• Says scheme’ll track exports, reduce oil theft ….Approves $53.1m for electricity conductors
From Juliana Taiwo-Obalonye, Abuja
The Federal Executive Council on Wednesday, approved the installation of Electronic Cargo Tracking Notes for in ports nationwide.
The Minister of Transportation, Mu’azu Sambo, made the disclosure while briefing State House Correspondents after the Federal Executive Council meeting presided over by the President Muhammadu Buhari, at the Aso Rock Villa, Abuja.
According to Sambo. this will tackle several challenges such as the under-declaration, concealment and wrong classification of important cargo and provide transparency in cargo invoicing.
He said the scheme will plug revenue leakages and is expected to generate between $90 million to $235 million annually for the government.
The project will be co-implemented by a consortium of five Belgian companies and four indigenous logistics firms in a concession that will last 15 years.
The revenue sharing formula will be a 60-40 per cent, with the government at the center taking the lion share.
The Public-Private Partnership, Sambo added, will track oil exports and reduce oil theft that has cost the government millions of dollars.
He said: “Council considered our submission and approved our submission to put in place for Nigeria as it is in 26 other African countries, an Electronic Cargo Tracking Note Scheme in order to among other things take care of under declaration at Ports, secure our imports and exports and provide transparency in cargo invoicing and declarations.”
He added that, “The implementation of the scheme will abet the problems of under declaration, concealment and wrong classification of cargo, which are the primary causes of revenue leakages, insecurity and general security issues at the borders.
“The deployment and implementation of this state of the art ECT scheme will ensure the elimination of loopholes on border operations and boost the revenue of the Nigerian government in form of duties, Port charges and levies.
“It is expected that this scheme will generate revenues to the Nigerian government ranging from about $90 million per anum to a peak of about $235 million per anum,” he said.
The Council also approved a total sum of $53.1 million for the procurement and installation of electricity conductors that will help boost power supply in the country.
Minister of Power, Abubakar Aliyu, said when installed, the conductors will help address the challenge of constant tripping of circuit breakers due to overloading of electricity lines.
The Minister also revealed the cost of the conductors also includes a Naira component of N2.1 billion.
“The total amount for these four components of conductors is $53,131, 128.93 plus an onshore component of N2, 127, 068, 626. 45,” he said.
He said the new conductors would be used to upgrade existing power lines, with the aim of enhancing their efficiency.
“These are existing lines which are being upgraded. The wires will be removed and new ones put in place and the difference is that the new ones will be more efficient because they carry more load than the old ones.
“They will reduce sagging because once the wires are aged, they will sag and they become vulnerable and heavier. So, these ones are lighter and can carry more electricity so it will improve efficiency and address the challenges of constant tripping of the breakers due to the overloading of these lines will be tremendously reduced,” he explained.
Aliyu listed the four components of the contract to include 173 kilometre Kubotso- Hadeja, line; 105 kilometre Kumbotso-Kankiya line; 90 kilometre Benin-Irrua line; 72 kilometre Irrua-Okpella; 48kilometre Okpella-Okenne, 58 kilometere Okenna-Ajaokuta lines and 394 kilometre Gombe-Biu-Damboa-Maiduguri line.
The Power Minister also disclosed that Council approved a N1.46 billion contract for the procurement of 20 transformers ratio analysers for the Transmission Company of Nigeria.