Nigeria Government Begins Work on Roads outlined in MOU with NNPC

The N621 billion plan will fund 21 road projects in the country.

By Chriselle Moraes on
20th June 2022

The federal government of Nigeria and the Nigerian National Petroleum Corporation Ltd (NNPC) signed a contract in December 2021 in Abuja to provide funds for the construction of critical roads across the country.

The Minister of Works and Housing, Babatunde Fashola, General Manager of International Energy Relations, Garba Hadejia, and the Executive Secretary of the Federal Inland Revenue Service (FIRS), Muhammed Manni, signed the contract with the minister signing on behalf of the federal government. 

The NNPC is financing the road construction works included in the agreement through the Road Infrastructure Tax Credit Scheme, under Presidential Executive Order 007 which is a partnership with the private sector for Road Infrastructure development in the country.

NNPC will deliver the road projects in collaboration with the Federal Ministry of Works and Housing (FMWH) and the Federal Inland Revenue Service (FIRS).

FMWH Director of Highways Construction and Rehabilitation, Folorunso Esan, confirmed that construction work on some of the projects began in February 2022. Esan inspected the ongoing work on Phase I and II of the Suleja-Minna highway and the Lambata-Lapai-Bida road in Niger State which is also under reconstruction. Both roads are among the road projects being financed under the Tax Credit Scheme agreement with the NNPC.

Esan said all contractors have adequate funds to ensure prompt delivery and avoid delays. An inspection team continuously monitors progress and accelerates ongoing work. The ministry will also conduct regular tests to make sure that the quality of construction work complies with acceptable standards.

The availability of funds is a major contributing factor to the on-time completion of roadworks. Roads such as the Suleja-Minna “dualisation”, will be completed much earlier than the scheduled January 2024. The Project Manager of Messrs Salini Nigeria Limited, Daniel Kassa said the company had been mobilised to the site at Suleja-Minna Road.

Other road projects awarded under the Executive Order 007 Tax Credit Scheme, include:

  • Dangote Cement Plc awarded tax credit certificate worth N22.3 billion to construct the Lokoja-Obajana-Kabba road connecting Kogi and Kwara states and the Apapa-Oworoshoki-Ojota road in Lagos;
  • MTN awarded tax credits to construct the 110-kilometre Enugu-Onitsha road in Anambra State;
  • Transcorp Group awarded tax credit to construct the Oyinbo-Izuoma-Mirinwayi-Oklama-Afam Road in Rivers State;
  • Access Bank awarded tax credits to construct the Oniru axis of VI-Lekki circulation road in Lagos state;
  • GZI Industries awarded tax credits to construct the Umueme village road in Abia state;
  • Mainstreet Energy awarded tax credits to construct the Malando-Garin Baka-Ngwaski Road in Niger state;
  • BUA awarded tax credits to construct the Bode-Saadu-Lafiagi road and Eyinkorin road and bridge in Kwara state.

Top Photo: Road Construction Workers working on a road at Apapa, Lagos, Nigeria (Nsikak Ekong | Dreamstime).

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