FEC approves N169bn tax credit for road projects

The Federal Executive Council has approved N169bn in private sector investments for road infrastructure through the government’s tax credit programme.

The approval came on Wednesday at a FEC meeting in Abuja presided over by President Muhammadu Buhari.

Minister of Works and Housing, Babatunde Fashola, said the programme was initiated in 2019 through executive order No 7 signed by the President.

He said the executive order allowed the private sector to finance public infrastructure in lieu of tax and then offset it over time using tax credit.

Fashola further explained that the first project the council approved based on the policy was the 234-kilometre road from Bali to Sheti through Gashaka to Gembu in Taraba state at the sum of N95,232,474,010.72.

He said the existing N20bn under the Nigerian National Petroleum Corporation (NNPC) tax credit scheme would be used to kick-start the project immediately.

“The second road which is also the tax credit scheme, which was approved by the council is 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 a total of N74,486,577, 050,” he said.

Also, Minister of Information and Culture, Lai Mohammed, who spoke on behalf of his counterparts in aviation, power, and agriculture, said the council approved the sum of N3,491,622,340 for the purchase of a property in Abuja for the ministry of aviation.

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

Mohammed said that the council also awarded a N553.575 million contract for the establishment and deployment of advanced report generation utility engine web-based reporting tools in favour of Messers Sinecou Limited with a delivery date of 12 months.

He said the council approved (for the power ministry) an upward review of the 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 billion, plus N2,337,643,640.

The minister added that N409 million was approved for the power ministry to replace defective circuit breakers.

He also said a memo from the minister of agriculture seeking approval for a national agricultural technology innovation policy was approved.