* …Approves policy for technology
acquisition
The Federal Executive Council (FEC) on Wednesday approved N20.6
billion for road contracts in Plateau and Kwara states.
The Minister of Power, Works and Housing, Babatunde Fashola,
briefed State House correspondents at the end of the FEC meeting
chaired by Acting President Yemi Osinbajo at the Presidential
Villa, Abuja.
He was with the Minister of Information, Lai Mohammed, Minister
of Trade and Investment, Okechukwu Enelamah and the Minister of
Science and Technology, Ogbonnaya Onu.
The two roads, he said, are N10.4 billion for the reconstruction
of Pankshin-Balank-Yalen-Salak-Gindiri road in Plateau state and
N10.2 billion for reconstruction of Sharre-Patigi road in Kwara
state.
He said “The ministry presented two memoranda to the council.
The first was to with respect for approval to construct the
Pankshin-Balank-Yalen-Salak-Gindiri road in Plateau state for
N10.46billion.
“The second one is the Sharre-Patigi road in Kwara for N10.2
billion; both prayers were approved by the council.
“The other memorandum was in respect to inherited liabilities
from the old power ministry where a judgment of N119 billion had
been signed against the Federal Government as a result of acts of
officials of government who varied the presidential approval
without seeking further directive from him and then awarded the
contract on that basis.
“So the party who was the beneficiary of that contract which
they subsequently sought to withdraw went to court and got a
judgment,” he said.
Onu said that the Council approved a policy to encourage
technological advancement in Nigeria.
The initiative, he said, will help Nigerian firms to produce
what the country needs as it will boost foreign investment in
Science, Technology and Engineering from where local content could
be developed.
Through the policy, he said that technology transfer will be
facilitated with more taxes to be paid to government, and wealth
creation for the country and people.
“The Federal Executive Council in its deliberations approved a
policy that will help us to change the direction that we have been
taking as a nation, a direction that will be very useful in helping
us to start looking inwards to produce the things that we need as
against depending on other outside people to import our
requirements.
“Some of the highlights will involve for example where we have
bulk purchases of major items that we are bringing into the country
that those who normally would have supplied from outside the
country will now come to Nigeria to establish their factories to
produce in Nigeria.
“By doing so they will offer job opportunities to our people,
tax will be paid to government so wealth will be created but most
importantly Nigeria will now acquire the necessary technology that
will help us to build capacity.’’
Onu said that FEC agreed that henceforth whoever wanted to
practice any profession, in Engineering, Science and Technology,
Medicine, Accountancy, Quantity Surveyors and others must be
certified by appropriate professional bodies in Nigeria.
He said the measure was very important in building the nation’s
local capacity adding that there were so many areas that the fiscal
policy had covered.
According to him the aim is that in the next 10 years Nigerian
firms shall be in a position to carry out very complex jobs,
especially the ones that they do not currently have the expertise
to do.
He said the country would for now rely on foreign companies for
such jobs but when they arrive they have to work with Nigerian
firms who would understudy them from project conception to
inauguration.
The minister stated that it was the only way that the country
could acquire the necessary technology to build our local capacity
hoping that in 20 years Nigerian firms should be competing with the
best in the world.
He said FEC has accepted to declare a state of emergency on
Science and Technology because the Economic Recovery and Growth
Plan 2017 to 2020 recognised the cardinal place of science and
technology in driving the recovery and growth plan.
“We are not looking for transfer of technology because we know
it would not happen; what we are looking for is acquisition of
technology and we are interested in building our own capacity.
“We are convinced that we can do this and we believe that with
the new policy we will be in a position to acquire technology,’’ he
stated.
Onu noted that the country could train professionals using the
foreign professionals adding that the Ministry of Interior would be
involved to ensure creation of a new classification in the
immigration policy in that regard.
He also said that the ministry of foreign affairs would help the
country to improve its free visa status ranking from the present 92
position.
He described the position as very low as it allowed Nigerians to
enter only 45 countries on free visa.
He said this was a difficult journey but would take Nigeria to
where it should be in the committee of nations.
Onu added that the approval had not been done since the country
became independent and added that in project design the country
would insist that all the language would be in English rather than
any other foreign language.
He noted that with the movement of other nations toward solar
and other means of technology outside oil the country should be
preparing for a post-crude oil era.
Enelamah said that FEC approved a memorandum that was presented
to amend the list of pioneer industries and products that will
enjoy pioneer status going
forward.
This, according to him, is line with the ease of doing business
policy of government.
He said “As many of you know the pioneer incentive scheme is
governed by ye Industrial Development Income Tax Relief Act and the
whole purpose is to give tax holidays to industries we consider
pioneer. Pioneer doesn’t mean that they are new it only means that
they are not yet mature, we want those industries to grow.
“We want to attract investment in them and you will find that
this covers a wide range of industries and those tax holidays
ranges from 3-5years. The pioneer list was last reviewed by the
Federal Executive Council in 2006, so you could see that this was
long overdue.
“On doing the review, special attention was paid to the ERGP to
capture the current realities that will help to implement the plan
to make sure we attract the kind of investment, industries and
players that will help to implement and realize our objectives in
the ERGP.
“I should also point out that there was multi stakeholder
engagement, private and public sector in arriving at the industries
that will be included in the pioneer incentive scheme.
“In terms of the recommendations approved by FEC today: we have
tried to remove all ambiguities in the definition of industries by
reclassifying industries according to the international standard in
industrial classification which is the global standard which is
also the standard that is used by the Nigeria Bureau of
Statistics.
“The other thing we also did is to agree that the pioneer list
will be reviewed regularly every two years, biannually so that just
that if things come up, we live in a fast changing world and we are
being responsive to our world. In the case of additions to the list
they will be effected immediately, for deletion of industries that
we consider mature there will be a three year window that will be
allowed for those that are already investing in that industry that
were enjoying pioneer status to carry on till the end of that three
year period.
“Against this backdrop, we then approved 27 industries that were
recommended for addition to the pioneer list today. We also
recommended and it was accepted by the Council that mineral oil
prospecting which is governed by the Petroleum Profit Tax should
not be part of the pioneer industries list which is really
industries governed by the Companies Income Tax Act.
“It was also accepted that given the success we have achieved in
cement which are now net exporters, maybe that is an industry which
we could say that we are now where we want to be in terms of
maturity even though there is still a lot of scope for the
application and the use of cement and you know that will continue.
We already have critical mass in cement.
“The scheme will ensure that will not deprive us of revenue. It
is an incentive to make people enter your market, new enter
industries, invest more for people who are already here. It will
increase our tax base over time,” he stated.
* …Approves policy for technology
acquisition
The Federal Executive Council (FEC) on Wednesday approved N20.6
billion for road contracts in Plateau and Kwara states.
The Minister of Power, Works and Housing, Babatunde Fashola,
briefed State House correspondents at the end of the FEC meeting
chaired by Acting President Yemi Osinbajo at the Presidential
Villa, Abuja.
He was with the Minister of Information, Lai Mohammed, Minister
of Trade and Investment, Okechukwu Enelamah and the Minister of
Science and Technology, Ogbonnaya Onu.
The two roads, he said, are N10.4 billion for the reconstruction
of Pankshin-Balank-Yalen-Salak-Gindiri road in Plateau state and
N10.2 billion for reconstruction of Sharre-Patigi road in Kwara
state.
He said “The ministry presented two memoranda to the council.
The first was to with respect for approval to construct the
Pankshin-Balank-Yalen-Salak-Gindiri road in Plateau state for
N10.46billion.
“The second one is the Sharre-Patigi road in Kwara for N10.2
billion; both prayers were approved by the council.
“The other memorandum was in respect to inherited liabilities
from the old power ministry where a judgment of N119 billion had
been signed against the Federal Government as a result of acts of
officials of government who varied the presidential approval
without seeking further directive from him and then awarded the
contract on that basis.
“So the party who was the beneficiary of that contract which
they subsequently sought to withdraw went to court and got a
judgment,” he said.
Onu said that the Council approved a policy to encourage
technological advancement in Nigeria.
The initiative, he said, will help Nigerian firms to produce
what the country needs as it will boost foreign investment in
Science, Technology and Engineering from where local content could
be developed.
Through the policy, he said that technology transfer will be
facilitated with more taxes to be paid to government, and wealth
creation for the country and people.
“The Federal Executive Council in its deliberations approved a
policy that will help us to change the direction that we have been
taking as a nation, a direction that will be very useful in helping
us to start looking inwards to produce the things that we need as
against depending on other outside people to import our
requirements.
“Some of the highlights will involve for example where we have
bulk purchases of major items that we are bringing into the country
that those who normally would have supplied from outside the
country will now come to Nigeria to establish their factories to
produce in Nigeria.
“By doing so they will offer job opportunities to our people,
tax will be paid to government so wealth will be created but most
importantly Nigeria will now acquire the necessary technology that
will help us to build capacity.’’
Onu said that FEC agreed that henceforth whoever wanted to
practice any profession, in Engineering, Science and Technology,
Medicine, Accountancy, Quantity Surveyors and others must be
certified by appropriate professional bodies in Nigeria.
He said the measure was very important in building the nation’s
local capacity adding that there were so many areas that the fiscal
policy had covered.
According to him the aim is that in the next 10 years Nigerian
firms shall be in a position to carry out very complex jobs,
especially the ones that they do not currently have the expertise
to do.
He said the country would for now rely on foreign companies for
such jobs but when they arrive they have to work with Nigerian
firms who would understudy them from project conception to
inauguration.
The minister stated that it was the only way that the country
could acquire the necessary technology to build our local capacity
hoping that in 20 years Nigerian firms should be competing with the
best in the world.
He said FEC has accepted to declare a state of emergency on
Science and Technology because the Economic Recovery and Growth
Plan 2017 to 2020 recognised the cardinal place of science and
technology in driving the recovery and growth plan.
“We are not looking for transfer of technology because we know
it would not happen; what we are looking for is acquisition of
technology and we are interested in building our own capacity.
“We are convinced that we can do this and we believe that with
the new policy we will be in a position to acquire technology,’’ he
stated.
Onu noted that the country could train professionals using the
foreign professionals adding that the Ministry of Interior would be
involved to ensure creation of a new classification in the
immigration policy in that regard.
He also said that the ministry of foreign affairs would help the
country to improve its free visa status ranking from the present 92
position.
He described the position as very low as it allowed Nigerians to
enter only 45 countries on free visa.
He said this was a difficult journey but would take Nigeria to
where it should be in the committee of nations.
Onu added that the approval had not been done since the country
became independent and added that in project design the country
would insist that all the language would be in English rather than
any other foreign language.
He noted that with the movement of other nations toward solar
and other means of technology outside oil the country should be
preparing for a post-crude oil era.
Enelamah said that FEC approved a memorandum that was presented
to amend the list of pioneer industries and products that will
enjoy pioneer status going
forward.
This, according to him, is line with the ease of doing business
policy of government.
He said “As many of you know the pioneer incentive scheme is
governed by ye Industrial Development Income Tax Relief Act and the
whole purpose is to give tax holidays to industries we consider
pioneer. Pioneer doesn’t mean that they are new it only means that
they are not yet mature, we want those industries to grow.
“We want to attract investment in them and you will find that
this covers a wide range of industries and those tax holidays
ranges from 3-5years. The pioneer list was last reviewed by the
Federal Executive Council in 2006, so you could see that this was
long overdue.
“On doing the review, special attention was paid to the ERGP to
capture the current realities that will help to implement the plan
to make sure we attract the kind of investment, industries and
players that will help to implement and realize our objectives in
the ERGP.
“I should also point out that there was multi stakeholder
engagement, private and public sector in arriving at the industries
that will be included in the pioneer incentive scheme.
“In terms of the recommendations approved by FEC today: we have
tried to remove all ambiguities in the definition of industries by
reclassifying industries according to the international standard in
industrial classification which is the global standard which is
also the standard that is used by the Nigeria Bureau of
Statistics.
“The other thing we also did is to agree that the pioneer list
will be reviewed regularly every two years, biannually so that just
that if things come up, we live in a fast changing world and we are
being responsive to our world. In the case of additions to the list
they will be effected immediately, for deletion of industries that
we consider mature there will be a three year window that will be
allowed for those that are already investing in that industry that
were enjoying pioneer status to carry on till the end of that three
year period.
“Against this backdrop, we then approved 27 industries that were
recommended for addition to the pioneer list today. We also
recommended and it was accepted by the Council that mineral oil
prospecting which is governed by the Petroleum Profit Tax should
not be part of the pioneer industries list which is really
industries governed by the Companies Income Tax Act.
“It was also accepted that given the success we have achieved in
cement which are now net exporters, maybe that is an industry which
we could say that we are now where we want to be in terms of
maturity even though there is still a lot of scope for the
application and the use of cement and you know that will continue.
We already have critical mass in cement.
“The scheme will ensure that will not deprive us of revenue. It
is an incentive to make people enter your market, new enter
industries, invest more for people who are already here. It will
increase our tax base over time,” he stated.
Read more https://www.nairalaw.com/fec-okays-n20-6-billion-for-road-contracts/