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The road and rail infrastructure projects were approved at a weekly Federal Executive Council (FEC) meeting held in February 2022, and presided over by President Muhammadu Buhari.

One of the projects approved for funding is the dualization of the 131.4 kilometres Kano-Kazaure-Kongwalam road which connects Kano, Jigawa and Katsina States.

Funding was also approved for supervision consultancy services for three rail projects: Port Harcourt-Maiduguri, Kano-Maradi and Abuja-Warri.

Speaking to reporters after the FEC meeting, Mr. Babatunde Fashola, the Minister of Works and Housing, disclosed that the Kano-Kazaure-Kongwalam road project will be funded through the country's Infrastructure for Tax Credit scheme. The project, which is estimated to cost US$277.4 million, will be financed through the Tax Credit Scheme of BUA International Limited, a leading food and infrastructure conglomerate in Nigeria.

Nigeria's Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme (the 'Infrastructure for Tax Credit scheme') came into effect when President Muhammadu Buhari signed Executive Order No. 007, on 25 January 2019. Participants in the scheme are entitled to apply the total cost incurred in the construction or refurbishment of an eligible road as a tax credit against their future Companies Income Tax liability.

The 131.4 kilometres Kano-Kazaure-Kongwalam road will be will be expanded from a single-lane road to a two-lane road. The project is estimated to cost NGN115.4 (approx. US$277 million), and is expected to be completed within a period of 48 months. The road construction works will be executed by Messrs PW Construction Nigeria Limited. PW Construction have over 45 years of experience in Nigeria, and are considered to be leaders in the field of mining, civil engineering and construction.

“The instructive thing is that the financing will be done by the tax credit scheme of BUA International Limited and they will use Messers PW construction Nigeria Limited, a company in which they have acquired some interest to undertake the construction” said Mr. Fashola,

Also speaking to reporters after the FEC meeting, Rotimi Amaechi, Minister of Transportation, the Minister of Works and Housing, disclosed that the sum of US$183.6 million was approved for  consultancy services for supervision of three rail projects. 

While the Managing Director, Mota- Engil, Antonio Gvoea signed on behalf of the contracting firm.
The new railway corridor which is to be located in northern Nigeria will run through three states: Kano, Jigawa; Katsina and through Niger territory as far as Maradi

— Federal Ministry of Transportation (@MinTransportNG) January 11, 2021

Giving a breakdown of the US$183.6 million approved for the rail projects, Mr. Amaechi said that US$97.5 million was approved for consultancy services on the Port Harcourt-Maiduguri rail line, US$38.4 million was approved for consultancy services on the Abuja-Warri rail line, and  US$47.7 million was approved for consultancy services on the Kano-Maradi rail line.

Mr. Ameachi further disclosed that the US$97.5 million supervision contract for the Port Harcourt-Maiduguri Railway project was awarded to Kyari Consults SDMBHD / Jamood Global Services Limited. The US$38.4 million supervision contract for the Abuja-Warri Railway project was awarded to Xi Engineers Infrastructure Excellence / Yaroson and Partnership Limited, and Core Consulting Engineering Plc. The US$47.7 million supervision contract for the Kano-Maradi Railway project was awarded to Techniques Engineering, Architecture Marketing Nigeria Limited. 

Top Photo: Road construction works (Bambulla | Dreamstime)