The Nigeria Industrial Policy and Competitiveness Advisory Council (Industrial Council) recently achieved a landmark in accelerating infrastructure development for economic growth in the country.
This milestone was reached following the signing of the Road Infrastructure Development and Refurbishment Investment Tax Credit Executive Order by President Muhammadu Buhari.
What is this Order?
This Order allows the Federal Government of Nigeria to leverage funding for private companies to construct and refurbish eligible road infrastructure projects. Focus is placed on the development of efficient and effective eligible road infrastructure projects that create value for money. These projects must guarantee participants in the scheme a timely and full recovery of any funds provided.
This Executive Order is one of the initiatives that was “midwifed” by the Policy and Regulation Subcommittee of the Industrial Council (which is focused on implementing initiatives to incentivise investment and reduce smuggling).
The Council, chaired by Osinbajo, among others in government, aims to increase the contribution of the manufacturing sector to Gross Domestic Product. It also aims to establish Nigeria as the manufacturing hub for Africa.
What does the project entail?
Six companies will construct 19 roads covering 794.4km in 11 states across each of the six geo-political zones in the pilot phase. This includes:
How did this project come about?
Industrialists in the Council had expressed their willingness to intervene in road rehabilitation and construction in their areas of operation. The criteria for this construction was that it needed to be a transparent process that would ensure that the cost of construction/rehabilitation could be recouped.
What will the project mean for Nigerians?
This project will ultimately help significantly in ensuring that Nigeria is able to deploy new techniques that will result in the development of critical road infrastructure for the country.
Ultimately, as noted by President and CEO of Dangote Industries Limited, Aliko Dangote, “It will allow the 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.”
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