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Business News of Friday, 20 January 2023


List of roads to be constructed by NNPC emerges, North West gets lion's share

The photo used to illustrate the story The photo used to illustrate the story

President Muhammadu has given the Nigerian National Petroleum Company the nod to invest about N1.9 trillion in the reconstruction of 44 federal roads under the tax credit initiatives.

The Federal Executive Council disclosed this on Wednesday, January 18, 2023, during a meeting chaired by Vice President Yemi Osinbajo.

Media assistant to vice president Osinbajo, Laolu Akande said the executive council approved the recommendation to invest in the rehabilitation of selected federal roads across the country under the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Policy phase 2 by the NNPC and its associates.

Akande said the council approved the proposal by the Ministry of Works and Housing for the rehabilitation of the roads spanning 4,554 kilometres to the tune of N1,9 trillion.

BusinessDay reported that the approval comes 15 months after the petroleum company expressed a desire to invest in the rehabilitation of selected roads to sustain the smooth supply of petroleum products in Nigeria.

Buhari signed Executive order 007 in 2019, thereby creating the Road Infrastructure Development and Refurbishment Investment Tax Scheme, seeking to unlock funding from the private sector for critical road infrastructure in Nigeria.

The Punch reported that the initiative will see the participation of the private sector in road construction and rehabilitation with the participants allowed to recover the funds as a credit against the CIT they are expected to pay.

The initiative will see the NNPC constructing a total of 1,804.6 kilometres of roads at a total cost of N621.24 billion.

A breakdown of the projects shows that the North Central geopolitical zone received the largest chunk of N244.87 billion for the construction of 791.1 kilometres of road.

- South-South got N172.02 billion spanning 81.9 kilometres of road.

- South West will receive 252.7 kilometres of roads worth N81.87 billion in road construction.

- The NNPC gave the North East allocation of 273.35 kilometres of roads worth N56.12 billion under the scheme

- The South East received one of the least allocations of 122 kilometres of road worth N43.28 billion under the scheme.

- NNPC Allocation to North West stood at N23.05 billion for 283.5 kilometres of road.

Mele Kyari, during an inspection of some road projects constructed by the NNPC, said the company will continue to invest massive amounts in important projects in the country for Nigerians.