The Cabinet in Nigeria has approved the sum of N206 billion for the completion of road projects in Anambra, Enugu and Abia States, South-East of the country.
The Minister of Works and Housing, Babatunde Fashola revealed this on Wednesday while briefing State House Correspondents at the end of the cabinet meeting chaired by President Muhammadu Buhari in Abuja, the nation’s capital.
He explained that the projects would be carried out by a telecommunications giant in the country, under the roads infrastructure tax credit scheme of government.
“So we, the Ministry of Works and Housing presented two memoranda and they are largely PPP base memoranda and I will explain how. In 2019 January 25 specifically, you might recall that President Buhari approved Executive Order seven, which was the road infrastructure tax credit scheme, to allow the private sector to invest tax liabilities in advance in infrastructure.
“And that policy has helped us to finance roads like or by Obajana to Kaba, Apapa -Oshodi, Oshoki-Ojota Expressway, the Bodo -Bonni expressway in Port Harcourt. About 1000 kilometres covering 21 roads under the NNPC investment. So there is an increased optic for that policy.
“So today we have two more. The first that was approved today was the one by MTN Nigeria PLC, the telecommunication company to take over and complete the ongoing Enugu -Onitsha expressway. That road is 110 kilometres, which is being dualized so you have 110 kilometres times two.
“The outstanding works aggregate to about 91 point kilometres on both sides, if you accumulate it for those who use the road. You will see that the Enugu bound section has been largely completed but there’s a lot of work to be done on the Onitsha section. So this policy is going to allow a steady and sustained stream of funding to completion by MTN and the amount approved is N202, 887, 436, 672.11 billion naira to complete the outstanding works of an aggregate of 91.9 kilometres on both sides,” he said.
Abia Road
The Works and Housing Minister added that the council also approved over four billion naira for the completion of a 3.7-kilometer road in Abia State.
“The second memo also was under the Tax Credit Scheme and while the first one was related to the road linking Anambra and Enugu states, this one is with respect to a road in Abia state.
“Now the road is called Umuchi -Ususu-Umueme GZ Industries Road in Abia. The private sector beneficiary of the approval is a company called GZ Industries. GZ Industries manufactures aluminium cans for bottled drinks. They have a factory in Agbara in Ogun state and they have another one in Abia in this area, so it’s a link road to their factory. The approval was for N4, 205,454,855.26 billion. The road is a 3.7-kilometre road. So it’s an access road to their Industry Council, and the cabinet approved both memoranda,” Fashola added.
PIAK
