The Federal Executive Council on Wednesday approved two contracts totalling N283.255bn and a foreign component of $18.12m. The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this to State House correspondents at the end of a virtual meeting of the council presided over by the President, Muhammadu Buhari.
According to Ahmed, the two contracts were approved for the Nigeria Customs Service, noting that the first approval was for the revision of a contract that was previously approved by council in 2018 for the supply and installation of three mobile cargo scanners that would be placed in Onne, Port Harcourt and Tin Can Ports. Ahmed said, “This contract is awarded to a company that is named Messrs Airwave Limited and the contract is in the sum of $18.12m of foreign component. There is also local component of N3.26bn inclusive of five per cent VAT.
“The review became necessary in order to accommodate VAT which was not included in the initial contract and also due to dispute that we had arisen from exchange rate differential. So, we now have a resolution and an understanding and FEC’s approval for this contract to go on.” The second contract, according to the minister, was for the design, construction and supply of five ballistic assault boats and five patrol boats with all associated accessories in favour of Messrs CY West African Limited in the sum of N280,992, 888,75 inclusive of 7.5 per cent VAT.
She explained, “The Nigerian Customs Service needs these boats to enhance its operational efficiency and combat smuggling activities on our waterways. This will also significantly boost revenue collection and other core duties of maritime unit of the Nigerian Customs Service.”
