BUHARI SIGNS EXECUTIVE ORDER 007 of 2019, TITLED: “ROAD INFRASTRUCTURE DEVELOPMENT AND REFURBISHMENT INVESTMENT TAX CREDIT SCHEME”. WHICH ALLOWS PRIVATE COMPANIES TO FUND ROAD PROJECTS

BUHARI SIGNS EXECUTIVE ORDER 007 of 2019, ON FRIDAY 25 JANUARY, 2019

The signing of this order on Friday (January 25, 2019) is another milestone recorded by Buhari led Federal Government to rapidly close the infrastructure gap left by previous administrations. Participating investors will use their funds to build infrastructure and return get incentives in the form of tax credits to reduce their corporate taxes payable to government until they recoup the value of their investments in roads and bridges.

The policy is an alternative source to fund infrastructure, including road and electricity projects.

For the records, Nigeria ranks 11th on the list of countries with the world’s worst road quality and network, according to the Global Competitive Index of 2018.

Between 2017 and 2018 Nigeria scored 2.5, worse than neighboring Cameroon which scored 2.6.

PILOT PHASE

The policy will take-off with six companies. In this pilot phase, the following six private sector companies have chosen to participate in the Scheme to construct 19 federal roads covering 794.4km under the new Executive Order 007

a) Dangote Industries Limited;

b) Lafarge Africa Plc;

c) Unilever Nigeria Plc;

d) Flour Mills of Nigeria Plc;

e) Nigeria LNG Limited; and

f) China Road and Bridge Corporation Nigeria Limited.

“The above companies (to be referred to as investors under the scheme) will be investing in the following 19 eligible road projects, totalling 794.4km which have been prioritised in 11 states across each of the six geo-political zones:

a) Construction of Ashaka-Bajoga Highway in Gombe State;

b) Reconstruction of Dikwa-GambaruNgala Road in Borno State;

c) Reconstruction of Bama-Banki Road in Borno State;

d) Rehabilitation of Sharada Road in Kano State

e) Rehabilitation of Nnamdi Azikiwe Expressway / Bypass, in Kaduna State;

f) Reconstruction of Birnin Gwari Expressway – Road in Kaduna State;

g) Reconstruction of Birnin Gwari – Dansadau Road in Kaduna State;

h) Reconstruction of Makurdi-Yandev-Gboko Road in Benue State;

i) Reconstruction of Zone Roundabout-House of Assembly Road in Benue State;

j) Reconstruction of Obajana-Kabba Road in Kogi State;

k) Reconstruction of Ekuku-Idoma-Obehira Road in Kogi State;

l) Construction of AdaviEba-Ikuehi-Obeiba-Obokore Road in Kogi State;

m) Rehabilitation of Lokoja-Ganaja Road in Kogi State;

n) Ofeme Community Road Network and Bridges in Abia State;

o) Rehabilitation of Obele-Ilaro-Papalanto-Shagamu Road in Ogun State;

p) Reconstruction of Sokoto Road in Ogun State;

q) Reconstruction of Apapa-Oshodi-Oworonshoki-Ojota Road in Lagos State;

r) Construction of Bodo-Bonny Road & Bridges across Opobo Channel in Rivers State; and

s) Rehabilitation of Benin City – Asaba Road in Edo State”.

METHOD OF APPLICATION

Any investors that is interested to participate in the scheme or take advantage of the scheme shall submit proposals (to include prospective road projects) to the government via the scheme’s management committee.

After carefully considering submissions by investors, the management committee will forward the proposals, through the chairman of the committee, to the president.

The president will then, based on the new Executive Order, select eligible road projects which will be published in an official gazette.

MEMBERS OF THE MANAGEMENT COMMITTEE

Minister of Finance, The chairman

Minister of Power, Works and Housing as its Deputy Chairman, and

The Permanent Secretary of the Federal Ministry of Finance as its Secretary.

Other members of the Management Committee are drawn from a number of relevant federal Ministries, Departments and Agencies (‘MDAs’),”

The other Representations from the MDAs are to include:

a) The Federal Ministry of Finance;

b) The Federal Ministry of Power, Works and Housing;

c) The Federal Ministry of Industry, Trade and Investment;

d) The Federal Ministry of Justice;

e) The Bureau of Public Procurement;

f) The Federal Inland Revenue Service;

g) The Nigerian Investment Promotion Commission;

h) The Securities and Exchange Commission;

i) The Infrastructure Concession Regulatory Commission;

j) The Budget Office of the Federation;

k) The National Bureau of Statistics;

l) The Nigeria Sovereign Investment Authority; and

m) The Office of the Chief of Staff to the President.

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