche publication, targeting leaders and aspiring leaders in business, politics, entertainment, sports, arts, the professions and others within society’s upper middle class and high-end segment in Nigeria.

Sunday Dare - Nigeria's minister of youth and sports

FEC Approves N75bn Youth Investment Fund

Senator Zik Sunday / Photo credit: Tribuneonlineng.com

Kidnapped Ex-Senator Buys Freedom With N20m Ransom