FEC okays N169b private sector investments in road infrastructure

YEMIE FASH

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FEC okays N169b private sector investments in road infrastructure

The Federal Executive Council (FEC) yesterday approved N169 billion private sector investments for road infrastructure through the government’s Tax Credit Scheme.

Minister of Works and Housing, Babatunde Fasola, made this known to State House correspondents after the week’s virtual FEC meeting, which was presided over by President Muhammadu Buhari, at the Presidential Villa, Abuja.

He recalled that the scheme was initiated in 2019 through Executive Order 7 signed by President Buhari, allowing private sector to finance public infrastructure in lieu of tax and then offset it over time using tax credits.

Under the scheme, FEC approved the 234-kilometre road from Bali to Sheti through Gashaka to Gembu in Taraba State at the sum of N95,232,474,010.72.

Fashola said an existing N20 billion under NNPC Tax Credit Scheme would be used to kick-start the project.

“The second road, which is also the tax credit scheme, which was approved by Council, is actually three roads. The applicant in this case is Mainstream Energy Solutions, a major energy player in the country now seeking to also participate in this policy by investing a total of N74,486,577, 050,” he said.

Also briefing, on behalf of his counterparts in Aviation, Power and Agriculture, the Minister of Information and Culture, Alhaji Lai Mohammed, said the Council approved the sum of N3,491,622,340 for the purchase of a property in Abuja for the Ministry of Aviation.

He said when acquired, the property would enable the ministry to bring its agencies together in a single location.