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Home Economy

Nigeria Approves N1.5trn to Rehabilitate 700 Kilometres of Roads Under NNPC Tax Credit Scheme

Rate Captain by Rate Captain
April 20, 2023
in Economy
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Nigeria’s Federal Executive Council rose from its weekly meeting presided over by Vice President Yemi Osinbajo in Abuja on Wednesday with the approval of the  sum of N1.535 trillion for the construction and rehabilitation of 11 roads across the country, under the Nigerian National Petroleum Company Limited (NNPC) Tax Credit Scheme.

Works and Housing Minister, Babatunde Fashola, who disclosed this to newsmen at the State House, Abuja, after the FEC meeting said over N1.5 trillion would be spent on some major roads totalling over 700 kilometres, which would soon be completed to link11 States in the country.

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According to him, the benefiting States include Edo, Delta, Kano, Kaduna, Borno and Adamawa, among others.

His words: “The Council gave approval for the construction and rehabilitation of 11 roads totaling 737.242 kilometers in the sum of N1, 535, 154, 247, 234.48 under phase II of the NNPC tax credit scheme.

“Recall that in January this year, the council approved a memo for the NNPC to invest N1.9 trillion on our roads. That amount was then about 44 roads that had been awarded and the balance of those roads that had to go through procurement between then and now are the 11 that have now been approved by the council”.

Some other road contracts were approved following memos presented at Wednesday’s FEC meeting by the Federal Ministry of Works and Housing.

The contract awards also included an augmentation cost for the Ogun Shagamu road project.

Giving an insight into the projects, Fashola said, “the ministery of Works presented four memoranda, all of which were approved. The first was for the augmentation of an existing contract in Ogun – Shagamu road. The contractor has run out of quantities, needs augmentation to finish the road.

“I think out of about 32 kilometers they completed over 20 kilometers which has been open to traffic. So council approved is N6.972 billion augmentation for them to complete the road. That was one”.

Explaining further, the Works Minister said a memo on behalf of the Federal Road Maintenance Agency (FEMA), a statutory Corporation under the supervision of the Ministry of Works and Housing, sailed through Council with respect to the rehabilitation of five roads and the construction of one road.

He listed the roads to include Orogun -Owerugbo and associated roads in Delta state in favor of Mrs. UYK in the sum of N2.99 billion.

Others are the rehabilitation of Gege to Garage road in Yobe in favor of Mother Cat N12.926 billion then the rehabilitation of Geshua to Potiskum road in Yobe in favor of Thinker Point N2.986 billion.

“The rehabilitation and construction of Onitsha-Aguleri to Adani road in Anambra in favor of Commerce Steel and Construction N2.499 billion and the rehabilitation of Geshuwa-Yusufani road in Yobe in favor of Saha Continental Civil Engineering Limited at the sum of N1.99 billion and the rehabilitation of Oba-Nnewi-Okigwe road section one, Oba UG 35 kilometres in favor of messes Ferotex Construction in sum of N2.499 billion. That was the second memorandum which was approved,” he noted.

On the third memorandum FEC approved, Fashola said it was with respect to the augmentation of the Potiskum to Damaturu section four part of the Kano-Maiduguri highway which  is about 600 kilometers.

“Shuware to Azare and Azare to Potiskum will be open to traffic. This section Potiskum to Damaturu is also almost completed. There’s just an augmentation of N2.577 billion to cover escalation of cost in materials and to provide for lane markings.

“So that the road can be fully finally handed over. That was a third contract that was approved.

When asked why such contract awards when the lifespan of the administration was almost coming to an end, Fashola made attempts to justify it, saying, ” if the question is posed to Nigerians whether these projects should be left undone and transfered to the incoming administration, majority of the citizens would prefer it comes now because of the implications of job creation and stimulating the economy”.

Also briefing, Minister of Interior, Ogbeni Rauf Aregbesola, said  FEC approved the granting of Nigerian citizenship to 385 foreign nationals residing in the country.

He said 317 of the applicants were granted citizenship by naturalization while 68 were granted by registration, adding that all the applicants met the requirements for such an honour.

“Federal Executive Council at its meeting today approved the granting of Nigeria’s citizenship by naturalization to 317 applicants and Nigeria’s citizenship by registration to 68 applicants.

“Those granted citizenship have met all the constitutional and administrative requirements for the grant of Nigerian citizenship,”Aregbesola explained.

The Minister also disclosed that the council approved a special fire detection and alarm system to be installed in all firefighting stations across the country.

“At the same meeting, the council approved the full business case for a project on National Fire Detection and Alarm System, incorporating life safety systems, networking, monitoring and dispatching at real time.

“This will be through a Public Private Partnership arrangement. At the completion of the project, Nigerians who so desire would subscribe to an automatic fire alarm system that if you have in your house, will raise an alarm at each of the fire service stations nationwide,” Aregbesola stressed.

The Minister said the project will be at no cost to the government and it will be fully digitized thus facilitating prompt response to any fire emergency.

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