From Juliana Taiwo-Obalonye, Abuja

The Federal Executive Council (FEC) has granted the Nigerian National Petroleum Corporation (NNPC) approval to take over the reconstruction of 21 federal roads across the country.

This is in line with Executive Order No. 007 of 2019 cited as the Companies Income Tax (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme) Order, 2019 (“EO7 of 2019” or “the Scheme”) signed by President Muhammadu Buhari.

Dangote Group was the first to take advantage of the EO7 of 2019 to fix the Obajana-Kabba road from it’s income tax.

The National Union of Petroleum and Natural Gas Workers (NUPENG) had suspended its earlier planned nationwide strike that was to hold on October 11th to give negotiations a chance, after the NNPC warned that the strike could disrupt fuel supplies.

NUPENG had called the strike to protest against the poor state of roads in the country, saying the situation endangers the lives of drivers.

Briefing State House Correspondents at the end of the council meeting presided over by Vice President Yemi Osinbajo, Minister of Works and Housing, Babatunde Fashola, said it was a strategic intervention under the Federal Government Road Infrastructure and Refreshment Tax Credit Scheme.

He said the selected 21 roads are 1804.6 kilometers. He said nine of them are in North Central, three in North East, two in North West, two in South East, three in South-South, and two in South West.

Fashola said he presented three memoranda to the Council that were approved, explaining that two of the memoranda were on road contracts.

He said the first memorandum had to do with a section of Calabar-Ikom-Ogoja road especially the section to Apet Central where he said had a problem with steel-reinforced drain that was discovered there. 

“Those drains were put there, about 42 years ago and 86 of them have failed and we need to replace them now with concrete rain drains to allow water pass through otherwise the retention of water will badly impact the road. 

“As a result of that, we have to revise the scope of works from rehabilitation to construction in order to remove all the old steel drains  that are corroded  and replaced them with concrete drains.

“It is over 75 kilometers road and that will require an augmentation contract by an additional sum of N12 billion.  So that memo was approved.

“The second memorandum relates to the road infrastructure tax credit scheme. You recall the Executive Order seven signed by Mr. President allowing private sector operators to identify infrastructure such as roads  for which you deploy your taxes in advance with tax and pay.

Nine of those 21 roads are in North Central, particularly Niger State, three in the North East, two in the North West, two in the South East.

He explained that the payment for total sum for the 21 road contracts was not a one-off payment.

Also briefing, Minister of Power, Aliyu Abubakar said he  presented three memos which sought approval for the award of contract for design, manufacture, supply,  construction of 55 Kilometer Agu Akwa Umuchu 132 KVA double circuit transmission line and substation having two transformers two by 60 MVA at Umuchu Umuchu with two by 132 KV line bay extension at Agu Akwa for transmission company of Nigeria (TCN). This, according to the Minister, is between Anambra and Enugu State.

He said Council approved the contract in favour of Messrs Cartlark International Limited and has dollar and Naira components respectively to finance the project.

“The naira component is N4,044,309,380.69 inclusive of  7.5% VAT and 7.5% contingency payable to the  Central Bank of Nigeria at the prevailing exchange rate with the completion period of 34 months.  This is part of the expansion and modernisation of the TCN transmission grid and council has approved that. The second one was approval for award of contract for a procurement and supply of two “Fail Safe” 60 MVA, 132 /33KV transformers for transmission Company of Nigeria. They are protecting themselves against fire outbreak.”