The Minister of Works and Housing, Mr. Babatunde Raji Fashola, SAN, Tuesday, said the Federal Executive Council approved Phase II of the NNPC/ Road Infrastructure Tax Credit Scheme will ensure steady completion of the road projects across the country.
The FEC had two weeks ago approved an additional N1.9trn to reconstruct 44 roads across the country under the phase two of the scheme.
Fashola, who while speaking at a press briefing in Abuja where all the stakeholders, including NNPC, FIRS and contractors were in attendance, said the NNPC Tax Credit Scheme will also ensure the sustainability of funding critical infrastructure in Nigeria.
He said contrary to the past administration, the administration of President Muhammadu Buhari had identified alternative sources of funding that would guarantee sustainability from the beginning of the projects to its completion without hitches.
The minister explained that the scheme is a new model that encourages partnership with private companies where taxes are paid in advance to enable the government to invest in notable projects that would be beneficial to its citizens like what is going on in the road sectors of the economy.
He also disclosed that roads like Akure – Ado –Ekiti and East-West which people have been complaining about would be adequately catered for with the approval of the second phase of the NNPC Tax Credit Scheme.
Fashola, however, declared that compensation would not be paid to anyone occupying the government’s right-of-way, and appealed to members of the communities occupying it to vacate.
Also speaking, the Group Managing Director of the Nigerian Petroleum Development Company Limited, Mr. Mele Kyari, assured of the prompt release of projects under the scheme, saying that the company was committed to fully funding phase II.
Represented by the company’s Chief Financial Officer of the Corporation, Umar Aliya, Kyari said: “We are committed to setting aside funds for phase II. Funding would not be a problem. What is important to us is that our consultant will need to validate the value for money and the quality of work. We will not compromise the quality and timely completion of work.“
On his part, the Executive Chairman of the Federal Inland Revenue Services, Mohammed Nami, who commended NNPC for the intervention, assured that the company has the capacity to fund the phase II of the scheme.