The Federal Executive Council (FEC) has approved N169.7billion for the reconstruction of four roads under the tax credit scheme.
Minister of works and Housing, Babatunde Fashola, disclosed this yesterday while briefing State House correspondents on the outcome of the Council meeting presided over by President Muhammadu Buhari, at the Presidential villa, Abuja.
He said the approval was in response to the tax credit scheme, initiated in 2019 by President Buhari after signing Executive Order 7, to allow private sector finance public infrastructure in lieu of tax and then to offset it over time using tax credits.
Fashola said: “The two main memoranda relate to the uptake by the private sector in response to the tax credit programme, which we initiated in 2019, by Mr President signing of Executive Order 7 to allow private sector finance public infrastructure in lieu of tax and then to offset it over time, using tax credits.
“The first road that was awarded today on that policy initiative is the road from Bali to Sheti through Gashaka to Gembu in Taraba State – 234 kilometres, reconstruction of the road at a cost of N95.232billion
“The existing road, for those who are familiar with it, has no concrete stone base. So it’s just laterite on the asphalt so it doesn’t last and it’s breaking up and leading to potholes.
“We have awarded this now for reconstruction under the tax credit scheme; there’s a N20billion provision under the NNPC tax credit scheme that will be used to kick-start this immediately.
“This is a road that should not suffer from sustained funding challenges. Now that Council has approved it and it’s a very critical road leading to the Mambilla Plateau.”
The applicant in this case is Mainstream Energy Solutions, a major energy player in the country, is now seeking to also participate in this policy by investing about N74.4billion.
According to the Minister, the road also provides access to the Gashaka Game Reserve, and supports access to many farm lands.
He said the Council gave approval to a private firm, Mainstream Energy Solutions, to invest over N74billion in the reconstruction of three roads in Kebbi and Niger States.
“The applicant in this case is Mainstream Energy Solutions, a major energy player in the country, is now seeking to also participate in this policy by investing about N74.4billion,” he said.
