Tag Archives: FEC

Power supply gets major boost worth N701 billion

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Power supply, which stands at 4,000 megawatts, is set for a major boost.

The Federal Executive Council (FEC) yesterday approved N701 billion Power Assurance Guarantee for the Nigeria Bulk Electricity Trading (NBET)—to ensure a better supply of gas to the power plants. This will in turn improve power supply.

One of the major problems of the sector has been the lack of gas for power plants and the complaints about access to funding by the Generating Companies.

Minister of Power, Works and Housing Babatunde Fashola announced the FEC approval after yesterday’s meeting chaired by Acting President Yemi Osinbajo.

With him at the briefing were Minister of Information Lai Mohammed and Minister of Agriculture Audu Ogbeh.

Fashola said the Central Bank of Nigeria (CBN) facility will guarantee payment for the evacuation of power produced by Generating Companies (GenCos) for the national grid.

It will be drawn monthly to tackle the GenCos liquidity challenges.

NBET will pay GenCos, which have been unable to pay their gas suppliers, in arrears of electricity generated as a deliberate step to boost their confidence and that of intending investors in the sector.

Fashola said: “You will recall that a few weeks back we announced the approval of council for early works for the second Niger Bridge. That bridge at some time was part of a PPP initiative. You will also recall that at the same time, some private agreements were signed to build the Lagos-Ibadan express way.

“The first memo is to brief council on the PPP status of those infrastructure projects and present options to government, which was essentially that where those PPPs are having problems, government must lead and finance the infrastructure while continuing to engage the private sector. Government remains committed to ?having private participation in infrastructure renewal.

“But government, as a matter of strategy; thinks that it can continue until financial closures, agreements and all of that are put in place when PPPs become ready and viable to help deliver. So, it was a strategy memorandum, the conclusion essentially which is that government is committed to doing short financing as much as possible and encouraging PPP as much as possible.

“The second memorandum is in another area of critical importance, which is power?. Part of the challenges there were addressed in the memo that was presented to Council to solve some of the liquidity problems, especially as it relates to NBET.

“NBET as you know, is the government’s own company, that is the Bulk ?Trader Electricity which buys power from the GenCos. The liquidity problems that have characterized the market have affected NBET’s ability to deliver on its PPP obligations through the GenCos.

“So, going forward, in order to strengthen NBET, CBN is proving a payment assurance guarantee for any energy produced by any GenCos, so that the Gencos can pay their gas suppliers when they get paid. So that the hydros can continue to operate.

“What we seek to achieve here is to bring some stability to the production side of the power value chain and also give confidence to investors who want to come in, who are concerned about how to recover their money. Payment assurance and also people who are planning to invest in the gas sector, which is being championed by the Ministry of Petroleum, also are saying the same thing in terms of payment for gas produced.

“So, the approval of Council was to provide this guarantee for NBET, which is a 100 per cent government owned company to pay on a monthly basis its obligations for energy actually produced on to the grid to the GenCos that are its customers,” he said.

Fashola said the government was expanding transmission capacity regularly because it wanted to generate more power.

He said: “I have been here to announce to you transmission projects that have been approved by council and over the last one year plus the transmission capacity has grown to almost 7,000 from 5,000 and is continuing to grow with every project.

“So, it is not the problem of taking power; it is actually a problem of getting power from generation. If you recall just about a few weeks ago, you were reporting that power supply had dropped to a little over 2000mw. It’s back now at over 4000mw.

“We have solved the transmission problem in Ikot Ekpene largely, to evacuate over a thousand. But the gas suppliers were being owed so they were not supplying gas for the power producers.

“As to the quantum of the guarantee, it is for two years from January this year right through to December 2018. It is capped at a maximum of N701 billion but it is to be drawn monthly. It is possible it may not reach that. But we are projected on the total cost that NBET will likely to pay. And that is why it is for power generated onto the grid only.

“So, if the power generated does not meet that cost, we don’t pay for it. It is paid in arrears at the end of the month not in advance. So, it is for actually what gets onto the grid. And this is part of the reforms that we have briefed you about that we were planning to undertake.”

Fashola said he briefed the cabinet on the Public-Private Partnership (PPP) status of the Second Niger Bridge and Lagos-Ibadan Expressway.

Ogbeh said the FEC approved N263 million for three research institutions to produce gum arabic seedlings for farmers and for export.

He said Nigeria earned as much as $43 million from export of gum arabic last year, and that more will be earned with increased production, more so as the commodity is in high demand in 17 countries.

Nigeria’s Federal Executive Council Holds Valedictory Session For Amina Mohammed

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It was an emotional moment in the council chambers of the Presidential Villa, as Nigeria’s Federal Executive Council held a valedictory session for the out-going Minister Of Environment, Amina Mohammed.

Mrs Mohammed, who has served the President Muhammadu Buhari administration for 15 months, is set to take over as the Deputy Secretary General of the United Nations on March 7, 2017.

The Acting President, Professor Yemi Osinbajo, who chaired the session, described the out-going minister as a role model to Nigerian women.

Some of her colleagues also lauded her achievements, describing her as a gift from Nigeria to the world.

The minister, who could not hide her emotions while giving her address, said she was proud to be the one to fly Nigeria’s flag up there at the United Nations, promising to give it her best shot.

 

Source: Channels TV

FEC approves N126bn for 12 road projects

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The federal executive council (FEC) on Wednesday approved the award of N126 billion for the construction of 12 road projects.

Babatunde Fashola, the minister of power, works and housing, made this known while briefing state house correspondents after the FEC meeting.

Fashola said the projects were spread across Kano, Bauchi, Adamawa, Kwara, Gombe, Enugu, Kaduna and Bauchi states.

He said: “Contractors who have been owed for two, three years before Mr President was elected are back in various states, they recalled back their workers and as they are purchasing gravel, cement; the economy is on its way back with a bend.

“Every place in all of those states, once we mobilise the contractors, the money is kept in those states.

“Most of the workers who drive the trucks, who fix the roads that you see are indigenes of those states and so, they aggregate to the total output from each of those states to the national productivity and national recovery.”

FEC Approves N464m Vehicles For FRSC Amid Recession

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The Federal Government, yesterday, blamed the nation’s economic recession on the downturn in the oil and gas sector, even as it expressed optimism in the improvement the non-oil sector is making. The government had however expressed hope that the fourth quarter figures would be better.

The Minister of Budget and National Planning, Senator Udo Udoma, who stated this while briefing State House correspondents on the outcome of the Federal Executive Council (FEC) meeting, presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja, said the council observed that the nation’s economy was still in recession, with the third quarter turning worse than the second quarter.

Udoma, who briefed alongside the Minister of Information and Culture, Lai Muhammed, and the Minister of Labour and Employment, Chris Ngige, said the council reviewed the figures released by the National Bureau of Statistics (NBS) on Monday.

Udoma said, “we looked at the recent numbers released on Monday by the NBS. As you know, from these numbers, the economy is still in recession. The performance in the third quarter is slightly worse than the second quarter and this was attributable to the performance of the oil sector, which performed worse in the third quarter than the second quarter and that was for reasons you all know.

“However, the good news is that the non-oil sector is improving in the direction that is most encouraging to the government. Agriculture continues to grow at 12.5 per cent, solid minerals continue to grow at seven per cent. We are encouraged by the direction the non-oil sector is moving.

“With regards to the fourth quarter, we believe it will be better than the third quarter even for the oil sector because oil production has started moving up as a result of a lot of initiatives this government has been taking. We are looking forward to a fourth quarter that is much better than the third quarter. We are encouraged by that.”

Ngige said the council approved the purchase of vehicles worth N464 million for the Federal Road Safety Corps (FRSC).

The vehicles include 50 Pick-up vans to be purchased from Innoson Motors, Nnewi, and 27 Peugeot 301 cars to be procured from Peugeot Automobile Nigeria, Kaduna.

The Labour Minister said the decisions to patronise indigenous companies was in line with the government’s local content policy.

Ngige said, “the council approved the purchase of some vehicles to strengthen the capacity of the FRSC. It approved that 40 Pick-up vehicles be added to the commission’s fleet. Another 27 Peugeot 301 cars were also approved for the commission. This is in line with our Local Content and Procurement Act. The total purchase is N464 million. Innoson vehicles will cost N299 million while the Peugeot cars will cost N164 million.”

Credit:

http://sunnewsonline.com/recession-fec-approves-n464m-vehicles-for-frsc/

FEC approves agreement to avoid double taxation, evasion.

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The Federal Executive Council on Wednesday approved a bilateral agreement for the avoidance of double taxation and the prevention of evasion of taxes on income and capital benefits between Nigeria and Singapore.

 

The Minister Information and Culture, Lai Mohammed; Minister of Finance, Kemi Adeosun; and Minister of Aviation Hadi Sirika briefed State House correspondents of the outcome of the meeting presided over by Vice-President Yemi Osinbajo.

 

President Muhammadu Buhari was attending the 22nd Conference of the Parties to the United Nations Framework Convention on Climate Change also known as COP-22, in Marrakech, Morocco at the time of the meeting.

 

Adeosun said the objective of the agreement was to facilitate more trade between Nigeria and Singapore by ensuring that nationals or enterprises from either country are not taxed twice on income or profits derived from each of these countries.

 

She said, “It (the agreement) will encourage more direct foreign investments into Nigeria, allow investors to know what their tax obligations will be and ensure sustainable tax regime for each country.

 

“The basis for which we choose to sign this agreement with Singapore ?is that Singapore is a major trading partner with Nigeria.

 

“They buy oil from us. Petroleum export to Singapore for the last five years is about $264bn and we import about N311bn worth of goods from them. It is a major trading partner and we needed to have this bilateral agreement.

 

“It is basically to ensure that companies are not taxed twice but it also ensures that companies cannot evade tax when trading between the two countries.”

 

Sirika said the council approved ?Bilateral Air Service Agreement with the State of Qatar and Singapore and Nigeria.

 

He said Singapore was becoming the most efficient and the biggest hub around the far Eastern part of the globe, serving New Zealand, Australia, Japan, China, Singapore and Indonesia among others.

FEC approves 320 vehicles worth N3.5bn for prisons

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The Federal Executive Council (FEC) has approved N3.5 billion for the purchase of 320 operational vehicles to promptly convey inmates to courts as part of measures to decongest prisons in the country.

Minister of Interior, Gen. Abdulrahman Danbazau (retd), who disclosed this to State House correspondents at the end of the meeting, said the population of prisoners is 65,000 out of which 70 per cent is awaiting trial due to lack of utility vehicles to convey inmates to court.

He said the vehicles would be sourced from local manufacturers, assemblers and vendors within the country in line with government policy to promote made-in-Nigeria goods and create employment opportunities for the youths.

He said: “In our efforts to strengthen criminal justice system and to also contribute towards decongesting the system, we presented a memo for the procurement of 320 operational vehicles for the prison service at the cost of N3.5 billion.

“This procurement is from local manufacturers, assemblers and vendors within Nigeria and the effort is to follow through government’s policy to ensure that most of the procurement of the equipment and such vehicles are done locally. That will also provide opportunity for job creation and things like that.

“But for the prison system in particular, we are making efforts in a way you know the prisons being one of the legs of the criminal justice system, the others being the police and the judiciary, is to see how best we improve in terms of conveying prison inmates to courts in particular so that we do not jeopardise their chances of their getting justice.

“So, we are glad that council approved this procurement. And along the line we want also to ensure that we provide for maintenance to ensure that the vehicles are well maintained and that there used for purpose there are meant to be used.

“The prison population as at today stands at about 65,000 prisoners; out of this about 70 per cent are awaiting trial. And part of the problem is lack of logistics, because there are 5,022 courts that on daily basis we have to convey prisoners to attend to their cases.”

Lagos To Wait For Crude Export To Get 13% Derivation

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In spite of the commencement of production from its newly discovered oil wells, Lagos State may have to wait until crude oil export commences before it joins the league of states benefitting from the 13 per cent derivation principle.

This clarification was made yesterday at Federation Account Allocation Committee (FAAC) meeting.

This emerged just as allocation available for sharing by three tiers of government for the month of July dipped by N115.369 billion to N443.663 billion as against June’s allocation of N559.032 billion.

The reduction was caused by sustained attacks on oil installations by Niger Delta Avengers (NDA) leading to disruptions both in oil production and sales.

The Permanent Secretary, Ministry of Finance, Dr. Mahmoud Dutse-Isa, who spoke with journalists after the FAAC meeting, said Lagos would begin to enjoy 13 per cent derivation when crude export commence from its oil wells.

“Lagos state is yet to start enjoying from derivation principle. When crude oil export commences from the wells, the revenue realised from such wells will be allocated to them,” he said.

For the month of August, the gross statutory revenue stood at N287.819 billion, an amount lower than N538.788 billion received in previous month by N250.970 billion.

“Crude oil export volume decreased by 2.8 million barrels in April 2016 partly because of a subsisting force manjeur declared at Forcados terminals. Also, shut-in and shut down of pipelines at other terminals due to the activities of vandals and for maintenance impacted negatively on production. There was a revenue decrease of $102.17 million in federation export revenue despite the increase in average price of crude oil from $38.64 in March to $42.21 per barrel in April, 2016”, the permanent secretary explained.

From the statutory revenue of N258.151 billion shared, federal government got highest amount N129.212billion, states got N65.538 billion, local government N50.527 billion while oil producing states got N 12.874 billion as 13 per cent derivation.

The balance in Excess Crude Account stood at $3.03 billion.

Budget: Buhari Absent At FEC Emergency Meeting

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The Federal Executive Council (FEC) emergency meeting reviewing the details of the 2016 has been adjourned.

The session, which started at 11.00am, reconvened after jumaat prayer.

Information Minister Lai Mohammed told State House journalists that the budget review exercise was a work in progress.

“We received the details of the budget yesterday. And an extra ordinary FEC meeting was called to avail ministers to look at the details and see how it affects their ministries. 

“It is still work in progress. We are studying it and we will later make our statements available”, the minister said.

It was reported that Vice President Yemi Osinbajo is currently presiding over an emergency session of the Federal Executive Council (FEC) over the 2016 budget details.

The meeting started at exactly 11.10am when Osinbajo arrived the Council Chambers of the Aso Rock Presidential Villa.

President Muhammadu Buhari is believed to be in the country, but it is not yet clear why the meeting is being chaired by his deputy.

Apart from cabinet members, some heads of agencies and parastatals as well as several presidential aides are also attending the meeting.

State House correspondents were asked  to vacate the Council Chambers for the “crucial budget session” summoned to review the details of the 2016 Appropriation Bill which was transmitted to the president yesterday.

Credit: dailytrust

FEC Defends Buhari’s Foreign Trips

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The Federal Executive Council (FEC) has been assessing President Muhammadu Buhari’s foreign trips, describing them as good for the image of Nigeria.

This was part of the outcome of the Wednesday meeting of the Council held at the Council Chambers and presided over by President Buhari.

Members of the Council were disturbed by criticisms that have trailed the President’s frequent trips abroad and the Minister of Foreign Affairs came with a memo to explain to the Council the gains from such trips, as enumerated by the Minister of Environment, Amina Mohammed, whose ministry had also been involved in some of the trips.

“The investment that we make with the President’s travel is well worth, already, the returns that we are getting from those visits.

“We hope to continue to see the President going out and advocating for this country to get investments so we can take everyone out of poverty.  That is really what is important and we see it as an investment with a return that is worthwhile,” she stressed.

Credit: ChannelsTv

FEC Approves $200 Million World Bank Loan For Lagos Infrastructure

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The Federal Executive Council (FEC) on Wednesday approved $200 million World Bank loan for Nigeria’s commercial city, Lagos State, for infrastructural development.

The approval was made known to reporters after the FEC meeting by the Minister of Information, Mr Lai Mohammed and his Power, Works and Housing counterpart, Mr Babatunde Fashola.

According to them, the loan is part of a $600 million loan granted by World Bank for roads and other infrastructural development projects in Lagos State.

Mr Fashola said the first batch of $200 million was approved in 2010, but that subsequent batches were reportedly delayed by the last administration for political reasons.

“It suffered delays as a result of partisan political differences in the last dispensation.

“After the first tranche was disbursed there was freeze on the second tranche,” he explained.

Credit: ChannelsTv

NUPENG Charges FEC On Economic Development

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The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has urged the Federal Executive Council (FEC) consisting of President Muhammadu Buhari and the Ministers recently sworn in to quickly hit the ground running in order to put the nation’s economy back on track.

The union believes that a lot of time has been wasted to constitute the cabinet ”which is supposed to implement the programmes of the government”.

NUPENG in a statement implored FEC to meet regularly to proffer solutions to the needs of the teeming Nigerians they promised to end their sufferings.

According to the union, expectations are high and “they should therefore put up concrete policies to hit the ground running by arresting the incessant fuel shortages presently experienced all over the country”.

National President of NUPENG, Igwe Achese was quoted as saying that since President Buhari is personally in charge of the Petroleum Ministry, “he and his team must put up short and long term measures to end the sufferings of the masses to get petroleum products without wasting man – hours at the filling stations”.

 Credit: Guardian

President Buhari And New Ministers Fail To Hold Cabinet Meeting

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Barely one week after they were sworn into offices and held their inaugural Federal Executive Council meeting, the Ministers failed to convene on Wednesday – the scheduled day for the FEC meeting.

There are reports that the meeting was only postponed last night.

No official reason has been given for the postponement of a meeting.

The FEC meeting is a weekly one and has held every Wednesday since the exit of military and return to democracy in 1999.

There have been really few instances when by a presidential directive, the meeting is moved to another day.

During the Goodluck Jonathan administration, federal contracts were usually ratified and approved during the meeting.

Source – Premium times

President Jonathan To formally Dissolve FEC Today

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President Jonathan will today formally dissolve the Federal Executive Council ahead of Friday May 29th handing over/inauguration ceremony. At the Federal Executive Council meeting which is to commence by 11am today, President Jonathan will speak on the achievements of his administration while the Ministers will highlight the achievement in their ministries as well as share on their experiences while serving as Ministers. President Jonathan will leave the villa on Friday Morning for his hometown Otuoke, Bayelsa state.