• Wednesday, September 27, 2023
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FEC approves MTN takeover of N203bn Enugu-Onitsha road

FEC approves MTN takeover of N203bn Enugu-Onitsha road

The Federal Executive Council has approved for MTN to take over the Enugu-Onitsha Expressway project, which has a projected cost of N202.8 billion, under the road infrastructure tax credit scheme.

Babatunde Fashola, minister of works and housing, who briefed journalists after the meeting, explained that it is in line with Executive Order 7 signed by the President in January 2019. He explained the road is 110 kilometres, and is being dualised. While the Enugu-bound section of the road had been largely completed, more work was required on the Onitsha section, the minister explained.

Fashola noted that the policy would allow a steady and sustained stream of funding for completion by MTN.

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There was a second approval under the same scheme, for the Umuchi-Ususu-Umueme Road in Abia State by GZ Industries at a cost of N4.2bn.

“The private sector beneficiary of the approval is a company called GZ Industries. GZ Industries manufactures aluminium cans for bottled drinks. They have a factory in Agbara in Ogun State and they have another one in Abia in this area. So, it’s a link road to their factory.

“The approval was for N4.2billion. The road is 3.7km road. So, it’s an access road to their Industry Council, approved both memoranda,” Fashola said.

In August 2021, MTN announced plans to reconstruct the Enugu-Onitsha expressway, under the RITC, which has now been approved over a year later.