NNPC gets Nigerian govt’s approval to deploy N621.2bn tax liabilities on road projects

The Federal Executive Council (FEC) on Wednesday gave the Nigerian National Petroleum Corporation (NNPC) the approval to deploy its N621.2 billion tax liabilities on road projects across the six geopolitical zones in the country.

The Minister of Works and Housing, Babatunde Fashola, disclosed this to State House correspondents at the end of the FEC meeting presided over by Vice President Yemi Osinbajo in Abuja.

Fashola said the roads would cover a total distance of 1,804.6 kilometres.

He said Executive Order 7 signed by President Muhammadu Buhari last year allowed the private sector operators to identify infrastructure which they would deploy in advance the taxes that they should have paid to the government coffers.

He said: “You recall that I had briefed you here about the use of that policy by the Dangote Group on the Obajana to Kabba and Apapa to Oworonshoki.

“Earlier this year, there were five other roads, the Kaduna Western Bye-pass, the Lekki Port Road, the road from Sagamu through Papalanto, and a couple of others like that.

“So, today we have another player; we have other interested players who are showing interest but we haven’t concluded.

“But we have another player who has shown interest and committed to deploy taxes and it is the NNPC.

READ ALSO: Nigerian govt approves N38.4bn for road projects in Anambra, Bayelsa, three others

“So NNPC has identified 21 roads where it will deploy some of its tax liabilities.”

The minister said the instructive thing about the initiative was that it would help the government to achieve the Ministerial Mandate Three and Four discussed at the recent retreat.

He said the Ministerial Mandate Three was energy sufficiency in electric power and petroleum energy distribution across the country.

Fashola added: “The petroleum energy distribution is being impacted positively and negatively by the transport infrastructure, which is the Ministerial Mandate Four.

“So, NNPC has sought and council has approved today that NNPC deploy tax resources to 21 routes covering a total distance of 180.6km across the six geopolitical zones.

“Out of those 21 roads, nine are in the North-Central, particularly Niger State; and the reason is that Niger State is a major storage centre for NNPC.’’

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