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The Federal Executive Council (FEC), on Wednesday, approved the award of road contracts to Dangote Industries at the cost of N309.9 billion.
The 5 road projects with a combined total length of 274.9 kilometres of federal roads under the Federal Government Road Infrastructure Tax Credit Policy will be handled by Dangote as tax credit.
This disclosure was made by the Minister of Works and Housing, Babatunde Fashola, during a briefing of State House correspondents on Wednesday in Abuja after the FEC meeting presided over by President Muhammadu Buhari.
Fashola explained that the road contract, which was the second approved for his ministry by the council, would be implemented on concrete and would be the largest of such projects in the country.
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What the Minister of Works and Housing said
Fashola said that this initiative by the Federal Government is also part of its multiple funding options with the private sector.
He said, “The second memorandum presented by the Ministry of Works and Housing was for the construction or the reconstruction, as the case may be, of five road projects in favour of Messrs. Dangote Industries Limited, totalling 274.9 kilometres of federal roads, under the Federal Government Roads Infrastructure Tax Credit policy, which is one of our strategic partnerships with the private sector.
Those five roads totalling 274.9 km will cost N309,917,717,251.35 to be advanced by the Dangote Industries as a tax credit.”
Going further, the Minister listed the roads to include Bama to Banki in Borno State for N51.02 billion running into 49.15km; Dikwa to Gamboru-Ngala, 49.58km, in Borno State for N55.5 billion; and the Nnamdi Azikiwe Road, popularly known as Western Bypass in Kaduna, 21.48km, from Command Junction to Kawu, in the sum of N37.56 billion.
READ: Aliko Dangote’s net worth falls by $1.4 billion in Q1 2021 amid stock market sell-off
Others are the deep seaport access road sections 1 and 3 in Lagos State, through Epe to Shagamu Expressway, 54.24 km, that links Lagos and Ogun states, in the sum of N85.84 billion; the Obele/Ilaro/Papalanto to Shagamu Road, 100km, in Ogun State, in the sum of N79.99 billion.
He also said, “Council considered and approved this memorandum, to facilitate the construction of 274km of concrete roads. So, this will be the largest single award of concrete roads ever undertaken by the government of Nigeria in one award.”
While speaking on the conditions surrounding the contract, Fashola said, “First of all, the award is consistent with our multiple funding options, which includes engagement with the private sector.
Secondly, the tax credit initiative was in existence in the last administration before this government but was not utilised. So, this administration has revised it, expanded it, and has used it to construct roads like the Apapa Wharf Road, the Oworonsoki to Apapa, through Oshodi Road, by the same Dangote Group.”
He said the list included the Obajana-Kabba Road (still the Dangote Group) and the Bodo-Bonny bridges and road, which council approved last week, through the NLNG.
The Minister further revealed that this initiative is not unique to Dangote as there is also interest from many other companies which are being reviewed.
What you should know
Similarly, it can be recalled that in April 2021, the Federal Inland Revenue Service (FIRS), announced the issuance of tax credit certificates valued at N22.321 billion to Dangote Industries.
The tax credit certificates were for the construction of Apapa-Oworonshoki-Ojota road in Lagos and the Lokoja-Obajana-Kabba road that goes through Kogi and Kwara States.
The issuance of tax credit certificates followed the signing of Executive Order 07 of 2019 by President Muhammadu Buhari, which is on road infrastructure tax credit.
The order encourages companies to develop infrastructure around their operational area as long as it will enhance their delivery and their businesses.
Under the Credit Tax Scheme, participating companies are to recover the cost incurred by them in the construction or refurbishment of eligible roads as credit against Companies Income Tax (CIT) payable.
How come none of these roads runs in the eastern regions, south south and Delta regions, north east or middle belt? When it’s national tax exemption for building. new roads in borno when the population have ran away from chronic violence to other parts of the country? . Who will be using these borno roads with boko haram running the show up there? good to see innovative funding in action and thank God for our brother Dangote
sir, pls check other projects before this under the same tax credit scheme being done by transcorp, mtn nigeria, nlng, bua, dangote etc
“The order encourages companies to develop infrastructure around their operational area as long as it will enhance their delivery and their businesses”
Biafra
Jealousy will kill you prematurely.
How durable is this concrete road and also when is the project commencing?
Is the project for the Kaduna bye pass mentioned not a duplication of contract award?
No it’s not, the Abuja – Kano project will go through the Eastern byepass
This country will find it difficult to progress. It is sad federal government plays regional politic in all things. What a primitive ways to address our road problems and what people have been complaining about.
Seriously, I don’t admire our leaders for once or for anything.
It is time we look for people with great foresight to move this country forward. Over 60 years we are still not focused on progress but spites and marginalisation.
It is disturbing to see our leaders acting this way. Borno is a state where insecurity is rife. The roads are going to be less utilized to full capacity as you would expect in other parts of the nation.
My dear that is why restructuring is inportant
You people have a myopic mentality that’s why the more you look the less you see. Just a fish inside pond. Please go round the country before you talk.
Some people are quick to react to issues unnecessary without taking time to view the information been passed across. All these projects are in the public space but because of sentiments and bias mind they refused to seek for the accurate information rather they will be misleading Nigerians
What are you insinuating? You that claims to know better. Are you saying that the roads around South-South and Delta regions are better of than the Northeast?. Let’s not talk about Southeast bcos you and I know that they don’t follow. But in all sincerity, can you justify the kind of sectionalism that this govt exhibits.
Have gone to the south of recent?
Please mr president how about our road we want to know weather where not in Nigeria, mr president don’t forget we vote you Gombe Biu link to Adamawa road,
THANK YOU
BEST REGARDS
Ayuba abubakar wudiri
What of the abandoned federal road project in ile ife.
If you go to south east you will know the roads there are very bad, so why, the government has forgotten that region and not from there but I pity the east they are excluded big time for everything, I hope the east leaders will cooperate with one voice
How come there is no one in eastern part? Hence, all the interstate roads in south west are bad. You are from southwest do something good before your time runs out. Remember, Gen Obasanjo commenced Ibadan/Ilorin Express way, and couldn’t complete in the whole of the 16 years PDP rule. Is very ???. Look at what we are facing today. Kisi / New Bussa / Kanji road is there, you didn’t do anything in that area, also an expreess road from Abeokuta to Kisi to the North. Do good for your people. You won’t be there tomorrow.
It’s high time we begin to criticize constructively,
Federal govt can’t spread same type of development across the nation . We have people in house reps, who claims they are our voices. They at one time or the other present priorities of their people to the floor , and send for assent.
It not every community that needs road as their priorities at the same time with another.
Please fg help us in taraba to get something good to see as we are Nigerian too we don’t have anything
This is just a mess!
Our government has monopolised the economic activities in the country by subletting businesses into the hand of only one man and granting him soft landing in all spheres. This project in question is a means of transporting his refined oil product from Eleko through Epe to Sagamu express and from Maiduguri to other African countries!
Continue trading with the interest of Nigerian Citizens!
Mr. President sir. Please remember to build the Lagos-Abeokuta Express Way. The road is totally destroyed. It is in a complete state of ruin and catastrophe. Please send a team of secret inspectors to the area to confirm it sir.