The federal executive council (FEC) has approved the takeover of the ongoing construction work on the Enugu-Onitsha expressway by MTN Nigeria at a cost of about N202.8 billion, under the road infrastructure tax credit (RITC) scheme.
Babatunde Fashola, minister of works and housing, said this on Wednesday 12th of October 2022 while speaking with journalists after the council’s meeting, presided over by President Muhammadu Buhari.
He said the approval was in line with executive order 7 signed by Buhari in January 2019.
“In 2019, January 25, specifically, you might recall that President Buhari approved executive order 7, which was the road infrastructure tax credit scheme, to allow the private sector to invest tax liabilities in advance in infrastructure, and that policy has helped us to finance roads like Obajana to Kaba, Apapa-Oshodi, Oshoki-Ojota Expressway, the Bodo-Bonni expressway in Port Harcourt, about a 1000 kilometres covering 21 roads under the NNPC investment. So, there is an increased optic for that policy. So, today we have two more,” he said.
He said the telecoms giant will complete the dualisation of the 110-kilometre road.
The RITC scheme grants income tax credits to companies and individuals that provide funding for the refurbishment and rehabilitation of roads.
The scheme is a public-private partnership (PPP) intervention that enables the Nigerian government to leverage private sector capital and efficiency for the construction, repair, and maintenance of critical road infrastructure in key economic areas in Nigeria.