Reps are advocating for VAT and import duty exemptions for contractors on power equipment worth N18bn and $231m

The House of Representatives demanded on Tuesday that the Federal Government immediately grant import duty exemption certificates (IDECs) and value added tax (VAT) waivers to contractors managing vital electricity projects around the nation.

During the resumed investigative hearing into the “Accelerated Transmission-Distribution Interface Transmission Lines/Sub-stations” contracts worth $231,004,002.8 and N18,264,411,235.66 awarded since 2015, the House Committee on Public Accounts Committee (PAC), chaired by Rep. Bamidele Salam, passed the resolution.

The Transmission Company of Nigeria (TCN) and the Contractors briefed the Committee, explaining that since the big transformers are to be supplied from outside of Nigeria, a significant portion of the contracts contain offshore components.

Rep. Adelegbe Oluwatimehin, who presented a motion, expressed concern over the difficulties facing the power projects’ implementation and noted that the situation has gotten so severe that immediate action is required to save the power industry from its current predicament.

During his speech, Hon. Mohammed Kabir Abdullahi asked the House to intervene on behalf of the committee so that the projects, which he said have already been delayed significantly, can be completed.

“We will be overjoyed to witness the prompt resolution of this.” It seems that TCN became stuck after sending the required two letters to the Ministry of Power and copying Finance at the same time, in the hopes that the letters would reach the President.

However, regrettably, we have not heard back as of yet.

Not just this undertaking. This also has implications for other TCN programmes. Engineer Kabir bemoaned, “There are some being funded by the World Bank and all that.”

Rep. Salam asked in his contribution why the TCN had not approached other regulatory bodies and interested parties to help them obtain waivers for the equipment that is stuck in transit, particularly at the seaports.

“There has undoubtedly been a lack of administrative oversight. Without a doubt, I read the letter and told him about it earlier.

You will see that these are some of the issues that our institutions are affected by if you read the letter.

Certain tasks must be completed on schedule. Particularly inside the National Assembly as an Institution, there are certain ways of doing things.

“I wish agencies were aware of the Institution’s powers and could use its influence and strength to accomplish so much more.

“I assume the TCN and all other agencies are under the jurisdiction of your Committee on Power.

“I’m sure they would have taken action to make sure you got the waivers extended to cover both the IEDC and the VAT components of your projects if you had approached them all these years ago. Evidently, though, none of those items were completed.

Now that things are messy, we need to clean them up.

“We are cleaning up that mess because power is a key component of His Excellency Ahmed Bola Tinubu’s core programmes for the Federal Government.

Our responsibility is to ensure that we assist in realising that vision as well. Furthermore, if this one is not resolved, there is no way it can be given.

“Because we’re talking about large transformers and other hardware that will be installed in different locations to guarantee that we have better power distribution and transmission,” he said.