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FEC okays N169b private sector investment for improved roads

By Terhemba Daka, Abuja
19 May 2022   |   2:54 am
The Federal Executive Council (FEC) has approved an N169 billion private sector investment for road infrastructure through the government’s tax credit scheme.

FEC meeting with Osinbajo and Buhari in attendance. Photo/FACEBOOK/asorock

The Federal Executive Council (FEC) has approved an N169 billion private sector investment for road infrastructure through the government’s tax credit scheme.

Minister of Works and Housing, Babatunde Fashola, told reporters after the FEC meeting in Abuja that the programme was initiated in 2019 through Executive Order 7 signed by President Muhammadu Buhari, allowing the private sector to finance public infrastructure in lieu of tax and then offset it over time using tax credits.

He said the first project the council approved based on the policy, was the 234-kilometre road from Bali to Sheti through Gashaka to Gembu in Taraba State at the sum of N95,232,474,010.72.

The minister disclosed that an existing N20 billion under the NNPC Tax Credit Scheme was to kick-start the project.

Fashola went on: “The second road, which is also the tax credit scheme, was approved by council, is actually three roads. The applicant, in this case, is Mainstream Energy Solutions, a major energy player in the country, which is now seeking to also participate in this policy by investing an N74,486,577, 050.”

MEANWHILE, two ministers, who reneged on their 2023 gubernatorial and senatorial aspirations, participated in the gathering.

Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami, “is part of those physically attending the meeting currently holding at the council chambers, while Women Affairs Minister, Paulline Tallen, who earlier indicated an interest in the senatorial seat in Plateau State, had joined in a virtual arrangement.”