The Federal Executive Council (FEC) has approved the completion of the Enugu-Onitsha expressway by MTN Nigeria at a cost of N202.8 billion through the federal government’s tax credit program.
Babatunde Fashola, the minister of works and housing, revealed this to the press after informing them on the council meeting’s results.
President Muhammadu Buhari presided over the meeting on Wednesday in the Council Chamber of the Presidential Villa in Abuja.
“Today, we have two more. So, the first that was approved today was the one by MTN Nigeria PLC, the telecommunication company, to take over and complete the ongoing Enugu-Onitsha expressway. That road is 110km, which is being dualised,” announced Mr Fashola. “So, you have 110km times two. The outstanding works aggregate to about 91 point-something kilometres on both sides if you accumulate it for those who use the road.”
The minister added that the Enugu-bound section “has been largely completed, but there’s a lot of work to be done on the Onitsha section.”
He claims that the policy will enable MTN to receive a consistent and continuous flow of financing until the project is finished. The amount approved is N202,887,436,672,11 billion to finish the unfinished work on an aggregate of 91.9km on both sides.
The minister also revealed that a similar tax credit program was used by the council to authorize the reconstruction of Umuchi-Ususu-Umueme GZ Industries Road in Abia by the GZ Industries corporation at a cost of N4.2 billion.
“The second memo also was under the tax credit scheme, and while the first one was related to the road linking Anambra and Enugu states, this one is with respect to a road in Abia. Now the road is called Umuchi-Ususu-Umueme GZ Industries Road in Abia,” Mr Fashola further stated.
The minister further clarified that GZ Industries will benefit from the permission in the private sector.
“GZ Industries manufactures aluminium cans for bottling drinks. They have a factory in Agbara in Ogun, and they have another one in Abia in this area. So, it’s a link road to their factory,” said Mr Fashola. “The approval was for N4.205,454,855 billion. The road is a 3.7km road. So it’s an access road to their industry. Council approved both memoranda.”