FEC approves N1.9trn to NNPCL to construct 44 roads under tax credit policy - Newstrends
Connect with us

News

FEC approves N1.9trn to NNPCL to construct 44 roads under tax credit policy

Published

on

The Federal Executive Council (FEC), presided over by Vice President Yemi Osinbajo, yesterday, approved the proposal for  the Nigerian National Petroleum Corporation Limited (NNPCL) to invest N1.9 trillion in the reconstruction of 44 federal roads under the tax credit policy.

 Of this amount, N215.3 billion would be spent on South South and South East roads.

Senior Special Assistant to the President on Media and Publicity Office of the Vice President, Laolu Akande,, who briefed journalists after the meeting said FEC approved the recommendation to invest in the reconstruction of selected federal roads under the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Policy Phase 2 by the NNPCL and its subsidiaries.

He said: “So, the council approved the proposal by the Ministry of Works and Housing for the reconstruction of 44 proposed federal roads with a total length of 4,554 kilometers in the total sum of N1.9trillion.”

The approval is coming 15 months after the NNPCL expressed interest in investing in the reconstruction of selected federal roads in order to sustain a smooth supply and distribution of petroleum products across the country.

President Buhari had on January 25, 2019, signed the Executive Order 007 which was the instrument that brought about the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, with the aim to unlocking funding from the private sector to critical road infrastructure in the country.

READ ALSO:

The Executive Order 007 was designed to empower private companies to finance construction or refurbishment of federal roads designated as “Eligible Roads” under the scheme and recoup their investments through deduction of the approved total costs expended on the project from their annual Companies Income Tax.

The Road Infrastructure Scheme is a Public-Private Partnership intervention that enables the Federal Government to leverage private sector capital and efficiency for the construction and refurbishment of critical road infrastructure in key economic areas in Nigeria

Under the initiative, the private participants of the scheme provide the funds for the construction or refurbishment projects and in exchange, the participants are entitled to recoup the funds provided as a credit against the Companies Income Tax they are expected to repay. Under the initial programme, the NNPC is currently constructing a total of 1,804.6 kilometres of roads at a total cost of N621,237,143,897.35

A breakdown of the project funding showed that the North-Central geo-political zone, made up of Federal Capital Territory, Benue, Kogi, Kwara, Nasarawa, Niger, and Plateau States, got. the highest chunk of N244.87bn for the construction of 791.1 kilometres of road

The South-South geo-political zone, comprising Akwa-Ibom, Bayelsa, Cross-River, Delta, Edo, and Rivers state, emerged the second highest beneficiary of the NNPCL Road Infrastructure Development and Refurbishment project with N172.02bn for a total of 81.9 kilometres of road.

he South West, made up of Ekiti, Lagos, Osun, Ondo, Ogun, and Oyo States, followed with a total allocation of N81.87bn for the construction of 252.7 kilometres of roads.

The NNPCL allocated N56.12bn to the North-East, comprising Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe states,the construction of 273.35 kilometres of roads under the scheme.

The South East geo-political zone; the zone is made up of five states, comprising Abia, Anambra, Ebonyi, Enugu,and Imo.states, got N43.28bn allocation for the construction/rehabilitation of 122 kilometres of road.

The NNPC allocated N23.05 billion for the rehabilitation of 283.5 kilometres of road to North West geo-political zone, made up of Kaduna, Katsina, Kano, Kebbi, Sokoto, Jigawa, and Zamfara States. The road projects are being funded by NNPC and the equivalent amount is deducted by the Federal Inland Revenue Service from the National Oil Company’s tax obligations.

Minister of Environment, Mohammed Abdullahi said Council approved the procurement of 31 project vehicles for the hydrocarbon pollution remediation projects in Ogoni land. 

He recalled that in December 2022, FEC had approved some projects for Ogoni and remediation of some polluted site. 

“In view of the fact that we are going to inspect on a regular basis, experts from outside the country, there’s a need to provide project vehicles so that they can effectively inspect, supervise and monitor the remediation exercise. FEC today approved the sum of N1,354,016,250 in favor of Messers Mujav automobile Nigeria limited to provide 31 number of vehicles for the project. These include one 18-seater Toyota Hiece bus, one 30-seater Toyota coaster bus, they’re all supposed to be 2022 models. Then 11 Toyota Hilux double cabin four will drive also to 2022 model, diesel engine. Then 15 numbers Toyota Hilux double cabin four wheel  drives, diesel and petrol engine also 2022 models. Then one Toyota Landcruiser twin turbo 2022 model and lastly two unit of Land Cruiser V6 Prada for the projects. Only 31 vehicles were approved for the hydrocarbon pollution remediation project to ensure effective supervision of the project particularly delimitation sites.“

Sun

News

Yemi Osinbajo Appointed Senior Strategic Adviser to Africa CDC

Published

on

Former Nigerian Vice-President Yemi Osinbajo
Former Nigerian Vice-President Yemi Osinbajo

Yemi Osinbajo Appointed Senior Strategic Adviser to Africa CDC

Former Nigerian Vice-President Yemi Osinbajo has been appointed as Senior Strategic Adviser to the Director-General of the Africa Centres for Disease Control and Prevention (Africa CDC), as the agency pushes forward the continent’s Africa Health Security and Sovereignty (AHSS) agenda.

The appointment, announced on Monday, comes at a critical time as Africa CDC seeks to enhance health systems, boost domestic financing, expand local production of medical supplies, and strengthen Africa’s influence in global health governance. In this role, Osinbajo will provide strategic guidance on pandemic preparedness, sustainable healthcare financing, policy direction, and continental collaboration.

Director-General Jean Kaseya praised Osinbajo’s wealth of experience, highlighting his expertise at the intersection of governance, finance, law, and diplomacy. “At a time when Africa must act with greater authority on the future of health, his leadership will be invaluable,” Kaseya said. He added that Osinbajo’s appointment reflects Africa CDC’s commitment to mobilising top African leadership in service of the continent’s health security and development.

READ ALSO:

Osinbajo served as Nigeria’s Vice-President from 2015 to 2023, during which he chaired the Economic Sustainability Committee, contributed to reforms enhancing the ease of doing business, and played a key role in implementing Nigeria’s social investment programmes. Earlier, he was Attorney-General and Commissioner for Justice in Lagos State from 1999 to 2007. His legal and governance background positions him to offer critical insights on health policy, regulatory frameworks, and strategic partnerships.

The AHSS agenda, which Osinbajo will help drive, seeks to strengthen Africa’s self-reliance in health, improve disease surveillance, and foster regional collaboration to respond more effectively to pandemics and other public health emergencies. Experts say his advisory role will be crucial in promoting local production of vaccines and medical equipment, ensuring Africa can meet its own health needs while influencing global health decisions.

Africa CDC, operating under the African Union, aims to support member states in building resilient health systems capable of confronting future outbreaks and public health crises. Osinbajo’s appointment is expected to further amplify Africa’s voice in global health while ensuring sustainable health development across the continent.

Yemi Osinbajo Appointed Senior Strategic Adviser to Africa CDC

Continue Reading

News

Iran Lists Tough Conditions for Peace Talks with US

Published

on

Iran’s Foreign Minister, Abbas Araghchi

Iran Lists Tough Conditions for Peace Talks with US

By Agency Report

Iran has outlined a set of strict preconditions for engaging in negotiations with the United States aimed at achieving a lasting peace, signalling a hardening of its stance amid ongoing hostilities in the Middle East.

According to a senior Iranian official who spoke to Reuters, Tehran is insisting on an immediate halt to U.S. military strikes, alongside firm guarantees that such attacks will not be repeated, as a prerequisite for any talks.

The official also disclosed that Iran is demanding compensation for damages suffered during the conflict, underscoring the country’s position that any future negotiations must address the consequences of the ongoing war.

In a further indication of its firm posture, Iran has rejected proposals for a temporary ceasefire, maintaining that only a comprehensive and permanent peace agreement would be acceptable.

Tehran is also pushing for new arrangements regarding the strategic Strait of Hormuz, including the right to impose transit fees on vessels passing through the vital global oil shipping route. The proposed fees, according to the official, would vary depending on the type of vessel, its cargo, and prevailing conditions.

The development comes amid intensified diplomatic efforts led by regional mediators, including Pakistan, to broker a ceasefire between the two sides. A U.S.-backed proposal for a 45-day truce has reportedly been put forward as a stepping stone toward broader negotiations, though Tehran has dismissed the idea as insufficient.

Tensions between the two countries remain high, with both sides holding firm to their positions. Analysts say Iran’s demands reflect a broader strategy to secure long-term guarantees and reshape the terms of engagement in the region, rather than accept short-term de-escalation measures.

With neither side showing signs of compromise, prospects for immediate negotiations appear uncertain, raising concerns about further escalation and its implications for global security and energy markets.

 

Iran Lists Tough Conditions for Peace Talks with US

Continue Reading

News

Tinubu Unveils ₦3.3tn Electricity Bailout to Revive Nigeria’s Power Sector

Published

on

President Bola Ahmed Tinubu
President Bola Ahmed Tinubu

Tinubu Unveils ₦3.3tn Electricity Bailout to Revive Nigeria’s Power Sector

President Bola Ahmed Tinubu has approved a sweeping ₦3.3 trillion power sector bailout aimed at clearing long-standing debts and stabilising Nigeria’s struggling electricity industry.

The intervention, implemented under the Presidential Power Sector Financial Reforms Programme, is designed to resolve liabilities accumulated between February 2015 and March 2025, following a comprehensive verification process.

Presidential spokesman Bayo Onanuga disclosed that the ₦3.3 trillion electricity debt settlement represents a full and final agreement to restore financial stability across the sector. He explained that the debts, largely driven by unpaid invoices, tariff shortfalls, and subsidy obligations, had significantly weakened liquidity in the power value chain.

Implementation of the power sector debt repayment plan has already commenced, with 15 generation companies signing settlement agreements worth about ₦2.3 trillion. The Federal Government has raised ₦501 billion so far to fund the initiative, out of which ₦223 billion has already been disbursed, while additional payments are ongoing.

READ ALSO:

The Nigeria electricity sector bailout is expected to inject much-needed cash into the industry, ensuring that gas suppliers receive payments, power plants can sustain operations, and electricity generation becomes more stable. With improved liquidity, officials say the country could begin to see gradual improvements in power supply, reduced grid disruptions, and better service delivery.

Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said the programme is not just about clearing debts but rebuilding trust across the industry. She noted that restoring confidence is critical to attracting investment, maintaining consistent gas supply, and ensuring that power plants operate efficiently.

She further explained that the initiative forms part of broader power sector reforms in Nigeria, including nationwide metering improvements and the introduction of service-based tariffs that align electricity costs with the quality of supply. According to her, the government is also prioritising electricity supply to businesses, industries, and small enterprises, recognising that reliable power is essential for job creation and economic growth.

The Tinubu administration believes the electricity sector stabilisation plan will reduce reliance on generators, lower the cost of doing business, and improve productivity across key sectors of the economy. Analysts say resolving the sector’s liquidity crisis could unlock new investments and strengthen Nigeria’s overall economic performance.

President Tinubu also commended stakeholders for their cooperation in addressing long-standing challenges in the industry and confirmed that the next phase of the reform programme, Series II, will commence within the current quarter. The phase is expected to deepen structural reforms and ensure long-term sustainability of the electricity market.

Tinubu Unveils ₦3.3tn Electricity Bailout to Revive Nigeria’s Power Sector

Continue Reading
HostArmada Affordable Cloud SSD Shared Hosting
HostArmada - Affordable Cloud SSD Web Hosting

Trending