FG Approves N169.72bn Private Sector Investments In Roads

The Federal Executive Council has approved N169.7bn private sector investments for at least four road infrastructures through the government’s Tax Credit Scheme.

The Minister of Works and Housing, Babatunde Fashola, disclosed this to State House correspondents at the end of the council meeting presided over by the President, Major General Muhammadu Buhari (retd.) at the Presidential Villa, Abuja on Wednesday.

Fashola said the roads include a 234-kilometre stretch from Bali to Sheti through Gashaka to Gembu in Taraba State at the sum of N95,232,474,010.72.

The second road, which is also a tax credit scheme, consists of three roads worth N74,486,577,050.

Fashola, who noted that the scheme was initiated in 2019 through Executive Order 7 signed by the President, said the arrangement allowed private sector players to finance public infrastructure instead of paying taxes and then offset it over time using tax credits.

For the 234-kilometre road in Taraba costing N95.23bn, Fashola said a N20bn under the NNPC Tax Credit Scheme would be disbursed to begin the project soonest.

“The two main memoranda (presented to the council) relate to the uptake by the private sector in response to the tax credit program, which we initiated in 2019, by Mr. President signing of Executive Order 7 to allow private sector finance public infrastructure in lieu of tax and then to offset it over time using tax credits.

“So the first road that was awarded today on that policy initiative is the rule road from Bali to Sheti through Gashaka to Gembu in Taraba State. A total of 234 kilometres reconstruction of that road in the sum of 95,232,474,010.62.

“The existing road, for those who are familiar with it, has no concrete stone base. It is just laterite on the asphalt so it doesn’t last and it’s breaking up and leading to potholes.

“So we’ve rewarded this now for reconstruction under the tax credit scheme, there’s a N20bn provision under the NNPC tax credit scheme that will be used to kickstart this immediately.

“The second road which is also the tax credit scheme, which was approved by the Council is actually three roads. The applicant, in this case, is Mainstream Energy Solutions, a major energy player in the country is now seeking to also participate in this policy by investing a total of N74,486,577, 050.”