President Muhammadu Buhari has approved the recommendation for the Nigeria National Petroleum Company Limited (NNPCL) to invest N1.9 trillion in 44 federal road projects across the country.
This will come under the tax credit policy.
The approval was given during the Federal Executive Council meeting, which held at the Presidential Villa, Abuja and was presided over by the Vice President, Prof. Yemi Osinbajo.
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-2, by the NNPC Limited and its subsidiaries.
The spokesman to the Vice President, Laolu Akande, who briefed news on the development. said: “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 4,554km in the total sum of N1.9tn,” Akande said.
Th VP’s spokesperson spoke on behalf of the Minister of Works and Housing, Babatunde Fashola.
The Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, was brought to into place by the Executive Order 007 signed by
President Buhari on 25th January 2019.
The objective of the Executive Order 007 was to initiate a process for attracting funding from the private sector for critical road infrastructure across the country.
Companies that take up such partnership, recoup their investments through the deduction of the approved total costs expended on the project from their annual Company Income Tax.
NNPCL had more than a year ago, expressed interest in investing in the reconstruction of selected federal roads in order to sustain a smooth supply and distribution of petroleum products across the country.
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