Tuesday, November 23, 2021

Rationalizing NNPC’s N621bn boost to road infrastructure, by Ibrahim Sanyi-Sanyi

Must read

- Advertisement -

The transformed NNPC under the leadership of Malam Mele Kyari has joined the league of other patriotic entities to construct/refurbish roads by leveraging on the Executive Order No. 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme 2019.

The objectives of the scheme are:

1. To support the Federal Government of Nigeria (FGN) in provision of adequate public infrastructure for all citizens and encourage the free mobility of people, goods and services throughout the country, to promote national integration and protect the rights of citizens to engage in legitimate economic activities concerned with the production, distribution and exchange of wealth, goods and services.

2. To assist FGN to harness Nigeria’s resources, promote national prosperity and an efficient, dynamic and self-reliant economy, and manage and operate the Roads Transportation Sector, as well as the major sectors of the economy.

3. To support the FGN to ensure that her Roads Transportation Infrastructure Policies are channelled at the promotion of a planned and balanced economic development, in such a manner that the material resources of the nation are harnessed and distributed as best as possible to serve the common good.

READ ALSO:   Nigerian Singer arrested in Uganda begins hunger strike

4. To guarantee participants timely and full recovery of funds provided for the construction or repair of eligible road infrastructure projects in the manner prescribed in the Executive Order.

The National Oil Company (NOC) which declared N287.2 billion Profit After Tax in 2020 and is on the positive trajectory to make more profits under the Petroleum Industry Act (PIA) regime, is set to support the government initiatives on Public-Private Partnership intervention by providing funds for construction/refurbishment of road infrastructure projects in Nigeria.

Prior to this, the NOC has provided the requisite intervention for provision of 50 megawatts power via the Liquefied Natural Gas (LNG) fired turbines under the Power Project in Maiduguri.

NNPC has received the nod of the Federal Executive Council (FEC) to construct 21 roads covering the total distance of 1,804.6 kilometers across the six geopolitical zones under the Infrastructure Tax Credit Scheme.

Some participants in the Scheme include:

READ ALSO:   Cybercrime: NDIC calls for national, int’l collaboration

1. Dangote Cement Plc: awarded tax credit certificate worth N22.3 billion to construct the Apapa-Oworonshoki-Ojota road in Lagos and the Lokoja-Obajana-Kabba road connecting Kogi and Kwara States

2. MTN: awarded tax credits to construct the 110km Enugu-Onitsha road in Anambra State

3. Transcorp Group: awarded tax credit to construct the Oyinbo-Izuoma-Mirinwayi-Oklama-Afam Road

4. Access Bank: awarded tax credits to construct the Oniru axis of VI-Lekki circulation road in Lagos State

5. GZI Industries: awarded tax credits to construct the Umueme village road, Abia State.

6. Mainstreet Energy: awarded tax credits to construct the Malando-Garin Baka-Ngwaski Road

7. The BUA: awarded tax credits to construct the Bode-Saadu-Lafiagi road and Eyinkorin road and bridge

8. Nigeria LNG Limited: awarded tax credits to construct the Bodo-Bonny bridges and road

9. The Dangote Group: awarded tax credits to construct the Obajana-Kabba road

The primary reason for NNPC’s road infrastructure intervention is to facilitate the effective distribution of petroleum products across the country. According to news reports, nine (9) out of twenty one (21) proposed roads are in the North Central, particularly Niger State which has a strategic products storage that serves Abuja and environs. Others are: Ilorin -Jebba-Mokwa-Bokani sections I and II, Suleja-Minna sections I and II, Bida-Lambatta, Katcha-Baro road and Mokwa-Makera-Tegina-Kaduna.

READ ALSO:   'How Gov. Ishaku used his younger sister to launder N39bn from Taraba treasury'

Three roads are proposed in the Northeast, two in the Northwest, two in the Southeast, three in South South.

In the southwest, the proposed roads are: Lagos-Badagry Expressway, the Ibadan to Ilorin in Oyo-Ogbumosho section.

In the Southeast, the major roads proposed are: Aba-Ikot Ekpene in Abia and Akwa Ibom states, Umuahia to Ikwuano to Ikot Ekpene road.

In the Northwest, it is Gada-Zaima-Zuru-Gamji road and also Zaria-Funtua -Gusau-Sokoto road.
In the Northeast, it is Cham-Bali-Serti and Gombe-Biu road.
In response to global energy transition and decarbonization, NNPC has transformed into Nigeria’s premier energy company with investments in gas and renewables. As the company transitions into the PIA landscape on the profitability trajectory, this N621 billion Intervention in infrastructure is a further demonstration of the NOC’s support to Government developmental initiatives.
Mr Sanyi-Sanyi writes from Abuja
- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

- Advertisement -
cosgrove