FG approves N169.72 billion road infrastructure projects

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Minister of Public Works and Housing, Babatunde Fashola

FIRS

The Federal Executive Council has approved private sector investments of N169.7 billion for at least four road infrastructure through the government’s tax credit scheme.

Public Works and Housing Minister Babatunde Fashola disclosed this to State House correspondents after the council meeting chaired by President Muhammadu Buhari at the presidential villa in Abuja.

The project consists of a 234 kilometer stretch of road from Bali to Sheti and Gashaka to Gembu in Taraba State at a cost of N95,232,474,010.72.

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

Fashola, who noted that the program was launched in 2019 through Executive Order 7 signed by the President, says the arrangement allowed private sector actors to finance public infrastructure instead of paying taxes and then offset them over time using tax credits.

For the 234 kilometer road to Taraba which costs N95.23 billion, Fashola added that N20 billion under the NNPC tax credit scheme would be disbursed to start the project as soon as possible. .

“The two main memoranda (presented to the board) relate to the adoption by the private sector in response to the tax credit program, which we launched in 2019, through the signing by the President of Executive Order 7 to allow the sector private sector to fund public infrastructure in lieu of taxes and then offset it over time with tax credits.

“So the first road that has been awarded today under this policy initiative is the main road from Bali to Sheti through Gashaka to Gembu in Taraba State. A total of 234 kilometers of reconstruction of this road for the sum of 95,232,474,010.62.

“The existing road, for those who know it, has no concrete stone foundation. It’s just laterite on the asphalt so it doesn’t last and it breaks up and it makes potholes.

“So we have rewarded this now for reconstruction under the tax credit scheme, there is a N20 billion provision under the NNPC tax credit scheme which will be used to kick start this immediately.

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

Information and Culture Minister Lai Mohammed revealed that the Council had also approved N3.49 billion for the purchase of an office building in Abuja for the Ministry of Aviation.

Further, he noted that the Council has awarded a N553.58 million contract for the establishment and deployment of web-based reporting tools of the advanced reporting utility engine in favor of MM. Sinecou Limited with a delivery date of 12 months.

Clem Agba, the Minister of State for Budget and National Planning, said the Minister of Finance, Budget and National Planning presented a memorandum on phase three of the Phare program on digital infrastructure Voluntary Asset Offerings and Income Reporting Regime and Analysis of Tax Harmonization Standardization and Application Program Interface.

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