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Buhari okays N1.9tr for NNPC to reconstruct 44 federal roads

Four months to end of his administration, President Muhammadu Buhari has approved for the Nigerian National Petroleum Corporation Limited, to invest N1.9 trillion in reconstruction of 44 federal roads under the tax credit policy.

Media Assistant, Media and Publicity (Office of the Vice President), Laolu Akande, who made the disclosure at the end of the weekly Federal Executive Council (FEC) meeting, yesterday, in Abuja, said the approval fell under the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Policy Phase 2 to be executed by NNPCL and its subsidiaries.

He said: “So, the Council approved the proposal by the Ministry of Works and Housing for the reconstruction of 44 proposed federal roads with a total length of 4,554 kilometres in the total sum of N1.9 trillion.”

The approval is coming 15 months after NNPCL expressed interest in investing in the reconstruction of selected federal roads to sustain smooth supply and distribution of petroleum products across the federation.

President Buhari had, on January 25, 2019, signed the Executive Order 007, which birthed the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, geared at unlocking funding from the private sector to critical road infrastructure in the country.

The presidential order was to empower private companies to finance construction or refurbishment of federal roads designated as “Eligible Roads” under the scheme and recoup their investments through deduction from their yearly Companies Income Tax.

The programme is a public-private partnership (PPP) intervention that enables the Federal Government to leverage private sector’s capital and efficiency for construction and refurbishment of critical road infrastructure in key economic areas in Nigeria.

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