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FEC approves N309bn road contracts to Dangote

The Federal Executive Council (FEC) Wednesday, approved the construction of five roads to the Dangote Industries Limited, at the total cost of N309.

The contracts, according to the senior special assistant to President Muhammadu Buhari on media and publicity, Garba Shehu, who briefed journalists after virtual the FEC meeting presided over by President Muhammadu Buhari, was awarded under the Federal Government Roads Infrastructure Tax Credit policy, a strategic partnerships with the private sector, for the development of infrastructure.

The ministry of works and housing had presented a memorandum for the construction of five road projects in favour of Messrs. Dangote Industries Limited, totaling 274.9 kilometres.

Read Also: Roads infrastructure and funding challenge in Nigeria

The cash strapped government had in January, 2019, signed the Executive Order 007, known as the Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

The contracts which were approved by FEC will allow Dangote Industries Limited fund the construction of the roads totaling 274.9 kilometres at the cost N309,917,717,251.35, which will be net off, with the tax.

The roads, according to Shehu, are Bama to Banki in Borno State for N51.016 billion with a 49.153 kilometres; Dikwa to Gamboru-Ngala, 49.577 kilometres in Borno State for N55.504 billion; the Nnamdi Azikiwe Road, popularly known as a 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 Shagamu Expressway, 54.24 kilometres, that links Lagos and Ogun States, in the sum of N85.838 billion; the Obele/Ilaro/Papalanto to Shagamu 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 explained that “the award is consistent with our multiple funding options, which includes engagement with the private sector.

“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 company is currently handling the Obajana-Kabba and the Bodo-Bonny bridges and roads.

The president’s spokesman explained that interest has been expressed by many other companies and which are being reviewed. “So it’s not unique to Dangote. He’s the one who has applied and we’ve been in this process. So, this is the next batch of roads that they are taking up.

“They invest their money and then instead of paying tax, when their taxes come due for payment, they net it off.

“This is not concessioning, this is tax credit policy, don’t let’s mix them together. The policy says that 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 includes applying to the ministry of works, the ministry evaluates and there’s a tax credit committee chaired by the minister of finance because they keep an eye on how much tax giveaway in one year, so that it doesn’t affect government’s revenue performance, once we take on the investment.

“So it’s the committee that then approves and says go ahead, this is good, this is how much tax we’ll allow per year and if the company is satisfied, then we go to BPP and then come to FEC”

Shehu announced the completion of the four kilometre Apapa Wharf Road.

“The Obajana-Kabba Road, which was 42.8 kilometres, 40 kilometres of it has been completed so that should finish this year. Then the Apapa-Oworonsoki Expressway, which is 35 kilometres, we finished 29 kilometres and work is going on now on the road towards the Oworonsoki end of the Lagos-Ibadan toll gate.

“So it’s made substantial impact in providing relief. I think I briefed you about Bodo-Bonny last week, because since 1970 something we tried to construct that road, nothing has happened. So about two sets of bridges have been completed, a network of roads are being completed and progress is being made

The council also considered and approved that request to revise the cost of the construction of Michael Imoudu/Ganmo/Afon Junction Road in Ilorin, Kwara State the module Gomorrah for junction route in a lot of kwara state by N204,411,926.13. So, the original contract sum has been revised from N1.691 billion to N1.896 billion and the completion period is now 12 months.

“The Economic and Financial Crimes Commission (EFCC) got approval for capital projects worth N754,048,161.25. These are mainly for the supply of communications at the Command and Control Centre. This is to enable EFCC comply with modern day investigative techniques, improve its operational efficiency, and support the administration of criminal justice system in the country. So, these are basically defensive and offensive cyber-security systems.

Other projects approved include those if the ministry of transportation, which received approval for the construction of network of roads at Federal Ocean Terminal at Onne, Port Harcourt, Rivers State, at the cost of N1, 551,872,886.35.

The minister of water resources also got additional cost for the ongoing work, especially for the consultancy in amount of N161,008,500. It’s an additional cost for consultant who is supervising and managing Biu Mega Water Supply project in Borno State. The overall cost has risen to N9, 361, 118, 756.25.

The minister of police affairs also had approval for deployment of what they call Special Police Services.

“This is about a new system that will formalize what has existed with us all the time. You know police provide escort and guard for big corporations, banks, and so on. Now, in the interest of transparency and accountability, the government is formalizing this relationship. And there will be an introduction of tariffs and billing schemes. This will be using PPP (Public Private Partnership arrangement).

“The police projected the use of consultant that will help them to manage this. Part of the revenue will go to Federal Government. Part of it will go to the police. Part of it will go into police allowances. And part will go to consultant as their own fees.

The minister of power, Mamman Sale, said the ministry got approval for the construction of 45km Offafa-Umuahia Transmission Line in Abia State, in the sum of $170,465 plus N814.1m.

The second one is the construction of 150 33 132 33 1by 60 substation at Obajana with line base extension at Lokoja in the sum of N259.9m.

The ministry also got approval for the construction, design, and supply of 2 by 50 MVA 132 33 substation at Ikom with 2 by 132 line base transmission at Calabar, Cross River State.

“It also includes the design and construction of 220km Calabar-Ikom 132 Cable Double Circuit Transmission Line, at the cost of $39.9million plus N9.5 billion.”

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