The Nigerian National Petroleum Company (NNPC) Ltd has earmarked additional funding of over N1 trillion for critical road projects in the country under the phase two of federal government’s road infrastructure tax credit scheme.
Group chief executive officer of the NNPC Ltd Mallam Mele Kyari disclosed this yesterday during the tour of on-going work being done in the Lambata-Bida Road project in Niger State.
Mr Kyari and other top management of the oil company and members of NNPC board, officials from the Federal Inland Revenue Service led by its executive chairman Muhammad Nami, and top officials in the ministry of works as well as other critical stakeholders also inspected the Agbara-Badagry road project in Lagos State.
Kyari said the additional N1 trillion being planned under the road infrastructure tax credit scheme is coming about 14 months after the national oil company expressed interest to invest in the reconstruction and rehabilitation of selected federal roads in order to sustain a smooth supply and distribution of petroleum products across the country.
The road construction project is being executed under the tax credit scheme being funded by the NNPC through the FIRS in accordance with President Muhammadu Buhari’s executive order 007. Under the initial programme, the NNPC is constructing a total of 1,804.6 kilometres of roads at a total cost of N621 billion.
Speaking during the tour, Kyari said the NNPC understands the importance of road infrastructure to the development of the Nigerian economy, adding that this was why massive investments is being made in that area for the benefit of Nigerians.
He described the tax credit scheme as a game changer in the federal government’s quest to scale up infrastructure projects in the country, noting that the NNPC will continue to support any effort of government aimed at growing the Nigerian economy.
Kyari expressed satisfaction with the progress of work so far done in the project sites visited, adding that the NNPC has done its part in releasing all the funds needed for their execution. The NNPC boss said, “We are very happy about the state of this road development. We are very happy with this intervention across the country not just in this place.
“We are doing 1,800km across the country. We are taking another set of over N1trn of investments in road infrastructure in the country. We believe that this tax credit system which Mr President has put in place is the game changer for our country.
“We are not stopping at this we are also going ahead on Phase 2 which will enable further over a trillion naira in investment by NNPC in road infrastructure.
“We believe that the intervention will bring change to our country, and bring infrastructure close to our people and enable the utilisation of tax revenues appropriately in a manner that will benefit everyone of us in the country.”
He said the projects are being implemented with the consultant which President Buhari used when he was the chairman of Petroleum Trust Fund. He expressed optimism that with the experience of the consultant, quality roads will be delivered to Nigerians through the project.
“This is the best framework for delivering infrastructure in the country. We are funding partners. We are development partners and enablers. So, whatsoever the FIRS and the Ministry of works approve for us, we will consider from our cash flow and fund them.”
Also, Etsu Nupe, Alhaji Yahaya Abubakar, expressed delight for the road rehabilitation.
He noted that that Lambata-Bida Road is very important to the economic development of the country as it is a major link road to many states of the federation.
“From Lagos, through Ilorin to Bida, Lapai, Aggai, to Abuja. The same road also connects to Kaduna, Kano and other northern states. We thank Mr President for the process put in place for the road to be rehabilitated.” He expressed appreciation to FIRS for providing opportunity for cooperation and collaboration from companies to fix road infrastructure in the country.
Abubakar however called for expedited actions to ensure the completion of the Lambata-Bida Road before the end of the current administration between now and March next year.
The Etsu Nupe however, appealed that bypasses should be constructed in and out of Lapai, Aggai and Bida ease the heavy vehicular traffic on road. He also appealed that attention should be given to the Aggai-Katcha-Baro Road due to the economic importance of Baro because of plans to reestablish Dry Port.
On his part, the director, Roads, Ministry of Works, Engr Folorunso Esan, hailed the NNPC for its intervention on critical road infrastructure in the country. Specifically, he said through the intervention, the NNPC has been able to improve the pace of the project from ten per cent to about 40 per cent within a very short period of time.
He said, “From what we can see, the intervention from NNPC has taken this project from 10 per cent to 40 per cent in a very short time. “And we have achieved a lot and you can see that the construction is still ongoing and what they have done already is quality work which everyone has attested to. And they are ready to complete this project with the funding available.”
Nami noted that it has taken over 40 years for the to be fixed by the federal government through the NNPC under the infrastructure tax credit scheme, saying that the same road will facilitate movement of goods and products, particularly distribution of petroleum products seamlessly across the country.
He appreciated NNPC and tax paying companies for participating in the scheme and enjoined other tax payers to key into the initiative to develop other infrastructure in the country adding that through this
“We encourage other tax payers to key into this executive order 007 because through this we are able to fix roads move people, move products from one destination to the other, create economic activities, add value to people’s lives and continue to create wealth for our country.”
General secretary of the Nigeria Union of Petroleum and Natural Gas workers (NUPENG), Afolabi Olawale, said the union is delighted to see the progress of work on the road. He recalled that it was as a result of their agitations that this intervention came about. He hoped that there will be consistency in fulfilling what NNPC promised to do.
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