Babatunde Fashola, minister of power, works and housing, says the reports that the Mambilla power project has been stalled, due to an attempt to divert funds, is not true.
The $5.8 billion project, a 3,050-megawatt hydropower facility, was conceived in 1982.
In a statement on Sunday, Hakeem Bello, the minister’s spokesperson, said the federal government never awarded a contract for the Mambilla power project to Sunrise Power and Transmission Company Limited (SPTCL).
He described the claims made by Leno Adesanya, chief executive officer of SPTCL, as fictional.
In a series of petition to Fashola, Abubakar Malami, attorney-general of the federation (AGF), Vice President Yemi Osinbajo and President Muhammadu Buhari, Adesanya had claimed that the company was sidelined in the project by the ministry after it was awarded the contract in 2003.
Adesanya had dragged the federal government and its Chinese partners before the International Chamber of Commerce (ICC) in Paris, France over an alleged breach of contract for the project located in Taraba state.
However, Bello said available evidence does not support Adesanya’s claims, adding that he is making a desperate attempt to destabilize the project from coming to fruition.
“The attention of the Hon. Minister of Power, Works and Housing, Mr Babatunde Fashola SAN has been drawn to the spurious and unfounded allegations of Leno Adesanya with regards to the ongoing Mambilla Power Project,” the statement read.
“Nothing is more further away from the truth than the claim that the loan negotiations have stalled since 2017 because of an attempt to utilize $600 Million (equivalent of N219 Billion) from the 3,050MW hydropower project for a “pet project” not hitherto considered by the Federal Executive Council.
“There is currently no budgetary provision or cash provision of $600 million or the N219 Billion in any budget of the Federal Government for the Mambila Project. Therefore you cannot attempt to divert what does not exist.
“For the avoidance of doubt, the China Exim Bank disburse money to specific projects and on conclusion of negotiations, the loan will be devoted to the construction of the Mambila Power Project, which has been on the drawing board for close to 40 years before the advent of the Buhari administration which is now working assiduously to get the project off the ground.
“The antics of Leno Adesanya and his ilk would readily explain why the project has taken so many years without lift-off. Since Mr. Adesanya has chosen to go to court, he would be required to prove his baseless allegation in court.
“The Federal Executive Council which is the highest decision making organ of the Executive Arm of Government never awarded a contract for the project to Mr Adesanya.
“The allegation with regard to stalling the Mambilla project is untrue , baseless and a figment of Adesanya’s imagination . The events and relevant facts will show that because Mr. Fashola first presented a memo on the Mambilla Power Project to the Federal Executive Council in August 2017; which was the first ever Federal Executive Council approval given to the Mambilla project in favour of a Chinese Joint venture.”
Poor tax collection: Fowler replies Buhari’s query
The Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, has responded to a memo from Abba Kyari, the chief of staff to the president, who said there were significant variances between the tax budgeted collections and actual collections for the period 2015 to 2018.
However, Fowler in his response explained that the recession experienced by the Nigerian economy in 2016 as well as lower oil prices affected the revenue collected by the FIRS.
See Fowler’s response: “I refer to your letter dated 8th August, 2019 on the above subject matter and hereby submit a comprehensive variance analysis between budgeted and actual collections for each main tax item for the period 2012-2018 as requested (see appendix 1).
“Your letter stated that actual collections for a 3-year period were significantly worse than what was collected between 2012 and 2014. Total actual collection for the said period wasN14,527.85 trillion, while total actual collection between 2016 to 2018 was N12,656.30 trillion.
The highlight of these collection figures was that during the period 2012 to 2014, out of the N14,527.85 trillion, oil revenue accounted for N8,321.64 trillion or 57.28% while non-oil accounted for N6,206.22 trillion or 42.72% and during the later period of 2016 to 2018, out of the N12,656.30 trillion, oil revenue accounted for N5,145.87 trillionor 40.65% and non-oil revenue accounted N7,510.42 trillion or 59.35%.
FIRS management has control of non-oil revenue collection figures while oil revenue collection figures are subject to more external forces.” He wrote: “The non-oil revenue collection grew by N1,304.20 trillion or 21% within the period 2016 to 2018.
“Kindly note that the total budget collection figure during 2012 to 2014 stood at N12,190.52 trillion compared to N16,771.78 trillion for the period 2016 to 2018, which represent an increase of 37.58%.
“Please note that the variance in the budgeted and actual revenue collection performance of the Service for the period 2016 to 2018 was main attributed to the following reasons:
“1. The low inflow of oil revenues for the period especially Petroleum Profit Tax (PPT) was due to fall in price of crude oil and reduction of crude oil production. Notwithstanding government efforts to diversify the economy, oil revenues remains (remain) an important component of total revenues accruable to the Federation. The price of crude oil fell from an average of $113.72, $110.98 and $100.40 per barrel in 2012, 2013 and 2014 to $ 52.65, $43.80 and $54.08 per barrel in 2015, 2016 and 2017. There was also a reduction in crude oil production from 2.31mbpd, 2.18mbpd and 2.20mbpd in 2012, 2013 and 2014 to 2.12mbpd, 1.81mbpd and 1.88mbpd in 2015, 2016 and 2017 respectively.
“2. The Nigerian economy also went into recession in the second quarter of 2016 which slowed down general economic activities. Tax revenue collection (CIT and VAT) being a function of economic activities were negatively affected but actual collection of the above two taxes were still higher in 2016 to 2018 than in 2012 to 2014. During the years 2012, 2013 and 2014, GDP grew by 4.3%, 5.4% and 6.3% while in 2015, 2016 and 2017 there was a decline in growth to 2.7%, -1.6% and 1.9% respectively. The tax revenue grew as the economy recovered in the second quarter of 2017.
“3. It is worthy of note that strategies and initiatives adopted in collection of VAT during the period 2015-2017 led to approximately 40% increase over 2012-2014 collections. In 2014 the VAT collected was N802billion, compared to N1.1 trillion in 2018. This increase is attributable to various initiatives such as ICT innovations, continuous taxpayer education, taxpayer enlightenment, etc embarked upon by the Service.
“4. Furthermore, it is pertinent to note that when this administration came on board in August 2015, the target the target for the two major non-oil taxes were increased by 52% for VAT and 45% for CIT. Notwithstanding the increase, FIRS has in line with the Federal government’s revenue base diversification strategy has grown the non-oil tax collection by over N1.304 trillion (21%) when the total non-oil tax collection for 2016-2018 is compared to that of 2012-2014.
“I am confident that our current strategies and initiatives will improve revenue collection and meet the expectations of government.
“Please accept the assurance of my highest regards.”
We’re not aware of Oyo-Ita’s purported retirement – Presidency
The Presidency on Monday declared that it was not aware of the purported move of the Head of Service of the Federation, Mrs. Winifred Oyo-Ita, to retire from service.
The Economic and Financial Crimes Commission (EFCC) had last week Tuesday grilled Oyo-Ita over alleged N3bn scam. The Senior Special Assistant on Media and Publicity, Mallam Garba Shehu, in a text message said that the Presidency was not in possession of any letter of intent from Oyo-Ita to retire from service. “Thanks.
We have no such letter here, in the event that such a letter exists. This is our position,” he stated
Alleged N3bn Contract Scam: Winifred Oyo-Ita sends retirement letter to Buhari
Winifred Oyo-Ita, the head of service of the federation, has offered to immediately proceed on retirement in a letter to President Muhammadu Buhari.
The widow had been under pressure from her immediate family to retire after news reports emerged that she was being probed over an alleged N3 billion contract scam.
Although she has vehemently denied involvement in any scam, she bowed to family pressures and sent in a letter on Sunday offering to proceed on retirement, we can report.
Buhari is yet to take a final decision on it but reports say he is favourably disposed to the option.
“Mrs Oyo-Ita has sent in her letter of retirement,” a family member, who asked not to be named, said on Monday morning.
She was absent at the presidential retreat for ministers-designate, federal permanent secretaries and top government functionaries held at the state house conference centre in Abuja.
The Economic and Financial Crimes Commission (EFCC) recently questioned Oyo-Ita over allegations that she used front companies to get contracts when she was a permanent secretary before her appointment as head of service by Buhari in 2015.
There were insinuations that she was being “punished” for “falling out” with Abba Kyari but it was learnt that the president’s chief of staff was unaware of the EFCC probe until it was leaked to the media.
Oyo-Ita has also told her associates not to drag Kyari into the matter because “it is not true”, according to a family member.
The EFCC said the petition against her was written in 2014 when President Goodluck Jonathan was still in office. It was however, learnt that Oyo-Ita was not the subject of the probe.
It was also reported that N600 million was traced to the account of one of her aides who has been quizzed by the anti-graft agency and released.
However, Oyo-Ita also denied the allegation, saying the money was meant for the death benefits of staff and was meant to be kept in a designated account for that purpose by the project accountant.
“She denied knowing anything about where the money was kept and said there was no fraud involved, at least not from her end,” the family member said.
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