July 21, 2024

Nigerian Govt. commences NNPC’s phase II infrastructure tax scheme, targets Akure-Ado, Ilorin-Mokwa, 42 other roads

Oredola Adeola

The Nigerian Government has listed roads to be constructed under the second phase of the Nigerian National Petroleum Company Limited (NNPCL) Tax Credit Scheme to include Akure – Ado–Ekiti; the dualization of Ilorin-Jebba-Mokwa/Bokani Junction Road Section I; Emergency Repairs of failed section of Mokwa – Makera – Tegina – Kaduna State Border in Niger State; Odukpani-Itu-Ikot Ekpene Road in Cross River State Section I; Umuahia (Ikwuano)-Ikot Ekpene Road and construction of Bali – Serti Road in Taraba State and rehabilitation of Gombe – Biu Road in Gombe/Borno State.

This was revealed by Babatunde Fashola,Nigeria’s  Minister of Works and Housing, during a briefing with all the stakeholders, including NNPC, FIRS and contractors in Abuja.

According to him, the Phase II of the NNPCL/ Federal Inland Revenue Service Road Infrastructure Tax Credit Scheme, approved by the Federal Executive Council in Nigeria in January, 2023, invested N1.9 trillion for the construction of 44 Federal roads, with a total length of 4,554km l, an intervention that will ensure cash flow and steady projects completion in the country.

Fashola said that introduction of the NNPC Tax Credit Scheme which was inherited from the previous administration, was meant as a strategic partnership with the Private Sector and to ensure the sustainability of funding critical infrastructure in Nigeria.

EnergyDay gathered that the NNPCL had during the phase 1 of the tax scheme focused on 21 critical roads with about 1,800km stretch spreading across the country.

The scheme which is under executive order 007 was inherited by President Muhammadu Buhari’s administration from the Good luck Jonathan’s administration.

Fashola in his statement said that the Federal Government which  has focused on nine major axis of Nigeria, explained that the A1 – A4 axis of the country covers the Northern part of the country, while the A5 – A9 axis covers the East-West zone of the country.

He mentioned that roads including Akure – Ado –Ekiti and East-West which people have been complaining about, would be adequately catered for with the approval of the second phase of the NNPC Tax Credit Scheme.

 

EnergyDay gathered that the other roads under the phase 2 are major routes critical for the distribution of petroleum products across the country by the NNPC.

The roads listed in regional basis includes

 

NORTH CENTRAL : Total of 791km to include the dualization of Ilorin-Jebba-Mokwa/Bokani Junction Road Section I: Ilorin-Jebba In Kwara State, dualization of Ilorin-Jebba-Mokwa/Bokani Junction Road Section II: Jebba-Mokwa-Bokani Junction In Kwara/Niger States and dualization of Suleja-Minna Road in Niger State.

Also in the zone are the dualization of Suleja-Minna Road in Niger State Phase II, Reconstruction of Bida-Lambata Road in Niger State, Agaie – Katcha – Baro Road, Emergency Repairs of failed section of Mokwa – Makera – Tegina – Kaduna State Border in Niger State, Minna – Zungeru – Tegina road and Bida – Minna Road.

SOUTHSOUTH : Three roads totaling 81.90 kilometres which are under the scheme include rehabilitation of Odukpani-Itu-Ikot Ekpene Road in Cross River State Section I: Odukpani-Itu Bridge Head in Cross River/Akwa Ibom States, dualization of outstanding portion of Odukpani-ltu-lkot Ekpene, and dualization of Oku-Iboku Power Plant Section of the Odukpani-Itu-Ikot-Ekpene Road in Cross River/Akwa Ibom States.

SOUTH EAST:- aggregating to 122 kilometres, include rehabilitation of Umuahia (Ikwuano)-Ikot Ekpene Road: Umuahia-Umudike in Abia State and the dualization of Aba-Ikot Ekpene Road in Abia/Akwa Ibom States.

NORTH EAST: The roads convering a total 117 kilometres, include the rehabilitation of Cham-Numan Section of Gombe-Yola Road in Adamawa State, construction of Bali – Serti Road in Taraba State and rehabilitation of Gombe – Biu Road in Gombe/Borno State while in the North West the roads chosen, which aggregate to 283.5kilometres, include Rehabilitation of Outstanding Sections of Gada – Zaima – Zuru – Gamji Road Phase II in Kebbi State and Rehabilitation of Zaria-Funtua-Gusau-Sokoto-Birnin Kebbi.

SOUTH WEST includes : The rehabilitation and expansion of Lagos-Badagry Expressway (Agbara Junction-Nigeria/Benin Border) in Lagos State and the dualization of Ibadan – Ilorin Road (Route A2) Section II in Oyo State (Oyo – Ogbomosho) which aggregate to 114.00 kilometres.

Mr.  Umar Ayaji, NNPCL Chief Financial Officer, who represented Mele Kyari, Group Chief Executive Officer (GCEO) said the national oil company was challenged by the critical states of some of the nation’s roads most of which were the arteries of the company’s operations adding that with the vandalization of the distribution pipelines, the company had adopted the use of Federal roads as alternative to distributions of petroleum products nationwide.

He stressed that funding would not be an issue anymore as the Corporation is committed to fully funding phase II.

. Aliyu said “We are committed to setting aside funds for phase II. Funding would not be a problem. What is important to us is that our consultant will need to validate the value for money and the quality of work. We will not compromise the quality and timely completion of work.”

He further assured Nigerians of the availability of fund , saying that “there is no need for excuses.

“As for us on our part, we are committed and we implore the contractors to do quality work and do it on time so that the road projects can be open for use to Nigerians,” he added.

The NNPC Chief Finance Officer said the symbolic presentation of the N621 billion was a way of contributing to the Federal Government efforts to give Nigerians befitting road network adding that it was an investment that was being done in compliance to the Executive Order 7 to use the company’s tax credit.

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