MTN Gets FG Approval to Repair Enugu-Onitsha Road Under Tax Credit Scheme
PMB
By Onyinye Apeh
The telecommunications giant, MTN Nigeria, is to repair the Enugu-Onitsha Expressway under tax credit arrangement with the federal government.
The repair according to the by the Ministry of Works and Housing Minister, Babatunde Fashola, is to cost N202.8 billion.
Fashola told newsmen that the approval followed a memorandum sent to the Federal Executive Council (FEC) by his Ministry approved at Wednesday’s meeting presided over by President Muhammadu Buhari/
He said that MTN will complete the dualisation of the 110-kilometer road.
Fashola also disclosed that the FEC approved the Umuchi-Ususu-Umueme GZ Industries Road in Abia to be constructed by GZ Industries equally under the Tax Credit Scheme at the cost of about N4.2 bn.
He told newsmen, “So we, the Ministry of Works and Housing, presented two memoranda and they are largely Public Private Partnership (PPP) based memoranda and I will explain how.
“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 private sector to invest tax liabilities in advance in infrastructure, and that policy has helped us to finance roads like or by Obajana to Kaba, Apapa-Oshodi, Oshodi-Ojota Expressway, the Bodo-Bonni expressway in Port Harcourt, about 1,000 kilometers covering 21 roads under the NNPC investment. So, there is increase optic for that policy. So, today we have two more.
“So, the first that was approved today was the one by MTN Nigeria Plc, the telecommunication company to take over and complete the ongoing Enugu-Onitsha Expressway. That road is a 110 kilometres, which is being dualised. So, you have 110 kilometers times two.
“The outstanding works aggregate to about 91 point something kilometers on both sides, if you accumulate it for those who use the road.
“You will see that the Enugu bound section has been largely completed but there’s a lot of work to be done on the Onitsha section.
“So, this policy is going to allow a steady and sustained stream of funding to completion by MTN and the amount approved is N202,887,436,672,11 billion to complete the outstanding works of an aggregate of 91.9 kilometers on both sides.
Anambra and Enugu states, this one is with respect to a road in Abia state.
“Now, the road is called Umuchi -Ususu Umueme GZ Industries Road in Abia. The private sector beneficiary of the approval is a company called GZ Industries. GZ Industries manufactures aluminium cans for bottling drinks. They have a factory in Agbara in Ogun state and they have another one in Abia in this area. So, it’s a link road to their factory.
“The approval was for N4,205,454,855,26 billion. The road is a 3.7 kilometer road. So it’s an access road to their Industry. Council graciously approved both memoranda.”
The telecommunications giant, MTN Nigeria, is to repair the Enugu-Onitsha Expressway under tax credit arrangement with the federal government.
The repair according to the by the Ministry of Works and Housing Minister, Babatunde Fashola, is to cost N202.8 billion.
Fashola told newsmen that the approval followed a memorandum sent to the Federal Executive Council (FEC) by his Ministry approved at Wednesday’s meeting presided over by President Muhammadu Buhari/
He said that MTN will complete the dualisation of the 110-kilometer road.
Fashola also disclosed that the FEC approved the Umuchi-Ususu-Umueme GZ Industries Road in Abia to be constructed by GZ Industries equally under the Tax Credit Scheme at the cost of about N4.2 bn.
He told newsmen, “So we, the Ministry of Works and Housing, presented two memoranda and they are largely Public Private Partnership (PPP) based memoranda and I will explain how.
“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 private sector to invest tax liabilities in advance in infrastructure, and that policy has helped us to finance roads like or by Obajana to Kaba, Apapa-Oshodi, Oshodi-Ojota Expressway, the Bodo-Bonni expressway in Port Harcourt, about 1,000 kilometers covering 21 roads under the NNPC investment. So, there is increase optic for that policy. So, today we have two more.
“So, the first that was approved today was the one by MTN Nigeria Plc, the telecommunication company to take over and complete the ongoing Enugu-Onitsha Expressway. That road is a 110 kilometres, which is being dualised. So, you have 110 kilometers times two.
“The outstanding works aggregate to about 91 point something kilometers on both sides, if you accumulate it for those who use the road.
“You will see that the Enugu bound section has been largely completed but there’s a lot of work to be done on the Onitsha section.
“So, this policy is going to allow a steady and sustained stream of funding to completion by MTN and the amount approved is N202,887,436,672,11 billion to complete the outstanding works of an aggregate of 91.9 kilometers on both sides.
Anambra and Enugu states, this one is with respect to a road in Abia state.
“Now, the road is called Umuchi -Ususu Umueme GZ Industries Road in Abia. The private sector beneficiary of the approval is a company called GZ Industries. GZ Industries manufactures aluminium cans for bottling drinks. They have a factory in Agbara in Ogun state and they have another one in Abia in this area. So, it’s a link road to their factory.
“The approval was for N4,205,454,855,26 billion. The road is a 3.7 kilometer road. So it’s an access road to their Industry. Council graciously approved both memoranda.”
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