Dangote Group, the Nigeria
Liquefied Natural Gas Limited (NLNG), and four other companies have joined in
on the federal government drive to build infrastructure across Nigeria.
The companies, which also
includes Lafarge Africa Plc, Unilever Nigeria Plc, Flour Mills of Nigeria Plc,
and China Road and Bridge Corporation Nigeria Limited, will build 19 roads,
totaling 794.4km in 11 states across each of the six geopolitical zones of the
country.
This is made possible with the
signing of executive order 007 2019, which was signed by President Muhammadu
Buhari to allow private companies construct and refurbish roads across the
country.
Following the order, the
two-year-old Nigeria Industrial Policy and Competitiveness Advisory Council
(Industrial Council) has chalked a landmark achievement in accelerating
infrastructure development for economic growth.
Zainab Ahmed, the minister of
finance, who listed the roads at the signing ceremony said the scheme is the
outcome of efforts to think outside of the box and deploy new techniques to
develop critical road infrastructure in the country.
THE EXECUTIVE ORDER
The executive order is a Road
Infrastructure Development and Refurbishment Investment Tax Credit Scheme that
enables the federal government of Nigeria leverage private sector funding for
the construction or refurbishment of eligible road infrastructure projects.
It focuses on the development of
eligible road infrastructure projects in an efficient and effective manner that
creates value for money through private sector discipline; and guarantees
participants in the scheme timely and full recovery of funds provided for the
construction or refurbishment of eligible road infrastructure projects through
tax credits.
This executive order is one of
the initiatives midwived by the Policy and Regulation Subcommittee of the
Industrial Council, which is focused on implementing initiatives to incentivize
investment; and reduce smuggling.
Industrialists in the council
expressed their willingness to intervene in road rehabilitation and
construction in their areas of operation in a thorough and transparent process
that ensures the cost of construction/rehabilitation can be recouped, the Federal
Ministry of Finance had conceived the idea. It promptly proposed the scheme for
the Industrial Council to develop.
The Scheme is widely viewed by
stakeholders who have been engaged in the public and private sectors as a
quick-win in road construction and enjoys wide-spread acceptance as a means of
accelerating growth within industrial clusters.
DANGOTE: THIS WILL SAVE GOVT
BILLIONS
In his speech at the signing
ceremony, Aliko Dangote, president and CEO of Dangote Group, stated that, “the
impact is huge because it will allow private sector to use their capital, their
know-how and also their efficiency in terms of delivering roads in time and the
Nigerian government will be saving billions of naira.”
The Federal Executive Council
approved the Industrial Council in March 2017 as a vehicle for partnering with
the private sector on the industrialisation agenda to address key hindrances to
the growth of manufacturing in the country.
The council, chaired by
Vice-President Yemi Osinbajo, aims to increase the contribution of the
manufacturing sector to gross domestic product and establish Nigeria as the
manufacturing hub for Africa by implementing initiatives aimed at accelerating
industrialization by leveraging private sector expertise and capital.
Okechukwu Enelamah, minister of
industry, trade, and investment, who is one of its vice chairmen of the
council, explained that, “the council’s mandate is to assist the government in
implementing initiatives that will enhance the performance of the industrial
sector through partnerships with the private sector.”
The leadership of the Industrial
Council consists of Vice-President Yemi Osinbajo (Chairman); Enelamah
(vice-chairman, public sector); Aliko Dangote (vice-chairman private sector);
Aisha Abubakar, minister of state, industry, trade and investment, (Alternate
vice-chairman, public sector); and Atedo Peterside (alternate vice-chairman,
private sector).
Other infrastructure initiatives
which the Industrial Council is facilitating their implementation include the
ongoing the deployment of 18,000 KM of fibre across the country to improve
broadband penetration; and the generation of additional 4.2GW of power to the
national grid.
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