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

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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