007 and 794.4km of roads in Nigeria
It has been reported by Nigerian media that 19 federal roads covering 794.4km will be constructed under the new Executive Order 007. Six companies will be responsible for undertaking the projects, signed by President Muhammadu Buhari last week.
According to Minister of Finance, Zainab Ahmed, Executive Order #7 of 2019, titled Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, "is the outcome of efforts to think outside of the box and deploy new techniques to develop critical roads infrastructure in the country."
Through the scheme, private sector in Nigeria will be incentivised to invest in roads in key areas and economic development zones.
“Participating investors will use tax credits to reduce corporate taxes payable to government until they recoup the value of their investments in roads and bridges.
“Essentially, this scheme will utilise tax expenditures, refundable by way of tax credits, to finance the construction of critical roads infrastructure through a Public Private Partnership mechanism,” she said.
The new scheme is based on the demand for road projects by companies and other corporate sponsors, who are willing to deploy their own working capital and financial resources to fund road projects located in the major economic corridors of the country where they have significant businesses and operations.
The six companies, which have all shown willingness to deploy capital to the development of roads along major economic corridors where they operate are:
Dangote Industries Limited;
Lafarge Africa Plc;
Unilever Nigeria Plc;
Flour Mills of Nigeria Plc;
Nigeria LNG Limited; and
China Road and Bridge Corporation Nigeria Limited.
Ahmed said further: “These investors will be investing in the following 19 eligible road projects, totalling 794.4km which have been prioritised in 11 states across each of the six geo-political zones:
Construction of Ashaka-Bajoga Highway in Gombe State;
Reconstruction of Dikwa-GambaruNgala Road in Borno State;
Reconstruction of Bama-Banki Road in Borno State;
Rehabilitation of Sharada Road in Kano State;
Rehabilitation of Nnamdi Azikiwe Expressway / Bypass, in Kaduna State;
Reconstruction of Birnin Gwari Expressway – Road in Kaduna State;
Reconstruction of Birnin Gwari – Dansadau Road in Kaduna State;
Reconstruction of Makurdi-Yandev-Gboko Road in Benue State;
Reconstruction of Zone Roundabout-House of Assembly Road in Benue State;
Reconstruction of Obajana-Kabba Road in Kogi State;
Reconstruction of Ekuku-Idoma-Obehira Road in Kogi State;
Construction of AdaviEba-Ikuehi-Obeiba-Obokore Road in Kogi State;
Rehabilitation of Lokoja-Ganaja Road in Kogi State;
Ofeme Community Road Network and Bridges in Abia State;
Rehabilitation of Obele-Ilaro-Papalanto-Shagamu Road in Ogun State;
Reconstruction of Sokoto Road in Ogun State;
Reconstruction of Apapa-Oshodi-Oworonshoki-Ojota Road in Lagos State;
Construction of Bodo-Bonny Road & Bridges across Opobo Channel in Rivers State; and
Rehabilitation of Benin City – Asaba Road in Edo State”.
Ahmed continued that the government is still pursuing other, more serious proposals with interested Investors, and others who may also wish to take advantage of the scheme.
“Our intention is for there to be at least one significant eligible road project underway in every state of the federation within the first year of the operation of this scheme.
“In terms of process and governance, prospective road projects are to be submitted to the government via the scheme’s management committee.
“This management committee, which I chair, has the Minister of Power, Works and Housing as its Deputy Chairman, and the Permanent Secretary of the Federal Ministry of Finance as its Secretary. “The other members of the management committee are drawn from a number of relevant federal Ministries, Departments and Agencies (‘MDAs’),” she said.