(2 minutes read)
- The approval under the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Policy Phase 2 will be used to reconstruct federal roads with a total length of 4,554 kilometres and will be executed by Nigerian National Petroleum Corporation Limited ( NNPC) and its subsidiaries.
President Muhammadu Buhari who is ending his term in four months has approved N1.9 trillion for the rebuilding of 44 federal roads. The approval under the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Policy Phase 2 will be used to reconstruct federal roads with a total length of 4,554 kilometres and will be executed by Nigerian National Petroleum Corporation Limited ( NNPC) and its subsidiaries. The proposal was put up by the Ministry of Works and Housing and approved by the Federal Executive Council (FEC).
NNPC had sent the proposal almost 15 months back, to invest in the reconstruction of selected federal roads to ensure the smooth supply and distribution of petroleum products across the federation.
The Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme were approved by President Buhari in January 2019. The objective of the programme was to encourage public-private partnership (PPP) that enables the Federal Government to leverage the private sector’s capital and efficiency for the construction and improvement of critical road infrastructure in key economic areas of the country.
Also read;
https://trendsnafrica.com/nigerias-nnpc-to-end-dispute-with-oil-majors-upon-extending-contracts/
Private sector investment in the “Eligible Roads” as identified under the scheme can be recouped through a deduction from their yearly Companies Income Tax. Accordingly, the investment by the NNPC on road projects will be deducted by the Federal Inland Revenue Service (FIR) from the NNPCL’s tax obligations. As per the initial programme NNPC proposes to construct a total of 1,804.6 kilometres of roads at a cost of N621,237,143,897.35.
