Daily Trust

FEC ap­proves N8bn for Kano-Maiduguri Ex­press­way • to spend N22.2bn on Apapa-Ojota Road project • okays $2m pay­ment to West African Power Pool

- By Muideen Olaniyi Business · Nigeria News · Kano State · Kano · Maiduguri · Apapa · Federal Executive Council · Lai Mohammed · Babatunde Raji Fashola · U.S. government · Aliko Dangote · Nigeria · Rivers State · Rotimi Amaechi · Kaduna · Economic Community of West African States · Bonny

The Fed­eral Ex­ec­u­tive Coun­cil yes­ter­day ap­proved ad­di­tional N8­bil­lion for the Kano-WudilShuar­in sec­tion of the on­go­ing con­tract for the du­al­i­sa­tion of Kano-Maiduguri Road.

The Min­is­ter of In­for­ma­tion and Cul­ture, Lai Mo­hammed, who an­nounced this on Wed­nes­day af­ter the weekly cab­i­net meet­ing, said the vari­a­tion in the sec­tion one area of the 560 kilo­me­ters road project between Kano and Maiduguri had brought the to­tal cost of the con­tract to N63 bil­lion.

Mo­hammed, who said the sec­tion awarded was more of ap­proval for an es­ti­mated to­tal cost, ex­plained that the Min­is­ter of Works and Hous­ing, Ba­batunde Fashola, sought “for a re­vi­sion and an in­cre­ment in the sum of N8 bil­lion” which was ap­proved by the coun­cil.

He said N22,247,332,000 was also ap­proved for the award of con­tract for the re­con­struc­tion of the Apapa-Oworon­soki-Ojota Phase Sec­tion II, an 8.1kilo­me­ter stretch road.

Mo­hammed said: “You’d re­call that in 2018, the Fed­eral Govern­ment ap­proved an award of con­tract to Dan­gote In­dus­try for the sum of N72­bil­lion. By the time the award was made, there was this sec­tion of the road that was in fairly good con­di­tion. But with the con­struc­tion of the Oworon­soki project com­ing to an end, it now makes bet­ter sense to in­clude that sec­tion which was fairly good.

“This con­tract was awarded to­day for the sum of N22,247,332,000. But you must know that this is one of the projects be­ing awarded un­der In­fras­truc­tural Tax Credit Scheme. In other words, it is awarded to Dan­gote and Dan­gote will con­struct it and over the years, it will be de­ducted from the tax payable by the group. It is one of var­i­ous means of PPP that this ad­min­is­tra­tion has em­braced. It is not only re­stricted to Oworon­soki-Apapa road, it is the same sys­tem that is be­ing used in Oba­jana-Kaba road. Nige­ria Liqui­fied Nat­u­ral Gas is also us­ing the same for­mula for the bridge to link Bonny and Boro in Rivers State.”

The Min­is­ter of Trans­porta­tion, Ro­timi Amaechi, said the FEC also ap­proved the sum of N1,208,335,464.60, in­clu­sive of 7.5% tax for the sup­ply, de­ploy­ment, in­stal­la­tion, test­ing and com­mis­sion­ing of se­cu­rity equip­ment for seven rail­way sta­tions.

The sta­tions are mainly Idu, Ri­gasa, Jere, Kubwa, Kaduna and Kano in favour of Messrs Avon­ics Ser­vices Nige­ria Lim­ited, with a com­ple­tion pe­riod of 12 months.

The Min­is­ter of Power, Saleh Mam­man, said the FEC ap­proved Nige­ria’s con­tri­bu­tion of $2m to the 2020 bud­get of the West African Power Pool (WAPP).

The WAPP was cre­ated by a de­ci­sion at the 22nd Sum­mit of the ECOWAS Au­thor­ity of Heads of State and Govern­ment in 1999.

Saleh said par­tic­i­pa­tion in the re­gional mar­ket would gen­er­ate im­me­di­ate for­eign ex­change for Nige­ria as oil rev­enue is dwin­dling.

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