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



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

The transformed NNPC under the leadership of Malam Mele Kyari joined the league of other patriotic entities to build / renovate roads based on Executive Decree No.007 on the Tax Credit Program for Investment in the development and renovation of road infrastructure 2019.

The objectives of the plan are:

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

2. Assist the FGN in harnessing Nigeria’s resources, promoting national prosperity and an efficient, vibrant and self-reliant economy, and managing and operating the road transport sector, as well as major sectors of the economy.

3. Support the FGN to ensure that its Road Transport Infrastructure Policies are oriented towards the promotion of a planned and balanced economic development, so that the material resources of the nation are exploited and distributed in the best possible way. serve the common good good.

4. Guarantee the participants full and timely recovery of funds allocated for the construction or repair of eligible road infrastructure projects in the manner prescribed in the Executive Decree.

The National Oil Company (NOC), which reported N287.2 billion in after-tax profits in 2020 and is on track to make more profits under the Petroleum Industry Act (PIA), is ready to support government initiatives on public-private partnership. intervention by providing funds for the construction / renovation of road infrastructure projects in Nigeria.

Prior to that, NOC provided the intervention required for the supply of 50 megawatts of electricity via liquefied natural gas (LNG) powered turbines as part of the Maiduguri power project.

The NNPC has received Federal Executive Council (FEC) approval to construct 21 roads covering a total distance of 1,804.6 kilometers through the six geopolitical zones under the Infrastructure Tax Credit program.

Some program participants include:

1. Dangote Cement Plc: Granting of a tax credit certificate worth 22.3 billion naira for the construction of the Apapa-Oworonshoki-Ojota road in Lagos and the Lokoja-Obajana-Kabba road connecting Kogi and Kwara States

2. MTN: granting of tax credits for the construction of the 110 km Enugu-Onitsha road in Anambra state

3. Transcorp Group: granting of a tax credit for the construction of the Oyinbo-Izuoma-Mirinwayi-Oklama-Afam road

4. Access Bank: granting of tax credits for the construction of the Oniru axis of the VI-Lekki traffic road in Lagos State

5. GZI Industries: granting of tax credits for the construction of the road to the village of Umueme, State of Abia.

6. Mainstreet Energy: granting of tax credits for the construction of the Malando-Garin Baka-Ngwaski road

7. The BUA: granting of tax credits for the construction of the Bode-Saadu-Lafiagi road and the Eyinkorin road and bridge

8. Nigeria LNG Limited: granting of tax credits for the construction of the Bodo-Bonny bridges and road

9. The Dangote group: granting of tax credits for the construction of the Obajana-Kabba road

The main reason for the NNPC’s intervention in road infrastructure is to facilitate the efficient distribution of petroleum products across the country. According to the dispatches, nine (9) of the twenty-one (21) proposed routes are in the Center-North, in particular the State of Niger which has a strategic storage of products which serves Abuja and its surroundings. The 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.

Three routes are offered in the North-East, two in the North-West, two in the South-East, three in the South-South.

To the southwest, the proposed routes are: the Lagos-Badagry highway, the Ibadan to Ilorin in the Oyo-Ogbumosho section.

In the South-East, the main roads proposed are: Aba-Ikot Ekpene in the states of Abia and Akwa Ibom, the Umuahia road to Ikwuano to Ikot Ekpene.

In the northwest, it is the Gada-Zaima-Zuru-Gamji road and also the Zaria-Funtua-Gusau-Sokoto road.

To the northeast, it is the Cham-Bali-Serti and Gombe-Biu road.

In response to the global energy transition and decarbonization, NNPC has become Nigeria’s leading energy company with investments in gas and renewable energy. As the company moves to the PIA landscape on the path to profitability, this 621 billion naira infrastructure intervention is yet another demonstration of NOC’s support for government development initiatives.

Mr. Sanyi-Sanyi writes from Abuja

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