FEC okays N309.9bn Road contracts for Dangote as tax credit

July 15, 2021
2 Views

ABUJAThe Federal Executive Council (FEC) presided over by President Muhammadu Buhari on Wednesday ap­proved the award of contract to Dangote Industries for the construction of five roads, to­taling 274.9 kilometres, at the cost of N309,917,717,251.35 to be advanced by the company as tax credit.

Minister of Works and Housing, Babatunde Fasho­la, made the disclosure while briefing State House corre­spondents after the meeting.

Fashola explained that the road contract, which was the second approved for the min­istry by council, will be exe­cuted on concrete and will be the larger of such project in the country.

He said: “The second memorandum presented by the Ministry of Works and Housing was for the construc­tion or the reconstruction, as the case may be, of five road projects in favour of Messrs. Dangote Industries Limited, totaling 274.9 kilometres of federal roads, under the Fed­eral Government Roads Infra­structure Tax Credit policy, which is one of our strategic partnerships with the private sector.

“Those five roads totaling 274.9 kilometres will cost N309,917,717,251.35 to be ad­vanced by the Dangote Indus­tries as tax credit.

“The roads, specifically, are Bama to Banki in Borno State for N51.016 billion with 49.153 kilometres; Dikwa to Gambo­ru-Ngala, 49.577 kilometres in Borno State for N55.504 bil­lion; Nnamdi Azikiwe Road, popularly known as Western Bypass in Kaduna, 21.477 kilometres, from Command Junction to Kawu, in the sum of N37.560 billion and the deep seaport access road sections 1 and 3 in Lagos State, through Epe to Sagamu Expressway, 54.24 kilometres, that links Lagos and Ogun states, in the sum of N85.838 billion; the Obele/Ilaro/Papalanto to Sagamu Road, 100 kilometres in Ogun State, in the sum of N79.996 billion.

“Council considered and approved this memorandum, to facilitate the construction of 274 kilometres of concrete roads. So, this will be the larg­est single award of concrete roads ever undertaken by the government of Nigeria in one award.”

He further explained that the award of the contract to Dangote Group was consis­tent with funding options.

Explaining the circum­stances surrounding the award of the contract, Fasho­la said: “First of all, the award is consistent with our multi­ple funding options, which includes engagement with the private sector.

“Secondly, the tax credit initiative was in existence in the last administration before this government, but was not utilised. So, this 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.”

“The Obajana-Kabba Road, still the Dangote Group. The Bodo-Bonny bridges and road, which Council approved last week, through the NLNG.

“There was also interest by many other companies that are being reviewed. So, it’s not unique to Dangote. So, he’s the one who has applied and we’ve been in this process. So, this is the next batch of roads that they are taking up.

“They invest their money and then instead of when their taxes come due for payment, they net it off. That’s the cir­cumstance. This is not conces­sioning, this is tax credit policy, don’t let’s mix them together.”

Fashola also said council considered and approved the request to revise the cost of the construction of part of Michael Imoudu/ Ganmo/Afon Junction Road in Ilorin, Kwara State by N204,411,926.13, adding that the original contract sum was revised from N1.691 billion to N1.896 billion and the comple­tion period is now 12 months.

Senior Special Assistant to the President on Media and Publicity, Garba Shehu, on his part said the memo presenta­tions made by some ministers were approved by FEC includ­ing the formalisation of the Police Special Service in the interest of transparency and accountability.

He explained: “The Minis­ter of Police Affairs also had an important scheme which was approved at Federal Ex­ecutive Council meeting.

“It is the deployment of what they call Special Police Services. And this is about a new system that will for­malise what has existed with us all the time.”

“You know police provide escort and guard for big cor­porations, banks, and so on. Now, in the interest of trans­parency and accountability, the government is formal­ising this relationship. And there will be an introduction of tariffs and billing schemes. This will be using PPP (public private partnership arrange­ment).

“The police projected the use of consultant that will help them to manage this. Part of the revenue will go to Federal Government. Part of it will go to the police. Part of it will go into police allowanc­es. And part will go to consul­tants as their own fees.”

Shehu said council also approved contracts worth N754,048,161.25 for the Eco­nomic and Financial Crimes Commission’s (EFCC) capital projects.

He said: “These are main­ly for the supply of commu­nications at the Command and Control Centre. This is to enable EFCC comply with modern day investiga­tive techniques, improve its operational efficiency, and support the administration of criminal justice system in the country.

“So, these are basically de­fensive and offensive cyber-se­curity systems.”

Also, he stated that the Min­ister of Transportation had approval N1, 551,872,886.35 for the construction of network of roads at Federal Ocean Ter­minal at Onne, Port Harcourt, Rivers State.

The Minister of Water Resources also got additional cost for the ongoing work, es­pecially for the consultancy in amount of N161,008,500.

This is an additional cost for the consultant who is su­pervising and managing Biu Mega Water Supply Project in Borno State.

He added that the overall cost has risen to N9, 361, 118, 756.25.

The Minister of Health, Dr. Osagie Enihare, announced that the council approved procurement contracts for his ministry worth about N8.6 billion.

Minister of Power, Mam­man Sale, on his part, said his ministry presented three memos which were all ap­proved.

He said: “One is for the construction of 45km Oha­fia-Umuahia Transmission Line in Abia State, in the sum of $170,465 plus N814.1 million.

“The second one is the con­struction of 150 33 132 33 1 by 60 substation at Obajana with line base extension at Lokoja in the sum of N259.9 million.

“The last one is the con­struction, design, and supply of 2 by 50 MVA 132 33 substa­tion at Ikom with 2 by 132 line base transmission at Calabar, Cross River State.”

You may be interested

Oduduwa Republic: Islamic group kicks as Church inaugurates Yoruba Nation Christian Association
Politics
Politics

Oduduwa Republic: Islamic group kicks as Church inaugurates Yoruba Nation Christian Association

Webby - July 26, 2021

Muslim Rights Concern, MURIC, has kicked against the official inauguration of the Yoruba Nation Christian Association, YORNCA, by the Power…

BBNaija: I want all the boys to fall in love with me – Maria
Entertainment
Entertainment

BBNaija: I want all the boys to fall in love with me – Maria

Webby - July 26, 2021

Maria, a Big Brother Naija housemate, has revealed how she plans to spice up the house. Maria stated she’ll liven…

BBNaija: Why I became a taxi driver – Princess
Entertainment
Entertainment

BBNaija: Why I became a taxi driver – Princess

Webby - July 26, 2021

Big Brother Naija, BBNaija housemate, Princess has disclosed that she is a taxi driver. The 30-year-old revealed she became a…

Leave a Comment

Your email address will not be published.