FEC approves N309.9b road contract for Dangote
The Federal Executive Council (FEC), yesterday, approved the award of a contract to Dangote Industries for the construction of five roads worth 274.9 kilometres at the local cost of N309,917,717,251.35 to be advanced by the company as tax credit.
Minister of Works and Housing, Babatunde Fashola made the disclosure at the end of the council meeting presided over by President Muhammadu Buhari at the State House, Abuja. He said the road contract would be executed on concrete.
“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 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. This will be the largest single award of concrete roads ever undertaken by the government of Nigeria in one award.”
The minister who explained that the award of the contract to Dangote Group was consistent with funding options, further gave insight on circumstances surrounding the contract.
“First of all, the award is consistent with our multiple funding options, which includes engagement with the private sector. Secondly, the tax credit initiative was in existence in the last administration before this government, but was not utilised. So, this administration has revised it, expanded it, and has used it to construct roads like the Apapa Wharf Road, the Oworonsoki to Apapa, through Oshodi Road, by the same Dangote Group.”
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