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FG Approves N169.72bn For Construction Of Four Major Roads

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FG Approves N169.72bn For Construction Of Four Major Roads
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The Federal Government has approved N169.7bn private sector investments for the construction of four roads in the country.

The Minister of Works and Housing, Babatunde Fashola, made this known to State House correspondents at the end of the Federal Executive Council (FEC) meeting on Wednesday in Abuja.

Fashola said the funds for the four road infrastructures were approved by the FEC through the government’s Tax Credit Scheme.

He listed the roads to include a 234-kilometre stretch from Bali to Sheti through Gashaka to Gembu in Taraba State at the sum of N95.23bn, while the second road consists of three roads worth N74bn.

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

Fashola said the roads are part of the tax credit scheme, which was initiated in 2019 through Executive Order 7 signed by President Muhammadu Buhari.

The minister said the arrangement allowed private sector players to finance public infrastructure instead of paying taxes and then offset it over time using tax credits.

He said: “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.