Private investors have been encouraged to invest in infrastructure bonds by the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele. This, according to Emiefele, would help the government accomplish better infrastructure for the citizens, The Guardian reports.
The Details: This admonishment is coming after the CBN Governor conducted an inspection tour of the on-going road construction from the Apapa Port to the Lagos-Ibadan Expressway toll gate being undertaken by the Dangote Group.
Emefiele urged private sector players to take advantage of the Presidential Order 7 to deliver infrastructure at concessionary rates. He believes this move will be beneficial to the government, citizens and investors.
He was full of admiration for Dangote who decided to seize the benefits attributed to the Presidential Order 7 by deciding to construct the Apapa Port road.
“It is a good thing for this country. When we talk about the Ease of Doing Business, you can imagine a situation whereby people have been complaining about the ease of transporting their goods out of the Apapa port,” he said.
Emefiele expressed optimism that the construction would reduce the gridlock on that route, especially for heavy-duty trucks known for conveying cleared goods from the ports. He also praised Dangote for using Made-in-Nigeria materials to construct the roads.
“This is 100% local content. Dangote uses his cement on this road, the rods I understand are coming from African Foundries that smelted waste steel, which is converted into iron bars and is being used for the road,” Emefiele added.
About the Executive Order 7: The Executive Order No 7 of 2019 was recently signed by President Muhammadu Buhari. The area of application is the ‘Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme’. It was designed to facilitate accelerated development and delivery of road infrastructure in the country through a Public-Private Partnership (PPP). The order is expected to close the wide infrastructure gap in the country, especially in the transportation sector.
The scheme provides for the involvement of private sector investors to develop such roads for sustainable engagement and be reimbursed through a tax credit system. All expenses incurred by such private companies would be written off through deductions from their payable taxes.