Just In : FEC approves N169.7bn for reconstruction of four roads
The Federal Executive Council (FEC) has approved N169.7bn for the reconstruction of four roads under the tax credit scheme.
Babatunde Fashola, Minister of Works and Housing, made this known when he briefed State House correspondents on the outcome of the Council meeting presided over by President Muhammadu Buhari, at the Presidential Villa, Abuja, on Wednesday.
Fashola said the approval was in response to the tax credit scheme initiated in 2019 by President Buhari after signing Executive Order 7 to allow the private sector to finance public infrastructure in lieu of tax and then offset it over time using tax credits.
He said, “The two main memoranda relate to the uptake by the private sector in response to the tax credit programme, 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 road from Bali to Sheti through Gashaka to Gembu in Taraba state – 234 kilometers, reconstruction of the road at the cost of N95.232bn.
“The existing road, for those who are familiar with it, has no concrete stone base.
“So it’s just laterite on the asphalt, so it doesn’t last and it’s breaking up and leading to potholes.
“So, we have awarded 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 kick-start this immediately.
“So, this is a road that should not suffer from sustained funding challenges. Now that council has approved it, and it’s very critical road leading to the Mambilla Plateau.’’
According to Fashola, the road also provides access to the Gashaka Game Reserve and also supports access to many farm lands.
The Minister also disclosed that the council gave approval to a private firm, Mainstream Energy Solutions, to invest over N74bn in the reconstruction of three roads in Kebbi and Niger States.
He said, “The second project, which is also on a tax credit scheme approved by 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 about N74.4bn.”