The Federal Executive Council on Wednesday approved N169.72bn private sector investments for road infrastructure through the Tax Credit Programme.
The Minister of Works and Housing, Babatunde Fashola, said the programme was initiated in 2019 through Executive Order 7 which allowed the private sector to finance public infrastructure in lieu of tax and then offset it over time using tax credits.
According to Daily Post reports, Fashola said the first project approved based on the policy was the 234-kilometer road from Bali to Sheti through Gashaka to Gembu in Taraba State at the sum of N95,232,474,010.72.
He said an existing N20bn under NNPC Tax Credit Scheme would be used to kick start the project immediately.
“The second road which is also the tax credit scheme, which was approved by Council is actually three roads. The applicant in this case is Mainstream Energy Solutions, a major energy player in the country is now seeking to also participate in this policy by investing a total of N74,486,577, 050,” he said.
Also, The Minister of State for Budget and National Planning, Clement Agba, said the council approved the Phase 3 of the Lighthouse programme on digital infrastructure of voluntary assets and income declaration scheme bids and tax harmonization normalization analytics and application program interface.
He said the programme focused on the debt recovery module, corporate profiling engine as a government gateway, the project Lighthouse website, federal government revenue performance management module and capacity building.
Agba said with the Phase 1&2, the government had been able to recover N5bn from contractors.
On his part, The Minister of Information and Culture, Lai Mohammed, said the council approved N3,491,622,340 to enable the Ministry of Aviation to purchase a property to be used as its main office at Plot 426, Cadastral Zone, opposite the Corporate Affairs Commission.
He said the council also approved the award of contract for the establishment and deployment of Advanced Report Generation Utility Engine web-based reporting tools in favour of Msssrs Sinecon Limited in total sum of N553, 575, 000, inclusive of 7.5% with a delivery period of 12 months.
He added that the technology would aid the Accident Investigation Bureau (AIB) to be able to establish and develop the advanced reports generation system.
For the Ministry of Power, Mohammed said council approved the upward review of the original contract sum in respect of the construction of Yola, Song, Gombe, Mubi, Gulako 132 KV double circuit 232km transmission line, stressing that it was crucial to the ability of the Transmission Company of Nigeria to will power generated by the GENCOs.
“The contract has been awarded before, but due to paucity of funds and additional obstacles, it has to be reviewed from the original $16m plus N1.248bn to now the same $16,698,000, but N2,337,643,640,” he said.
The minister said FEC also gave a nod for the repair and refurbishment of defective nine sets of 330 KV, 13 sets of 132 KV and 26 sets of 33 KV Crompton grips circuit breakers for the Transmission Company of Nigeria at N409,089,841, adding that it was to aid the TCN network
“Some of these circuit breakers are weak, having been there for more than 35 years,” he said.