NEDC seeks increased allocation from VAT, Ecological Fund

25 Nov NEDC seeks increased allocation from VAT, Ecological Fund

The North East Development Commission (NEDC) has asked the federal government to increase allocation to it from Value Added Tax (VAT) and Ecological Fund from three to five per cent..

The NEDC’s Managing Director and Chief Executive Officer, Mohammed Alkali, made the appeal during a meeting between officials of the commission and the North East Caucus of the National Assembly on Wednesday.

The meeting, which was held at the legislative complex, was premised on the North-East Stabilisation and Development Masterplan Project (NESDMP).

The NEDC was established in October 2017 with the aim of overseeing federal government’s intervention programmes in the region.

The commission currently receives three per cent of VAT and Ecological Fund for its activities. A total of N46.1 billion has been allocated to the NEDC in the 2021 budget.

However, Mr Alkali believes the amount is grossly inadequate to develop the area.

While Mr Alkali sought more funding for the commission, the lead consultant to NEDC on the NESDMP, Mohammed Ahmad, said the commission would require over $9.6billion for the development of the North-east region.

This, he said, is based on the assessment of the World Bank, European Union and the United Nations on the amount required to fix infrastructural needs of the geopolitical zone as of 2016.

And like his colleague, he said, the budgetary provision will not be sufficient to address the challenges.

The lawmakers acknowledged the issues raised by officials of the NEDC and promised to intervene where necessary.