The Federal Government on Thursday approved N1.535 trillion under the Phase 2 of the Nigerian National Petroleum Company Limited (NNPCL) Tax Credit Scheme for funding of critical infrastructure projects in the country.
This disclosure was contained in the Federal Executive Council’s (FEC’s) brief at the end of its meeting at the Presidential Villa Abuja
The NNPCL had earlier this year disclosed that it invested N1.9 trillion in the second phase of the tax credit scheme for infrastructure development but the FEC approved that the next projects of the scheme would cover 11 federal roads.
The FEC brief stated: “The Federal Executive Council yesterday approved the construction and rehabilitation of 11 Federal Roads, totalling 737.242km in the sum of N1.535 trillion under Phase 2 of the NNPC Limited Tax Credit Scheme.
In addition, the Council also approved the award of a contract for the purchase of 13 ambulances with in-built emergency medical facilities for selected Federal Unity Colleges; the construction and furnishing of the Senate Building, comprising four suspended floors; and for the Federal University of Health Sciences, Ila-Orangun, Osun State.
NNPCL’s Group CEO, Mr. Mele Kyari, had hinted during the implementation of the scheme’s Phase 1 that the company was committed to investing N1.9 trillion for the second phase
He said: “Clearly as you recall we have done phase 1 and funding has been steady, we are now committed to a second phase of N1.9 trillion and we are also committed to setting aside funds to fund the contractors including any necessary mobilization that could be required.
What is important for us is that our consultants will have to validate the value for money and the quality of work that you’ve done on these roads”, Kyari added.
According to him, the company will ensure good quality standards of the roads approved under the second phase, citing the quality of the projects handled under the first phase to justify his promise.
Kyari explained: “I think that our road users alluded to the fact that they have seen extensive quality work being done on the roads that have been assigned during phase 1.
“We want the same quality to be maintained because of the execution of the roads under phase 2, and speaking of execution is very important because the funds are available and therefore there should be no excuse”, he assured.
The Federal Government’s Road Infrastructure Tax Credit Scheme allows companies with high tax profiles to construct roads in mutually agreed terms with the government to provide the infrastructure as substitute for direct payment of their tax liabilities.
