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FEC Approves N309.9bn Road Contracts For Dangote As Tax Credit

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On Wednesday, the Federal Executive Council (FEC), chaired by President Muhammadu Buhari, approved the award of a contract to Dangote Industries for the construction of five highways totaling 274.9 kilometers at a cost of N309,917,717,251.35 to be advanced by the firm as a tax credit.

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

Fashola stated that the road contract, which was the ministry’s second to be approved by the council, will be built on concrete and will be the country’s largest of its kind.

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 went on to say that awarding the contract to Dangote Group was based on finance choices.

“First and foremost, the award is consistent with our multi­ple funding choices, which includes involvement with the private sector,” Fashola said of the circumstances behind the contract award.

“Secondly, the tax credit initiative existed during the last administration before this one, but it was never used. As a result, this administration has amended it, enlarged it, and used it to build roads such as the Apapa Wharf Road, the Oworonsoki to Apapa, through Oshodi Road, all built by the Dangote Group.”

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