Dangote Industries Limited, along with five other major firms, is set to invest in 19 road projects in Nigeria. This is in accordance with the Executive Order 007 2019, signed by President Muhammadu Buhari last Friday.
The new order, known as “Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme”, allows private companies to construct federal roads across the country and be repaid in the form of tax credit.
Nigeria’s Minister of Finance, Zainab Ahmed, will chair the 13-member scheme’s management committee of various road and bridge projects under the pilot phase.
As disclosed by media aide to the minister, Paul Abechi Ella, six private sector players in the construction industry will execute the new order in the pilot phase of the scheme. Also, the 19 eligible road projects, totalling 794.4 kilometres, have been prioritized in 11 states across, each of the six geopolitical zones in the country.
Other firms investing in the pilot scheme execution include Lafarge Africa Plc; Unilever Nigeria Plc, Flour Mills of Nigeria Plc, Nigeria LNG Limited, and China Road and Bridge Corporation Nigeria Ltd.
The minister noted that one of her key priorities has been mobilizing investments in developing human capital and physical infrastructure, in line with the Buhari-led administration’s Economic Recovery and Growth Plan (‘ERGP’).
According to her, the Scheme will incentivize private sector investment in Nigerian roads across key economic corridors and industrial clusters, relieving the government of the burden of funding the initial outlays for these investments.
The Executive Order 007 (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme) is based on the demand for road projects by companies and other corporate sponsors, who are willing to deploy their own working capital and financial resources to fund projects located in the major economic corridors of the country where they have significant businesses and operations.