FEC approves MTN takeover of N203bn Enugu-Onitsha expressway project

Federal Executive Council (FEC) has approved the takeover of the Enugu-Onitsha Expressway construction valued at over by telecommunication’s firm, MTN Nigeria.

The project valued at over N202.8 billion is expected to be executed under the Road Infrastructure Tax Credit Scheme.

The decision to handover the road construction to MTN Nigeria group was a fallout of last Wednesday’s FEC meeting at the Presidential Villa, Abuja, chaired by President Muhammadu Buhari .

Speaking to State House Correspondents after the meeting, Minister of Works and Housing, Mr Babatunde Fashola said the approval followed Executive Order 7 signed by the President in January 2019, which he added would enable the telecom giant to complete the dualization of the 110-kilometer road.

Fashola also disclosed that GZ Industries has been approved to construct the Umuchi-Ususu-Umueme Road in Abia State at a cost of N4.2 billion under the same scheme.

“The Ministry of Works and Housing presented two memoranda and they are largely PPP based memoranda. On January 25, 2019, President Buhari approved Executive Order 7, which was the road infrastructure tax credit scheme, to allow the private sector to invest tax liabilities in advance in infrastructure, and that policy has helped us to finance roads like the Obajana to Kaba, Apapa-Oshodi, Oshodi-Ojota Expressway, the Bodo-Bonni expressway in Port Harcourt, about 1000 kilometers covering 21 roads under the NNPC investment.

So, there is an increased optic for that policy. Today, we have two more.

“The first that was approved is the one by MTN Nigeria Plc to take over and complete the ongoing Enugu-Onitsha Expressway. That road is 110kilometers, which is being dualised. So, you have 110kilometers times two,” the minister said.

He added that the outstanding work aggregated to over 91km on both sides. While the Enugu bound section of the road had been largely completed, more work was required on the Onitsha section, the minister explained.

“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 Abuja.

“Now, the road is called Umuchi-Ususu-Umueme GZ Industries Road in Abia. The private sector beneficiary of the approval is a company called GZ Industries. GZ Industries manufactures aluminum cans for bottling drinks. They have a factory in Agbara in Ogun State and they have another one in Abia in this area. So, it’s a link road to their factory.

“The approval was for N4,205,454,855,26.The road is 3.7km road. So, it’s an access road to their Industry Council, which approved both memoranda,” Fashola added.