N202.8 billion Enugu-Onitsha Road Construction To Be Taken Over By MTN
The federal executive council (FEC) has approved MTN Nigeria’s takeover of the Enugu-Onitsha expressway construction work for N202.8 billion under the road infrastructure tax credit (RITC) scheme.
The minister of works and housing, Babatunde Fashola, stated this to journalists after the council meeting, which was presided over by President Muhammadu Buhari, on Wednesday.
He stated that the approval was in accordance with Buhari’s executive order 7 signed 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 or by Obajana to Kaba, Apapa-Oshodi, Oshoki-Ojota Expressway, the Bodo-Bonni expressway in Port Harcourt, about a 1000 kilometers 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 dualization of the 110-kilometer 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.
Participants will be entitled to utilize the total cost (project cost), incurred in the construction or refurbishment of an eligible road as a tax credit against their future Companies Income Tax (CIT) liability until full cost recovery is achieved.
In August 2021, MTN announced plans to reconstruct the Enugu-Onitsha expressway, under the RITC.
A year later, the Federal Inland Revenue Service (FIRS) said it issued a N37.28 billion tax credit certificate to Nigeria Liquefied Natural Gas (NLNG) Limited for the construction of the Bonny-Bodo road in Rivers state.