The Federal Executive Council (FEC) has approved MTN’s takeover of the construction of the Enugu-Onitsha Expressway at over N202.8bn under the road Infrastructure Tax Credit Scheme.

The Minister of Works and Housing, Babatunde Fashola, disclosed this to State House correspondents shortly after this week’s council meeting chaired by President Mohammadu Buhari at the Presidential Villa, Abuja.

According to Fashola, the approval followed Executive Order 7 signed by the President in January 2019.

This, he said, would enable the telecom giant to complete the dualisation of the 110-kilometer road.

Under the same scheme, the Council approved the Umuchi-Ususu-Umueme Road in Abia State for construction by GZ Industries at N4.2bn.

“So we, the Ministry of Works and Housing presented two memoranda and they are largely PPP-based memoranda and I will explain how.

“In 2019 January 25 specifically, you might recall that 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 or by Obajana to Kaba, Apapa-Oshodi, Oshoki-Ojota Expressway, the Bodo-Bonni expressway in Port Harcourt, about a 1000 kilometres covering 21 roads under the NNPC investment. So, there is increase optic for that policy. So, today we have two more.

“So, the first that was approved today was the one by MTN Nigeria PLC, the telecommunication company to take over and complete the ongoing Enugu-Onitsha Expressway. That road is 110 kilometres, which is being dualised. So, you have 110 kilometres times two.

“The outstanding works aggregate to about 91 point something kilometres on both sides, if you accumulate it for those who use the road.

“You will see that the Enugu bound section has been largely completed but there’s a lot of work to be done on the Onitsha section.

“So, this policy is going to allow a steady and sustained stream of funding to completion by MTN and the amount approved is N202,887,436,672,11 billion to complete the outstanding works of an aggregate of 91.9 kilometres on both sides.

“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 state.

“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 aluminium 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 billion. The road is a 3.7-kilometre road. So it’s an access road to their Industry Council, approved both memoranda”, he said.