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Monday, June 27, 2022

Tax Credit Scheme: FG Okays N169.7bn For Rehabilitation Of 4 Roads

Under the tax credit scheme, the Federal Executive Council (FEC) has approved N169.7 billion for the rehabilitation of four roads.

This was revealed by Babatunde Fashola, Minister of Works and Housing, following the FEC meeting convened by President Muhammadu Buhari on Wednesday at the Presidential Villa in Abuja.

The initiative, which is a ten-year scheme, aims to foster public-private partnership interventions by allowing the federal government to leverage private sector funds for the construction or repair of qualified road infrastructure projects in Nigeria.

Fashola said the approval was in response to the tax credit scheme, initiated in 2019 by President Muhammadu Buhari after signing Executive Order 7.

He 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.

Tax Credit Scheme
AIHS 2022

“So, 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.

“So, we have awarded this now for reconstruction under the tax credit scheme; there’s a N20 billion provision under the NNPC tax credit scheme that will be used to kick-start this immediately.

“So, this is a road that should not suffer from sustained funding challenges. Now that council has approved it, and it’s very critical road leading to the Mambilla Plateau.’’

The Minister added that the FEC approved Mainstream Energy Solutions, to invest over N74 billion in the reconstruction of three roads in Kebbi and Niger States.

“The second project, which is also on tax credit scheme approved by council, is actually three roads.

“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 N74.4bn,” he said.


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