NNPC Gets Approval To Fix 21 Federal Roads At N621.2bn

NNPC Gets Approval To Fix 21 Federal Roads At N621.2bn

NNPC Gets Approval To Fix 21 Federal Roads At N621.2bn

Vice President Yemi Osinbajo has in the course of presiding over the Fed­eral Executive Council (FEC) meeting, directed the Nigerian National Petro­leum Corporation (NNPC) to take over the reconstruction of 21 federal roads across the six geopolitical zones of the country.

 

He hinged the decision on the Ex­ecutive Order No. 007 of 2019 cited as the Companies Income Tax (Road Infrastructure Development and Re­furbishment Investment Tax Credit Scheme) Order, 2019 (‘EO7 of 2019’ or ‘the Scheme’), signed by President Mu­hammadu Buhari.

 

In the previous approval, Dangote Group was the first to take advantage of the EO7 of 2019, which saw his firm fixing Obajana-Kabba road from its income tax.

The National Union of Petro­leum and Natural Gas Workers (NUPENG) had suspended its earlier planned nationwide strike that was to hold on Oc­tober 11 to give negotiation a chance, after the NNPC warned that the strike could disrupt fuel supplies.

 

NUPENG had called the strike to protest the poor state of roads in the country, saying the situation end angers the lives of drivers.

 

Briefing State House cor­respondents at the end of the council meeting, the Minister of Works and Housing, Baba­tunde Fashola, said the selected 21 roads are 1,804.6 kilometers.

The minister said it was a strategic intervention under the Federal Government Road Infrastructure and Refurbish­ment Tax Credit Scheme.

 

Fashola further explained that under Executive Order 7, it allows the private sector to de­ploy in advance the taxes they would pay for infrastructure development.

 

He said nine of the selected projects are in North-Central, three in North-East, two in North-West, two in South-East, three in South-South, and two in South-West.

 

Fashola speaking more on council’s approval, said he presented three memoranda to the council that were approved, explaining that two of the mem­oranda were on road contracts.

 

He said the first memoran­dum had to do with a section of Calabar-Ikom-Ogoja road espe­cially the section to Apet Central where he said had a problem with steel reinforced drain that was discovered there.

“Those drains were put there, about 42 years ago and 86 of them have failed and we need to replace them now with concrete rain drains to allow water pass through otherwise the retention of water will badly impact the road.

 

As a result of that, we have to revise the scope of work from rehabilitation to construction in order to remove all the old steel drains that are corroded and replaced them with concrete drains.