FEC approves $500m Eurobond

The federal executive council has approved the $500 million Eurobond from the international capital market to fund the 2016 budget.‎

Kemi Adeosun, minister of finance, made this known on Wednesday, saying the next steps about the issuance will be released later in the day. 

Last week, the senate approved the request of Buhari to raise additional $500 million Eurobond to fund the 2016 budget.

Adeosun said FEC had also given a directive to contractors and those doing business with the government to ensure that names of company directors and registered offices are listed on their letter headed papers.

She said this is to enable tax authorities to be able trace and collect revenue.

Adeosun said the accountant general of the federation had been told not to pay companies that did not comply with the directive.

“FEC gave a directive to the SGF to remind companies that there is an existing provision in the law that companies are supposed to have on their letter headed papers the names of their directors and their registered offices but what we have seen is that many bodies that are transacting business with government simply have the names of the company and no details of who the directors are,” she said.

“So for tax purposes, it is quite difficult to trace them, so the SGF will be issuing a circular reminding agencies and ministries of government that it is the law and therefore they are at liberty not to treat any document that doesn’t comply with the law.

“And equally the accountant general has been advised that payment will only be effected to companies that are fully in compliance with the law just to make sure that all those who are doing business with government and making from the government are paying the right taxes.”