FEC approves N169.7bn for 4 roads via Tax Credit Scheme

The Federal Executive Council (FEC) has approved N169.7 billion for the reconstruction of four roads under the tax credit scheme.

Minister of Works and Housing, Babatunde Fashola, made the disclosure while briefing briefed State House correspondents on the outcome of the Council meeting presided over by President Muhammadu Buhari, at the Presidential villa, Abuja, on Wednesday.

He said the approval was in response to the tax credit scheme, initiated in 2019 by President Muhammadu Buhari after signing Executive Order 7, to allow private sector finance public infrastructure in lieu of tax and then to offset it over time using tax credits.

Fashola said: “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 kilometres, reconstruction of the road at a cost of N95.232 billion

“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 N20 billion 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 the minister, the road also provides access to the Gashaka Game Reserve and also supports access to many farm lands.

Fashola also disclosed that the council gave approval to a private firm, Mainstream Energy Solutions, to invest over N74 billion in the reconstruction of three roads in Kebbi and Niger states.

NNPC presents N621.24bn symbolic cheque for 21 roads

“The second project, which is also on 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 N74.4 billion,” he said.

Minister of Information and Culture, Alhaji Lai Mohammed who briefed on behalf of his counterparts in Aviation, Power and Agriculture, said the Council approved about N3.5 billion for the purchase of a property in Abuja for the Ministry of Aviation.

He said the property to be acquired was to enable the ministry to co-locate with many of its agencies.

He further revealed that the Council awarded a N553.5 million contract for the establishment and deployment of Advanced Report Generation Utility Engine Web-based Reporting Tools in favour of Msssrs Sinecou Limited with delivery date of 12 months.

The minister equally disclosed that his Power counterpart got approval for the upward review of original contract sum in respect of the construction of 232 kilometres Yola, Song, Gombe, Mubi, Gulako 132 KV double circuit transmission line from $16 million plus N1.248 billion to $16.698 million plus N2,33 billion.

He added that N409 million was approved for the Power ministry to purchase replacements of defective circuit breakers.

The Star