October 16, 2021

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List of states to benefit as FEC awards N309bn concrete road contracts to Dangote as tax credit

FCT, Abuja – The Federal Executive Council (FEC) has approved the award of a contract to Dangote Industries to construct five concrete roads totalling 274.9 kilometres at N309,917,717,251.35 to be advanced by the company as a tax credit.

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The Cable reported that Babatunde Fashola, minister of works and housing, stated this on Wednesday, July 14, while briefing newsmen at the end of the FEC meeting presided over by President Muhammadu Buhari.

List: Four States to Benefit as FEC Awards N309bn Road Contracts to Dangote as Tax Credit
President Buhari presides over the Federal Executive Council meeting in State House on Wednesday, July 14.
Photo credit: Femi Adesina
Source: Facebook

Here is a list of states where the five roads will be constructed:

1. Borno state

a) Bama to Banki (49.153 kilometres) – N51.016 billion

b) Dikwa to Gamboru-Ngala (49.577 kilometres) – N55.504 billion

2. Kaduna state

a) Nnamdi Azikiwe Road, popularly known as a Western Bypass, from Command Junction to Kawu ((21.477 kilometres) – N37.560 billion

3. Lagos state

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a) Deep seaport access road sections 1 and 3 in Lagos State, through Epe to Shagamu Expressway, linking Lagos and Ogun States (54.24 kilometres) – N85.838 billion

4. Ogun state

a) Obele/Ilaro/Papalanto to Shagamu Road (100 kilometres) – N79.996 billion

Tax credit initiative

According to Fashola, the project will be executed under the Federal Government Roads Infrastructure Tax Credit policy.

This means Dangote Industries will be paid for the projects by removing the cost from the tax it is expected to pay to the federal government.

Fashola explained that the tax credit initiative through which the project is being funded was in existence in the last administration before this government but was not utilised.

He said the Buhari administration has revised it, expanded it, and has used it to construct roads like the Apapa Wharf Road, the Oworonsoki to Apapa, through Oshodi Road, by the same Dangote Group.

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Nevertheless, the minister said there was also interest by many other companies that are being reviewed, noting that the initiative is not exclusive to Dangote Group.

Nigerians react

The announcement of the project has drawn reactions from Nigerians especially as President Buhari’s personal assistant on new media, Bashir Ahmad, shared it on Facebook.

Abdulrahman Umar said:

“This is a work weldone, thank you PMB.”

Ledum Light Boris said:

“Commendable

“We pray the FGN to expedite actions on the East-west road particularly the section spanning from trailer park in Eleme LGA Rivers state to Eleme junction.”

Kaka Abba Rufai said:

“Masha Allah it’s very good but honestly this country is lacking security, please let this administration do something good to secure the county and our fellow compatriots.”

Japheth Musa John said:

“Forget all these projects please tackle insecurity! What use is constructing a road when people can travel safely sir.”

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Meanwhile, banks, big corporations, as well as VIPs, will start paying for police escorts and guards.

According to the presidency, this is coming after the FEC approved the formation of the Special Police Services on Wednesday, July 14.

Presidential spokesman, Garba Shehu made the disclosure on behalf of some ministers while briefing State House reporters on the outcome of the FEC meeting.

Source: Legit.ng