The Federal Executive Council (FEC) has approved a N158 billion contract for the construction of service lanes connecting the Lekki Deep Sea Port through Epe to the Shagamu-Benin Expressway.
The project will be handled by Dangote Industries under the Federal Government’s Road Infrastructure Development Fund and Refurbishment Investment Tax Credit Scheme.
This approval was one of the major resolutions from the FEC meeting, presided over by President Bola Tinubu in Abuja on Monday, as contained in a statement posted on the official X (formerly Twitter) account of Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy.
“The council approved the N158 billion contract to construct service lanes for the Lekki Deep Sea Port through Epe to Shagamu-Benin Expressway. Dangote Industries will be awarded the contract under the Federal Government Road Infrastructure Development Fund and Refurbishment Investment Tax Credit Scheme,” the statement read in part.
The planned service lanes, set to pass through Epe to the Shagamu-Benin Expressway, are expected to significantly reduce traffic congestion within Lagos, particularly with the concentration of industries in the Lekki Free Trade Zone. Once construction begins, the project will facilitate smoother movement of goods, easing pressure on Lagos’ internal road networks and improving connectivity to other regions.
The Dangote Group, one of the leading private sector giants in Nigeria, benefits from reduced tax liabilities by undertaking public projects that contribute to national development.
Under the Federal Government’s Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, companies like Dangote Industries can receive tax credits in exchange for funding and completing public infrastructure projects, allowing them to “pay” for the project through future tax deductions.
As of August 2024, nine major road projects across the country were being funded by Dangote Group under this scheme, according to a review by the Ministry of Works.
These projects include:
With the recent FEC approval of the construction of service lanes from the Lekki Deep Sea Port through Epe to the Shagamu-Benin Expressway, the number of road projects being handled by Dangote Group has now risen to ten, making it the top private sector player in the scheme.
Comparatively, BUA Group is handling seven road projects, Mainstream Energy Solutions is overseeing three, and MTN is responsible for one.