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Monday, October 25, 2021
NEWS

TAX CREDIT SCHEME: GLOBACOM TO RECONSTRUCT 64 KM OTA-IDIROKO ROAD IN 2022 – Fashola

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Nigeria largest indigenously-founded telecoms company, Globalcom will reconstruct 64 km Ota-Idiroko road in 2022, under Federal Government’s Tax Credit Scheme.

This was disclosed by Minister of Works and Housing, Mr Babatunde Fashola, during an inspection tour of the ongoing reconstruction of Lagos-Ibadan Expressway on Wednesday, according to the News Agency of Nigeria.

He added that the FG had no contract yet for the route, however, they were contacted by Globalcom’s management to construct the road under the new tax scheme.

“From Ota to Idiroko, we don’t have a contract there, but Chief Mike Adenuga of Globacom has offered to construct that road using the tax credit system.

“So, that has also started, they are doing the design and hopefully, by sometime early next year, they should mobilize to site.

“The real reconstruction is going to happen if we have a deal with Glo,” he said.

Fashola said that FERMA has gone to take measurements there and will move there from the end of September if the Ogun State Government does two things.

He said they will also remove all the squatters, traders and settlers on the road and help manage traffic. He added that the governor, as at last night has committed to doing that for the FG, he said.

The minister said that the Lagos-Ota-Abeokuta road contract was first awarded in the year 2000, however, the contract is now worth about N56 billion. 

“This administration has revived the contract and that is why it is fifty something billion naira because at that time when it was a lot less, they didn’t fund it,” he said.

Report gathered last month that The Federal Government said that about 794 kilometres of road have been prioritized for construction by eligible companies through Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

This came after the approval by the Federal Executive Council (FEC) for a number of key infrastructural projects to be undertaken by some companies in place of their tax obligations under the Tax Credit Scheme.

The FG identified the companies that had taken the advantage of the initiative as Dangote Industries, Unilever, Julius Berger, MTN, BUA Group of Companies, Access Bank, Transcorp Group, Lafarge and GZI Industries.

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