The Federal Executive Council (FEC) on Wednesday gave National Petroleum Company of Nigeria (NNPC) Limited agreement to invest N1.9 trillion in the reconstruction of 44 federal roads.
The council gave its approval in a meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
The spokesperson of the vice president, Laolu Akande, made this disclosure while speaking to State House correspondents on behalf of the Minister of Works and Housing after the meeting.
Mr. Akande noted that the FEC approved the recommendation to invest in the reconstruction of selected federal roads under the Road Infrastructure Development and Refurbishment Federal Investment Tax Phase 2 by the Nigerian National Petroleum Corporation (NNPC) Limited and its subsidiaries.
“Therefore, the council approved the proposal by the Ministry of Works and Housing for the reconstruction of 44 proposed federal roads with a total length of 4,554 kilometers at a total cost of N1.9 trillion,” he said.
He noted that the council also approved the concession of nine federal roads, spread across different states.
In 2019, President Muhammadu Buhari signed executive order No. 7 on road infrastructure development and improvement investment tax credit scheme. The scheme allows the federal government to use the capital and efficiency of the private sector for the construction, improvement and maintenance of critical road infrastructure in key economic areas of the country.
On Wednesday, Mr. Akande said following the issuance of the Full Business Case (FBC) compliance certificate required by the Infrastructure Concession Regulatory Commission (ICRCN), the FEC also approved a 25-year concession for nine road corridors in the pilot phase of road construction and management initiatives.
“The roads that will be in this first phase are Benin-Asaba corridor, Abuja-Lokoja-Onitsha-Owerri-Aba-Shagamu-in Benin, Abuja-Keffi-Akwanga-Lafia-Makurdi, Kano-Maiduguri, Enugu-Port Harcourt. , Lagos-Ota-Abeokuta, and Lagos-Badagry-Seme,” he said.
Mr. Akande added that the ministry of works and housing also got council approval to extend the contract for the rehabilitation of Oshogbo-Ilesha road, phase one, in Ilesha-Oshogbo, Osun state.
The contract was awarded to Messers Orizon construction company for the sum of N1.2 billion, he explained, adding that the outstanding contract amount was revised from N3 billion to N4 billion, which represents a 33 percent increase from the original amount.
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