FEC approves N309.9bn road contract for Dangote
The Federal Executive Council yesterday approved the award of a contract worth N309,917,717,251.35 to Dangote Industries for the construction of five roads across the country.
The Minister of Works and Housing, Babatunde Fashola, told reporters that the roads, totaling 274.9km at the local cost, would be advanced by the company as tax credit.
Fashola said the award of the contract to Dangote Group was consistent with the government’s multiple funding options “which include engagement 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 BodoBonny bridges and road, which Council approved last week, through the NLNG.”
He said the road awarded to Dangote
Group yesterday were Bama-Banki in Borno State for N51.016bn with a 49.153km; Dikwa- GamboruNgala, 49.577km in Borno State for N55.504bn; the Nnamdi Azikiwe Road, popularly known as a Western Bypass in Kaduna, 21.477km, from Command Junction to Kawu N37.560bn and the deep seaport access road sections 1 and 3 in Lagos State, through Epe to Shagamu Expressway, 54.24lkm, that links Lagos and Ogun States, N85.838bn; the Obele/Ilaro/Papalanto to Shagamu Road, 100km in Ogun State, N79.996bn.
“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 they’re 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.
“The policy says anybody who wants to invest his personal resources, and it includes individuals, in any infrastructure that the public will have access to, can do so under certain conditions which include applying to the Ministry of Works.”