The Federal Executive Council (FEC) has approved a landmark initiative for the reconstruction of key road sections, including the troubled Okpella stretch of the Lokoja-Benin road.
The ambitious project, with an estimated cost of N120 billion, is set to be financed by BUA Cement Plc under the tax credit scheme.
The announcement was made by Bayo Onanuga, Special Adviser to the President on information and strategy, following the conclusion of the FEC meeting. He highlighted the critical need for infrastructure upgrades, citing recent incidents such as a fuel tanker mishap in the area, which underscored the urgency of road rehabilitation efforts.
“On Day 2 of the FEC meeting, approval was given for the award of contract for the equalisation of Lokoja-Benin Road, Okpela Section. The reconstruction will be financed by BUA Cement at a cost of N120 Billion under the tax credit scheme,” stated Mr. Onanuga.
The FEC also greenlit contracts for various other road projects across the nation, totaling an estimated N546 billion. These projects include vital routes such as the Kaima-Tesse in Kwara State, Benin-Agbor, Benin Bypass, and Ngaski-Wara in Kebbi State.
Additionally, a contract worth N230 billion was awarded to Messrs CCECC for the construction of a bypass in Kano, with completion expected within the next 36 months.
The Tax credit scheme, established through Executive Order 7 of 2019 by former President Muhammadu Buhari, aims to foster public-private partnerships for road construction and maintenance.
Under the scheme, private companies finance road projects and receive tax credits equal to their total expenditure on the roads, thereby alleviating the financial burden on the Federal Government.
However, the scheme has faced criticism, with the new FIRS boss, Zacch Adedeji, questioning its legality and advocating for its termination. Adedeji highlighted concerns over the operational framework and emphasized the need for greater oversight by relevant government bodies.
Despite criticisms, the FEC’s approval signals a pivotal step forward in addressing Nigeria’s infrastructure challenges through innovative financing mechanisms. With private sector participation driving critical road projects, the nation moves closer to realizing its vision of robust, modernized transportation networks.