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FEC Approves N309.9bn ‘Concrete Road’ Contract For Dangote As Tax Credit
The Federal Executive Council (FEC) approves the award of a contract to Dangote Industries for the construction of five roads.
The five roads which spread across the country totals 274.9 kilometres and it will cost N309,917,717,251.35.
The contract sum will be advanced by Dangote Industries as tax credit.
The Federal Executive Council, FEC, has approved the award of a contract to Dangote Industries for the construction of five roads totaling 274.9 kilometres at the local cost of N309,917,717,251.35.
This was disclosed by the Minister of Works and Housing, Babatunde Fashola, while briefing State House correspondents at the end of the council meeting on Wednesday. The meeting was presided over by President Muhammadu Buhari at the First Lady’s Conference Room, presidential villa, Abuja.
According to the Minister, the road contract will be executed on concrete and will be the largest single award of concrete roads ever undertaken by the government of Nigeria in one award. The contract sum will be advanced by Dangote Industries as tax credit.
“The second memorandum presented by the Ministry of Works and Housing was for the construction or the reconstruction, as the case may be, of five road projects in favour of Messrs. Dangote Industries Limited, totaling 274.9 kilometres of federal roads, under the Federal Government Roads Infrastructure Tax Credit policy, which is one of our strategic partnerships with the private sector.
“Those five roads totaling 274.9 kilometres will cost N309,917,717,251.35 to be advanced by the Dangote Industries as tax credit.
“The roads, specifically, 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”
The Minister said the award of the contract to Dangote Group was consistent with funding options. He added that some other companies had also benefitted from such tax credit.
