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FEC approves tax resources for construction of 21 roads by NNPC

The Federal Executive Council (FEC) has approved the deployment of tax resources for the construction of 21 roads across the country by the Nigeria National Petroleum Corporation (NNPC). This was disclosed yesterday by the Minister of Works and Housing, Babatunde Fashola, who briefed newsmen after the weekly virtual Council meeting chaired by the Vice President, Yemi Osinbajo at the Presidential Villa.

This is in line with Executive Order No. 007 of 2019 cited as the Companies Income Tax (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme) Order, 2019 (‘EO7 of 2019’ or ‘the Scheme’), signed by President Muhammadu Buhari. Recall the National Union of Petroleum and Natural Gas Workers (NUPENG) had suspended its earlier planned nationwide strike that was to hold on October 11 to give negotiations a chance, after the NNPC warned that the strike could disrupt fuel supplies.

NUPENG had called the strike to protest against the poor state of roads in the country, saying the situation endangers the lives of drivers. It could also be recalled that similar EO7 concessions were granted to Dangote Group of Companies to use its tax resources to construct Obajana-Kabba road. According to Fashola, the NNPC would be deploying its tax resources for the construction of 1,804.6 kilometres of roads across the country. Fashola said nine of the roads are located in the North Central, particularly Niger State, because it represents the centre for the NNPC.

Others are distributed across the country. The minister explained that with the takeover of the federal roads by the NNPC, the road contract would no longer have finances issues caused by insufficient budgetary allocations. Fashola equally disclosed that the Council approved the sum of N12 billion for the replacement of steel-reinforced drains on Calabar-Ikom- Ogoja road.

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