29.1 C
Monday, December 4, 2023

FEC approves NNPCL N1.9tr investment in 44 federal roads based on tax credits policy

Must read

The Federal Executive Council, FEC, has given the go-ahead to the Nigerian National Petroleum Corporation Limited, NNPCL, to invest N1.9 trillion in the reconstruction of 44 federal roads across the country.

The Council gave its nod based on Nigeria’s tax credit policy. The policy is the government’s way of incentivising the private sector participation in the provision and maintenance of key infrastructures across the country. It involves companies spending their funds on the construction, provision, and maintenance of various key infrastructures across the country, and recovering their full construction costs as tax credits, over a period.
Companies that have taken advantage of tax credits in the past include the Dangote Group, MTN, and NLNG.

Yesterday’s FEC was presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
Osinbajo’s spokesman, Laolu Akande, briefed State House correspondents on behalf of the Minister of Works and Housing, Mr. Babatunde Fashola.

He said: “The Federal Executive Council approved the recommendation to invest in the reconstruction of selected federal roads under the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Policy (Phase II) by the NNPCL and its subsidiaries.

“So, the council approved the proposal by the Ministry of Works and Housing for the reconstruction of 44 proposed federal roads with a total length of 4,554 kilometres in the total sum of N1.9 trillion.’’

Akande said the council also approved the concession of nine federal roads, adding that the roads were spread across the country.

He added: “In another memo, the Minister for Works and Housing also got the approval of the council for concessionaires for nine road corridors under the pilot phase of the value-added section of the Highways Development and Management Initiative following the issuance of the requisite full business case compliance certificate by the Infrastructure Concession Regulatory Commission for 25 years for each road corridor as follows.

“The roads that will be under the pilot phase are the Benin-Asaba corridor; Abuja-Lokoja-Onitsha-Owerri-Aba; Shagamu-Benin; Abuja-Keffi-Akwanga-Makurdi; Kano-Maiduguri; Enugu-Port Harcourt, Lagos-Ota-Abeokuta and Lagos-Badagry-Seme.”
Akande explained that the minister also got the council’s approval for the augmentation of the contract for the rehabilitation of the Oshogbo-Ilesa Road Phase I in Osun State in the sum of N1.2 billion.

“The approval thereby revises the subsisting contract sum from N3 billion to N4 billion representing an increase of 33 percent of the original sum.”

Also yesterday, Minister of State for Budget and National Planning, Clem Agba, thanked President Muhammadu Buhari for approving N75 billion for the reconstruction of the dualised Lokoja-Benin Road.

In a statement after the FEC meeting, Agba expressed particular interest in the section extending from Obajana Junction in Kogi State to Benin.
Part of the approvals covered Section 2 of the road from Okene-Auchi, section three from Auchi-Ehor, and Section 4 from Ehor-Benin at N25 billion each.
Agba further thanked the President for also approving N64 billion for the Benin-Warri dual carriageway.

He said: “The President deserves commendation by the good people of Edo State and South-South for including the roads in the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Phase II.”

According to him, the Lokoja-Benin Road “is a critical asset that links the entire Southsouth zone to the northern part of the country.
“It is also an ongoing project with contractors already on the ground to resume and/or continue work once they are mobilised.”

More articles


Please enter your comment!
Please enter your name here

Latest article