Reps seek VAT, import duty waivers for contractors on N18bn, $231m power equipment

On Tuesday, the House of Representatives urgently urged the Federal Government to issue Value Added Tax (VAT) and Import Duty Exemption Certificate (IDEC) waivers to contractors managing crucial power projects nationwide. The call came during the investigative hearing by the House Committee on Public Accounts Committee (PAC), led by Rep. Bamidele Salam, addressing the ‘Accelerated Transmission-Distribution Interface Transmission Lines/Sub-stations’ contracts valued at $231,004,002.8 and N18,264,411,235.66 since 2015.

During the hearing, representatives from the Transmission Company of Nigeria (TCN) and the contractors revealed that these contracts involve significant offshore components, as the transformers needed are sourced internationally.

Expressing concern over the challenges hindering the power projects, Rep. Adelegbe Oluwatimehin proposed a motion, emphasizing the urgent need for decisive action to rescue the struggling power sector.

In response, Hon. Mohammed Kabir Abdullahi sought the House’s intervention, urging a resolution that ensures the timely completion of projects plagued by extensive delays.

Engineer Kabir lamented the lack of response from the Ministry of Power and Finance, despite efforts by TCN, highlighting the impact on other affected projects funded by entities like the World Bank.

Rep. Salam questioned why TCN hadn’t sought support from other regulatory agencies and stakeholders to secure waivers for equipment trapped in transit, particularly at seaports. He pointed out administrative lapses and emphasized the need for proactive engagement with the National Assembly’s Committee on Power over the years.

Highlighting the urgency of the situation, Rep. Salam emphasized the commitment of the Federal Government, led by His Excellency Ahmed Bola Tinubu, to prioritize the power sector. He stressed the importance of resolving the current challenges to support the vision of improved transmission and distribution of power through the installation of major transformers and related hardware.